Blockchain in government and the public sector

Copyright © 2018, Oracle and/or its affiliates. All rights reserved.
Blockchain in Government and the Public
Sector
Modernizing your Administration and your Country
Juarez Barbosa - Principal Developer Advocate, Blockchain
Oracle EMEA

Agenda
4
Blockchain Essentials
Typical use case patterns
Oracle Blockchain strategy
Customer Cases
Technical Deepdive
Brainstorm: Opportunities for Gov
1
2
3
4
5
6

5
Blockchain on the Rise

83% Blockchain will be the system of trust
96% Blockchain will improve compliance
3% Using Blockchain in production today

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. 7Copyright © 2018, Oracle and/or its affiliates. All rights reserved.
Which of the following blockchain use cases is your
company working on?
Deloitte’s 2018 global blockchain survey

Most significant advantage of blockchain over existing
systems
Deloitte’s 2018 global blockchain survey

Common Blockchain Myths

0
Business Challenges that might call for a blockchain
Difficulty to establish
Trust without intermediaries in
business partnerships
To ensure systems of records are
reliable & tamper-proof
To ensure participants act in
good faith in B2B transactions
Why Trust
Lack of Transparency in
multi-party transactions
To ensure all business parties have
real time access to a single source
of truth
To avoid fraud or errors due to
multiple redundant sources of truth
Why Transparency
Transaction overhead due to
dependence on 3rd parties /
intermediaries
To avoid unnecessary delays
To eliminate transaction fees,
which eats into profit
Why Reduce 3rd Party Overhead
Dependence on Manual,
error-prone processes
To reduce risk of human errors due
to redundant manual reconciliations
To reduce cost and complexity of
manual labor and paperwork
Why Eliminate Manual Processes

How Does a Blockchain Actually Work?
DISTRIBUTED
LEDGER
CONSENSUSPRIVACY
SMART
CONTRACTS

Smart contracts
• The concept of smart contracts precedes blockchain and was first introduced by Nick
Zsabo as early as 1994.
• A contract represents a series of “if…then” statements.
• Code, binding contracts between individuals/counterparties that becomes self-
governing and self executing, hence enforce the terms specified
12
1. Contract between parties is written as code into the Blockchain
2. Contract executes itself according to the coded terms
3. Individual privacy maintained but activity monitorable by regulator

TOKEN
Definition
A TOKEN is:
• a DIGITAL REPRESENTATION of a right to participate in a network. It cannot be
duplicated, forged, or created out of thin air by a central authority because it’s
running on a Blockchain and its rules are backed by immutable code.
• A Bitcoin, for example, represents your right to access and participate in the bitcoin
network protocol.
• Examples: currency, resource, asset, access, equity, voting
Courtesy to Roberto Fernández
Hergueta, Everis

• Transaction processing is performed by a
predefined list of subjects with known identities.
• Additional capabilities in roles, policies and
layering
• Consensus protocols depend on knowing who the
members are, e.g., PBFT, for greater scalability
• Value of the network drives usage
• No native currency/tokens
Example: Hyperledger Fabric, Ripple, Corda
• No restrictions on identities or roles of
transaction processors
• A block can be created by any node of the
network with enough computational power
• Consensus models based on computationally
expensive algorithms requiring the processing
power of many nodes to ensure security.
• Reimburse miners for processing the block
• Often centered around a cryptocurrency
Example: Bitcoin, Ethereum
Permissionless Blockchain Permissioned Blockchain
Blockchains classified based on data access

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. 19
Business Value
Drivers and ROI Vectors

Blockchain - a game changer across industries
Disruption
Autonomous
Marketplaces
Efficiency
Secure
Records
Audit trail
Transformational
Change
Sophisticated
Improvement
Value Chain
Object

Your role in the Blockchain eco-systems
1. Regulator
Provide the right conditions for Blockchain based value chains to thrive
and become sustainable -> delivering economic growth guarding fraud
2. Innovator
Be exemplary in delivering first class Gov services on Blockchain ->
establishing Gov exposure and primary position on emerging technologies
3. Process Owner
Improve your internal efficiency and governance applying Blockchain
solutions for your core processes -> Accelerate meeting Gov KPI’s
Confidential – Oracle Internal/Restricted/Highly Restricted 21

Tax collection and
reporting
E-voting
Welfare payments
(Cyber)security
Identity
Gov records
International Aid
Gov Spending
Patents
Procurement
Incorporation
Services
Land Registry
Title exchange
Property Leasing
Public Services
MinFin oportunity

