blockchain workshop - blockchain and oabcs - solutions

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. |Copyright © 2018, Oracle and/or its affiliates. All rights reserved.
Blockchain and the
Oracle Autonomous
Blockchain Cloud
Service
October 2018
Juarez Barbosa Junior
Principal Developer Advocate
@juarezjunior

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. |
Safe Harbor Statement
The following is intended to outline our general product direction. It is intended for
information purposes only, and may not be incorporated into any contract. It is not a
commitment to deliver any material, code, or functionality, and should not be relied upon
in making purchasing decisions. The development, release, and timing of any features or
functionality described for Oracle’s products remains at the sole discretion of Oracle.

Copyright © 2017, Oracle and/or its affiliates. All rights reserved. 4
oclchain - Buzzwords You Might Hear
• Distributed Ledger
• Smart Contract
• Nodes
• Immutable
• Non-repudiation
• Ethereum
• Corda
• Hyperledger
• Decentralized
• Consensus

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. |Copyright © 2018, Oracle and/or its affiliates. All rights reserved. |
Terms to Know (1/4)
• Ledger
– File or linked set of files which contains initial information (a contract, a business request, number of
Bitcoins) AS WELL AS all changes to that information (text modifications, approvals of a business
workflow, transfer of ownership,). Thus you can trace start and arrive at current state of the world by
looking at all changes to that starting state. The Ledger is physically stored in multiple locations. The
Ledger consists of a set of virtual linked Blocks all recorded within the Ledger file
• Transaction
– Any change to the current state of the world as documented in the Blockchain (a wording change in a
document, an approval in a business workflow, transfer of a Bitcoin to a different owner)

Terms to Know (2/4)
• Block
– Several transactions are grouped into a block. Once enough transactions have been grouped, the block
is „locked“ and encrypted, and is linked to previous blocks. Terribly complicated, but the key purpose is
to make sure that ANY change to the chain of Blocks and their content is immediatly recognized. You
can read, but not modify, the blocks. You an add a new transaction if you want to change anything
• Client
– The software or app used to create a new transaction in a blockchain. For Bitcoin, your digital wallet

Terms to Know (3/4)
• Peer
– The server or IT system on which a complete Ledger is stored. All Peers have the same Ledger file. All
Peers will follow complicated procedures to ensure the completeness and accuracy of the Blockchain,
and will update the Ledger whenever a new Transaction needs to be recorded. A Blockchain becomes
safer the more Peers are used.
• Consensus
– When a new Transaction is created, the Peers will review that Transaction. If they agree (using
complicated software processes) that the Transaction is valid, Consensus has been reached and the
Transaction will be recorded in the Blockchain

Terms to Know (4/4)
• Smart Contracts
– If the Blockchain technology being used support this, a powerful new tool. You can encode a specific
set of conditions which will be tested. Conditions from outside the Blockchain will be monitored and
provided by so-called Oracles. Once the Conditions are satisfied, the Blockchain will automatically
transact and document a specific business outcome. Smart contracts eliminate the middleman, such as
a legal firm, as payment will happen based on certain milestones being met. By its very nature, the
smart contract is easily enforceable electronically, creating a powerful escrow by taking it out of the
control of a single party. Since no human controls the contract or data, more trustworthy.

The Promise of Blockchain
"The technology most likely to
change the next decade of
business is not the social web,
big data, the cloud, robotics, or
even artificial intelligence. It’s
the blockchain...“
—Harvard Business Review
"The Impact of Blockchain Goes
Beyond Financial Services,"
May 2016

The Promise of Blockchain
"We are in the process of
developing a new operating
system for the planet.”
— Jeremy Wilson
Vice Chairman of Corporate Banking
Barclay’s Bank
Blockchain for Finance conference,
October 2017

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. 11Copyright © 2018, Oracle and/or its affiliates. All rights reserved. 11
• System for maintaining distributed
ledgers in a peer-to-peer network
• Allows multiple parties that may not fully
trust one another to do business
securely
• Reduces need for third-party
intermediaries
• Near real-time and unalterable records
replicated among all participants
What is Blockchain

Blockchain is an alternate computing model that uses distributed and decentralized
computing networks to enable business processes that potentially offer greater levels of
security and lower costs than traditional methods.
Oracle introduced a unique PaaS offering that will allow companies to develop new
services to open new revenue streams – while allowing extenstion of existing IT
architecture through expansion into the Cloud and to Partner businesses.

