Blockchain: Strategies for Moving From Hype to Realities of Deployment

Blockchain: Strategies for Moving From Hype to
Realities of Deployment
Serge Lucio
MFT12S
MAINFRAME
SVP Strategy and Product Management
CA Technologies

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© 2017 CA. All rights reserved. All trademarks referenced herein belong to their respective companies.
The content provided in this CA World 2017 presentation is intended for informational purposes only and does not form any type
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For Informational Purposes Only
Terms of this Presentation

Abstract
The promise of blockchain, or specifically distributed ledger technology, has captured
the attention of business and IT leaders across multiple industries. Now is the time to
move from hype to reality.
This session will examine use cases of pioneering companies that apply blockchain in a
multi-party entity environment with immutable smart contracts. We’ll share how some
DevSecOps requirements are fundamentally different for blockchain pilots and full
deployment—from getting started with the right development environment to concerns of
security, encryption and operational visibility. We will also discuss integration of
blockchain with existing systems of record and the use of shadow blockchain as an
evolutionary step towards adoption.
Serge
Lucio
CA Technologies
SVP Strategy &
Product
Management

Blockchain Establishes Digital Trust

1. CoinDesk, 2013-2016 growing +31% QtQ
2. AITE Group, Tabb Groupl 2016 market estimated at $230M
3. McKinsey & Company
$1.5B
Venture capital
Investment in
Blockchain startups
to date1
+59%
Projected growth in
capital market
spending in Blockchain
technologies2
$100B
Projected savings on
key financial services,
insurance and identity
fraud prevention use
cases3
Blockchain Is a HYPERGROWTH Market

Blockchain Is Not Just Bitcoin

Private/Permissioned Blockchain
▪ Limited number of trusted participants.
▪ Blockchain Network has owner(s)
▪ Fast consensus through rules
Public/Permissionless Blockchain
▪ Anyone contributes data to the ledger
▪ No single owner of the ledger
▪ Slow consensus through miners
Various publications: Hyperledger, IBM
Consensus
Privacy
Shared
Ledger
Smart
Contracts
Public
(B2B & C2C)
Bitcoin
Private:
Hyperledger,
Ripple
What Is Blockchain?

Source: Adapted from Deliotte https://www2.deloitte.com/content/dam/Deloitte/au/Images/infographics/deloitte-au-fs-opportunities-implications-200516.pdf
Operational efficiency gainsDIGITISED
Eliminates need for central authorityDECENTRALIZED
Reduced risk of fraudIMMUTABLE
Supports near instant reconciliationIMMEDIATE
Reduces infrastructure complexitySIMPLIFIED
Building Digital Trust at Scale With Blockchain

What
Provenance of products in the
supply chain is tracked
How
Complete provenance details for each
product, accessible across organization
and suppliers
Why
Real-time & accurate status while
avoiding competitive leaks
Source: IBM Presentation. David Galvan. https://www 01.ibm.com/events/wwe/grp/grp308.nsf/vLookupPDFs/6%20Using%20Blockchain%20for%20Food%20Safe%202/$file/6%20Using%20Blockchain%20for%20Food%20Safe%202.pdf
Benefits
• Increased trust between
suppliers and Walmart
• Dramatic cost reduction in
recalls ($93.2B per year
for US economy
Retail Supply Chain – Food Safety Example

Source: https://www-03.ibm.com/systems/data/flash/tw/downloads/IBM_z_System.PDF
Why Blockchain on the Mainframe?
▪ High Scalability & Performance
– High Scale I/O
– Crypto optimized
▪ Mainframe offers key Security
characteristics
– Secure Key and Hardware Secure Module
– Onboard HSM with tamper resistant cards
– Hardware attached FIPS 140-2 Level
4 security
– Tamper proof secure containers with
self destruct
IBM is running its Blockchain as a Service HSBN on System zI

From Pilot to Production – Key Challenges
Data Security
Visibility & confidentiality of
transactions across members
Membership & Governance
Determining access and
flexible governance models
Latency & Throughout
Processing power &
operational performance

ProductionPilot
How do we secure
data and protect
privacy?
How do we integrate and
automate with existing
processes?
How do we deliver in
a flexible yet agile
manner?
How do we optimize our
network and ensure
performance?
Open Questions on This Journey

AGILITY
Getting Started With Blockchain
▪ Community engagement
▪ Hackathons – help you
run one
▪ Tutorial contributions:
Hyperledger on zLinux
and Creating a Business
Network

SECURITY
New Data Security Considerations
▪ Unencrypted PII getting committed
to a blockchain
▪ Paradox of transparency vs.
privacy: transaction visibility?
▪ Determining global identity:
blockchain vs. existing SoR
▪ PII management (scan,
classify, alert)
▪ Membership/authority certification
BLOCKCHAIN MD_TBL2
MD_VIEW1
Only extract META
DATA from SoR not
all PII
PRD%
EXISTING SYSTEMS

INSIGHTS
Challenges
Considerations
Ensuring Operational Resilience
Avoiding Rogue Contracts or Flash Crashes
▪ Need for monitoring
▪ Baselining “known
and set” sequence
of transactions
▪ Simulation & prediction
of scenarios

AUTOMATION
Handling Data Transfer to New Networks
Shadow Blockchain
▪ Mirror transactions only, not the data
▪ Start slow, test and run in parallel
Source: Reuters article on Royal Bank of Canada https://www.reuters.com/article/us-rbc-blockchain/exclusive-royal-bank-
of-canada-using-blockchain-for-u-s-canada-payments-executive-idUSKCN1C237N
New Blockchain Network
Existing Transactional Databases
Trade
settlement
Exchange rate
reconciliation
Cross country
payment
Challenges
Considerations
chain codes only,
no source data

ProductionPilot
CA Blockchain Security
CA Shadow Blockchain Data
Automation
CA Blockchain DevX
CA Blockchain Operational Excellence
CA Blockchain Customer Validations

Explore
Discuss where you
are in your journey
with blockchain and
your future goals
Ideate
Define your business
challenge and create
a roadmap for
implementation
Partner in setting up
your first blockchain
project to determine
its value
Pilot Evolve
Move from proof of
concept to production
and integrate with your
existing backend
systems
CA Blockchain Engagement Model

Recommended Sessions
SESSION # TITLE DATE/TIME
MFT54T
Tech talk: Blockchain: Journey to becoming a
digital enterprise
Developer session on everything Hyperledger!
11/15/2017 at 5:00 PM

Must See Demos
Blockchain
Operational
Excellence
Smart Bar
Mainframe Theater
Smart Bar
Mainframe Theater
Shadow
Blockchain
Smart Bar
Mainframe Theater
CA Mainframe
Operational
Intelligence
Booth Q3 609P
Mainframe Theater
CA Data
Content
Discovery
Booth T2 605P
Mainframe Theater
Blockchain
Data Security

Stay connected at communities.ca.com
Thank you.

Mainframe
For more information on Mainframe,
please visit: http://cainc.to/CAW17-Mainframe

www.mainframe.ai

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