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© Cloud
Corporation
1IBM CONFIDENTIAL
Presented by:
April 2016
BenjaminFuentes
© IBM Corporation / Confidential 2
Introduction
But not only …
Why is everyone talking about Blockchain?
© IBM Corporation / Confidential 3
Introduction
Blockchain
= Bitcoin?
One blockchain to
rule them all?
Can I be totally an...
© IBM Corporation / Confidential 4
Definitions
A block chain or blockchain is a distributed database, introduced by
Bitcoi...
© IBM Corporation / Confidential 5
Definitions
• Don’t trust anyone! => slower (as need for
waiting for consensus to valid...
© IBM Corporation / Confidential 6
Definitions
PBFT & Zyzzyva
RAFTPAXOS
Mencius
A fundamental problem in distributed compu...
© IBM Corporation / Confidential 7
Definitions
Creation Phase Execution Phase
contract mortal {
/* Define variable owner
o...
© IBM Corporation / Confidential 8
IBM on Hyperledger
Hyperledger (or Hyperledger project) is a cross-industry collaborati...
© IBM Corporation / Confidential 9
IBM on Hyperledger Find Hyperledger on Bluemix
1. Click on “CATALOG”
2. Search “Blockch...
© IBM Corporation / Confidential 10
IBM on Hyperledger
SamplesSwagger APIBluemix Service
Deploying Marbles Demo
On Bluemix...
© IBM Corporation / Confidential 11
IBM on Hyperledger
Advantages
• Help implement a layer over the Blockchain network usi...
© IBM Corporation / Confidential 12
IBM on Hyperledger
Blockchain infrastructure does not replace company clouds, it is a ...
© IBM Corporation / Confidential 13
Market Picture
Blockchain
DUBLIN
HACKCOI
N
ATHENS
HACKCOI
N
MALAYSIA
HACKCOIN
LONDON
W...
© IBM Corporation / Confidential 14
Market Picture
Gennaro Cuomo
IBM Fellow
Craig Young
SWIFT CTO
Todd McDonald
R3 COO, co...
© IBM Corporation / Confidential 15
Market Picture
Blockchain as a Service (BaaS)
Competitors
Well, a lot is said
about it...
© IBM Corporation / Confidential 16
Market Picture Blockchain Ecosystem
source
IBM is more
involved than it
can appear here
© IBM Corporation / Confidential 17
Business use cases
Opportunities
SMART CONTRACTS FINANCIAL SECTOR
RECORD KEEPING DIGIT...
© IBM Corporation / Confidential 18
Business use cases
Opportunities
Land and property registry / proof of ownership
• Lan...
© IBM Corporation / Confidential 19
Business use cases
Opportunities
Who will disappear or will be transformed?
• Clearing...
© IBM Corporation / Confidential 20
Business use cases
Opportunities
“No, I’m not suggesting the moonshot of immediately r...
© IBM Corporation / Confidential 21
Business use cases
Opportunities
Blockstream’s core area of innovation is sidechains, ...
© IBM Corporation / Confidential 22
Business use cases
Opportunities
Everledger provides immutable ledger for diamond owne...
© IBM Corporation / Confidential 23
Business use cases
Opportunities
Dynamis is a smart contract for peer to peer insuranc...
© IBM Corporation / Confidential 24
Business use cases
Opportunities
InsurETH lets you insure your flight directly with an...
© IBM Corporation / Confidential 25
Business use cases
Opportunities
Augur is a decentralized prediction market built on t...
© IBM Corporation / Confidential 26
Business use cases
Opportunities
OpenBazaar is an open source project to create a dece...
© IBM Corporation / Confidential 27
Business use cases
Opportunities
P2P trade system, commerce online : First class priva...
© IBM Corporation / Confidential 28
Business use cases
Opportunities
Community microgrids are a new approach for grid oper...
© IBM Corporation / Confidential 29IBM Cloud
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Blockchain with HyperLedger (Public version)

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Blockchain with HyperLedger (Public version)

  1. 1. © Cloud Corporation 1IBM CONFIDENTIAL Presented by: April 2016 BenjaminFuentes
  2. 2. © IBM Corporation / Confidential 2 Introduction But not only … Why is everyone talking about Blockchain?
