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Blockchain on the oracle cloud, the next big thing


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What is Blockchain? Is it ‘just another’ buzzword or is it ‘the next big thing?’ In this session the presenter will discuss the world of Blockchain. What is it exactly, and how shall it change the world and what are the practical usages? During this presentation we discuss how an enterprise Blockchain can be used in combination with the Oracle Container Cloud and how it replaces commonly known B2B patterns. The audience will get a general picture of Blockchain, why and how to use it, and a small introduction to start building their own.

Published in: Technology

Blockchain on the oracle cloud, the next big thing

  1. 1. Blockchain on the Oracle Cloud The next big thing? Robert van Mölken, AMIS
  2. 2. Introductions • Robert van Mölken • Blockchain / Integration Specialist • Frequent blogger & presenter and Board Member on Dutch Oracle User Group • Co-Author of 1st Oracle PaaS book: Implementing Oracle Integration Cloud Service • Author of upcoming book: Blockchain across Oracle • Linkedin: • Blog: • Twitter: @robertvanmolken • Email:
  3. 3. 3 Membership Tiers • Oracle ACE Director • Oracle ACE • Oracle ACE Associate 500+ Technical Experts Helping Peers Globally Connect: Nominate yourself or someone you know: @oracleace
  4. 4. CLICK TO EDIT MASTER TITLE STYLE Blockchain on the Oracle Cloud • What is the Blockchain? • Technology behind the Blockchain • Applications of the Blockchain • Eco system - don’t build from scratch • Blockchain on Oracle Public Cloud Blockchain on the Oracle Cloud 4 AGENDA
  5. 5. What is the Blockchain? A blockchain is a data structure that enables a group of entities to share a digital unified ledger and transact with each other rapidly and safely without a central authority. Each entity controls its assets via a private key and independently verifies all transactions. Blockchains have no single point of failure, so entities can appear, disappear or malfunction without affecting the group as a whole. Blockchain on the Oracle Cloud 5
  6. 6. Technology behind the Blockchain Digital ledger (shared spreadsheet) • A transactional 'key / value' database, decentralized public ledger with all transactions Safe and secure • Combination of Peer-to-peer network and public key-cryptography without central authority • Any transaction added to the block chain is validated by multiple entities Open-source • The underlying technology of bitcoin, but open-sourced Blockchain on the Oracle Cloud 7 I OND blockchain == ‘digital trust’ M M U T A B L E O R D E R L E S S P E N E U T R A L E C E N T R A L I Z E D
  7. 7. How does the blockchain work Blockchain on the Oracle Cloud 8
  8. 8. How does the Blockchain reach consensus? • New created block of transactions is added to the block chain • But a general ledger has to be trusted, and all of this is held digitally • ‘Designated’ nodes or ‘peers’ confirm the settlement of transactions in a trustful manner • Over these conclusion the blockchain need to reach consensus • There are four major concensus algorithmes: • Practical Byzantine fault tolerance (or PBFT) • Proof-of-stake (or PoS) • Delegated proof-of-stake (or DPoS) • Proof-of-work (or PoW) Blockchain on the Oracle Cloud 9
  9. 9. Operation of the "Proof-of-Work" consensus method 1. A peer or ‘Solver’ takes the information and turn it into hash  By applying a mathematical formula to it 2. The hash is stored along with the block in the chain 3. The block’s hash is produced using the hash of the block before it  It becomes a digital version of a wax seal 4. Participants confirms that block – and every block after it – is legitimate  If you tampered with it, everyone would know Blockchain on the Oracle Cloud 10
  10. 10. Blockchain on the Oracle Cloud 11 Blockchain 101: How does it really work?
  11. 11. Blockchain on the Oracle Cloud 12
  12. 12. Blockchain on the Oracle Cloud 13
  13. 13. Blockchain on the Oracle Cloud 14
  14. 14. Blockchain on the Oracle Cloud 15
  15. 15. Blockchain on the Oracle Cloud 16
  16. 16. Applications of the Blockchain (non-currency) • Economics, and finance • Private equities, Public equities, Bonds, Spending records, Trading records, Mortgage/loan records, Crowdfunding • Smart property (diamonds, cars (GPS), decentralized asset exchange) • Smart contracts • Governance and legal • Vehicle registries, Passports, Birth & Death certificates, Voting records, Health/safety inspections, Building permits, Criminal & court records • Decentralized Application (Dapp) • Buy/sell items, Ride services, peer-to-peer microblogging, file storage, Digital identity verification Blockchain on the Oracle Cloud 17
  17. 17. Smart Contracts Blockchain on the Oracle Cloud 18 • Agreements between parties for automated execution can act as a complement, or substitute, for legal contracts • Computer program code that is capable of facilitating, executing, and enforcing the negotiation or performance of an agreement • Example shows contract to capture arbitrary data on the owner submitting claim upon transaction, given a blockchain address is not linked to a physical identity
  18. 18. Blockchain on the Oracle Cloud 19 Smart Contract : Insurance
  19. 19. Blockchain on the Oracle Cloud 20 Smart Contract : Supply Chain
