More Related Content Similar to Blockchain with HyperLedger (Public version) Similar to Blockchain with HyperLedger (Public version) (20) Blockchain with HyperLedger (Public version)2. © IBM Corporation / Confidential 2
Introduction
But not only …
Why is everyone talking about Blockchain?
3. © IBM Corporation / Confidential 3
Introduction
Blockchain
= Bitcoin?
One blockchain to
rule them all?
Can I be totally anonymous
on the network?
Is Blockchain a
business ready
technology?
Is Blockchain an open
door to illegal
markets?
(=>Silk Road Affair)
Do Smart contracts a
legal value?
Will Blockchain
replace the Dollar?
Will Blockchain replace Stock
Markets and (Central) Banks?
Will Blockchain
replace Governments?
Will Governments kill
Blockchain?
Frequently Asked Questions
4. © IBM Corporation / Confidential 4
Definitions
A block chain or blockchain is a distributed database, introduced by
Bitcoin (2008) on Satoshi Nakamoto’s white paper, that maintains a
continuously-growing list of data records that each refer to previous
items on this list and is thus hardened against tampering and revision.
Distributed systems answer to a problem called Byzantine Generals’
Problem described by Leslie Lamport (1982).
PERMISSIONED / PRIVATEPERMISSIONLESS / PUBLIC
It distributes identical copies of a ledger, but
only to a limited number of trusted
participants. As the network may have an
owner(s), this methodology is better suited for
applications requiring simplicity, speed, and
greater transparency.
It allows anyone to contribute data to the
ledger with all participants possessing an
identical copy of the ledger. Since there
is no single owner of the ledger, this
methodology is more suitable for
censorship resistant applications
(e.g. Bitcoin)
Mesopotamian ledger
Blockchain
5. © IBM Corporation / Confidential 5
Definitions
• Don’t trust anyone! => slower (as need for
waiting for consensus to validate a block and get
an agreement on the network)
• Need a magic anti-hacking mechanism => need
miners to maintain the network
• If more than 51% of the network is controlled
by one group then it could be hacked
• On-chain assets
• Censorship resistant
• Trust everyone! => faster (only need validators on
the network for an agreement)
• Need a central administrator to control entry to the
network
• Off-chain assets
• Better irreversibility and control
PROOF
OF
WORK
Permissionless vs Permissioned Blockchains
Implications and differences
PERMISSIONLESS / PUBLIC PERMISSIONED / PRIVATE
6. © IBM Corporation / Confidential 6
Definitions
PBFT & Zyzzyva
RAFTPAXOS
Mencius
A fundamental problem in distributed computing and multi-agent systems is to achieve overall system
reliability in the presence of a number of faulty processes. This often requires processes to agree on some
data value that is needed during computation.
Consensus algorithms are used by a network to agree/validate on a computed result.
• Termination
Every correct process decides
some value.
• Validity
If all processes propose the
same value v, then all correct
processes decide v.
• Integrity
Every correct process decides at
most one value, and if it decides
some value v, then v must have
been proposed by some
process.
• Agreement
Every correct process must
agree on the same value.
Consensus
7. © IBM Corporation / Confidential 7
Definitions
Creation Phase Execution Phase
contract mortal {
/* Define variable owner
of the type address*/
address owner;
/* this function is
executed at initialization
and sets the owner of
the contract */
function mortal() {
owner = msg.sender; }
Block n New block
LOGIC CODE
Block Block Block
events
Actions/exe
cutions
Smart contracts are computer protocols that :
• facilitate and verify
• enforce the negotiation
• performance of a contract
• make a contractual clause unnecessary
Smart contracts
Condition
has been
validated
here
8. © IBM Corporation / Confidential 8
IBM on Hyperledger
Hyperledger (or Hyperledger project) is a cross-industry collaborative effort to create
blockchain-based open standard for distributed ledgers for globally conducted business transactions. The
project has been started by Linux Foundation and backed by technological, financial, banking and supply
chain companies worldwide.
The project aims to create an open-standard, public, decentralised public ledger based on
blockchain technology to advance worldwide business transaction processing in terms of cost-
effectiveness, speed and traceability.
