2 2 pataricza andras-blockchain technologiák …...as 2805 series electronic funds transfers...

Budapest University of Technology and Economics

Dept. Measurement and Information Systems

Blockchain technologies

András PatariczaBudapest University of Technology and Economics

pataric@mit.bme.hu

Budapest University of Technology and Economics

Dept. Measurement and Information Systems

Gold digging then and now?2

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Budapest University of Technology and Economics

Dept. Measurement and Information Systems

Bitcoin vs. Blockchain

I am not a miner…There is more money in cooperation

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Budapest University of Technology and Economics

Dept. Measurement and Information Systems

A distributed, collaborative production-financial system based on trust

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Budapest University of Technology and Economics

Dept. Measurement and Information Systems

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Budapest University of Technology and Economics

Dept. Measurement and Information Systems

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Budapest University of Technology and Economics

Dept. Measurement and Information Systems

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Budapest University of Technology and Economics

Dept. Measurement and Information Systems

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Budapest University of Technology and Economics

Dept. Measurement and Information Systems

BLOCKCHAIN FOUNDATIONS

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FhG meeting 2008. 6. 9.

Budapest University of Technology and Economics

Dept. Measurement and Information Systems

From replicated databases…

Database

Replica DB 1

Replica DB 2

Replica DB 3

Replica DB …

Replica DB …

Replica DB n

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C

Budapest University of Technology and Economics

Dept. Measurement and Information Systems

Blockchain=block+chain

Block • Operation• (Validated)

BlockBlock

• Operation• (Validated)

• Operation• (Validated)

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FhG meeting 2008. 6. 9.

Block: validated transaction sequence protected by a hashDistributed databasesState synchronization by simultaneous executionStrict determinism

Budapest University of Technology and Economics

Dept. Measurement and Information Systems

Blockchain 12

C. Cachin: Hyperledger Fabric V1. Workshop on Blockchain Technology and Theory,16 October 2017, Vienna: http://blockchain-workshop.net/talks/cachin.pdf

Budapest University of Technology and Economics

Dept. Measurement and Information Systems

HYPERLEDGER FABRIC V1 ARCHITECTURE

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Budapest University of Technology and Economics

Dept. Measurement and Information Systems

Hyperledger 1.014

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C. Cachin: Hyperledger Fabric V1. Workshop on Blockchain Technology and Theory,16 October 2017, Vienna: http://blockchain-workshop.net/talks/cachin.pdf

Budapest University of Technology and Economics

Dept. Measurement and Information Systems

Transaction Lifecycle15

Source: https://www.ibm.com/developerworks/cloud/library/cl-top-technical-advantages-of-hyperledger-fabric-for-blockchain-networks/index.html

Budapest University of Technology and Economics

Dept. Measurement and Information Systems

Cryptographically Tokenized Assets16

FhG meeting 2008. 6. 9.

Source: Introducing Project "Bletchley" Marley Gray, Principle Architect PM - Microsoft - Azure Blockchain Engineering

Budapest University of Technology and Economics

Dept. Measurement and Information Systems

Blockchain = Cryptographically Authentic, Shared, Distributed Ledger

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FhG meeting 2008. 6. 9.

Source: Introducing Project "Bletchley" Marley Gray, Principle Architect PM - Microsoft - Azure Blockchain Engineering

Budapest University of Technology and Economics

Dept. Measurement and Information Systems

Interaction flow-smart contracts18

FhG meeting 2008. 6. 9.

Source: Introducing Project "Bletchley" Marley Gray, Principle Architect PM - Microsoft - Azure Blockchain Engineering

Budapest University of Technology and Economics

Dept. Measurement and Information Systems

Use cases19

FhG meeting 2008. 6. 9.

Budapest University of Technology and Economics

Dept. Measurement and Information Systems

INTEROPERABILITY, LEGAL BACKROUNDREQUIREMENTS

StandardizationISO/TC 307: Blockchain and electronic

distributed ledger technologies

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FhG meeting 2008. 6. 9.

Budapest University of Technology and Economics

Dept. Measurement and Information Systems

Survey

¡ Priorities− Terminology − Privacy − Governance − Interoperability − Security − Risk

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FhG meeting 2008. 6. 9.

Budapest University of Technology and Economics

Dept. Measurement and Information Systems

Blockchain and standardsStandard FocusAS 2805 series Electronic Funds Transfers – Requirements for

Interfaces ISO 20022 seriesFinancial Services

Universal Financial Industry Message Scheme

ISO/IEC 17788/I7789 /19086Cloud Computing

Overview and Vocabulary /Reference Architecture/ SLA Framework

ISO/IEC 18384 seriesInformation Technology

Reference Architecture for SOA

ISO/IEC 27000 series Information Technology

Security Techniques

ISO 31000 seriesRisk Management

Principles and Guidelines

ISO 10962 /6166 series Securities and Related Financial Instruments

Securities and Related Financial Instruments

AS ISO/IEC 38500 Information Technology Governance of IT for the Organization

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FhG meeting 2008. 6. 9.

Budapest University of Technology and Economics

Dept. Measurement and Information Systems

Towards smart-*23

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Budapest University of Technology and Economics

Dept. Measurement and Information Systems

Governmental use24

FhG meeting 2008. 6. 9.

