BlockChain.pptx

BlockChain Technology
Tilani Gunawardena
PhD(UNIBAS),BSc.Eng(Pera),CEng, MIE(SL), FHEA(UK)

Agenda
•Overview
•Benefits of Blockchain
•Blockchain for Industries
•Blockchain Solutions
•Blockchain and AI

Definition
• Merriam-Webster: a digital database containing information (such
as records of financial transactions) that can be simultaneously
used and shared within a large decentralized, publicly accessible
network.
“blockchain,” Merriam-Webster.com Dictionary,
https://www.Merriam-Webster.com/dictionary/blockchain.
• IBM: A blockchain is a shared, immutable ledger that facilitates
the process of recording transactions and tracking assets across a
business network. Assets can be tangible (e.g., house, car, cash,
land) or intangible (e.g., intellectual property, patents, Copyrights,
brands). Almost anything of value can be tracked and traded on
blockchain networks, reducing risks and costs on all fronts.

Definition
• NIST: A blockchain is a collaborative, tamper-resistant ledger that
maintains transactional records.
Time
https://www.nist.gov/blockchain

Definition
Terms of Blockchain technology
• Blockchain – the actual ledger
• Blockchain technology – a term to describe the technology in the most generic
form
• Blockchain network – the network in which a blockchain is being used
• Blockchain implementation – a specific blockchain
• Blockchain network user – a person, organization, entity, business,
government, etc. which is utilizing the blockchain network
Blockchain Technology Overview , Dylan Yaga etc
https://nvlpubs.nist.gov/nistpubs/ir/2018/NIST.IR.8202.pdf

• DLT (Distributed Ledger Technology): digital system for recording the transaction of
assets in which the transactions and their details are recorded in multiple places at
the same time, without any central data store or administration functionality. Types:
Blockchain, DAG, Hybrids, and future ones to come.
• Bitcoin: digital currency that exists on a completely public and decentralized network
of computers that operates by simple mathematical rules that everyone who
participates in the network agrees on.
• Hash: cryptographic function that takes an input (or 'message') and returns a fixed-
size alphanumeric string.
• Consensus Algorithm: process used to achieve agreement on a single data value
among distributed systems, in order to reliability in a network involving multiple
unreliable nodes.
• DApp (Decentralized Application): backend code running on a decentralized peer-to-
peer network.
• ICO (Initial Coin Offering): type of funding for startups, where a a quantity of new
cryptocurrency is sold in the form of "tokens" ("coins") to speculators or investors.

Background and History
• Late 1980s and early 1990s: Leslie Lamport consensus model;
• Paper : “The Part-Time Parliament” , ACM Transactions on Computer Sys-
tems 16, 2 (May 1998)
Initial developer of the document preparation
system LaTeX and the author of its first manual

Background and history
• In 1991, a signed chain of information was used as an electronic
ledger for digitally signing documents;
• In 2008, Bitcoin: A peer Electronic Cash System by Satoshi
Nakamoto;

Bitcoin – A Peer-to-Peer Electronic Cash
System (2008)
• From Satoshi Nakamoto
• A purely peer-to-peer version of electronic cash would allow online
payments to be sent directly from one party to another without going
through a financial institution.
• Propose a solution to the double-spending problem using a peer-to-
peer network

Bitcoin Pizza Day
• 12 years ago a Bitcoin enthusiast spent 10,000 Bitcoin on two large pizzas. Those
Bitcoins would now be worth around $300 million.
• Since then, May 22 has been known as Bitcoin Pizza day -- a day to celebrate the
first real world Bitcoin transaction.
• On May 22, 2010, now known as Bitcoin Pizza Day, Laszlo Hanyecz agreed to pay
10,000 Bitcoins for two delivered Papa John's pizzas. Organized on bitcointalk
forum, the Florida man reached out for help. "I'll pay 10,000 bitcoins for a couple
of pizzas.. like maybe 2 large ones so I have some left over for the next day," …
• https://bitcointalk.org/index.php?topic=137.0

