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Blockchain target-share
- 1. Blockchain@Target: Distributed Ledgers in the Enterprise Minnebar April 2019
- 2. Agenda • Enterprise Blockchain • Distributed Ledger • Consensus Algorithms • Enterprise Considerations • Blockchain @Target
- 4. Blockchain
- 5. Enterprise Blockchain • Immutable record of transactions • Shared between participants • Trusted between enterprises • Cryptographically signed • Distributed consensus
- 7. Distributed Ledger Enterprise Considerations • Externalized shared data • Distributed across participants • Signed and verified • May or may not be a Blockchain
- 8. Distributed Ledger Enterprise Value • Data transparency • Contract automation • Verifiable provenance • Centralize data
- 10. Smart Contracts – Solidity or Sabre https://solidity.readthedocs.io/en/v0.5.7/introduction-to-smart-contracts.html https://sawtooth.hyperledger.org/docs/sabre/nightly/master/
- 13. Corporate and Government Capital ~$2.9B in Blockchain investment in 2019 https://forbes.com/sites/michaeldelcastillo/2019/04/16/blockchains-billion-dollar-babies
- 15. Consensus Algorithm Most Important Selection • Who can join the network? • Who writes next block? • How much does it cost? • What’s the latency?
- 16. Consensus Algorithm Fault Tolerance Choice Byzantine FaultTolerant or Crash FaultTolerant
- 17. #1 Proof of Work - PoW • Expend energy to solve a problem (miners) • Problem solver is the “winner” and writes the next block • Miners verify the block and get rewarded for work • Math makes taking over the chain expensive (51% attack) • Bitcoin problems • 61.4 TWh ~ Ireland • 454 KWh per transaction ~ 15 US households • Slow ~7 tps • Short term forks https://www.forbes.com/sites/shermanlee/2018/04/19/bitcoins-energy-consumption-can-power-an-entire-country-but-eos-is-trying-to-fix-that/#480e9c
- 18. #2 Proof of Elapsed Time - PoET • Each node gets a random wait time • Node whose wait time expires first writes the next block • Wait time is signed and verifiable by other nodes • For BFT, requires Intel Software Guard Extensions (SGX) • Code execution enclave inaccessible by remaining system • Wait timer is executed in the enclave • Node verification tests: • Z Test – node isn’t winning too often • C Test – new node must wait C blocks before winning • K Test – node can publish K blocks before recertifying
- 19. #3 Proof of Stake - PoS • Ownership of something: cryptocurrency units, votes, etc. • Nodes put up their stake on a proposed block • If that block is fraudulent, they lose their stake • Blocks are “forged” not “mined”
- 22. Consortium
- 24. Verified Identity & Permissions
- 25. Data Privacy
- 26. Chain Operations
- 27. DLT @Target
- 28. Consensource
- 29. ConsenSource Target Standards Body Certification Body Factory Accredits certifier to standard Issue Certification Standards body defines certification Verified claims, audits
- 31. ConsenSource – Get Involved To participate in ConsenSource: https://github.com/target/consensource
- 33. Hyperledger Grid Hyperledger Grid
- 34. Target is a Hyperledger Grid Sponsor • Product application • Integrate Consensource • Imagine new ways of working with a large supplier (Cargill)
Editor's Notes
- Want to know who is on the chain Permissions for users Identification Faster algorithms 4-5k/s on hyperledger Privacy Permissions for data to other participants
- This is not a blockchain primer, but we’ll hit on a few of the major topics
- This is not a talk on cryptocurrencies
- The key to establishing an enterprise blockchain is that it is done with multiple parties. Creating a blockchain that’s completely internal to a company is a good starter, but the blockchain doesn’t add anything. To use blockchain in the enterprise, you need two or more companies to participate
- Bring data transparency to opaque systems (supply chains) Contract automation (remove EDI) often called smart contracts Providence (Food, Airplane parts, pharmaceuticals) Centralization (stock trades, certifications, audits)
- Being able to track food as it flows through the supply chain. Mangoes, leafy green vegetables, pork, and turkeys.
- Solidity is a framework to create smart contracts on Ethereum
- Buying parts took days or weeks to source and verify Provenance and documentation stored on a blockchain is available immediately Can buy parts online now
- From the enterprise standpoint, this is what matters the most
- The Consensus algorithm is actually the most important consideration Computational agreement on who writes the next block (“winner”) You can decide you want a DLT, but how transactions are written, how long they take, what they cost will Actually decide how your application works in the future Byzantine Fault Tolerant or Crash Fault Tolerant
- The most important decision for your enterprise blockchain Byzantine Fault Tolerant or Crash Fault Tolerant
- 51% attack is a symptom of the Consensus Algorithm, not a property of Blockchains Need incentives to create miners Forkable Biggest problem is the algorithm uses tons of electricity 42 TW, about the size of electricity used by Peru 454KWh per transaction, 15 households in US/day
- SGX – can attest that its code is authentic Sawtooth uses this type of consensus algorithm
- Ethereum hard fork occurred Feb 28, 2019 Since you are putting up your stake and can lose it, you’re incentivized to pick the right transactions
- Multi-party shared transactions are the only reason to use a Blockchain to share and exchange data with other entities. Building a consortium of companies that want to share transactions: Examples: Certification specification organizations and certification auditors Provenance of food chain (growers, movers, retailers) Universal information (products) (product producers, distributors, retailers)
- For an enterprise shared blockchain application: Allow anyone to join? Or only allow selected participants
- Enterprise Blockchains: Who can write transactions? Who can add new participants? Who can administer the system?
- What data is stored in the chain? Who can see what data? If we’re doing something like purchase orders on a blockchain, Each company will want their purchases, quantities and price private. But they also want an automated contract execution How do you decide? In one of Target’s first POCs, we wanted to input a purchase order into the blockchain, and immediately everyone started asking questions on whether we should do that at all, if we did, what data, etc.
- Enterprise considerations: Who decides the architecture? Who maintains the blockchain code? How does it get paid for? When do you do updates? Do you archive data? What does a transaction cost? How many TPS?
- We are implementing this at Target, here’s what we learned in the past year
- Target has recently opensourced a blockchain project
- We just joined this effort
- We are just getting started, but we believe Open Source based Industry consortiums are the future for blockchain applications.