• Many business processes are based on
trustworthy list of transactions
• Or on trustworthy view of the world
• A good process needs to trust the data:
– Trust that all transaction data available to all
members of process
– Trust that all transactions are legitimate
– Trust that records cannot be tampered with
– Trust that all transactions are recorded in the
correct sequence
• Blockchain / Distributed Ledger technology enables efficient processes where data
needs to be available in several locations and you need to be able to trust that data at
all locations

How is Blockchain Different from a Secure Database/Cluster
• Data Shared openly across trust boundaries
– No reconciliation process required
• Data Replication is a shared responsibility (many nodes)
– No Single point of failure
• Multiple writers – built in redundancy and fault tolerance
– Faster updates, in near real-time. Less waiting. More reliable
• History stored by all nodes, as well as current state
– Agreement across network by default
• State is secured as a function of history
– Extremely difficult to tamper

Blockchain is decentralized in nature
Traditional Database
When the central
organization fails, the
whole network can be
become inaccessible
Blockchain
All data is connected and controlled by
a centralized organization.
• Limited access by one or more
person to same set of data
• Bottlenecks can occur with high
traffic
• Highly dependent of network
connectivity
Data is directly shared across
boundaries of trust, without requiring
a centralized intermediary or complex
data transfer and reconciliation
processes
• Datastore can be directly shared by
multiple organizations
• Every node in a blockchain
independently verifies and
processes every transaction
Replicated data controlled by multiple
organizations
• No single point of failure
• No single point of control (no
single SYSDBA) or potential for
compromise

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.
Why is Blockchain Important?
It Cryptographically Addresses the Problem of Shared Trust
How can entities that don’t trust each other transact?
Current approaches:
– Trusted intermediary, e.g.: Visa/MC, SWIFT, DTCC, EuroClear
Issues: cost, latency, single-point-of-failure
Blockchain can remove the need for intermediary and replace it with
cryptographically secure protocols
– Separate records stored by all the different entities
Issues: reconciliation costly and error prone, does not scale, delayed settlement
Blockchain’s distributed ledger is a single source of truth – no reconciliation
needed

Four Key Properties of Blockchains
• Shared & Transparent Data Access
• Immutable/Tamper-evident
Ledger
• Validated/Non-Repudiable
Transactions
• Confidential Records and
Transactions

Eliminating intermediaries means reduced transaction costs and
near real-time transaction execution
Increased confidence in the information and reduced fraud
opportunities
Increased adutiability and trust
Automated business processes in a trusted way. Represent any
asset digitally
Eliminates manual efforts and delays due to reconciliation
needs since data consistency is a key attribute of the distributed
ledger
Blockchain Technology
Disruptive Characteristics / Benefits
Decentralized, peer-to-peer network
No central, controlling authority
Distributed Ledger
All participants maintain a copy of the ledger
Immutable transaction history
Impossible to make changes to existing
transactions in a blockchain without detection
Transparent
Transactions on a blockchain are visible to the
authorized participants
Smart Contracts
Business logic deployed on a blockchain and
shared and validated by participants

Two Key Types of Blockchain
PermissionedPublic
(“Permissionless”)
• Anyone can join the network and have a
copy of the ledger
• This involves computer resource
intensive processes to protect the
Blockchain incl. mining
• Additional mechanisms to protect
network from overload if smart contracts
used
• Typically B-2-C, C-2-C (eg. Bitcoin,
Ethereum)
• Closed ecosystem: members are
invitation-only
• Less intrinsic protection needed, thus
greater scalability (protection through
firewalls, identity management, defined
smart contracts)
• Typically B-2-B (eg. Hyperledger/Oracle)