  3. 3. © IBM Corporation / Confidential 3 Introduction Blockchain = Bitcoin? One blockchain to rule them all? Can I be totally anonymous on the network? Is Blockchain a business ready technology? Is Blockchain an open door to illegal markets? (=>Silk Road Affair) Do Smart contracts a legal value? Will Blockchain replace the Dollar? Will Blockchain replace Stock Markets and (Central) Banks? Will Blockchain replace Governments? Will Governments kill Blockchain? Frequently Asked Questions
  4. 4. © IBM Corporation / Confidential 4 Definitions A block chain or blockchain is a distributed database, introduced by Bitcoin (2008) on Satoshi Nakamoto’s white paper, that maintains a continuously-growing list of data records that each refer to previous items on this list and is thus hardened against tampering and revision. Distributed systems answer to a problem called Byzantine Generals’ Problem described by Leslie Lamport (1982). PERMISSIONED / PRIVATEPERMISSIONLESS / PUBLIC It distributes identical copies of a ledger, but only to a limited number of trusted participants. As the network may have an owner(s), this methodology is better suited for applications requiring simplicity, speed, and greater transparency. It allows anyone to contribute data to the ledger with all participants possessing an identical copy of the ledger. Since there is no single owner of the ledger, this methodology is more suitable for censorship resistant applications (e.g. Bitcoin) Mesopotamian ledger Blockchain
  5. 5. © IBM Corporation / Confidential 5 Definitions • Don’t trust anyone! => slower (as need for waiting for consensus to validate a block and get an agreement on the network) • Need a magic anti-hacking mechanism => need miners to maintain the network • If more than 51% of the network is controlled by one group then it could be hacked • On-chain assets • Censorship resistant • Trust everyone! => faster (only need validators on the network for an agreement) • Need a central administrator to control entry to the network • Off-chain assets • Better irreversibility and control PROOF OF WORK Permissionless vs Permissioned Blockchains Implications and differences PERMISSIONLESS / PUBLIC PERMISSIONED / PRIVATE
  6. 6. © IBM Corporation / Confidential 6 Definitions PBFT & Zyzzyva RAFTPAXOS Mencius A fundamental problem in distributed computing and multi-agent systems is to achieve overall system reliability in the presence of a number of faulty processes. This often requires processes to agree on some data value that is needed during computation. Consensus algorithms are used by a network to agree/validate on a computed result. • Termination Every correct process decides some value. • Validity If all processes propose the same value v, then all correct processes decide v. • Integrity Every correct process decides at most one value, and if it decides some value v, then v must have been proposed by some process. • Agreement Every correct process must agree on the same value. Consensus
  7. 7. © IBM Corporation / Confidential 7 Definitions Creation Phase Execution Phase contract mortal { /* Define variable owner of the type address*/ address owner; /* this function is executed at initialization and sets the owner of the contract */ function mortal() { owner = msg.sender; } Block n New block LOGIC CODE Block Block Block events Actions/exe cutions Smart contracts are computer protocols that : • facilitate and verify • enforce the negotiation • performance of a contract • make a contractual clause unnecessary Smart contracts Condition has been validated here
  8. 8. © IBM Corporation / Confidential 8 IBM on Hyperledger Hyperledger (or Hyperledger project) is a cross-industry collaborative effort to create blockchain-based open standard for distributed ledgers for globally conducted business transactions. The project has been started by Linux Foundation and backed by technological, financial, banking and supply chain companies worldwide. The project aims to create an open-standard, public, decentralised public ledger based on blockchain technology to advance worldwide business transaction processing in terms of cost- effectiveness, speed and traceability. Founding members of the initiative represent a diverse group of stakeholders: • ABN AMRO • Accenture • ANZ Bank • Blockchain Ltd • BNY Mellon • Calastone • Cisco • Deutsche Börse Group • Digital Asset Holdings • Fujitsu Limited • Guardtime • Hitachi • Wells Fargo • CME Group • ConsenSys • Credits • The Depository Trust & Clearing Corporation (DTCC) • CLS On Feb. 2nd 2016, IBM committed first 44K lines of code on Github • IBM • Intel • IntellectEU • J.P. Morgan • Red Hat • SWIFT • NEC • NTT DATA • R3 • State Street • Symbiont • Vmware
