Blockchain on the oracle cloud, the next big thing
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What is Blockchain? Is it ‘just another’ buzzword or is it ‘the next big thing?’ In this session the presenter will discuss the world of Blockchain. What is it exactly, and how shall it change the world and what are the practical usages? During this presentation we discuss how an enterprise Blockchain can be used in combination with the Oracle Container Cloud and how it replaces commonly known B2B patterns. The audience will get a general picture of Blockchain, why and how to use it, and a small introduction to start building their own.
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Blockchain on the oracle cloud, the next big thing
- 1. Blockchain on the Oracle Cloud The next big thing? Robert van Mölken, AMIS
- 2. Introductions • Robert van Mölken • Blockchain / Integration Specialist • Frequent blogger & presenter and Board Member on Dutch Oracle User Group • Co-Author of 1st Oracle PaaS book: Implementing Oracle Integration Cloud Service • Author of upcoming book: Blockchain across Oracle • Linkedin: linkedin.com/in/rvmolken • Blog: technology.vanmolken.nl • Twitter: @robertvanmolken • Email: robert.van.molken@amis.nl
- 3. 3 Membership Tiers • Oracle ACE Director • Oracle ACE • Oracle ACE Associate bit.ly/OracleACEProgram 500+ Technical Experts Helping Peers Globally Connect: Nominate yourself or someone you know: acenomination.oracle.com @oracleace Facebook.com/oracleaces oracle-ace_ww@oracle.com
- 4. CLICK TO EDIT MASTER TITLE STYLE Blockchain on the Oracle Cloud • What is the Blockchain? • Technology behind the Blockchain • Applications of the Blockchain • Eco system - don’t build from scratch • Blockchain on Oracle Public Cloud Blockchain on the Oracle Cloud 4 AGENDA
- 5. What is the Blockchain? A blockchain is a data structure that enables a group of entities to share a digital unified ledger and transact with each other rapidly and safely without a central authority. Each entity controls its assets via a private key and independently verifies all transactions. Blockchains have no single point of failure, so entities can appear, disappear or malfunction without affecting the group as a whole. Blockchain on the Oracle Cloud 5
- 6. Technology behind the Blockchain Digital ledger (shared spreadsheet) • A transactional 'key / value' database, decentralized public ledger with all transactions Safe and secure • Combination of Peer-to-peer network and public key-cryptography without central authority • Any transaction added to the block chain is validated by multiple entities Open-source • The underlying technology of bitcoin, but open-sourced Blockchain on the Oracle Cloud 7 I OND blockchain == ‘digital trust’ M M U T A B L E O R D E R L E S S P E N E U T R A L E C E N T R A L I Z E D
- 7. How does the blockchain work Blockchain on the Oracle Cloud 8
- 8. How does the Blockchain reach consensus? • New created block of transactions is added to the block chain • But a general ledger has to be trusted, and all of this is held digitally • ‘Designated’ nodes or ‘peers’ confirm the settlement of transactions in a trustful manner • Over these conclusion the blockchain need to reach consensus • There are four major concensus algorithmes: • Practical Byzantine fault tolerance (or PBFT) • Proof-of-stake (or PoS) • Delegated proof-of-stake (or DPoS) • Proof-of-work (or PoW) Blockchain on the Oracle Cloud 9
- 9. Operation of the "Proof-of-Work" consensus method 1. A peer or ‘Solver’ takes the information and turn it into hash By applying a mathematical formula to it 2. The hash is stored along with the block in the chain 3. The block’s hash is produced using the hash of the block before it It becomes a digital version of a wax seal 4. Participants confirms that block – and every block after it – is legitimate If you tampered with it, everyone would know Blockchain on the Oracle Cloud 10
- 10. Blockchain on the Oracle Cloud 11 Blockchain 101: How does it really work?