Confidential – Oracle Internal/Restricted/Highly Restricted 23
Trade and Supply-
Chain Finance
X-border payments
Transaction Monitoring
P2P lending
Collateral Registries
Automated Market
index data
Initial Coin
OfferingKYC/Money laundring
Private
Equity
Invoice-Dispute
Resolution
Commodities Futures
Trading
Equity Trading
Micropayments
MinFin oportunity

Key Components of a Blockchain System
Blockchain Infrastructure
• Network of validating nodes
• Distributed Ledger
• Membership services (for permissioned)
Smart Contracts
• Business logic to update the ledger
• Query data
• Publish events
Applications
• Register users
• Invoke smart contracts to update or query data
• Consume events

Distributed Autonomous Marketplace
Exchange Things of Value
Invoice Factoring Marketplace with verified invoices from ERP Systems (AP/AR Integration)
Ace Supplier Invoice Marketplace
Powered by Blockchain
Banks and Other FIs
Bids
Confirmations
Invoices from AR
AR updates
AP updates

Product Traceability
CONSUMERDISTRIBUTORSUPPLIER + MANUFACTURER
Order FlowOrder Flow
Product Flow Product Flow
0
1
2
3
Product Traceability Block Chain
Surgeon
Patient
GoodHealth
Hospital
Avitek Medical
RedCube
Manufacturing
Plant 1
Plant 2
Supplier
Sourcing risk
Risk depends on
• Supplier’s
procedures and
monitoring
capability
• Supplier reliability
and visibility
• Human
interactions and
hand-offs
Production Risk
• Product
quantity
• Packaging
material
• Cold chain
knowledge
Transportation risks
• Human interactions
and hand-offs
• Monitoring
capability
• Storage procedures
• Third party
compliance

Blockchain vs Secure
Database / Cluster
Data Shared Openly across Trust Boundaries
Not a client-server network architecture
History is stored by all nodes, as well as current state
WorldState Db, HistoryDb
Multiple Writers – Built In Redundancy
Faster updates, in near real time. Less waiting.
CRUD* vs Read & Write Operations,
Db overwrites, BC only appends
*Create, Read, Update, and Delete
Performance
Multi-process vs single process

Is Blockchain a Solution to all your Problems?
• Is selected use case pre-
dominantly cross-
departmental/cross-
organizational/B2B?
• Do more parties/systems have
to write transactions onto the
BC?
• Is there a trust issue among
transacting parties or might
they have conflicting interest?
• Does the process involve time-
consuming intermediaries,
possibly corruptible?
• Are periodic reconciliations
required to balance stock,
ledger or payments
• Is process not error-prone due
to manual interventions and
large paper trails?
• Is there a need to improve
traceability or audit trail
• Do you need real time visibility
of the current state of
transaction/process?
• Do you experience
discrepancies resulting in
settlement risk and poor
records
Eco system Bottlenecks Governance
If answer to a few of these is ‘Yes’, then Blockchain should be considered

Oracle Strategy
• Deliver Enterprise-Grade Blockchain
Cloud Platform
• Help Customers In Many Industries Adopt
Blockchain and Distributed Ledgers
• Enable Rapid Experimentation and
Production-Readiness
• Simplify Integration to Accelerate Blockchain
Use in SaaS and PaaS Applications
• Deliver Blockchain SaaS Apps for Common
Use Cases
• Leverage Oracle IP and Open Source to Advance
the Enterprise Blockchain Capabilities

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | 30Copyright © 2018, Oracle and/or its affiliates. All rights reserved.
Experience and Expertise
Pre-Assembled
Enterprise-Grade
Autonomous
Plug and Play Integrations
Open
Introducing | Oracle Autonomous Blockchain Cloud Service
ORACLE
AUTONOMOUS
BLOCKCHAIN
CLOUD SERVICE

Built on a strong Foundation
• Open-governed community for enterprise blockchain hosted by the Linux Foundation
– Follows the same core practices that were behind success of Linux
– Over 200 organizations from many industries and major tech players
– Released Fabric 1.1 recently
• Delivers core foundation on which to build
– Permissioned blockchain model
– Membership management services
– Modular architecture for independent scaling
– Programmable – uses containers to host smart contracts
– Scalable implementation focus with confidentiality/privacy
– No cryptocurrency required!
– Provides concept of channels
31
+