  9. 9. © IBM Corporation / Confidential 9 IBM on Hyperledger Find Hyperledger on Bluemix 1. Click on “CATALOG” 2. Search “Blockchain” or scroll down the list
  10. 10. © IBM Corporation / Confidential 10 IBM on Hyperledger SamplesSwagger APIBluemix Service Deploying Marbles Demo On Bluemix Bluemix Blockchain : Service, API, Samples A swagger API is available for each Blockchain project using the Bluemix service
  11. 11. © IBM Corporation / Confidential 11 IBM on Hyperledger Advantages • Help implement a layer over the Blockchain network using Swagger API or a JS client • Easily add/remove new nodes (coming soon) • Easily deploy a worldwide network • Help on DevOps tasks, monitoring • Use Bluemix as a PoT environment and then deploy the network locally • (Detailed documentation is coming) Prerequisites • Go language is needed for chaincode development (but Java and Javascript are on the pipe!) Disadvantages • The service is still experimental (limited to 2 peers) Remaining Questions The Blockchain is a distributed system based on different peers on the network, not all are coming from the same platform owner … so how to sell it on a cloud like Bluemix (that is centralized by nature)? Why building a Blockchain on Bluemix?
  12. 12. © IBM Corporation / Confidential 12 IBM on Hyperledger Blockchain infrastructure does not replace company clouds, it is a democratized cloud between peers. This virtual network of decentralized computers are bound together with blockchain’s consensus rules where some logic code could be executed (like smart contracts) In charge of the platform In charge of auditing Add/Feed executable logic code into the blockchain ACTIVE MEMBERS AUDITORS BLOCKCHAIN PROVIDER Chain Code Chain Code Entering a new shape of infrastructure One part of the network could be on-premise peers Billing based on logic code execution
  13. 13. © IBM Corporation / Confidential 13 Market Picture Blockchain DUBLIN HACKCOI N ATHENS HACKCOI N MALAYSIA HACKCOIN LONDON WanXiang - Deloitte Blockchain hackathon SHANGHAI FinTech week LONDON Consensus NYC Blockchain vision PARIS ETHEREUM Meetup LONDON Arctic chain Hackathon SWEDEN Bitcoin Hackathon MIAMI HACKCOI N MUMBAI HACKCOIN HONG-KONG Gtec BERLIN Chainthon ATHENS Dbs SINGAPOUR Blockchain Trade Show TORONTO Business Blockchain Conf TORONTO Money 20/20 COPENHAGEN COINFEST WORLDWIDE Blockchain Conf SAN FRANCISCO Blockchain week BARCELONA Blockchain Summit ISLAND Bitcoin Conf RUSSIA Keynote2016 DUBAI Adcca SYDNEY SIX Hackathon LONDON + ZURICH Events : Hackathon, Chainthon, Conferences EcoD participation! Europe strong activity
  14. 14. © IBM Corporation / Confidential 14 Market Picture Gennaro Cuomo IBM Fellow Craig Young SWIFT CTO Todd McDonald R3 COO, cofounder Blythe Masters (Board Chair) Digital Asset Holdings Chris Ferris (TSC Chair) IBM Distinguished Engineer Vitalik Buterin Creator, founder Ming Chan Executive Director Jeffrey Wilcke Cofounder Casey Kuhlman CEO Preston Byrne COO Chris Larsen CEO Blockchain communities
  15. 15. © IBM Corporation / Confidential 15 Market Picture Blockchain as a Service (BaaS) Competitors Well, a lot is said about it but in reality is still ongoing stuff …
  16. 16. © IBM Corporation / Confidential 16 Market Picture Blockchain Ecosystem source IBM is more involved than it can appear here
  17. 17. © IBM Corporation / Confidential 17 Business use cases Opportunities SMART CONTRACTS FINANCIAL SECTOR RECORD KEEPING DIGITAL CURRENCY SECURITIES IBM potential Businesses
  18. 18. © IBM Corporation / Confidential 18 Business use cases Opportunities Land and property registry / proof of ownership • Land is often split into parts, Legal rules apply Software contracts • Pricing rules based on CPU, users, etc… => consumption Music rights for artists • Distribution based on diffusion Medical history and reimbursements • Free access to authorized person, automatic health redemption IoT • Automatic triggering of smart objects coming from a commercial contract negotiation Smart contract and Record keeping niche