- 11. Blockchain on the Oracle Cloud 12
- 12. Blockchain on the Oracle Cloud 13
- 13. Blockchain on the Oracle Cloud 14
- 14. Blockchain on the Oracle Cloud 15
- 15. Blockchain on the Oracle Cloud 16
- 16. Applications of the Blockchain (non-currency) • Economics, and finance • Private equities, Public equities, Bonds, Spending records, Trading records, Mortgage/loan records, Crowdfunding • Smart property (diamonds, cars (GPS), decentralized asset exchange) • Smart contracts • Governance and legal • Vehicle registries, Passports, Birth & Death certificates, Voting records, Health/safety inspections, Building permits, Criminal & court records • Decentralized Application (Dapp) • Buy/sell items, Ride services, peer-to-peer microblogging, file storage, Digital identity verification Blockchain on the Oracle Cloud 17
- 17. Smart Contracts Blockchain on the Oracle Cloud 18 • Agreements between parties for automated execution can act as a complement, or substitute, for legal contracts • Computer program code that is capable of facilitating, executing, and enforcing the negotiation or performance of an agreement • Example shows contract to capture arbitrary data on the owner submitting claim upon transaction, given a blockchain address is not linked to a physical identity
- 18. Blockchain on the Oracle Cloud 19 Smart Contract : Insurance
- 19. Blockchain on the Oracle Cloud 20 Smart Contract : Supply Chain
- 20. Blockchain replaces existing B2B solutions • Blockchain can replace B2B-integrations • Instead of using Oracle B2B or Axway for classic trading/e-commerce • Replace EDI or SOAP/XML integrations by putting messages on blockchain • Moving high sensitive data can be difficult with SOAP/REST services Blockchain on the Oracle Cloud 21 Current B2B Traffic Blockchain Enhance security on web service endpoint (OWSM) + two- way SSL Specifies specific access to parties and end-to-end encryption of data using public/private key cryptography. Open firewalls on specific ports so endpoints are available to third parties. A party or entity runs client software that connects to blockchain (peer-2-peer) network Central authority that connects partners through 3rd party software. A partner depend on its reliability. No central authority, partners can directly connect without losing authorization model. Authorization and data protection requires additional messaging protocols, contracts, translation Rules can be recorded in smart contracts that automatically trigger when a transaction occurs. There is no end-to-end track and trace between partners. Each partner does their own logging. All messages are shared with all participant / partners without manipulation of data. A full history of transactions is available for everyone so very transparent.
- 21. What about Oracle projects? Blockchain on the Oracle Cloud 22 Practical example Department of Justice – Current Situation Finance System APIs Criminal Offences System APIs PARTNER A / SYSTEM OF RECORDS OPP System APIs OPS System APIs POLICE / DEPARTMENT A POLICE / DEPARTMENT BMINISTRY OF DEFENSE EBXML EBXML S O A P S O A P J M S CPA CPA EBXML CPA
- 22. What about Oracle projects? Blockchain on the Oracle Cloud 23 Practical example Department of Justice 1. D.o.J. perform initial setup of Blockchain and mines genesis block (regulator) 2. Partner A and Police Dept A & B join the private blockchain 3. Nobody is owner of data, all partners are part of a consortium 4. All partners can write and read data into/from blockchain 5. Partner A writes data into blockchain, which is validated by consortium 6. Police can read data from blockchain ones validated & process data Department A Department B Partner A Central Collection Agency Regulator Department of Justice OPP
- 23. Eco system – ‘don’t build from scratch’ Public Blockchains • BitCoin, AltCoins (LiteCoin) • Etherium (Ether) • Hyperledger • Ripple Private / Consortium blockchains • Eris::Monax (turnkey solutions) • Oracle Blockchain Cloud Service (oct ’17) • Microsoft’ Blockchain as a Service • Hyperledger Fabric of MultiChain Blockchain on the Oracle Cloud 24
- 24. Public vs Private blockchains Public blockchains • Anyone in the world can read • Anyone in the world can send transactions • Anyone see transactions included if they are valid • Anyone can participate in the consensus process • Fully decentralized Private / Consortium blockchains • Write permissions are kept centralized to one organization or consortium • Read permissions may be public or restricted • Include database management, auditing, etc • Consortium of selected nodes participate in consensus Blockchain on the Oracle Cloud 25
- 25. Practical Blockchain Development for Oracle Developers Container Cloud +
