Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

blockchain-introduction-pistoia-alliance

202 views

Published on

As a run-up to the Pistoia Alliance Blockchain Bootcamp in October, we are please to bring you an in-depth introduction to blockchain technology. Hear Wolfgang Prinz and Wolfgang Gräther from Fraunhofer FIT provide an explanation of the underlying technology, the current uses of blockchain in other industries, and when blockchain is appropriate for various use-cases, followed by a demo.

Published in: Technology
  • Be the first to comment

blockchain-introduction-pistoia-alliance

  1. 1. September 18, 2018 So that’s what a blockchain is! An in-depth introduction Presented by Wolfgang Prinz and Wolfgang Gräther, Fraunhofer FIT Hosted by Richard Shute
  2. 2. This webinar is being recorded
  3. 3. Audience Q&A Please use the GoToWebinar Question panel to submit questions. Questions we do not get to during the presentation, will be answered in writing after the webinar and posted with the recording on our website.
  4. 4. ©PistoiaAlliance Agenda 4 • Connections & set-up ... 1st Poll • Introduction to blockchain technology (45 mins): What it is; how it works; etc ... 2nd Poll • Current uses of blockchain in other industries (15 mins) ... 3rd Poll • Knowing when to use and when not to use blockchain. How to identify good use-cases for blockchain tech (15 mins) ... 4th Poll Break (5 mins) • Demo (15 mins) • Final questions and discussion (10 mins) ... 5th Poll • Close
  5. 5. 5 Poll Question 1: What is your familiarity with blockchain? A. I am using blockchain B. I am experimenting with blockchain C. I am aware of blockchain D. I know next to nothing about blockchain
  6. 6. 6 Poll Question 2: What is your organization’s familiarity with blockchain? A. Actively using blockchain B. Experimenting with blockchain C. Aware of blockchain D. Not sure about my organization
  7. 7. ©PistoiaAlliance The Presenters 7 Prof. Wolfgang Prinz, studied informatics at the University of Bonn and received his PhD in computer science from the University of Nottingham. He is vice chair of Fraunhofer FIT in Bonn, division manager of the collaboration systems research department in FIT, and Professor for cooperation systems at RWTH Aachen. His research department at FIT is addressing the challenges and potentials of digitization offered by new cooperation platforms in combination with mixed reality and flexible communication infrastructure as well as the investigation of application areas such as mobility and digital energy. In the context of the Fraunhofer FIT Blockchain Lab, Wolfgang Prinz investigates the technical foundations as well as the development and analysis of blockchain based applications. Wolfgang Gräther, is a senior researcher at Fraunhofer FIT, the Institute for Applied Information Technology of the Fraunhofer-Gesellschaft. He has worked in several national and EU research projects as well as industrial contract research. Currently he is a project manager of the Blockchain for Education project. His expertise spans cooperation systems, social media, design thinking and blockchain technology.
  8. 8. © Fraunhofer-Institut für Angewandte Informationstechnik FIT© Fraunhofer-Institut für Angewandte Informationstechnik FIT Blockchain - Introduction Wolfgang Prinz, Wolfgang Gräther Fraunhofer FIT, RWTH Aachen University Webinar 18. Sept.- 2018
  9. 9. © Fraunhofer-Institut für Angewandte Informationstechnik FIT© Fraunhofer-Institut für Angewandte Informationstechnik FIT Current Projekts of our Lab  Blockchain and Smart Grids  Distributed Media Production  Blockchain and Mobility  BT4P – Blockchain and Industry 4.0  Blockchain, Internet of Things and Pay per Use  Logistics and Supply Chain  Industrial Data Space  Education Certificate in A Blockchain
  10. 10. © Fraunhofer-Institut für Angewandte Informationstechnik FIT© Fraunhofer-Institut für Angewandte Informationstechnik FIT Past Generations of the World-Wide-Web Internet of Information Internet of Services Internet of Things ?