Medium of Exchange:
• 10,000 Bitcoins for 2 Pizzas
Value:
• May 22, 2010 - $41
$20.50 per pizza
• November 8, 2021 - $675.82 million. (1 bitcoin=$67582)
$337.91 million per pizza
• November 8, 2022 - (1 bitcoin = $16170)
$80.85 million per pizza

Why did Early Digital Currencies Fail?
• Merchant adoption
• Centralization
• Double spending
• Consensus

Double spending problem
• Government-issued money can’t be easily replicated or reproduced
• Bitcoin and other cryptos, on the other hand, are digital money,
which means that unlike physical currencies, they can easily be copied
and reissued

Background and history
• In 1991, a signed chain of information was used as an electronic
ledger for digitally signing documents;
• In 2008, Bitcoin: A peer Electronic Cash System by Satoshi
Nakamoto;
• In 2009, the establishment of the Bitcoin cryptocurrency blockchain
network;
• In 2013, the introductory paper, published in 2013 by Vitalik
Buterin, the founder of Ethereum, before the projects launch in
2015;

Five disruptive elements of blockchain
technology

Transparency
• Blockchain provides end-to-end visibility of your business transactions
with a single source of truth that is replicated or shared across the
distributed ledger in your business network.

Immutability
• After you record a transaction into a blockchain, no one can delete it.
• If you try to modify the transaction, the blockchain appends another update
record to the transaction, which is visible to the participants in the network.
• Each transaction in a blockchain is encoded into a data block and uniquely
signed and timestamped.
• Each block is connected to the blocks before and after it. These blocks cannot
be altered or modified. They are linked together to form a chain that is
immutable and irreversible.
• An immutable history of transactions eliminates the counterfeiting and fraud
challenges faced by many businesses.

Smart Contracts
• “smart contracts are computer programs that secure, enforce, and execute
settlement of recorded agreements between people and organizations”
• “ A contract is a bargained-for exchange enforceable before the exchange”
• “So if you and I were to agree right now that I would pay you fifty dollars
for the pen on your desk, that’s a perfectly enforceable contract.
• We can just say, ‘I promise to pay you fifty dollars for the pen on your desk,’
and
• you would respond, ‘Yes, I would like that.’
• That turns out to be ‘offer acceptance and consideration.’ We’ve got a deal, and it
can be enforced in a court. That has nothing to do with the technological means of
implementation of the promises that we have made.”

KEY ELEMENTS
• Fundamental theories
• Distributed ledger technology (DLT)
• Immutable records/ consensus protocols
• Smart contracts

Key elements - Fundamental theories
• Cryptographic Hash Functions
• Asymmetric – Key Cryptography
• Transactions
• Addresses and Address Derivation

Key elements - Fundamental theories Cryptography
• Cryptography is the study of secure communications techniques that
allow only the sender and intended recipient of a message to view its
contents

Examples:
• The Scytale : A piece of parchment with a message around a certain kind of
cylinder called a Scytale. To decrypt the message, the recipient had to have a
cylinder of the same size
"Iryyatbhmvaehedlurlp

• The Caesar cipher: A little over 2,000 years ago, Julius Caesar
developed a simple system to send secure information to his troops.
It was all about substituting certain letters for others, typically by
shifting the letters by a predetermined number

• The Enigma Machines: The cipher machines, famous for their use by the Nazis
in World War II, were made up of electronically-connected rotors

Hash – Digital fingerprint
• A one-way hash function, also known as a message digest,
fingerprint or compression function
• Addition and Multiplication can be reversed while modulo division
can not be reversed

Hash
• Hashing and Encryption both are considered as two sides of the same
coin
• both are used for encoding data
• Hashing Validates Integrity of Content Whereas Encryption Maintains
Confidentiality

• Hashing is the process for converting any given input of variable length into a
fixed size consisting of letters and numbers with the help of a mathematical
function.
• Examples:
• MD5
• SHA1/2/256/512.