- 26. Introducing the Oracle Container cloud Blockchain on the Oracle Cloud 27 Managing Containers Easily on Oracle Cloud Prebuild Application and Ready-made Building Blocks Import Docker Run and Compose Files Copy and Paste AppYAML for Code Sharing Scale your Containerized Apps (any language) Interface & Wizards provide easy orchestration Manage Containers in the Cloud or using REST API
- 27. Introducing Hyperledger Fabric • Founded early 2016 as part of Linux Foundation’s Hyperledger project • Includes a ledger, uses smart contracts, and is a system by which participants manage their transactions. • It is private and permissioned • New members of network enroll through a Membership Service Provider • Offers several pluggable options • Store data in multiple formats, switchable consensus mechanisms • Offers the ability to create channels • Allowing a group of participants to create a separate ledger of transactions Blockchain on the Oracle Cloud 28 Permissioned Blockchain for the Enterprise
- 28. Introducing Hyperledger Fabric • Each participant has a copy of the ledger to every network they belong to. • Ledger comprising two components: world state & transaction log • World state describes state of the ledger at a given point in time (database) • Transaction log records all transactions which have resulted in the current value of the world state (update history) • Ledger has a replaceable data store for the world state. • By default, a LevelDB key-value store database else CouchDB • Smart contracts are written in chaincode and invoked by an external application • Mostly interacts with the database component (querying world state) Blockchain on the Oracle Cloud 29 Shared Ledger and Smart Contracts
- 29. Introducing Hyperledger Fabric • Supports networks where privacy: • is a key operational requirement using channels • is not a top concern comparatively open • Offers switchable consensus methods • Chosen by network starter(s) • Represents relationschips between participants • Includes: PBFT, No-Op, SIEVE, and more Blockchain on the Oracle Cloud 30 Privacy and Consensus
- 30. Hyperledger Fabric + Container cloud • Available as docker images: • yeasy/hyperledger-fabric-ca:1.0.2 • yeasy/hyperledger-fabric- orderer:1.0.2 • yeasy/hyperledger-fabric-peer:1.0.2 • … • Get Oracle Container Cloud using free trial credits • Use docker compose to import images using YAML
- 31. Blockchain on the Oracle Cloud The next big thing? Robert van Mölken, AMIS
Editor's Notes
- 2008 – Bitcoin whitepaper by unknown person S Nakamoto 2009 – Genesis Block mined, the first block of a block chain 2009 – Exchange rate established: US$1 = 1,309 BTC 2010 – Currency Exchange to buy/sell bitcoins 2011 – 2013 Alternative coins starting the rise, Litecoin is seen as the silver to Bitcoin’s gold 2015 – 2017 Private blockchains surface. People are looking into different kind of applications (non-currency)
- A transaction key/value database, decentralized public ledger of all transactions - Giant ‘interactive Google doc spreadsheet’ that anyone can view Combination of BitTorrent and public key cryptography Each transaction can be decentralized in a peer-to-peer trustless manner without a controlling authority in the middle Each transaction added to the block chain is verified - Administrators (miners) continually verify and update to confirm that each transaction is valid, ensuring that the inputs for the transaction had not previously already been spent Underlying technology of Bitcoin, but open-sourced
- New created block of transactions is added to the block chain But a general ledger has to be trusted, and all of this is held digitally ‘Designated’ nodes or ‘peers’ confirm the settlement of transactions in a trustful manner Over these conclusion the blockchain need to reach consensus There are four major concensus algorithmes: Practical Byzantine fault tolerance (or PBFT) Proof-of-stake (or PoS) Delegated proof-of-stake (or DPoS) Proof-of-work (or PoW)
- Example is simple ownership contract. A property contract is a contract that allows any entity that participates in blockchain to include any key-key pair. The nature of the blockchain states that the owner of a particular address can be the only one that can claim claims in connection with that address. In other words, the property contract gives everyone insight that a transaction with you wants to perform what your claims are. For example, you can set up an email called 'email' so anyone who wants to run a transaction can get your email address. This is useful because a Blockchain address is not linked to an identity (or email address) to a private key only.