Founding members of the initiative represent a diverse group of stakeholders:
• ABN AMRO
• Accenture
• ANZ Bank
• Blockchain Ltd
• BNY Mellon
• Calastone
• Cisco
• Deutsche Börse Group
• Digital Asset Holdings
• Fujitsu Limited
• Guardtime
• Hitachi
• Wells Fargo
• CME Group
• ConsenSys
• Credits
• The Depository Trust
& Clearing
Corporation (DTCC)
• CLS
On Feb. 2nd 2016,
IBM committed first
44K lines of code on
Github
• IBM
• Intel
• IntellectEU
• J.P. Morgan
• Red Hat
• SWIFT
• NEC
• NTT DATA
• R3
• State
Street
• Symbiont
• Vmware
9. © IBM Corporation / Confidential 9
IBM on Hyperledger Find Hyperledger on Bluemix
1. Click on “CATALOG”
2. Search “Blockchain” or scroll down the list
10. © IBM Corporation / Confidential 10
IBM on Hyperledger
SamplesSwagger APIBluemix Service
Deploying Marbles Demo
On Bluemix
Bluemix Blockchain : Service, API, Samples
A swagger API is available
for each Blockchain project
using the Bluemix service
11. © IBM Corporation / Confidential 11
IBM on Hyperledger
Advantages
• Help implement a layer over the Blockchain network using Swagger API or a JS client
• Easily add/remove new nodes (coming soon)
• Easily deploy a worldwide network
• Help on DevOps tasks, monitoring
• Use Bluemix as a PoT environment and then deploy the network locally
• (Detailed documentation is coming)
Prerequisites
• Go language is needed for chaincode development (but Java and Javascript are on the pipe!)
Disadvantages
• The service is still experimental (limited to 2 peers)
Remaining Questions
The Blockchain is a distributed system based on different peers on the network,
not all are coming from the same platform owner …
so how to sell it on a cloud like Bluemix (that is centralized by nature)?
Why building a Blockchain on Bluemix?
12. © IBM Corporation / Confidential 12
IBM on Hyperledger
Blockchain infrastructure does not replace company clouds, it is a democratized cloud between
peers. This virtual network of decentralized computers are bound together with blockchain’s consensus
rules where some logic code could be executed (like smart contracts)
In charge of
the platform
In charge of
auditing
Add/Feed
executable logic
code into the
blockchain
ACTIVE
MEMBERS
AUDITORS
BLOCKCHAIN
PROVIDER
Chain
Code
Chain
Code
Entering a new shape of infrastructure
One part of the network could be on-premise peers
Billing based on logic code execution
13. © IBM Corporation / Confidential 13
Market Picture
Blockchain
DUBLIN
HACKCOI
N
ATHENS
HACKCOI
N
MALAYSIA
HACKCOIN
LONDON
WanXiang - Deloitte
Blockchain hackathon
SHANGHAI
FinTech week
LONDON
Consensus
NYC
Blockchain vision
PARIS
ETHEREUM Meetup
LONDON
Arctic chain Hackathon
SWEDEN
Bitcoin Hackathon
MIAMI
HACKCOI
N MUMBAI
HACKCOIN
HONG-KONG
Gtec
BERLIN
Chainthon
ATHENS
Dbs
SINGAPOUR
Blockchain Trade Show
TORONTO
Business Blockchain Conf
TORONTO
Money 20/20
COPENHAGEN
COINFEST
WORLDWIDE
Blockchain Conf
SAN FRANCISCO
Blockchain week
BARCELONA
Blockchain Summit
ISLAND
Bitcoin Conf
RUSSIA
Keynote2016
DUBAI
Adcca
SYDNEY
SIX Hackathon
LONDON + ZURICH
Events : Hackathon, Chainthon, Conferences
EcoD participation!
Europe strong
activity
14. © IBM Corporation / Confidential 14
Market Picture
Gennaro Cuomo
IBM Fellow
Craig Young
SWIFT CTO
Todd McDonald
R3 COO, cofounder
Blythe Masters
(Board Chair)
Digital Asset Holdings
Chris Ferris (TSC Chair)
IBM Distinguished Engineer
Vitalik Buterin
Creator, founder
Ming Chan
Executive Director
Jeffrey Wilcke
Cofounder
Casey Kuhlman
CEO
Preston Byrne
COO
Chris Larsen
CEO
Blockchain communities
15. © IBM Corporation / Confidential 15
Market Picture
Blockchain as a Service (BaaS)
Competitors
Well, a lot is said
about it but in reality is
still ongoing stuff …
16. © IBM Corporation / Confidential 16
Market Picture Blockchain Ecosystem
source
IBM is more
involved than it
can appear here
17. © IBM Corporation / Confidential 17
Business use cases
Opportunities
SMART CONTRACTS FINANCIAL SECTOR
RECORD KEEPING DIGITAL CURRENCY SECURITIES
IBM potential Businesses
18. © IBM Corporation / Confidential 18
Business use cases
Opportunities
Land and property registry / proof of ownership
• Land is often split into parts, Legal rules apply
Software contracts
• Pricing rules based on CPU, users, etc… => consumption
Music rights for artists
• Distribution based on diffusion
Medical history and reimbursements
• Free access to authorized person, automatic health
redemption
IoT
• Automatic triggering of smart objects coming from a
commercial contract negotiation
Smart contract and Record keeping niche
19. © IBM Corporation / Confidential 19
Business use cases
Opportunities
Who will disappear or will be transformed?