  11. 11. © Fraunhofer-Institut für Angewandte Informationstechnik FIT© Fraunhofer-Institut für Angewandte Informationstechnik FIT Who ensures the execution and irreversability of value transactions? 11
  12. 12. © Fraunhofer-Institut für Angewandte Informationstechnik FIT© Fraunhofer-Institut für Angewandte Informationstechnik FIT Platform replaced by a network 12
  13. 13. © Fraunhofer-Institut für Angewandte Informationstechnik FIT© Fraunhofer-Institut für Angewandte Informationstechnik FIT Transaction Data is replicated Special data stucture for irreversability and comprehensability 13
  14. 14. © Fraunhofer-Institut für Angewandte Informationstechnik FIT© Fraunhofer-Institut für Angewandte Informationstechnik FIT TTransactions are distributed within the network 14 A->B: 10 A->B: 10 A->B: 10 A->B: 10 A->B: 10 D->E: 20 D->E: 20
  15. 15. © Fraunhofer-Institut für Angewandte Informationstechnik FIT© Fraunhofer-Institut für Angewandte Informationstechnik FIT Proof of Work applied by all network nodes to add a new list of transactions But only one node can win the race. 15 A->B: 10 Solution of the crypto puzzle
  16. 16. © Fraunhofer-Institut für Angewandte Informationstechnik FIT© Fraunhofer-Institut für Angewandte Informationstechnik FIT Mining Prozess Properties: • Solution is easy to control • Can only by solved by experimenting • Easy to parallize • Adoptable diificulty • Blocksensitiv (Links) 16 SHA256(SHA256(Block-Header + Nonce)) Hashwert<Threshold (Difficulty) Nonce + 1 Distribute Block to all Neighbours
  17. 17. © Fraunhofer-Institut für Angewandte Informationstechnik FIT© Fraunhofer-Institut für Angewandte Informationstechnik FIT The new block is accepted by all network nodes and appended to the blockchain 17
  18. 18. © Fraunhofer-Institut für Angewandte Informationstechnik FIT© Fraunhofer-Institut für Angewandte Informationstechnik FIT Smart Contracts turn a passive Blockchain in distributed computing ecosystem  Smart Contracts are  represented as programm code.  represented as scripts within the transactions.  executed within the blockchain system.  Smart Contracts  enable the creation of a new ecosystem.  make the blockchain IoT ready.  Smart Contracts may also become a nightmare  of administration.  of uncontrolled/able and irreversible autonomous activities. 18 If X>Y and Z < 20 then A->B: 10
  19. 19. © Fraunhofer-Institut für Angewandte Informationstechnik FIT© Fraunhofer-Institut für Angewandte Informationstechnik FIT What makes the Blockchain technology attractive? Consensus building in a network Representation and transfer of value and rights Comprehensible and irreversible protocol of transfer Automatisation potential by smart contracts
  20. 20. © Fraunhofer-Institut für Angewandte Informationstechnik FIT© Fraunhofer-Institut für Angewandte Informationstechnik FIT Blockchain the next generation as an internet of value and trust? Internet of Informatio n Internet of Services Internet of Things Internet of Value
  21. 21. © Fraunhofer-Institut für Angewandte Informationstechnik FIT© Fraunhofer-Institut für Angewandte Informationstechnik FIT BUT … 21
  22. 22. © Fraunhofer-Institut für Angewandte Informationstechnik FIT© Fraunhofer-Institut für Angewandte Informationstechnik FIT Bitcoin Energy Consumption 22
  23. 23. © Fraunhofer-Institut für Angewandte Informationstechnik FIT© Fraunhofer-Institut für Angewandte Informationstechnik FIT Important Terms • Technology for distributed account and transaction managementDistributed Ledger • Technology for a decentralied, comprehensible and irreversible management of transactionsBlockchain • Executable Code that is is part of a transactionSmart Contract • Crypto currency based on Blockchain TechnologyBitcoin/Ether/ICO 23
  24. 24. © Fraunhofer-Institut für Angewandte Informationstechnik FIT© Fraunhofer-Institut für Angewandte Informationstechnik FIT Blockchain unchained – The Blockchain IT Landscape  Distributed systems: Networks  Cryptography  Software Engineering: Smart Contracts  Data Structures: Blockchain  Consensus methods: Proof of Work
  25. 25. © Fraunhofer-Institut für Angewandte Informationstechnik FIT© Fraunhofer-Institut für Angewandte Informationstechnik FIT Blockchain Datastructures 25
  26. 26. © Fraunhofer-Institut für Angewandte Informationstechnik FIT© Fraunhofer-Institut für Angewandte Informationstechnik FIT Consensus building methods Proof of Work • Validation by solving a Crypto-puzzle • Requires energy, computing performance, time Proof of Stake • Validation by nodes who own a large share – „trust the bosses“ • Faster, but moves trust from algorithms to institutions Lottery Protocol • Randomly selected nodes • Requires trusted lottery mechanism – Hardware? Explicit Validation Nodes • Selected nodes own validation competence. z.B. BigchainDB, erisDB • Controlled Blockchain access Open, Public Performance
