This document summarizes a presentation about blockchain on Azure. It discusses: 1. The four pillars of blockchain - secure, shared, distributed, and ledger. 2. Different types of blockchain networks including public, private, and consortium. 3. Why Microsoft is well-positioned for blockchain with its open ecosystem on Azure. 4. How blockchain is evolving from simple ledgers to incorporating smart contracts and external data access through cryptlets. 5. Examples of blockchain applications including supply chain management and social good projects.

1. 1
Blockchain on Azure
Nuri Cankaya
Microsoft

2. Blockchain | 4 Pillars
Secure
Uses tried and true public/ private signature
technology. Blockchain applies this technology
to create transactions that are impervious to
fraud and establishes a shared truth.
Shared
Blockchain’s value is directly linked to the number of
organizations or companies that participate in them.
There is huge value for even the fiercest of competitors
to participate with each other in these shared database
implementations.
Distributed
There are many replicas of the Blockchain
database. In fact, the more replicas there are, the
more authentic it becomes.
Ledger
The database is a read/write-once
database so it is an immutable record of
every transaction that occurs.
A cryptographically secure, shared, distributed ledger

3. Consortium
Woodgrove
Financial
Contoso
Bank
Northwind
Traders
Bank b
Insurance c
Investment
consortium c
Bank A
Blockchain
Location 1
Location 2
Location 3
Location 4
Department
A
Department
B
Public ConsortiumPrivate
• Many, unknown participants
• Writes by all participants
• Reads by all participants
• Consensus by Proof of Work
• Known participants from one organization
• Write permissions centralized
• Reads may be public or restricted
• Multiple algorithms for consensus
• Known participants from multiple
organizations
• Writes require consensus of several
participants
• Reads may be public or restricted
• Multiple algorithms for consensus
Public
blockchain
Persona
Woodgrove
Financial
Person B
Northwind
Traders
Bank 6
Bank 1
Consortium
6
Source: Ethereum blog by Vitalik Buterin https://blog.ethereum.org/author/vitalik-buterin/
Blockchain | Network Types

4. General Propose Chain
General Propose Chain
Blockchain | Multiple Chain Types
Blockchains
Alternative
blockchains (altchains)
(Decentralized
Transport)
(cryptocurrency) (cross-industry collaborative)
(cross-industry collaborative)
(FSI consortium)
open platform for
developers and devops
to build blockchain apps
(banking industry collaborative)
(Social News
Blockchain DB)
(IBM Open Blockchain )

5. Why Microsoft for Blockchain?
Azure
• Open Blockchain Ecosystem
• Our platform will integrate with your investments
• Regulatory and Compliance Ready (including Financial Services)

6. Microsoft Azure | Open Cloud
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

7. Virtual
Machines
Ethereum
Consortium
Blockchain
by Microsoft
STRATO
Blockchain
LTS
by Blockapps
Chain Core
Developer
Edition
by Chain
Ethereum
Studio
by Ether.camp
Emercoin
Blockchain
Engine
by Emercoin
Blockchain as a
Service (BaaS)
Bletchley Framework
Microsoft Azure | Azure Blockchain Solutions

8. Evolution of Blockchain
Blockchain 1.0 – A simple ledger

9. 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 third 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

10. Evolution of Blockchain
Smart Contracts are unable to access external data or events based on time or market conditions. Calling code or
data outside of a Smart Contract or blockchain breaks the general trust barrier and authenticity of transactions.
Cryptlets will allow the blockchain to access external data securely, while maintaining the integrity of the blockchain.
Blockchain 2.0 – Introducing Smart Contracts

11. Traditional Contract Deployed to Nodes
Blockchain 2.0 | Smart Contracts

12. Microsoft Treasury and Microsoft BaaS (Blockchain as a service team) worked with
Bank of America to automate the issuance and advising of the SBLC process using
Blockchain. This was done as a Proof of Concept (PoC) project and PWC was used
for building this solution.
Blockchain based SBLC process:
Trade Finance in a blockchain world
Speed and Efficiency
of Execution
Real-time data and
Audit Trail
Transparency across
all participants
This PoC was a collaborative effort to reflect a “true” SBLC scenario, and included the following parties:
• Beneficiary (Seller) : Microsoft
• Applicant (Buyer/Customer) : Sample Customer
• Issuing Bank (Buyer/Customer) : Sample Bank
• Advising Bank : Bank of America
Financial

13. Evolution of Blockchain
Smart Contracts are unable to access external data or events based on time or market conditions. Calling code or
data outside of a Smart Contract or blockchain breaks the general trust barrier and authenticity of transactions.
Cryptlets will allow the blockchain to access external data securely, while maintaining the integrity of the blockchain.
Blockchain 3.0 – Microsoft evolving the ledger to address the big problem

14. Blockchain 3.0 | State-of-the-art cryptlets innovation
 Blockchain 2.0 introduced the power of Smart Contracts…
 …but Smart Contracts are unable to access external data or events based on time or market conditions
₋ Calling code or data outside of a Smart Contract or blockchain breaks the general trust barrier and authenticity of
transactions
 Cryptlets will allow the blockchain to access external data securely, while maintaining the integrity of the blockchain
 Cryptlets are a Microsoft innovation and solve a significant hurdle to enterprise blockchain adoption
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Code
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15. PRODUCER
Food Processor
Milk producer supplies Milk to
Food Processing Company
SMART CONTRACT
IoT Enabled
The package has to be
maintained at :
Temperature < 10º C
Humidity < 65%
The terms of shipping are
registered using a smart
contract on the Blockchain
Origin
8ºC
60% Warehouse Carrier 2 Store
CARRIER 1
Warehouse
CARRIER 2
Retail Store
9ºC
64%
9ºC
64%
11ºC
66%
At various points in the journey, the IoT device from the package sends the Temperature & Humidity data which are recorded on the blockchain
SMART CONTRACT
UPDATED
11ºC
66%
The conditions of the contract
have been violated.
Carrier 3 is liable for penalty as
the temperature of the package
when it reached the retail store
was above the prescribed limit
Detailed Use case - Supply Chain with IoT and blockchain
The Food product is sealed in an
IoT enabled package for shipping
SHARED LEDGER
Blockchain IoT

16. www.azure.com
16

17. Azure Marketplace for Blockchain
17

18. Blockchain as a Service (BaaS)
18

19. Tenets
of our
BaaS
Strategy
FAIL FAST & CHEAP
MIX & MATCH
CREATE & INNOVATE
SHARE SOLUTIONS
PROVISION

20. Blockchain For Social Good
The United Nations World Food
Programme (WFP) is deploying cutting-
edge blockchain technology to make cash-
based transfers faster, cheaper and more
secure.

21. 21
SETUP BLOCKCHAIN NETWORK FOR PILOT OR TEST SCENARIO
How do you
get started?
START BUILDING OUT SCENARIOS AND APPS
LEARN FROM PILOT and DEVELOPMENT FOR BLOCKCHAIN
BLOCKCHAIN BUSINESS IDEATION WORKSHOP

22. You can download the presentation from LinkedIn
Nuri Cankaya
Microsoft