Permissioned/Consortium Permissioned/Private Public
Access to Network Members invited to enroll One entity controls all
nodes
Open Access, Permissionless
Validators Pre-authorized validators in
R/W or R/O mode
Pre-authorized validators in
R/W or R/O mode
Anonymous fully
decentralized validation
Blockchain Technologies Hyperledger, Corda Hyperledger, Corda Bitcoin, Ethereum
Consensus
Transactions throughput 100’s -1000’s/sec 100’s -1000’s/sec 7-15/sec
Types of Blockchains
Validator Node
Read Only Node

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. 22Copyright © 2018, Oracle and/or its affiliates. All rights reserved. 22
• It is not the same as Bitcoin
• It is not just a database
• It is not always anonymous
• It won’t solve all your problems!
What Blockchain is not

What You Can Use Blockchain For?
Enable distributed,
autonomous marketplaces
Securely maintain and share
decentralized private records
Reduce friction in business
transactions and reconciliations
Track the provenance of
products and materials
Single source
of Truth
Trusted
transactions
Near-real time
data sharing
Immutable
ledger store

Where Can You Apply Blockchain?
• Blockchain is not a solution to all problems!
• A few relevant questions to help determine blockchain applicability
– Is my business process pre-dominantly cross-departmental/cross-organizational?
– Are there cross-system discrepancies that slow down the business?
– Is there less than full trust among transacting parties?
– Does it involve intermediaries, possibly charging expensive fees, adding risk or delay?
– Does it require periodic offline (batch) reconciliations?
– Is there a need to improve traceability or audit trail?
– Do we need real time visibility of the current state of multi-party transaction?
– Can I improve a multi-party business process by automating certain steps in it?

Why Is Blockchain Hard to Implement?
ENTERPRISE INTEGRATION CHALLENGES
• Closed ERPs, complex integrations
PRODUCTION READINESS CHALLENGES
• Resilience, security, recoverability, global reach
CONTINUOUS PLATFORM EVOLUTION
• Rapid technology changes
• Lack of backward compatibility
OPERATIONAL CHALLENGES
• Member on-boarding complexity
• Supportability, lifecycle management
• Limited scalability

Wider Blockchain Adoption Requires a Platform
• Many use cases are emerging
– Flexibility and agility to explore without standing up new infrastructure for each case
• Ease of provisioning and usage-based consumption
– Rapid provisioning: be productive in minutes
– Pre-integrated technologies, pre-assembled infrastructure services
• Common enterprise-grade requirement can be proven once and re-used
– Resilience and HA
– Scalability
– Supportability, Management, etc.
– Security: identity, key management, data at rest encryption
• Common operations environment and best practices
– Integrated monitoring and troubleshooting capabilities
– Easy to read dashboards
• Common integrations with Open Banking APIs, ERP, SaaS, etc.

APIs & SDKs to
integrate with any
applications
Pre-assembled,
Automatic
provisioning
Admin console for
management,
Business UI
Build in IdM,
Granular access
controls
An Enterprise Blockchain Cloud Can Help Address These
Challenges
Production
Ready
Easy to
Integrate
Easily
Control
Access
Easy to
Monitor and
Manage
Support <
Participants,
Support < TRX
Performance
& Scalability

Why Hyperledger Fabric?
• Hyperledger Fabric – open-source platform for distributed ledger solutions that is
intended as a foundation for developing blockchain solutions
– Provides a permissioned blockchain model with membership services
– No cryptocurrency required!
– Offers a modular architecture allowing components, such as consensus and membership services,
to be plug-and-play
– Programmable – leverages containers to host smart contracts for automating business processes
– Focuses on a scalable implementation with confidentiality/privacy provisions
– Enables pluggable data store, consensus protocols, and multiple providers of membership services
• Open-governed community for enterprise blockchain hosted by The Linux Foundation
– Governance model broadly accepted within industry
Permissioned, Enterprise, Autonomous, B2B

