nitin gaur's presentation
TRANSCRIPT
1Page© 2017 IBM Corporation© 2017 IBM Corporation
Making Blockchain Real for Business
Explained
V3.7, 27 October 16
Contents
is Blockchain?
Enterprise Design considerations?
can IBM help
us apply Blockchain?
2Page© 2017 IBM Corporation
3Page© 2017 IBM Corporation
Business networks, wealth & markets
– Business Networks benefit from connectivity
• Participants are customers, suppliers,
banks, partners
• Cross geography & regulatory boundary
– Wealth is generated by the flow of
goods & services across business
network in transactions and contracts
– Markets are central to this process:
• Public (fruit market, car auction), or
• Private (supply chain financing, bonds)
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Ledgers are key …
Ledger is THE system of record for a business.
Business will have multiple ledgers for multiple business networks in which they participate.
– Transaction – an asset transfer onto or off the ledger
• John gives a car to Anthony (simple)
– Contract – conditions for transaction to occur
• If Anthony pays John money, then car passes from John to Anthony (simple)
• If car won't start, funds do not pass to John (as decided by third party arbitrator) (more complex)
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Problem …
… Inefficient, expensive, vulnerable
Bank records
Party A’s records
Party C’s records
Auditor records
Party B’s records
Party D’s records
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Solution …
… Consensus, provenance, immutability, finality
Party C’s records
Auditor records
Party B’s records
Party D’s records
Bank records
Party A’s records
Shared, replicated, permissioned
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Blockchain for business …
Append-only distributed system of record shared across
business network
Business terms embedded in transaction database & executed with transactions
All parties agree to network verified transaction
Ensuring appropriate visibility; transactions are
secure, authenticated & verifiable Privacy
Shared ledger
… Broader participation, lower cost, increased efficiency
Smart contract
Consensus
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Contents
8Page© 2017 IBM Corporation
is Blockchain?
Enterprise Design considerations?
can IBM help
us apply Blockchain?
9Page© 2017 IBM Corporation
Blockchain vendors – Offer specialization
Each vendor – Offers specialization
– Variant trust systems – Consensus,
Mining, Proof of Work, etc.
– Lock into single trust system
– Purpose built infrastructure components
for a specialized use case
– Design being field tested in form
of POCs
– Crates fragmented blockchain models
for enterprise
RippleNetwork
Blockchain Fabric
RippleTrust System
Purpose Build Application
EthereumNetwork
Blockchain Fabric
EthereumTrust System
Purpose Build Application
Blockchain Variant Network
Blockchain Fabric
Consensus Variant
Purpose Build Application
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App A
Chain A
App B
Chain B
App C
Chain C
App D
Chain D
Inter-ledger
Inter-ledger
pBFT BFT PoW/PoS RAFT Custom
Crypto Encryption MgmtBlock / ledger
Blockchain Trust Systems
Blockchain Fabric /
Infrastructure
Hardware Considerations
ApplicationInterface
BusinessDomain
TrustIntermediary
IBMBlockchain
Platform
How can IBM Blockchain be different?
How do we differentiate?
– Open design
– Providing flexibility with pluggable and modular trust system
– Open for specialized blockchains, e.g., Ripple
– Trust intermediary – a trust system provisioning layer
– Enterprise blockchain platform concept
– Separate business domain with technology that supports it
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What would enterprise chain infrastructure look like?Integrated enterprise will need more than one specialized use case
– Driving synergies between blockchains
– Invisible blockchain infrastructure
– Inter- and Intra-enterprise connections
– Concept introduction
• Interledger
• Intraledger
– Cross the trust systems for transactions
– Fractal visibility of ledger data
– Enterprise visibility – control systems
Enterprise Chain
Infrastructure
Payments
Mortgage Initiation
Securitization
Trade Finance
Crowdfunding
Identity
Partner Enterprise / DAO
Interledger / ILP
Conditional Contracts
Conditional Contracts
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Blockchain – Transaction processing vehicle
Enterprise integration considerations
– Integration with incumbent SoR
– Compliance and regulatory requirements
– Data formats – ISO20022, EDI 820 etc.