  20. 20. Blockchain replaces existing B2B solutions • Blockchain can replace B2B-integrations • Instead of using Oracle B2B or Axway for classic trading/e-commerce • Replace EDI or SOAP/XML integrations by putting messages on blockchain • Moving high sensitive data can be difficult with SOAP/REST services Blockchain on the Oracle Cloud 21 Current B2B Traffic Blockchain Enhance security on web service endpoint (OWSM) + two- way SSL Specifies specific access to parties and end-to-end encryption of data using public/private key cryptography. Open firewalls on specific ports so endpoints are available to third parties. A party or entity runs client software that connects to blockchain (peer-2-peer) network Central authority that connects partners through 3rd party software. A partner depend on its reliability. No central authority, partners can directly connect without losing authorization model. Authorization and data protection requires additional messaging protocols, contracts, translation Rules can be recorded in smart contracts that automatically trigger when a transaction occurs. There is no end-to-end track and trace between partners. Each partner does their own logging. All messages are shared with all participant / partners without manipulation of data. A full history of transactions is available for everyone so very transparent.
  21. 21. What about Oracle projects? Blockchain on the Oracle Cloud 22 Practical example Department of Justice – Current Situation Finance System APIs Criminal Offences System APIs PARTNER A / SYSTEM OF RECORDS OPP System APIs OPS System APIs POLICE / DEPARTMENT A POLICE / DEPARTMENT BMINISTRY OF DEFENSE EBXML EBXML S O A P S O A P J M S CPA CPA EBXML CPA
  22. 22. What about Oracle projects? Blockchain on the Oracle Cloud 23 Practical example Department of Justice 1. D.o.J. perform initial setup of Blockchain and mines genesis block (regulator) 2. Partner A and Police Dept A & B join the private blockchain 3. Nobody is owner of data, all partners are part of a consortium 4. All partners can write and read data into/from blockchain 5. Partner A writes data into blockchain, which is validated by consortium 6. Police can read data from blockchain ones validated & process data Department A Department B Partner A Central Collection Agency Regulator Department of Justice OPP
  23. 23. Eco system – ‘don’t build from scratch’ Public Blockchains • BitCoin, AltCoins (LiteCoin) • Etherium (Ether) • Hyperledger • Ripple Private / Consortium blockchains • Eris::Monax (turnkey solutions) • Oracle Blockchain Cloud Service (oct ’17) • Microsoft’ Blockchain as a Service • Hyperledger Fabric of MultiChain Blockchain on the Oracle Cloud 24
  24. 24. Public vs Private blockchains Public blockchains • Anyone in the world can read • Anyone in the world can send transactions • Anyone see transactions included if they are valid • Anyone can participate in the consensus process • Fully decentralized Private / Consortium blockchains • Write permissions are kept centralized to one organization or consortium • Read permissions may be public or restricted • Include database management, auditing, etc • Consortium of selected nodes participate in consensus Blockchain on the Oracle Cloud 25
  25. 25. Practical Blockchain Development for Oracle Developers Container Cloud +
  26. 26. Introducing the Oracle Container cloud Blockchain on the Oracle Cloud 27 Managing Containers Easily on Oracle Cloud Prebuild Application and Ready-made Building Blocks Import Docker Run and Compose Files Copy and Paste AppYAML for Code Sharing Scale your Containerized Apps (any language) Interface & Wizards provide easy orchestration Manage Containers in the Cloud or using REST API
  27. 27. Introducing Hyperledger Fabric • Founded early 2016 as part of Linux Foundation’s Hyperledger project • Includes a ledger, uses smart contracts, and is a system by which participants manage their transactions. • It is private and permissioned • New members of network enroll through a Membership Service Provider • Offers several pluggable options • Store data in multiple formats, switchable consensus mechanisms • Offers the ability to create channels • Allowing a group of participants to create a separate ledger of transactions Blockchain on the Oracle Cloud 28 Permissioned Blockchain for the Enterprise
  28. 28. Introducing Hyperledger Fabric • Each participant has a copy of the ledger to every network they belong to. • Ledger comprising two components: world state & transaction log • World state describes state of the ledger at a given point in time (database) • Transaction log records all transactions which have resulted in the current value of the world state (update history) • Ledger has a replaceable data store for the world state. • By default, a LevelDB key-value store database  else CouchDB • Smart contracts are written in chaincode and invoked by an external application • Mostly interacts with the database component (querying world state) Blockchain on the Oracle Cloud 29 Shared Ledger and Smart Contracts
  29. 29. Introducing Hyperledger Fabric • Supports networks where privacy: • is a key operational requirement  using channels • is not a top concern  comparatively open • Offers switchable consensus methods • Chosen by network starter(s) • Represents relationschips between participants • Includes: PBFT, No-Op, SIEVE, and more Blockchain on the Oracle Cloud 30 Privacy and Consensus
  30. 30. Hyperledger Fabric + Container cloud • Available as docker images: • yeasy/hyperledger-fabric-ca:1.0.2 • yeasy/hyperledger-fabric- orderer:1.0.2 • yeasy/hyperledger-fabric-peer:1.0.2 • … • Get Oracle Container Cloud using free trial credits • Use docker compose to import images using YAML
  31. 31. Blockchain on the Oracle Cloud The next big thing? Robert van Mölken, AMIS