This document provides an overview of blockchain technology and how it can be implemented using Microsoft Azure. It defines blockchain as a secure, distributed ledger that decentralizes data. Transactions are grouped into blocks and added to the chain in a trustless environment without middlemen. Azure provides tools to build blockchain nodes, run transactions and mining, and integrate blockchain into applications. Demos and learning resources are available to help users get started with blockchain on Azure.

1. Blockchain 0-60
Rapid development using Azure
Eric Maino - @ericmaino
Ali Hajimirza – @ali92hm
JD Marymee – @jmarymee

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Blockchain Basics

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Secure Cryptographically Provable
Shared
Distributed
Ledger
Blockchain is a secure, shared, distributed ledger

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That decentralizes data in a trustless environment
Traditional System
Centralized system
with stored ledger
Blockchain System
Distributed system
with distributed ledger
 Traditional ledgers are centralized and use 3rd parties and middlemen to approve and record transactions
 Blockchain safely distributes ledgers across the entire network and does not require any middleman
 The technology maintains multiple replicas like p2p torrent file sharing

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Ledger: Blockchain uses a distributed ledger to track transactions
 A ledger is a write only database most commonly used in accounting
 The digital distributed ledger creates the same copy of the data across all the participating nodes
 All new transactions are digitally signed and then broadcast across the blockchain network to be added to the system
 Participants in the blockchain verify the transaction is valid and then writes it to the ledger
 This is the technology originally designed to power the bitcoin currency
Entire network has
same ledger
FROM TO PROPERTY VALUE
Alex Katie Payment $500
Jim Sally Payment $300
Alex Garth Asset Car
Katie Tony Payment $100
Molly Paula Message I love you
Example ledger

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Example: Blockchain transacation
In this example, Alex wants to send Katie $500 via a financial transaction blockchain system
Alex Katie Payment $500
Transaction (Tx)
From: Alex (0xf5e…)
To: Katie (0x992…)
Amount: 500
Digital signature
0x23e423s3234…
2. Pushed and shared with
the network
Tx
Signature
Tx
Signature
Tx
Signature
Tx
Signature
Tx
Signature
Tx
Signature
3. Confirmed by a miner in
a block that is shared1. Transaction is created and is
put into pool of pending
transactions to be confirmed

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Transactions are connected within a chain of blocks
 Transactions are grouped together in blocks. These blocks represent the order of transactions
 Blocks are linked to previous blocks, which make the blockchain
 The transaction chain tracks how ownership changes, while the block chain tracks the order of transactions
 Transactions within the same block are considered to occur at the same time
Block 0 (0x23e…)
Transaction 1
Transaction 2
Transaction 3
Confirmed new block
Block 1 (0x5ef…)
Transaction 4
Transaction 5
Transaction 6
Previous Block
0x23e…
Block 1 (0x976…)
Transaction 7
Transaction 8
Transaction 9
Previous Block
0x5ef…

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Decentralization has great benefits & changes
fundamental processes & models
Eliminates Intermediaries
Reduces Fraud
Increases Efficiency and Speed
Increases Revenue and Savings

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And it will disrupt multiple industries
Retail & Manufacturing
Financial Healthcare Government

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We’ve delivered an open, broad,and
flexible cloud across the stack
Applications Management Clients
Web App Gallery
Dozens of .NET & PHP CMS and Web apps
Infrastructure Databases App Frameworks
SQL Server
+Hundreds of community supported
images on VM Depot
Azure BaaS
HyperScale
EnterpriseGrade
Hybrid
Microsoft Azure | An Open Cloud

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Ethereum Blockchain in Azure

12. Microsoft Ignite
Australia
Asia
Europe
Azure
Nodes for
Consortium

13. What does a
Node look Like?
LB = Load Balancer (Azure Load Balancer)
TX = Transaction VM (Linux)
MN = Miner VM (Linux)
= Private Network (Azure Virtual Network)
Dash = Dashboard VM (Linux)
Reporting = Reporting VM
TX + Mn + Dash VMS communicate on Whisper Protocol
LOAD BALANCER
Vnet
TX TX TX DASH REPORTING
MINER MINER MINER

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Demos

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Market
Challenges HYPE
IMMATURE
NOT ENTERPRISE READY
PATH TO PRODUCTION IS AMBIGUOUS

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AZURE BLOCKCHAIN MARKETPLACE
https://aka.ms/blockchainmarketplace
BLOCKCHAIN MICROSOFT VIRUTAL ACADEMY
https://aka.ms/blockchainmva
How do you
get started?
BLOCKCHAIN DEMO CONTENT
https://github.com/EthereumEx/blockchain-060