Attributes of Hash Value
• Known input should always produce only one known output.
• If different inputs are given more than once, each one should give
different outputs.
• Modifying any input, even a slight, should change the hash value.
• Once hashing is done, it shouldn’t be possible to go back from the
output to the input.

Digest
• Hashing is a method of applying a cryptographic hash
function to data, which calculates a relatively unique
output (called a message digest, or just digest) for an
input of nearly any size (e.g., a file, text, or image)

Fundamental theories - Cryptographic Hash
Functions
• Hash Function definition
• Security Properties
One-way
Weak Collision resistance
Strong Collision resistance

3 Security Properties
• Given a digest, find x such that hash(x) = digest 
computationally infeasible
• Given x, find y such that hash(x) = hash(y) 
exhaustively search the input space, but this is
computationally infeasible to do with any chance of
success.
• Find an x and y which hash(x) = hash(y) 
computationally infeasible to find any two inputs that
produce the same digest

• Hash rate (hashes per second) of the entire Bitcoin network in
2015 was 300 quadrillion hashes per second
(300,000,000,000,000,000/s) .
• At that rate, it would take the entire Bitcoin network roughly
35,942,991,748,521 (roughly 3.6 x 1013) years to manufacture a
collision (note that the universe is estimated to be 1.37 x 1010
years old)
• Even if any such input x and y that produce the same digest, it
would be also very unlikely for both inputs to be valid in the
context of the blockchain network (i.e., x and y are both valid
transactions).
Note : 2128 / (3x 1017 x 60 x 60 x24 x365 ) =
35942991748521 years

Fundamental theories - Cryptographic Hash
Functions
Address in Bitcoin
Proof of work
Data structure in
Bitcoin ledger
• Address derivation
• Creating unique identifiers.
• Securing the block data
• Securing the block header

Fundamental theories – Asymmetric –Key Cryptography
• RSA(Rivest Shamir Adleman)
• DSS(Digital Signature Standards)
• DSA(Digital Signature Algorithm)
• ECC(Elliptical Curve Cryptography)

Fundamental theories - Asymmetric – Key
Cryptography
The use of asymmetric-key cryptography in blockchain networks.
• Private keys are used to digitally sign transaction
• Public keys are used to derive addresses.
• Public keys are used to verify signature generated with privates
keys
• Asymmetric- key cryptography provides the ability to verify that
the user transferring values to another user is in possession of the
private key capable of signing the transaction.

Fundamental theories- Transactions
Example Cryptocurrency Transaction

Fundamental theories- Transactions
https://www.peerbits.com/blog/blockchain-cryptocurrency-is-shaping-up-for-the-future.html

Physical Transaction : Alice hands Bob her Concert
Ticket
• Alice gives Bob a concert ticket, it is no longer in her possession
• Ticket is now in Bob’s hands
• This is called “transaction” that happens in the physical world

Digital Transaction
• In digital world :
• Everything we send over the internet is necessarily a copy
• Difficult to verify
• Difficult to know who owns it or modified it before we receive it
• Concept of unique digital property
• ability to transfer it over the internet between user
• ability to send (peer-to-peer)
• Examples:
• concert tickets
• identification cards
• Certificates
• money between digital devices

Alice hands Bob her Concert Ticket via email
• What if Alice made copies or “forgeries” of the digital ticket?
• What if Alice put the same digital ticket online for all to download

Note
• Counterfeiting is the act of illegally creating facsimiles of a product,
document, or currency.
• Counterfeiting is the biggest challenge globally for legal and financial
documents and valuable goods, such as drugs, food products, luxury
clothes, and jewelry.
• It costs companies more than 7 percent of their annual expenditures,
amounting to almost $4 trillion each year on a global scale.