  27. 27. © Fraunhofer-Institut für Angewandte Informationstechnik FIT© Fraunhofer-Institut für Angewandte Informationstechnik FIT The Blockchain Design Space Ethereum Hyperledger Fabric BTC BigchainDB Unpermissioned Permissioned Transaction oriented Logic oriented 27
  28. 28. © Fraunhofer-Institut für Angewandte Informationstechnik FIT© Fraunhofer-Institut für Angewandte Informationstechnik FIT Which Blockchain is appropriate for me? It depends … … Analysis of the application and use case … Identification of the transaction data … Transparency or consortia / business process privacy … Scalability … Automation 28
  29. 29. © Fraunhofer-Institut für Angewandte Informationstechnik FIT© Fraunhofer-Institut für Angewandte Informationstechnik FIT A Blockchain in Practice Sensor / Oracle Integration Identitymanagement A Blockchain is not a database! Who am I and how many? 29 Data Registration Private: Assetmgt Public: Ownership and Financial Transactions
  30. 30. Poll Question 3: What do you consider the most relevant aspects of blockchain in healthcare and life sciences (choose TWO) ? A. The decentralized approach to replace platforms & intermediaries B. The immutability of data C. The ability to implement a cryptocurrency D. The transparency E. The automation potential through smart contracts
  31. 31. © Fraunhofer Application industries  Financial sector Optimization of processes, bills-free transaction, foreign currency exchange  Media industry Shared spaces of content and license information  Public sector Ledger for land registry, who owns what  Legal sector New types of contracts, cost reduction for micro payments  Medical engineering Immutable decentralized documentation of medical records, access to data defined by user-specific roles
  32. 32. © Fraunhofer Application areas  Internet of Things Automated contracts and payments Example: Smart lock  Smart Grid Comprehensible transactions and automated trade Example: Micro grid in Brooklyn, NY  Proof of origin Irreversible documentation and proof of constraints Example: Blockchain for Education  Supply Chain Autonomous decisions and transactions Example: food chain
  33. 33. © Fraunhofer Use Case: Smart Lock  Blockchain technology used in internet of things  Intelligent locks can be opened or closed via smart contract  User transfers appropriate amount of money to rent an object  Bike, car, house …  Smart contract is executed, allowing the user to access a virtual key to open the smart lock
  34. 34. © Fraunhofer Use Case: Micro Grid Brooklyn Source: siemens.com Source: siemens.com
  35. 35. © Fraunhofer Use Case: Blockchain for Education
  36. 36. © Fraunhofer Use Case: Food chain Sandra Andrea Klein, Wolfgang Prinz, Wolfgang Gräther (2018). Blockchain for Food Safety. In Proceedings of International Congress One Health and Food Safety, p.90, 2018.
  37. 37. © Fraunhofer Example: Blockchain and Production Intermediary Data and process integrity Decentral network Transfer of values and rights Automation
  38. 38. © Fraunhofer  CPS Microcontracts  Delivery and Payment  Machine 2 Machine Communication  Certificates: User and machine  Quality Control Supply Chain  Copyright  Ownership  Orders and Transactions  Network vs Platform  Flexible Supply Chain Networks  Shareconomy Intermediary Data and process integrity Decentral network Transfer of values and rights Automation
  39. 39. ©PistoiaAlliance Poll Question 4: What do you consider to be the biggest barrier to adoption of blockchain technology in healthcare and life sciences? A. Too difficult to understand B. Too much electrical energy consumption C. No added value beyond a traditional database D. Too little security E. Lack of access to blockchain-skilled personnel
  40. 40. © Fraunhofer Identifying and exploring relevant Blockchain opportunities Sandra Klein, Wolfgang Prinz, and Wolfgang Gräther. 2018. A Use Case Identification Framework and Use Case Canvas for identifying and exploring relevant Blockchain opportunities. DOI: 10.18420/blockchain2018_02 Use Case CanvasUse Case Identification Framework
  41. 41. © Fraunhofer Applying the Identification Framework Use Case: Smart Lock Use Case Use Case REPLACE ESTABLISH MY BUSINESS MODEL Replace Establish My Business Model Replace Establish My Business Mod … needs to be prepared for the new situation TA … have to be immutable Very important Important Very important Important … where trust between stakeholders is missing … to provide a save and stable basis for transactions for flexible and temporary cooperation partners … can be replaced Use Case Identification Framework for Blockchain INTERMEDIARY … to save time … to reduce costs … to simplify processes