Budapest University of Technology and Economics

Dept. Measurement and Information Systems

ASSET MANAGEMENT

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FhG meeting 2008. 6. 9.

Budapest University of Technology and Economics

Dept. Measurement and Information Systems

IBM asset management26

FhG meeting 2008. 6. 9.Source: IBM DeveloperWorks

Budapest University of Technology and Economics

Dept. Measurement and Information Systems

Ledgers…27

FhG meeting 2008. 6. 9.Source: IBM DeveloperWorks

Budapest University of Technology and Economics

Dept. Measurement and Information Systems

Service map28

FhG meeting 2008. 6. 9.

Source: IBM DeveloperWorks

Budapest University of Technology and Economics

Dept. Measurement and Information Systems

Integrating the physical world29

FhG meeting 2008. 6. 9.

Source: IBM DeveloperWorks

Budapest University of Technology and Economics

Dept. Measurement and Information Systems

Architecture30

FhG meeting 2008. 6. 9.

Source: IBM DeveloperWorks

Budapest University of Technology and Economics

Dept. Measurement and Information Systems

TOWARDS OPEN-SOURCE

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FhG meeting 2008. 6. 9.

Budapest University of Technology and Economics

Dept. Measurement and Information Systems

Linux Foundation: Blockchain Frameworks 32

FhG meeting 2008. 6. 9.

¡ FABRIC: foundation for developing blockchain applications proposed by Tamas Blummer (DAH) and Christopher Ferris (IBM)

¡ Iroha: distributed ledger for infrastructural projects¡ Sawtooth Lake: modular blockchain suite¡ Burrow: permissionable smart contract machine.¡ COMPOSER: collaboration tool for building blockchain

business networks,¡ Blockchain Explorer: web app view/query blocks,

transactions, chain codes¡ Cello: deploying a Blockchain-as-a-Service

Budapest University of Technology and Economics

Dept. Measurement and Information Systems

PERFORMANCE BENCHMARKING ANDMODELING OF THE HYPERLEDGER FABRIC

A joint project

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End-to-endlatency– MAX/s

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Notetheextrema!

Expectedmaximum:~1.7sLargestmaximum:~2.5s

Expectedmaximum:~1.8sLargestmaximum:~2.2s

BUSINESSPROCESS EXECUTION ONBLOCKCHAIN PLATFORMS

Blockchainification”Porting existing solutions to blockchain platformsSimilar to „cloudification”

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Motivation§ Aspects ofbusinessprocesses

o High level definition ofoManaging collaborationso Between different participantso Executed in acentralized wayL

§ Aspects ofenterprise blockchain platformsoManaging transactionso According to „Smart Contracts”o Between different participantso In arobust,decentralized,secure wayJ

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Motivation§ Model driven engineering

o Higher abstraction levelso Increased productivity

• Reuse ofstandardized models• Simplifying designphase

o Increased automation during developmento Easier quality assurance

• Model validation,model checking,model-based testing

§ „

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BPMNElements

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Participants

Tasks

Data

Control flow

BPMNElements in Blockchain Platforms

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Participants

Tasks

Data

Control flow

Organizations in thenetwork

Transactions on theblockchain

Data model in the„Smart Contract”

Constraints in the„Smart Contract”

Goals§ Dedicated „Smart Contract”for abusinessprocess

o Cannot trust general execution engines• Hard to verify correctness• Unnecessary overhead• Non-trivial integration with blockchain

o Easier traceability between code andspecification

§ Automate parts ofthe implementationo Generate „boilerplate”code

• Cumbersome,error-prone to implement

o Leave only the businesslogic for manual implementation• Skeleton for businesslogic• Integration ofexisting businesslogic implementation?

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Transformation Workflow

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PetriNetModel Smart Contract Model

State Machine Model

Smart Contract Model

Smart Contract Code

BPMNModel

Transformation Workflow

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PetriNetModel Smart Contract Model

State Machine Model

Smart Contract Model

Smart Contract Code

BPMNModel

Create aBPMNmodel with anyBPMN conform tool

Transformation Workflow

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PetriNetModel Smart Contract Model

State Machine Model

Smart Contract Model

Smart Contract Code

BPMNModel

Gather the high levelcomponents ofthe model

(participants,operations,...)

Transformation Workflow

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PetriNetModel Smart Contract Model

State Machine Model

Smart Contract Model

Smart Contract Code

BPMNModel

Mapthe control flowsemantics ofBPMNelements to acommon

language (e.g.,PetriNet)

Transformation Workflow

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PetriNetModel Smart Contract Model

State Machine Model

Smart Contract Model

Smart Contract Code

BPMNModel

Construct the state machine forthe allowed execution traces(e.g.,state space exploration)

Transformation Workflow

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PetriNetModel Smart Contract Model

State Machine Model

Smart Contract Model

Smart Contract Code

BPMNModel

Merge the dynamic constraints withthe „Smart Contract”model

Transformation Workflow

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PetriNetModel Smart Contract Model

State Machine Model

Smart Contract Model

Smart Contract Code

BPMNModel

Generate „Smart Contract”skeleton for the blockchain

platform

Summary§ Blockchain

o Distributedsystemo Securityo Fault-toleranceo Interoperabilityo Throughputo Coverageofbusiness

§ THISISTHENEXTITREVOLUTION

§Cooperationasaservice48