• Clearing houses
• Collateral management
• Swift : Today Swift is the “trusted” network. It
transports, validates and rejects messages. It
authorized banks access to the network. It gives
proof and certifies message delivery between two
peers.
Are banks ready to cooperate ?
• Yes : reducing costs and risk, transparency with
authorities, being ahead on the competition.
• No : specific country based sanctions,
complicated to set up, inherent blockchain coding
complexity, fast evolution is a threat for their
business. Fear of the unknown. How to hide
balances and trades to the others ?
Financial sector
20. © IBM Corporation / Confidential 20
Business use cases
Opportunities
“No, I’m not suggesting the moonshot of immediately redoing our global financing, lending system on a
blockchain. But we have now employed a shadow chain: my definition of shadowchain is it’s not replacing
the primary business process, it’s being used to enrich that business process with a useful function that it
currently doesn’t do.” --Jerry Cuomo, IBM
Success Stories around Blockchain
21. © IBM Corporation / Confidential 21
Business use cases
Opportunities
Blockstream’s core area of innovation is sidechains, a technology focused on improving on the blockchain, the
most powerful public utility for distributed trust systems.
Sidechains are blockchains that are interoperable with each other and with Bitcoin, avoiding liquidity shortages,
market fluctuations, security breaches and outright fraud associated with alternative crypto-currencies.
Success Stories around Blockchain
Montreal
22. © IBM Corporation / Confidential 22
Business use cases
Opportunities
Everledger provides immutable ledger for diamond ownership & related transaction history verification for
insurance companies, claimants.
Success Stories around Blockchain
Accelerator
London Nice
23. © IBM Corporation / Confidential 23
Business use cases
Opportunities
Dynamis is a smart contract for peer to peer insurance running on the Ethereum platform. It provides
supplementary unemployment insurance by using the LinkedIn social network as a reputation system.
Applicants for a new policy can use LinkedIn to verify their identity and employment status. Claimants can use
their LinkedIn connections to validate that they are looking for work.
Success Stories around Blockchain
24. © IBM Corporation / Confidential 24
Business use cases
Opportunities
InsurETH lets you insure your flight directly with an ethereum smart contract
The contract is resolved automatically on the Ethereum blockchain
Success Stories around Blockchain
London
25. © IBM Corporation / Confidential 25
Business use cases
Opportunities
Augur is a decentralized prediction market built on the Ethereum blockchain. It allows you to forecast events
and be rewarded for predicting them correctly (Gambling)
Success Stories around Blockchain
San Francisco
26. © IBM Corporation / Confidential 26
Business use cases
Opportunities
OpenBazaar is an open source project to create a decentralized network for peer to peer commerce online
— using Bitcoin — that has no fees and no restrictions.
Success Stories around Blockchain
27. © IBM Corporation / Confidential 27
Business use cases
Opportunities
P2P trade system, commerce online : First class privacy, smart contracts, escrow protection, exceptional
resilience, submarket design
Success Stories around Blockchain
28. © IBM Corporation / Confidential 28
Business use cases
Opportunities
Community microgrids are a new approach for grid operations that achieve a sustainable, secure, and cost-
effective energy system by providing long-term, locally generated power security prioritized for the community.
Microgrids, have ability to separate from the larger electric grid during extreme weather events or other
emergencies, providing the backbone for resilient, sustainable and more efficient energy production.
Success Stories around Blockchain
Brooklyn
Editor's Notes Why talk about Blockchain or why is everyone talking about Blockchain capital B for Blockchain One not 1
Is Blockchain an open door ro..
Do Smart contracts have legal value?
Dollar uppercase D
Is Blockchain a Ready technology ?? Or did you mean proven technology??
Upper case G for Gov..;
Private.. It allows or
It controls the distribution of identical copies of the ledger, but only to a limited number of trusted participants. As the network may have an owner(s). …. Permissionless vs Permissioned Blockchains - …
because = as need for ….
Public
What are miners??
Could be hacked/controlled if more than 51% of the network belongs to one group???
Private
Need a central administratior to control entry to the network
What are on-chain and off-chain assets????
Smart .. Difficult to read..
Smart contracts are computer protocols that:
-> facilitate and verify
-> enforce the negotiation
-> performance of a contract
-> that … Why build a B….
Block uppercase B
Help implement a
How help on DevOps???
What is Chaincode compared to blockchain??
How to sell it… centralized or did you mean decentralized???
Sidechains ??? Title??? Businesses or opportunities??
Land is often split into parts, Legal rules apply It authorizes banks access to the network. …
Being ahead of competition ...
Ummmmm????