  42. 42. © Fraunhofer Applying the Identification Framework Use Case: Smart Lock MY BUSINESS MODEL Very Hardly Very Does the Use Case profit from Blockchain technology? My Business Model My Business Mo PROCESS … can and should be performed autonomously while following given rules … can be automated by using Smart Contracts 100% automatable 67% automatable 33% automatable 0% automatable 100% automa 67% automa 33% automa 0% automa … needs to be prepared for the new situation DATA … have to be immutable … have to be saved permanently and transparently Very important Important Rather unimportant Unimportant Very importan Important Rather unimpo Unimportant cooperation partners … can be replaced INTE
  43. 43. © Fraunhofer Applying the Identification Framework
  44. 44. © Fraunhofer Applying the Canvas Use Case: Smart Lock Added value Data and Process Integrity Decentral Network Values and Rights Use case name: R Data R Partners R Values | Rights Use Case Canvas for Blockchain Whose tasks are being supported? Which processes are being improved? Which unique characteristic is being achieved? Which data have to be managed securely? Who is a partner in the network? Which value or which right is being Smart Lock Task | Process | Unique characteristic Renting objects without having to transfer a physical key Deposit Amount People owning smart locks to rent objects Right to use an object for a specific pri and duration h l m h h l m h h l m h Use case name: R Data processes are being improved? Which unique characteristic is being achieved? Smart Lock Task | Process | Unique characteristic Renting objects without having to transfer a physical key Deposit Amount Guaranteed money transfer from the tenant to the landlord Rental Price Virtual Key Rental Duration h l m h l m h l m h l m h l m h l m
  45. 45. © Fraunhofer Applying the Canvas Use Case: Smart Lock Data and Process Integrity Decentral Network Values and Rights Automation R Data R Partners R Values | Rights R Automation What can be automated? anvas for Blockchain pported? Which oved? Which unique ieved? Which data have to be managed securely? Who is a partner in the network? Which value or which right is being transferred? Smart Lock que ving to transfer Deposit Amount People owning smart locks to rent objects Automation of the key transfer in the beginning and the end of the rental per Right to use an object for a specific price and duration h l m h h l m h h l m h h l m h Use case name: R Data R Partners processes are being improved? Which unique characteristic is being achieved? Smart Lock Task | Process | Unique characteristic Renting objects without having to transfer a physical key Deposit Amount People owning smart locks to rent objects Guaranteed money transfer from the tenant to the landlord Rental Price People renting objects from the owner Virtual Key Rental Duration h l m h l m h l m h l m h l m h l m h l m h l m h l m h l m h l m h l m
  46. 46. © Fraunhofer Applying the Canvas Use Case: Smart Lock ntegrity Decentral Network Values and Rights Automation R Partners R Values | Rights R Automation R What can be automated?anaged securely? Who is a partner in the network? Which value or which right is being transferred? People owning smart locks to rent objects Automation of the key transfer in the beginning and the end of the rental period Right to use an object for a specific price and duration h l m h h l m h h l m h h l m h Use case name: R Data R Partners R Values | Rights processes are being improved? Which unique characteristic is being achieved? Smart Lock Task | Process | Unique characteristic Renting objects without having to transfer a physical key Deposit Amount People owning smart locks to rent objects Guaranteed money transfer from the tenant to the landlord Rental Price People renting objects from the owner Right to use an object for a specific price and duration Virtual Key Rental Duration h l m h l m h l m h l m h l m h l m h l m h l m h l m h l m h l m h l m h l m h l m h l m h l m h l m h l m
  47. 47. © Fraunhofer Applying the Canvas Use Case: Smart Lock k Values and Rights Automation R Values | Rights R Automation R What can be automated?etwork? Which value or which right is being transferred? to rent objects Automation of the key transfer in the beginning and the end of the rental period Right to use an object for a specific price and duration h l m h h l m h h l m h R Data R Partners R Values | Rights R Automation Which unique ? Smart Lock o transfer Deposit Amount People owning smart locks to rent objects Automation of the key transfer in the beginning and the end of the rental period m the Rental Price People renting objects from the owner Automation of the re-transfer of the deposit amount Right to use an object for a specific price and duration Virtual Key Rental Duration h l m h l m h l m h l m h l m h l m h l m h l m h l m h l m h l m h l m h l m h l m h l m h l m h l m h l m h l m h l m h l m h l m h l m h l m