Oracle Autonomous Blockchain Cloud Platform
Industrialized Blockchain cloud platform for the enterprise
Infrastructure and PaaS Services
Application Container CS (Managed Docker Containers), Identity CS (identity and key mgmt),
Event Hub CS (Kafka service), Management Service
Blockchain Nodes & Containers
Peer Nodes, Smart Contract Containers,
Membership Services, Ordering Service, REST Proxy
REST APIs
for Integrations
Data
Services
Administration
Dynamic Configuration,
Monitoring and Troubleshooting
Pre-assembled Managed service Production-ready Public or private cloud
On
PremisesPaaS
SaaS
Public Cloud
IaaS, SaaS, PaaS
REST
gRPCREST
gRPC

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 asynchronously
• 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

Autonomous Blockchain Cloud Service
Self-Driving
– Auto provisions all components & dependencies
– Integrated identity management
– Embedded back up, auto-recovery, monitoring
– Automatically scales out without downtime*
– Auto tunes performance settings to goals*
Self-Securing
– Adaptive intelligence-enabled cyber threat detection
and remediation through Identity Management Cloud integration
– Automatic data encryption in-transit and at-rest
– Automatic zero-downtime security patching
Self-Repairing
– Automated downtime protection – HA, auto-recovery
– Zero-downtime patching and upgrades
34
*Coming soon

Addressing Barriers to Enterprise Adoption
Performance at Scale
Parallel execution
Elastic scale-out
Faster world-state DB
Operational Resilience
High availability
Autonomous recovery
Continuous backup to
DR-replicated object store
Security & Confidentiality
Permissioned blockchain
Integrated identity mgmt.
Data encryption at-rest
Certificate revocation mgmt.
Supportability & Operations
Dynamic configuration
Monitoring dashboards
Zero-downtime managed patching
and updates
Development & Integration
Dev mode support
Unit testing w/mock ledger
REST APIs
Java & Node.js SDKs
Enterprise App Adapters

Copyright © 2018, Oracle and/or its affiliates. All rights reserved.Copyright © 2017 Oracle and/or its affiliates. All rights reserved. |
Customer Use Cases
36

Copyright © 2018, Oracle and/or its affiliates. All rights reserved.Copyright © 2018, Oracle and/or its affiliates. All rights reserved.
Innovate & Grow Revenue
• Used blockchain to easily identify
counterfeit goods, fraudulent licenses
• Quickly and easily process claims and
determine duty owed with blockchain
• 35% reduction in processing time,
and enhanced collection of duties
37

Global Trade: Customs Service Excise Licensing and Taxes
Before Blockchain
• Paper based records
• Records often lost in transit
• Complicated and error-prone
reconciliation processes
• Delayed settlement
• Manual on-boarding of excise
traders
• Limited scale to collect duty
• Largely a manual process
• Low transparency for
government and regulatory
bodies
Blockchain Benefits
• Digital immutable records
• Digital delivery of records
• No reconciliation required
• Faster settlement
• Automated on-boarding
• Scalable solution to collect
duty
• Automated processes
• Greater transparency to
government and regulatory
bodies
Customs
Food & Drug
Agency
Exporter /
Importer
Standards
Agencies
Moving from a paper based excise duty collection and licensing process to utilizing
a blockchain network built on Oracle Autonomous Blockchain Cloud Service as the single
source of truth for license issuance and excise duty payments

Ferrari F 488 Italia
3.9-litre twin-turbocharged V8
Convertible
Leather Seats
999 000 AED*
• VAT, registration fees, insurance not included
• Terms and conditions apply

Copyright © 2018, Oracle and/or its affiliates. All rights reserved.Copyright © 2018, Oracle and/or its affiliates. All rights reserved. 40
The Business Challenge
5 1600 1M $ 100M$

The Business Challenge
Years
business pain
5
Luxury
Vehicles
1600
USD Potential
Revenue
Stream
1M $
USD
Protection
100M$

Xportect*
XPortect mission is to
leverage technology
with the objective of innovating the export certificate
in order to automate and approve export declaration
of ”Luxury Goods”
in a seamless and non-disruptive manner

