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Blockchain On Azure


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Blockchain is the currently the hottest tech buzzword. Yet is it just hype or is it that fundamental piece of tech that will it truly change the world we live in, much like the internet did 25 years ago?

This presentation initially explains the fundamentals of blockchain and how it enables a new breed of business models.

Then we will then delve into how you can have a blockchain app on Azure, followed by a demo.

The presention describes analyses Microsoft's strategy with blockchain and how they are working on enabling Azure support to a number of DLTs including Ethereum, Hyperledger Fabric, R3 Corda, Quorum and Chain Core by offering easy-to-deploy templates for these ledgers. And more importantly how Microsoft is integrating these DLTs to the existing rich Azure ecosystem to enable the building of truly scalable, distributed enterprise applications using cryptlets and the Coco Framework.

Published in: Software

Blockchain On Azure

  1. 1. 21st April 2018 - Global Azure Bootcamp - Malta Blockchain On Azure Johan Zammit
  2. 2. Agenda - What Is Blockchain? - Why Blockchain? - My Favourite Top 10 Uses Of Blockchain - Example : Supply Chain - How Does It Work? Consortium, Mining - Why Azure? - Ethereum + Smart Contracts - Demo – Blockchain in the Azure Marketplace -> Ethereum On Azure - Solution Architecture = On Chain + Off Chain - Blockchain 3.0 with Cryplets + Coco Framework Note : Some of the slides and images are from Microsoft presentations about blockchain
  3. 3. What Is Blockchain? A distributed ledger that is Transparent Immutable Secure
  4. 4. What Is So Special About Blockchain? Trustless Trade. Distributed Trustless Consensus. It’s all about trust. Trust built on mathematics. For the very first time in history we can safely transact without a middleman, remove possibility of double spending, and have immutability in open systems. I do not trust you or any middleman – you do not trust me or any middleman – but I can still safely transact with you.
  5. 5. Blockchain Establishes A Secure, Shared Source Of Truth
  6. 6. Why Blockchain? - No middleman. Think of p2p file torrents. - Less fraud through transparency and immutability - Faster transactions – T+0 (settled same day) - Reduce costs through automation + no middlemen - Possible new revenue streams. New business models
  7. 7. My Favourite Top 10 Uses Of Blockchain Use Of Blockchain Site Provenance Voting Music royalties to artists Apartment Rental Ride Sharing AI Stopping Fake Drugs Supply Chain Data Verification Lending
  8. 8. PRODUCER SMART CONTRACT The package has to be maintained at Temperature < 10º C Humidity < 65% FOOD PROCESSOR WAREHOUSE CARRIER 1 CARRIER 2 SMART CONTRACT UPDATED Origin 8ºC 60% SHARED LEDGER The conditions of the contract have been violated. Carrier 2 is liable for penalty as the temperature of the package when it reached the retail store was above the prescribed limit RETAIL STORE 11ºC 66% Milk producer supplies Milk to Food Processing Company The milk product is sealed in an IoT enabled package for shipping The terms of shipping are registered using a smart contract on the Blockchain Warehouse 9ºC 64% Carrier 2 9ºC 64% Store 11ºC 66% Carrier 1 delivers milk to Warehouse 1. The temperature of the package is within prescribed limits on arrival. The package is still within prescribed temperature limits when Carrier 2 arrives to retrieve it for delivery to Retail Store. Example : Supply Chain
  9. 9. Blockchain – Network Types
  10. 10. Blockchain – Network Types
  11. 11. What Is Mining? Proof Of Work : miners will work for next block reward Example : Find a nonce that produces a hash that starts with 5 zeros New Block = Nonce + Hash Of Prev Block + New Transactions
  12. 12. Fast deployment through templates Tools & ecosystem that you know Scalability of nodes Why Azure? … and there is an even bigger more important reason …
  13. 13. Ledgers Partners Dev Tools Why Azure? - Multiple blockchains to mix and match - Key partners like Consensys
  14. 14. Why Ethereum? - Largest decentralised software platform - 75% of ICOs are tokens on Ethereum - Smart Contracts in Solidity As opposed to Bitcoin, Ethereum has a “state database” of accounts which hold a balance External accounts – users – receive and send ether …. Execute contracts … can have a balance in Ether Contract accounts – instance of a contract template – each time a smart contract is deployed a new account is create. A smart contract too can hold a balance.
  15. 15. Less Costs Less Delays Less Risk Of Non Delivery Smart Contract Automation A smart contact is an application that run exactly as programmed without any possibility of downtime, censorship, fraud or third party interference
  16. 16. Demo
  17. 17. Blockchain on the Azure Marketplace
  18. 18. Demo Setup We used a readily available template We’re using standard Azure compute, networking, and storage services Passphrase is used to encrypt your private key. Each consortium member is given a subnet with a set of mining nodes Mining nodes - Mine transactions into block, collect fees Transaction nodes - a set of load-balanced TNs with which an app can interact to submit transactions All nodes use Go Ethereum client (geth) client software Connect MetaMask to the load balancer in front of the transaction nodes to transfer Ether to and from blockchain
  19. 19. On Chain + Off Chain Architecture Client geth node Node.js Web Server Server 1 Client Mining geth node Server 2 MongoDB Basic Demo Architecture
  20. 20. Consuming Apps, Services & Systems Data Sources Apps Sensors Data Application InsightsAzure Key Vault Virtual NetworkingAzure AD API Ingestion Hub DLT Services (API, Hashing, Signing) Blockchain Ledger Off-Chain DB Off-Chain Storage Azure Functions Reference Data Power BI APIs Logic Apps Event Hub On Chain + Off Chain Architecture
  21. 21. Cryptlets Blockchains and smart contracts need a way to securely receive external data and access the execution of off-chain code. Cryptlets are off-chain code components that execute within a secure, isolated trusted container while maintaining the integrity of the blockchain. “Enterprise Smart Contracts” “Oracles”
  22. 22. Coco Framework Confidential consortium Foundation for protocols Launched Aug 17 Not for public blockchains Trusted Execution Environment - Speed + Scalability - Confidentiality - Governance
  23. 23. Links + References
  24. 24. Take Aways 1. Before you do anything with blockchain – match your requirements with various ledgers and network types out there. 2. Microsoft’s blockchain strategy is that of building an enterprise grade environment which brings various blockchain initiatives closer to practical business scenarios. Templates on Azure + Coco Framework + Cryptlets
  25. 25. Johan Zammit Take the leap. Deploy a blockchain on Azure.