  48. 48. © Fraunhofer Applying the Canvas Use Case: Smart Lock s Automation R Automation R What can be automated?ght is being transferred? Automation of the key transfer in the beginning and the end of the rental period a specific price h l m h h l m h R Partners R Values | Rights R Automation R People owning smart locks to rent objects Automation of the key transfer in the beginning and the end of the rental period People renting objects from the owner Automation of the re-transfer of the deposit amount Right to use an object for a specific price and duration h l m h l m h l m h l m h l m h l m h l m h l m h l m h l m h l m h l m h l m h l m h l m h l m h l m h l m h l m h l m h l m h l m h l m h l m
  49. 49. © Fraunhofer Value of Framework and Canvas for Practitioners Identification Framework • Suitability • Prioritization Use Case Canvas • How would the Blockchain work? Practitioner A Practitioner B Several Use Cases Specific Use Case Highly prioritized Use Cases How Blockchain improves Use Case Input for Proof of Concept Can be applied separately, but work together very well
  50. 50. © Fraunhofer Summary Blockchain relevance for network based processes:  Irreversibility and comprehensibility  Automation  Decentral approach 50 What needs to be done?  Process and business model analysis  Identification of relevant use cases  Proof of Concept  Market observation  Network organization Kontakt: Prof. Wolfgang Prinz, PhD Fraunhofer FIT Schloss Birlinghoven 53754 Sankt Augustin Tel: 02241 – 14 2730 wolfgang.prinz@fit.fraunhofer.de Blockchain Lab: http://www.fit.fraunhofer.de/de/fb/cscw/blockchain.html
  51. 51. ©PistoiaAlliance Poll Question 5: Within healthcare and life sciences, in which ONE of these areas do you think blockchain technology will have the greatest impact within the next 2-5 years? A. Medicines supply chain B. Scientific data sharing market C. Electronic medical records D. Clinical trials management E. Regulatory submissions
  52. 52. ©PistoiaAlliance Demo Blockchain 4 Education • Registration of Education Certificates in a Blockchain • Open Standards: Open Badges • Simple Validation of a Certificate • More information: – s.fhg.de/fit-b4e
  53. 53. ©PistoiaAlliance Poll Question 6: Where is your organisation currently on its journey to blockchain adoption? A. Not yet started / have no plans to adopt B. Planning blockchain proof-of-concept in next 12 months C. Working on proof-of-concept D. Completed proof-of-concept E. Implementing blockchain more widely
  54. 54. ©PistoiaAlliance Pistoia Alliance US Conference October 10, 2018 in Boston 54 We are pleased to announce the agenda for our 2018 US Conference on 10th October 2018 in Boston. You can review agenda and register at the Pistoia Alliance events page (https://www.pistoiaalliance.org/eventdetails/ pistoia-alliance-us-conference-2018/) Technology is driving change in life sciences R&D and Healthcare. The Pistoia Alliance 2018 Annual USA Conference will offer a unique opportunity for its members to come together to debate important developments across the pharma and life science R&D value chain. Key themes that will be addressed will range from “Lab of the Future” through “Artificial Intelligence” and its underlying disciplines to “Real World Data” along with an update on the current Pistoia Alliance project portfolio, including “Blockchain”.
  55. 55. ©PistoiaAlliance Blockchain Bootcamp – Boston Oct 8-9, 2018 55 Are you ready to roll up your sleeves and actually build some apps on a blockchain? If so, this event is for you! The first day will focus on Hyperledger Fabric training, while the second day will offer hands-on coding of some life-sciences-related use cases. Plan to bring your computer, your curiosity and your creativity! Event Instructor will be Kris Bennett, of the Blockchain Training Alliance Please register at Pistoia Alliance events page: https://www.pistoiaalliance.org/eventdetails/blockchain-boot-camp/ Pistoia Alliance members can attend at no-fee. Non-members are welcome, and will be charged a fee to attend. There is still time to sign up for the Pistoia Alliance Blockchain Bootcamp
  56. 56. info@pistoiaalliance.org @pistoiaalliance www.pistoiaalliance.org

×