The Solution
Export
Declaration
Smart Contracts
Export
Declaration
Export
Declaration
Export
Declaration
Export
Declaration
Export
Declaration
Export
Declaration
Export
Declaration
Export
Declaration
Export
Declaration
Vehicle Ledger
Auto Rental
CompaniesBanks
Roads &
Transport
Authority Police Dubai Customs
RAK Customs Ajman Customs Sharjah Customs Fujairah Customs Abu Dhabi Customs
Saudi Customs Bahrain Customs Kuwait Customs Oman Customs
Autoloan information
Auto Rental Fleet information
Auto Rental Contract
Auto Registration Information Police Cases
Wanted Cars
Hatta CCTV
Plate Number Chassis Number
Auto Exit Permit
Vehicle Ownership Vehicle Loan
Validate Subscription

Cross Border Funds Transfer for
Subsidiaries
• Current cross-border transfers between the
subsidiaries which are not real-time and
require too many manual interventions at
high fees and other expenses
• Blockchain benefits
– Smart contracts enable automated transfers
based on rules
– Real-time handling of transfers
– Integrated audit trail of transfer requests and
confirmations, available to clients through
mobile and Internet banking interfaces

Banks: Cross Border Funds Transfer Among Subsidiaries
• A large bank with multiple regional subsidiaries
• Current cross-border transfers between the
subsidiaries use SWIFT services, which
– Are not real-time and require too many
manual interventions
– Charge fees and other expenses
• Blockchain benefits
– Smart contracts enable automated
transfers based on rules
– Real-time handling of transfers
– Integrated audit trail of transfer requests
and confirmations, available to clients
through mobile and Internet banking
interfaces
45

Government: Identity Tracking and Asylum Case Status
Sharing
• A major European country handling large influx of
refugees
– Identity proofing and tracking across multiple
federal and state agencies
– Case status and benefits coordination across
multiple agencies
• Expected blockchain benefits
– Single source of truth reconciled between
multiple ministries at the federal and state
level
– Better integration of benefits eligibility and
access to eliminate gaps and fraud in the
system
– Automatic notifications across agencies on
status changes in near real-time
46
Federal
Agencies
State & Local
Agencies, NGOs

Reduce Counterfeit Transactions
• Convert current bank guarantee
process to electronic instead of
manual, paper-based to reduce
discrepancies due to errors/fraud
• Reduce counterfeit bank guarantees
which saves money
• Speed processing times and provide
a process for tracking across all
parties involved
27

Flexible, Global Deployments
Banks
Vendors
• Current Bank Guarantee process is paper based and manual
• Beneficiary is dependent on the Vendor for interactions with the Banks
• Significant manual effort,
cost, and delays
Beneficiary
Dubai
Europe
China
India
US
Benefits
• Global deployment across
multiple Oracle Cloud regions
and datacenters
• Customer datacenter
deployment using Oracle
Cloud@Customer
• Able to integrate with open
source Hyperledger Fabric
deployments on premises
and 3rd party cloud
On-premises or
3rd party cloud

Copyright © 2017, Oracle and/or its affiliates. All rights reserved. |Copyright © 2018, Oracle and/or its affiliates. All rights reserved. 49
Proof of Existence - Doc Xchange
➢ Optimize, automate and secure B2B,
B2G and B2C documents exchange
➢ Reduce the disputes between the
Parent company and Franchisees over
EDI
➢ Lack of Proof of Existence in
document exchange
➢ Need for distributed ownership of
network
Oracle Confidential – Internal/Restricted/Highly Restricted 49

Copyright © 2017, Oracle and/or its affiliates. All rights reserved. |
OracleCloudServices
vNetwork
TrustedZone
Oracle Cloud Infrastructure
OracleidentityCloudservice
Oracle Sites Cloud
Service Users
HTTPS Request
TrustedZone
OABCS
User/ Group
Availability Domain /Region
SERES ABCS
Admin
ABCS Console
Users
OABCS Instance Console
OABCS Instance Console
Domus Prospera Colonia Prima Urbs Nova Cella Bona
Content and Experience Cloud Service ( CECS)
Proposed Oracle Autonomous Blockchain Architecture
Parent Company Franchisees companies
DocumentsSites
Oracle Documents
Cloud Service

Anti-counterfeit Drugs Tracking in India
• Problem by the numbers:
– India accounts for 10% of WW production
– WHO estimates 20% of all drugs sold in
India are fake
– As the largest producer of generic
drugs in the world, India is reported
to be the source of 35% of all
counterfeit drugs sold worldwide
• Solution
– Track drugs from Mfg to Distribution &
Retail using IOT and Blockchain
– Pilot involves premier super specialty
hospital, Apollo Hospitals and a global
pharma company, Strides Pharma Sciences