What is Hyperledger Fabric?
• Fabric – open-source platform for distributed ledger solutions that is
intended as a foundation for developing blockchain solutions
– Provides a permissioned blockchain model with membership
services
– Designed with modular architecture allowing components, such as
consensus and membership services, to be plug-and-play
– Programmable – leverages containers to host smart contracts for
automating business processes
– Focuses on a scalable implementation by separating smart contract
execution from block creation
– Provides private channels for conducting confidential/private
transactions with invited members
– Enables pluggable data store, consensus protocols, and multiple
providers of membership services
– No cryptocurrency required!
Permissioned, Enterprise, Autonomous, B2B

Why Oracle Picked Hyperledger Fabric as Starting Point?
• Open-governed community for enterprise blockchain hosted by The Linux Foundation
– Governance model broadly accepted within industry
– Oracle as a member has a voice in decisions and participates in technical committees
• Fabric project – open-source platform for distributed ledger solutions that is intended
as a foundation for developing blockchain solutions
– Other projects as part of Hyperledger Foundation ecosystem (Indy, Iroha, Sawtooth)
Linux Foundation

Compatibility with others, larger expert community
Oracle can bring key modules to enterprise grade, higher
transaction rates possible, smart contracts
Intelligent protection of competitive data in same blockchain
Much easier design, administration of processes
Much more efficient, higher transaction rates possible
Why Hyperledger Fabric?
Open Source
Permissioned
Modular
Channels
No Cryptocurrency

Extending Hyperledger with Oracle’s Enterprise Genes
Performance at scale
Parallel execution
Elastic scale-out
Resource pooling
Rich queries with SQL
Chaincode in serverless
functions
Security & Confidentiality
Permissioned blockchain
Integrated identity mgmt.
Certificate revocation mgmt.
Data at-rest encryption
Declarative access controls
Enterprise Integration
REST APIs
Java & Node.js SDKs
SaaS Integration Toolkits
Oracle Integration Cloud Connector
Visual components for low-code
development
Operational resilience
High availability
Autonomous recovery
Continuous backup
Supportability & Operations
Dynamic configuration
Monitoring dashboards
Zero-downtime managed
patching
26

Introducing
Oracle Autonomous Blockchain Cloud Service

Oracle Blockchain Cloud Service
• Enterprise grade PaaS offering, managed by Oracle to
simplify operations
• Based on open source Hyperledger Fabric technology with
Oracle enhancements and cloud infrastructure services
• Build blockchain networks at Global scale, and develop or
extend apps with REST API and SDKs
• Highly secured and protected transactions and data meant
only for permissioned members
• Extend enterprise boundaries through tight integration with
Oracle ERP and SaaS, PaaS, & apps in cloud & on-premise
Securely extend business processes and accelerate B2B transactions
Distributed Ledger
Smart Contracts
Privacy Consensus

Basic Blockchain Schematic (simplified)
Ordering
Endorsing
Consensus
A
P
I
A
P
I
Transaction
Ledger
State of the
World
Blocks, Encryption
Ordering
Endorsing
Consensus
Transaction
Ledger
State of the
World
Blocks, Encryption
Blockchain Network
Peer Peer

Oracle BCS Network Schematic (simplified)
Ordering
Endorsing
Consensus
A
P
I
A
P
I
Transaction
Ledger
State of the
World
Blocks, Encryption
IdentityContracts
Ordering
Endorsing
Consensus
Transaction
Ledger
State of the
World
Blocks, Encryption
IdentityContracts
Console, Dashboard Console, Dashboard
Blockchain Network

Oracle OABCS Architecture
Industrialized Blockchain Cloud Platform for Enterprise
Infrastructure Services
OPC & OCM running Managed Docker Container service, IDCS (security/identity service),
EHCS (Kafka service)
Core Services
Blockchain Cloud Service (BCS) core: Peers, Smart Contracts, REST Proxy,
Membership Services, Ordering Service
Integration Services
BCS REST APIs for Operations
and Ledger Queries/Transactions
Data Services
OPC Storage Cloud –
Object Store
Administration and Operations Support (Ops)
OPC Operations and BCS Administration Console with REST APIs
Oracle Blockchain Cloud Service (BCS)
38
Pre-assembled Managed service Production-ready Public or private cloud