– Blockchain to enable transaction processing, and preserve the enterprise SoR systems
– Design intent
• Path of least disruption
• Accelerate enterprise adoption
App A
Chain A
App B
Chain B
App C
Chain C
App D
Chain D
Inter-ledger
Inter-ledger
pBFT BFT PoW/PoS RAFT Custom
Crypto Encryption MgmtBlock / ledger
EnterpriseChain
Connectors
EnterpriseTransaction
System /SoR
Compliance
BI / Data / Analytics
Chain as Transaction Processing
System
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Enterprise Systems
BI / Data
Enterprise Systems
BI / Data
Vision – ‘Interprise Synergy’Enterprise chain infrastructureDesign that enables new business models
– Invisible enterprise chain
infrastructure will provide foundation
– Use of connectors, APIs to enable
incumbent systems chain aware
– Conditional contracts between
chains – ‘Interprise Synergy’
– New business (e.g., P2P
lending, crowdfunding)
solely on blockchain
Enterprise Chain
Infrastructure
Payments
Mortgage Initiation
Securitization
Trade Finance
Crowdfunding
Identity
Partner Enterprise / DAO
Interledger / ILP
Conditional Contracts
Conditional Contracts
Enterprise Systems
BI / Data
Enterprise Systems
BI / Data
Enterprise Systems
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Blockchain security – Layered approach
Trust System Layer – Consensus
Blockchain Middleware Layer
Physical – IT Infrastructure Layer
pBFT, BFT, PoS,
PoW, Ghost, Paxos,
RAFT, Custom
HSM, EAL,
Crypto Accelerator,
Private Cloud,
Isolated Network,
EAL5, etc.
Ledger, SSL, Crypto
Modules, Sub Ledger,
Encryption, ECC,
ECDSA, ECDH,
ECIES, etc.
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Enterprise Impact and Industry Impact
Meaningful issues
should revolve
around significant
costs to enterprise
and industry
Use Case Identification
BusinessBlueprint
TechnologyBlueprint
EnterpriseIntegration
Existing business process is distilled down to blockchain-based model
Reinventing the
business based on
a trust system
Technology to align with the business imperatives
Technology design
decisions and
deployment options
Integration with down stream transaction systems reflecting on critical business systems
First Project
Path to enterprise adoption
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7 design principles of sustainable
blockchain business networks
Providing network participants control of their business
Provision for an extensible business network – Flexibility in membership
Permissioned but protected network – Protecting competitive data
Open access and collaborative global network – Collective innovation
Scalability – Transaction processing and data encryption processing
Security – New security challenges of shared business network
Coexisting with existing systems of record and transaction systems
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Blockchain benefits
Savestime
Removescost
Reducesrisk
Increasestrust
Transaction time
from days to near
instantaneous
Overheads and
cost intermediaries
Tampering, fraud
& cyber crime
Through shared
processes and
recordkeeping
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Contents
18Page© 2017 IBM Corporation
is Blockchain?
Enterprise Design considerations?
can IBM help
us apply Blockchain?
19Page© 2017 IBM Corporation
Blockchain for business – Our point of view
Community + Code
Linux Hyperledger Project
Open Source Code: Blockchain for business;
Consensus | ProvenanceImmutability | Finality
Open Governance – 100 member cross industry board
Cloud
IBM Blockchain
Blockchain managed service on IBM Cloud and z Systems;
Identity | Consensus | System Integration | Hardware-assist for Performance & Security
IBM Blockchain on Bluemix
Clients
Blockchain SolutionsBlockchain Garage
Making Blockchain real for business
Blockchain Garage; New York | London | Singapore | Tokyo
Blockchain Services Practice
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Blockchain NOW
Supporting serious blockchain deployment!