  19. 19. © IBM Corporation / Confidential 19 Business use cases Opportunities Who will disappear or will be transformed? • Clearing houses • Collateral management • Swift : Today Swift is the “trusted” network. It transports, validates and rejects messages. It authorized banks access to the network. It gives proof and certifies message delivery between two peers. Are banks ready to cooperate ? • Yes : reducing costs and risk, transparency with authorities, being ahead on the competition. • No : specific country based sanctions, complicated to set up, inherent blockchain coding complexity, fast evolution is a threat for their business. Fear of the unknown. How to hide balances and trades to the others ? Financial sector
  20. 20. © IBM Corporation / Confidential 20 Business use cases Opportunities “No, I’m not suggesting the moonshot of immediately redoing our global financing, lending system on a blockchain. But we have now employed a shadow chain: my definition of shadowchain is it’s not replacing the primary business process, it’s being used to enrich that business process with a useful function that it currently doesn’t do.” --Jerry Cuomo, IBM Success Stories around Blockchain
  21. 21. © IBM Corporation / Confidential 21 Business use cases Opportunities Blockstream’s core area of innovation is sidechains, a technology focused on improving on the blockchain, the most powerful public utility for distributed trust systems. Sidechains are blockchains that are interoperable with each other and with Bitcoin, avoiding liquidity shortages, market fluctuations, security breaches and outright fraud associated with alternative crypto-currencies. Success Stories around Blockchain Montreal
  22. 22. © IBM Corporation / Confidential 22 Business use cases Opportunities Everledger provides immutable ledger for diamond ownership & related transaction history verification for insurance companies, claimants. Success Stories around Blockchain Accelerator London Nice
  23. 23. © IBM Corporation / Confidential 23 Business use cases Opportunities Dynamis is a smart contract for peer to peer insurance running on the Ethereum platform. It provides supplementary unemployment insurance by using the LinkedIn social network as a reputation system. Applicants for a new policy can use LinkedIn to verify their identity and employment status. Claimants can use their LinkedIn connections to validate that they are looking for work. Success Stories around Blockchain
  24. 24. © IBM Corporation / Confidential 24 Business use cases Opportunities InsurETH lets you insure your flight directly with an ethereum smart contract The contract is resolved automatically on the Ethereum blockchain Success Stories around Blockchain London
  25. 25. © IBM Corporation / Confidential 25 Business use cases Opportunities Augur is a decentralized prediction market built on the Ethereum blockchain. It allows you to forecast events and be rewarded for predicting them correctly (Gambling) Success Stories around Blockchain San Francisco
  26. 26. © IBM Corporation / Confidential 26 Business use cases Opportunities OpenBazaar is an open source project to create a decentralized network for peer to peer commerce online — using Bitcoin — that has no fees and no restrictions. Success Stories around Blockchain
  27. 27. © IBM Corporation / Confidential 27 Business use cases Opportunities P2P trade system, commerce online : First class privacy, smart contracts, escrow protection, exceptional resilience, submarket design Success Stories around Blockchain
  28. 28. © IBM Corporation / Confidential 28 Business use cases Opportunities Community microgrids are a new approach for grid operations that achieve a sustainable, secure, and cost- effective energy system by providing long-term, locally generated power security prioritized for the community. Microgrids, have ability to separate from the larger electric grid during extreme weather events or other emergencies, providing the backbone for resilient, sustainable and more efficient energy production. Success Stories around Blockchain Brooklyn
  29. 29. © IBM Corporation / Confidential 29IBM Cloud Thank You

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