- Smart contracts can improve the disjointed car insurance process. A smart contract can record the policy, driving record and driver reports, allowing Internet of Things-equipped vehicles to execute claims shortly after an accident. They automate claims processing, verification and payment. Each policyolder’s repository includes driving record, vehicle and accident report history. Eliminating duplicated reporting will yield savings.
- Smart contracts can provide real-time visibility for every step in a supply chain. Internet of Things devices can record each step as a product moves from a factory floor to the store shelves. They facilitate granular-level inventory tracking, benefitting supply chain financing, insurance and risk. Such enhanced tracing and verification reduce the risk of theft and fraud.
- - Partner A, M.o.D and Police setup a private blockchain - M.o.D. perform initial setup of Blockchain and mines genesis block - Nobody is owner of data, all partners are part of a consortium - All partners can write and read data into/from blockchain - Partner A writes data into blockchain, which is validated by consortium - Police can read data from blockchain ones validated and process data - Police can write reply into blockchain, which is validated by consortium - Partner A can read data from blockchain one validate and process data - New partner interested in data can join consortium and process all data
- Public blockchains, including Bitcoin, Ethereum, Hyperledger, and most altcoins, are built to be accessible by anyone with adequate technology, which has so far meant a computer and access to the internet. Ripple is technically a public blockchain, but is an interesting standout because it is built with a public-based architecture but is privately controlled through centralized ownership of the underlying currency and closed-source software. Companies like Deloitte’s Rubix, Eris Industries, and AlphaPoint’s Streamcore, sell turnkey solutions for private blockchains directly to businesses. Microsoft, offering “Blockchain as a Service” (BaaS), or private blockchain nodes packaged up as ‘quickstart templates’ within its cloud service Azure. MultiChain offers the desktop route, deploying a private blockchain on your desktop computer, even in a windows environment. It allows rapid design, deployment and operation of private blockchains to your custom specification.
- Easy and quick way to create a CaaS (container-as-a-service) infra Operational Dashboards, Health Checks, Service Scaling and Policies Compose, deploy, orchestrate and manage Docker container apps Control development, testing, staging or production using web interface Integrate with CI/CD workflows using private/public registries One-click deploy of complete container application stack Leverage REST API to create and control (multi-host) applications
- Founded early 2016 as part of Linux Foudation’s Hyperledger project To advance cross-industry blockchain technologies Includes a ledger, uses smart contracts, and is a system by which participants manage their transactions. It is private and permissioned New members of network enroll through a Membership Service Provider Offers several pluggable options Store data in multiple formats, switchable consensus mechanisms Offers the ability to create channels Allowing a group of participants to create a separate ledger of transactions If two participants form a channel, then those participants – and no others – have copies of the ledger for that channel.
- Each participant has a copy of the ledger to every network they belong to. Ledger comprising two components: world state & transaction log World state describes state of the ledger at a given point in time (database) Transaction log records all transactions which have resulted in the current value of the world state (update history) Ledger has a replaceable data store for the world state. By default, a LevelDB key-value store database Smart contracts are written in chaincode and invoked by an external application Mostly interacts with the database component (querying world state)
- SIEVE is derived from PBFT in a modular way by reusing the PBFT view-change protocol to lower its complexity and avoid implementing a new consensus protocol from scratch.