Hyperledger fabric on Docker Hub
Fastest development of blockchain solutions
Certified Hyperledger fabric instances
Supported by IBM – available cross platform
High security business blockchain on Bluemix
Dedicated compute power – isolated partition
Secure key management (FIPS 140-2 Level 4)
Tamper resistant service container
Performance optimized (Operating System & Privacy Services)
Bluemix blockchain service
Fast blockchain network on Bluemix – also now China
Samples for deployment, customization & usage
Tool support for development and deployment
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Linux Foundation’s Hyperledger Project– Open Ledger Project announced December 17, 2015 with
17 founders, now over 80 members
– Hyperledger Project rebrand in February 2016
– Collaborative effort to advance Blockchain technology by
identifying and addressing important features for a cross-
industry open standard for distributed ledgers that can
transform the way business transactions are conducted
globally
– Open source, open standards, open governance
Enable adoption of shared ledger technology at
a pace and depth not achievable by any one company or industry
QUICK FACTS
Chairman Blythe Masters/DAH
Executive Director
Brian Behlendorf
Technical Chair Chris Ferris/IBM
Contribution44,000 lines of code in February 2016
Sprint to one codebase with unified thinking
Staged releases
www.Hyperledger.org
22Page© 2017 IBM Corporation 22Pag© 2016 IBM Corporation As of 07 September 2016
23Page© 2017 IBM Corporation
Engagement model overview
1. Discuss Blockchain technology
2. Explore customer business model
3. Show Blockchain Application demo
1. Understand Blockchain concepts & elements
2. Hands on with Blockchain on Bluemix
3. Standard demo customization
1. Design Thinking workshop to define business challenge
2. Agile iterations incrementally build project functionality
3. Enterprise integration
1. Scale up pilot or Scale out to new projects
2. Business Process Re-engineering
3. Systems Integration
Remote or face to face Remote or face to face Face to face Face to face
Free of charge Free of charge For fee For fee
Let’s Talk
BlockchainHands-on
First Project
Scale
24Page© 2017 IBM Corporation
HSBC, Bank of America, IDA Trade Finance - Letter of Credit
ABN AMRO Financial Restructuring & Recovery
Crédit Mutuel Arkéa Consortium Shared Ledger
Japan Exchange Group (JPX) Post Trade
Mizuho Digital Currency
IBM Global Finance Shadow Chain for Dispute Resolution
Everledger Diamond provenance
Bank of Tokyo – Mitsubishi UFJ Business Partner Contracts
CLS Bilateral netting service
UBS Digital trade finance
IBM & Hyperledger – Selected references
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Summary
Blockchain …
– is a shared, replicated, permissioned ledger technology
– can open up business networks by taking out cost, improving efficiencies and increase accessibility
– addresses an exciting and topical set of business challenges, which cross every industry
IBM …
– supports the Linux Foundation Hyperledger open standard, open source, open governance Blockchain
– has an easy to access, proven and incremental engagement model giving customers the confidence to get started NOW
© 2017 IBM Corporation
Thank you!
27Page© 2017 IBM Corporation
Further information – Use case linksHSBC, Bank of America, IDA: http://www.coindesk.com/hsbc-bank-america-blockchain-supply-chain/
ABN AMRO: https://www.abnamro.com/en/newsroom/blogs/arjan-van-os/2016/walking-the-walk-exploring-the-power-of-blockchain.html
Crédit Mutuel Arkéa: http://www.coindesk.com/ibm-completes-blockchain-trial-french-bank-credit-mutuel/
JPX: http://www.ibm.com/press/us/en/pressrelease/49088.wss
Kouvola Innovation: http://www.ibm.com/press/us/en/pressrelease/49029.wss
London Stock Exchange: http://www.ibtimes.co.uk/linux-foundation-blockchain-consortium-digital-asset-ibm-credits-london-stock-
exchange-board-1533798
Mizuho: http://www.coindesk.com/mizuho-digital-currency-powered-blockchain-settlement/
IBM Global Finance: http://www.coindesk.com/ibm-building-blockchain-dispute-resolution-system/