Oracle OABCS Integration Ecosystem
Infrastructure Services
OPC & OCM running Managed Docker Container service, IDCS (security/identity service),
EHCS (Kafka service)
Core Services
Blockchain Cloud Service (BCS) core: Peers, Smart Contracts, REST-Proxy
Membership Services, Ordering Service, .
Integration Services
BCS REST APIs for Operations
and Ledger Queries/Transactions
Data Services
OPC Storage Cloud –
Object Store
Administration and Operations Support (Ops)
OPC Operations and BCS Administration Console with REST APIs
Oracle Blockchain Cloud Service (BCS)
ACCS
PROCESS
INTEGRATION
APP BUILDER
DEVELOPER
SOA
MOBILE
PaaS
JCS
IaaS
COMPUTE CONTAINER
ON-PREM
Integration options via REST API and Client SDKs for Java and Node.js (Javascript)
ERP CX HCMSCM EPM IoTSaaS
39

Components of a Oracle Blockchain Cloud Service
Validating Nodes /
Peers
Ordering Service
Smart Contract/
Chaincode
Ledger
(World State)
Applications
REST Proxy
Membership
Service
Admin Console
REST
proxy
Users and
ApplicationsUsers and
ApplicationsApplications
(SDK based)
Users and
ApplicationsUsers and
ApplicationsApplications
(REST API)
Managed PaaS

• BCS Console: Web UI & REST API
for administration, operations and
monitoring the blockchain network
• Admin tasks:
– Bring up/down blockchain network and
manage nodes (peers, orderers, CA)
– Configure network channels and policies
– Deploy/instantiate smart-contracts
– Add peers, orderers, member organizations
– Create channels, edit policies
• Monitoring & troubleshooting:
– View network topology
– Monitor status of peers, orderers and other
network components
– Monitor operations metrics
– View ledgers blocks
– View log files for troubleshooting
BCS Administration/Operations

Ledger
X
• Collaborative network of organizations
using a common blockchain
– Oracle cloud or heterogeneous nodes
• Create a new network or add to an
existing network
• Ensure privacy by creating channels with
distinct policies and data access
spanning multiple orgs
BCS Interactions – Creating Business Network
BCS A BCS B BCS C
Org
A
Org
B
Org
C
P P P P P P P
P P P P
Consortium: X (A+B+C); Channel: CH1
Consortium: Y (A+C+D); Channel: CH2
P PLedger
Y
O
O
O O
O O
HLF D
Org
D
P P
P
Oracle Public Cloud
On Premises

Integration Accelerators for OBCS
SaaS
SAAS APPLICATION
INTEGRATION TOOLKITS
• Sample templates &
design patterns
• Sample smart contracts &
integration components
ORACLE INTEGRATION
CLOUD
• Adapters for Oracle &
3rd party applications
in cloud and on-prem
• Turn application events
into REST calls to run
blockchain transactions
App App
SaaS
PaaS
ON-RAMPS WITH
EMBEDDED APIS
OPEN BANKING
API PLATFORM
REST API-DRIVEN
INTEGRATION
• Invoke txn’s in sync
& async mode
• Get txn status
• Query ledger data
SaaS
PaaS
JAVA AND NODE.JS
CLIENT SDKS
• Invoke txn’s async
• Get txn status
• Query ledger data
• Subscribe to events
• Add channels/peers
• Enroll new members
PaaS
On-premises
SaaS
PaaS
Public or private
cloud
Legend