Accelerate Business Process
• A better system to track, tokenize &
automate solar rewards using Oracle
Blockchain
• 10x increase in the velocity of Solar
SiteDesign’s “lead to cash” ERP process

Project Management & Rewards: Solar Site Design
53
• NetSuite Customer since 2007
• Manages ecosystem of solar stakeholders
• Designed and implemented automated lead to cash
process with NetSuite and SuiteCloud
• Needed Distributed Ledger (Blockchain) to achieve
scale, track state, gamify and automate reward system
for all site stakeholders
• Co-founded Energy Blockchain Network (EBN) in 2017
to achieve goals
• EBN joined SweetBridge consortium in 2018

Track Supply Chain
• System to certify the supply chain
of the olive oil producer, through
the phases of production,
packaging and shipment
• Increases quality control, ensures
only authorized sellers & buyers,
and ensures a more credible
reputation for the company

Supply Chain: Food Provenance & Quality Certification
1. Product Provenance Tracking
2. Production quality &
ingredients testing visibility
3. Product journey tracking
(temperature, etc.)
4. Change of ownership and
custody verification
5. Paperless logistics

Increase Trust & Transparency
• Visibility into the flow of documents, goods,
and payments
• Reduce disputes about various fees
• Simplify and accelerate BL updates, increase
freight bill accuracy
• Reduce detention and demurrage times and
costs with more accurate documentation
• Reduce time to clear customs
• Reduce ship inspections and turnaround times
Current Issues
• Poor Tracking
• Lack of Transparency and Trust
• Delayed Documentation & Disputes
• Detention & Demurrage Fees

Copyright © 2018, Oracle and/or its affiliates. All rights reserved.Copyright © 2018, Oracle and/or its affiliates. All rights reserved.Copyright © 2018, Oracle and/or its affiliates. All rights reserved.
“Our decision is
driven by our vision
for global
connectivity through
intelligent logistics,
reducing costs and
creating value for all
our stakeholders.”
DP World Group Chairman
and CEO Sultan Ahmed Bin
Sulayem

Key Features Solution & Product Highlights
Order Processing, Fulfillment and Maintenance
Order Management Cloud, Manufacturing Cloud
Service, Inventory Cloud Service and Maintenance
Cloud
Freight and Customs Clearance
Logistics & Transportation Cloud
• Streamline Supplier Onboarding
– Single View of real-time supplier information, that’s
accurate and up-to-date
• Enhanced Transparency in Supply Chains
– Integration of blockchain with enterprise systems will
bring in transparency during manufacturing, assembly,
delivery and maintenance of products
• Smart Contracts for Exception Management
– Blockchain based Smart Contracts to streamline exception
handling or track & trace with recall.
• Transform Compliance using Blockchain
– Automate contractual and regulatory compliance using
Smart Contracts
• Smart Contract Incentive Payment
– Use Smart Contracts for performance based
compensation and reduce overall system risk
• Reduce manual & error-prone information
exchange
– Improve process execution across enterprise boundaries
and avoid costs and delays that arise using traditional
approaches
Visualization of transactions from the
Blockchain network
Reliably share data and conduct
trusted transactions
Blockchain Cloud Service
Supplier Management & Procure to Pay
Procurement Cloud Service

Blockchain for Developers
Hyperledger Fabric and the Oracle
59

Why Hyperledger Fabric?
• Fabric project – 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
– 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
60
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
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

Architecture
Hyperledger Fabric
63

IDENTITY
Pluggable, Membership,
Privacy and Auditability of
transactions.
LEDGER | TRANSACTIONS
Distributed transactional
ledger whose state is updated
by consensus of stakeholders
SMART-CONTRACT
“Programmable Ledger”,
provide ability to run business
logic against the blockchain
(aka smart contract)
APIs, Events, SDKs
Multi-language native SDKs
allow developers to write DLT
apps
64
Hyperledger Fabric Reference Architecture
Distributed Ledger Technology Services
APIs, Events, SDKs
SMART CONTRACT
Chain-code
Services
AP
Membership
Services
Enrollment
Attributes
Consensus Services
Distributed
Ledger
Ordering Service
Network
Protocol
Endorsement
Validation
Secure
Container
Secure
Registry
TRANSACTIONSLEDGERIDENTITY
Security and Crypto Services

Components of a HyperLedger Fabric Blockchain
65
Peers
Maintain the state of the
network and a copy of the
ledger
• Endorsers: simulate and endorse
transactions
• Committers: verify endorsements
and validate transaction results, prior to
commiting transactions to the blockchain.

66
Peers
Ledger
(World State)
A shared, permissioned ledger that is an
append-only system of records and serves
as a single source of truth.
• Chain: transaction log. structured as hash-linked blocks,
where each block contains a sequence of N transactions. The
block header includes a hash of the block’s transactions, as
well as a hash of the prior block’s header.
• State DB: ‘World State’ is modeled as a versioned
key/value store (KVS). It reflects the current data about all the
assets in the network. This data is stored in a database for
efficient access. (LevelDB and/or CouchDB).
✓ Keys are simple names or composite, i.e., constructed
keys.
✓ Values are arbitrary blobs, JSON often used.
• History DB: Maintains a history of the values of a key
Currently in Fabric just a pointer into ledger.

67
Peers
Smart Contracts
Ledger
(World State)
Business Logic to execute a
transaction. Smart contracts
(chaincode) can be written in:
• Go
• NodeJS
• Java

68
Peers
Consensus
Smart Contracts
Ledger
(World State)
The process of reaching agreement on
the next set of transactions to be
added to the ledger:
• Transaction endorsement
• Ordering
• Validation and commitment

69
Peers
Consensus
Smart Contracts
Ledger
(World State)
Membership
Service
Controls enrollment of network
members (organizations) and provides
related cryptographic services.
Implements a CA architecture with
Root CA and intermediate CAs
– Enrollment (ECerts).
– TLS (TCerts).

70
Peers
Consensus
Smart Contracts
Ledger
(World State)
Applications
(D-apps)
Membership
Service
Clients are applications that act
on behalf of a person to propose
transactions on the network:
• Java SDK
• NodeJS SDK
• Go SDK

Zero-knowledge and Identities
71

Transaction flows
Hyperledger Fabric
72

Execute Proposal

Key Value RW Set Version
Tamer 500 V2
Loic 400 V5
Transfer 100 from Tamer to Loic:
• Read Tamer Balance.
• Read Loic Balance.
• Deduct 100 From Tamer Balance.
• Add 100 to Loic Balance.
75
RW Set Simulation
Read Set:
• Tamer, V2
• Loic, V5
Write Set:
• Tamer, 400
• Loic, 500
Note: Only RW Set is calculated, but no changes are reflected on ledger/world state DB.
Ledger
400
500

Execute Proposal

Proposal Response

Order Transaction

Deliver Transaction

Validate Transaction

Key Value RW Set Version
Tamer 500 V2
Loic 400 V5
Validate
Current Ledger Asset
Version = Read Set Asset
Version
Commit
• Reflect Assets Values
from Write Set to Ledger
• Update versions
81
Validate & Commit
Read Set:
• Tamer, V2
• Loic, V5
Write Set:
• Tamer, 400
• Loic, 500
400
500
Benefits
• Detect Phantom Writes.
• Eliminate Double Spending.
V3
V6
Ledger

Notify Transaction

Transaction Flow
Client Application
Fabric SDK
Keys
Membership Service
Peers
Endorser
Simulates TX
World
State
Committer
Applies changes
Ordering Service
Certificate
Authority
Federated
Identity
4.0 - Deliver TX Batch
Validate Signatures
and Authorization
Membership
Services container
Peer container
Orderer container
Orders TXs into
batches
according to
consensus
Container
Legend
Customer Code
3.0 - Submit Endorsed TX
Includes RWset and endorser
signatures
Ledger
5.0 – Writes ledger block
5.1 - Updates State
6.0 – Commit Notification
Fabric Code
Smart contract container
Smart Contract
(Chaincode)

What about Oracle Blockchain?
OABCS
84

Oracle Blockchain Service Architecture
85
Industrialized Blockchain cloud platform for enterprise
Infrastructure and PaaS Services
Application Container CS (Managed Docker Containers), Identity CS (identity and key mgmt),
Event Hub CS (Kafka service), Management Service
Blockchain Nodes & Containers
Peer Nodes, Smart Contract Containers,
Membership Services, Ordering Service, REST Proxy
REST APIs
for Integrations
Data Services
Object Store CS
Administration
Dynamic Configuration,
Monitoring and Troubleshooting
Pre-assembled Managed service Production-ready Public or private cloud
On Premises
PaaS
SaaS
Public Cloud/BMCS
IaaS, SaaS, PaaS
REST
gRPCREST
gRPC