Addressed Barriers to Enterprise Adoption
Performance at scale
Parallel execution
Elastic scale-out
Faster data updates
Security & Confidentiality
Permissioned blockchain
Integrated identity mgmt.
Data protection at-rest
Enterprise Integration
REST APIs
Java & Node.js SDKs
SaaS Integration
Operational resilience
High availability
Autonomous recovery
Continuous backup
Supportability & Operations
Dynamic configuration
Monitoring dashboards
Managed patching

Key Oracle Focus Areas in Blockchain
Enterprise-Ready
• Highly secure, built-in privacy
• Scalable business networks
• Highly resilient, built-in backups
and recoverability
Ease of Integration
• REST API for API-driven integration
• SDKs for Java, Node.js
• Plug-n-play integration from Oracle
SaaS, PaaS, and on premises apps
Quick Time-to-Value
• Pre-assembled, managed PaaS
• Dynamic configurability and
member on-boarding
• Start developing applications
within minutes
Extending Enterprise Boundary
• Securely extend ERP/SCM/GL business
processes in Oracle SaaS, on premises
and non-Oracle systems to streamline
data exchange and conduct trusted
transactions with other organizations
• Enables trusted transactions between
Corporates and Banks in Oracle’s Digital
Innovation Platform for Open Banking

Security and Confidentiality
• Permissioned Blockchain
– Enrolled membership based on network Founder’s authorization
– Members exchange X509 certificates
• Access Control via Oracle Cloudgate and Identity Management CS
– Transport security via TLS
– Admin access and REST API authentication via IdM CS defense-in-depth
– Blockchain network messages authenticated via digital signatures
– In-transit and at-rest encryption protects transaction messages and stored “world state” & ledger blocks
• Confidentiality Domains within the Blockchain Network
– Blockchain subnetted into channels to enable private transactions and maintain segregated ledgers
– Channels established by a group of member organizations with restricted access governed by policies
for joining with approval by other members
– All transactions sent to a channel can only be endorsed and committed by authorized peer nodes
belonging to the specified channel
– The channel’s ledger is only accessible by the nodes of the organizations authorized to join
– Member organizations’ nodes join a channel with read-only or read/write permissions

Managed Service Enables and Accelerated Path to Business Value
Tasks Managed By
Provisioning &
Configuration
Provisioning Blockchain Cloud Service (BCS) instance CUSTOMER
▪ Provision EventHub Service (Kafka) EMBEDDED
▪ Provision ACCS Service (Managed Containers) EMBEDDED
▪ Provision Cloud Storage EMBEDDED
▪ Create and start all required VMs and Containers EMBEDDED
Configure organization CUSTOMER
Add/remove peers CUSTOMER
Define channels and related policies CUSTOMER
Enroll clients (applications) CUSTOMER
Development
& Integration
Develop smart contracts CUSTOMER
Install and Instantiate smart contracts CUSTOMER
Invoke smart contracts CUSTOMER
Develop and deploy applications that invoke smart contracts CUSTOMER
Ongoing Support,
Operations, and
Maintenance
Start/Stop/Restart BCS Instance CUSTOMER
Patching/Upgrading a BCS Instance ORACLE
Monitoring a BCS instance ORACLE & CUSTOMER
Continuous backup of configuration and ledger blocks EMBEDDED
Troubleshooting BCS instance problem ORACLE
Autonomous recovery of configuration or ledger blocks EMBEDDED
Troubleshooting smart contract problem CUSTOMER
Troubleshooting integrating application problem CUSTOMER

A sample use case for Channels
Procurement between different parties
• Automaker integrating BCS with its ERP system, setting up a ‚network‘ on
Oracle BCS
• Adding 4 dealerships to this ‚network‘ as participants
– Each has its own ERP software that need to be integrated
Youtube link

Oracle Blockchain Cloud Service
The most comprehensive
distributed ledger cloud platform
to securely extend your business
processes and conduct online
transactions in trusted networks
with your suppliers, banks, and
other trade counterparties
For more info:
• oracle.com/blockchain
• cloud.oracle.com/blockchain

blockchain workshop - blockchain and oabcs - solutions

blockchain workshop - blockchain and oabcs - solutions

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