Effort Required To Deliver Enterprise–Grade Blockchain
6
Applications
(Client SDK)
Validating Nodes/ Peers
Distributed Ledger
(Single Version of Truth)
Smart Contract
(aka Chaincode)
Membership Service
Ordering Service
Identity Management
(for member enrollment)
Fault Tolerant Event Hub
(for ordering event mgmt.)
Container Lifecycle
Management (for system
and chaincode containers)
Configuration &
Monitoring Tools
Autonomous Recovery
(when components fail)
Managed Patching &
Upgrades
Elastic scaling on
demand
Multi-datacenter DR
(with backup of ledger and
config info)
Bring your own…

Comprehensive Blockchain Platform
7
Membership
Service
Membership Service
Applications
Validating Nodes/ Peers
Distributed Ledger
(Single Version of Truth)
Smart Contracts
(aka Chaincode)
Ordering Service
Ordering Service
REST Proxy
Operations
Admin/Operations Console
Integrated backplane of supporting services
Oracle value-add
Rich integration tools for SORs & new apps
App
App
SDK
REST proxy
REST
Flexible, global, interoperable deployments
Autonomous, Oracle-managed PaaS
SQL-based rich queries over K-V ledger
P P
P
Pre-assembled Dependencies

Additional Capabilities Released Since GA
• Support for Fabric v1.1 features
– Node.js chaincode
– Connection profile
– Encryption library & APIs
– Attribute-based access control (ABAC)
– CRL support via Fabric CA
– Events and Serviceability Enhancements (SDK)
• Enhanced REST API support with
– Async REST APIs with event callbacks
– Multiple identities in one REST proxy
– Token-based authentication, w/IdM federation
– Client credentials passed in transient map
– REST APIs for blockchain network config/admin
• Faster and more granular provisioning
• Dynamic management of chaincode
containers
• Berkeley DB (BDB) for world state DB
– Performance
• Concurrent execution of chaincodes and commits
• Faster inserts and lookups, order of magnitude or
more faster that with CouchDB
• “Lazy Evaluation“ of query result state without
paging through the entire DB (as it happens right
now in CouchDB).
– Rich Queries (Attribute-based queries on K/V data)
• SQL-based queries, incl. JSON specific extensions;
aggregate fn’s across JSON fields executed on the DB,
taking full advantage of the defined indexes.
• Support for CouchDB selector queries, which are
translated transparently into their SQL equivalent
• Query results are hashed in merkle trees and re-
evaluated and matched against the merkle tree
hashes at validation/commit time

OABCS Deployment Architecture
90
Service Instance
Smart Contract
Containers
(created by Peers)
Go
Smart ContractGo
Smart ContractGo
Smart Contract
Go
Smart ContractGo
Smart ContractJava
Smart Contract
Go
Smart ContractGo
Smart Contract
Client
Fabric SDK
Keys
Application Developers Smart Contract
Developer
IDCS
Event
Hub
Persistent
Storage
OABCS Console
Ops UI
OPC Services
OABCS
Console
HTTP/SHTTP/S
LBCS
Peer Container
Endorser
Simulates TX
Ledger
(LevelDB)
Committer
Applies
changes
Peer Container
Endorser
Simulates TXs
Ledger
Committer
Applies changes
Orderer
Membership
REST
Kafka APIs
Service Container
Customer
Application
Fabric-based
OPC Service
OABCS Code
Legend
Customer
Chaincode
NodeJS
Smart Contract

Brainstorm
91

Why would Blockchain make sense
• Digital (secure) record keeping
• Double Spending principle
• Increase transparency to eliminate opportunity for fraud
• Inclusion of third parties to improve data quality
• Real-time audit capabilities
92

Selecting use cases
• Modelling (capabilities, value)
• Check-list/decision tree
• Look for:
– Critical processes that suffer from duplication and reconciliation
– Costly processes that suffer from cumbersome hand-overs, paperwork or regulation
– Inquiries that request unnecessary load on organization due to dispersed information
– Recurring inquiries on verification (of deeds, custody, financials, etc.)
– External reporting and auditing that fall short
– Processes lacking digital signatures and digital assets
– Correlated IT systems not integrated on data sharing
93

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | 94Copyright © 2018, Oracle and/or its affiliates. All rights reserved.
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