• A digital ticket is a string of ones and zeros.
• Who is the true owner of the digital ticket ?
• What stops Alice from trying to “spend” the same digital asset twice
by also sending it to Charlie?
• Answer is : a ledger
• Ledger will track a single asset: Digital Cinema Ticket

Ledgers
• Principal Recordings of Accounts
Proto Cuneiform :Its original purpose was to maintain records of the vast amounts of
production and trade of goods and labor during the first flowering of the
urban Uruk period Mesopotamia.
Personal Ledger
Proto Cuneiform Uruk, ca
3000 B.C

• Alice gives Bob the digital cinema ticket
• ledger records the transaction.
• Bob has the ticket, and Alice does not
• New Problem : whose job will it be to hold the ledger?
• Alice can’t hold it, because she might erase the transaction
• Bob cant have it , because he might say Alice gave him two tickets.
• Solution: trusted third party

• Dave : trusted third party , an intermediary who is not involved in the
transaction at all
• Dave will hold the ledger and make sure that it’s up to date.

• Problems :
• Dave charge a fee
• Dave adds a false transaction to the ledger (Dave wants the digital cinema
ticket for himself )
• Solution: Decentralize Trust
• Alice and Bob could distribute the ledger to all their trusted friends, not just
Dave, and decentralize trust.

• Alice can’t claim that she never sent a digital ticket to Bob
• her ledger would not agree with everyone else’s.
• Bob couldn’t claim that Alice gave him two tickets
• his ledger would be out of sync
• if Alice bribes Dave to change his copy of the ledger,
• Dave only holds a single copy of the ledger;
• majority opinion would show the digital ticket was sent
The more trusted people that hold the ledger, the stronger it becomes

Distributed Ledger
• One of the core concepts of block chain where each user of the block
chain has the copy of the blocks of transactions
• If any participant or a hacker tries to manipulate data the users could
deny the transactions

How might distributed ledger works

KEY ELEMENTS - Distributed ledger technology
• Definition
Distributed ledger technology(DLT) is one of the key technologies
responsible for restoring Web openness without compromising its
security.
A distributed ledger is a distributed record of transactions,
maintained by consensus between networks of peer nodes

Types of Blockchain Networks
• Public blockchain networks
• Private blockchain networks
• Licensing blockchain networks
• Alliance/Consortium Blockchain

• DLT Type
• Permissive: every ledger is accessible
• Bitcoin and the Ethereum blockchain are an example of a permission less blockchain
• Licensing: The ledger is maintained by authorized nodes and is accessible only to
registered members

• The function of the DLT
• Pseudo anonymity
• Transparency
• Small transaction size
• Invariance
• Bloackchain order guarantee
• Decentralization
• Replication and synchronization assurance
• Integrity protection

• Blocks

• Chaining Blocks
Time

Blockchain Technology- How it works?

• Distributed ledger technology platform
• Bitcoin blockchain
• Ethereum
• Hyper Ledger Fabric
• Ripple
• JDchain

KEY ELEMENTS- Consensus protocols
In the blockchain system, how to make each node consistent with its
own data through a rule is a core problem. The solution to this problem
is to develop a set of consensus algorithms to achieve the consistency
and correctness of ledger data on different ledger nodes. This needs to
learn from the existing algorithms to achieve state consensus in
distributed system, determine the mechanism of choosing account
nodes in the network, and how to ensure the correct and consistent
consensus of ledger data in the whole network. Consensus algorithm is
actually a rule, each node according to this rule to confirm their own
data.

Properties
• The initial state of the system is agreed upon (e.g., the genesis
block).
• Users agree to the consensus model by which blocks are added to
the system
• Every block is linked to the previous block by including the
pervious block header’s hash digest ( expect for the first ‘ genesis’
block, which has no previous block and for which the hash of the
previous block header is usually set to all zeros)
• Users can verify every block independently.

• Byzantine Fault Tolerance
• Practical Byzantine Fault Tolerance
• Raft agreement
• Proof of work
• Proof of stake
• Delegated proof of strake

• Byzantine fault tolerance(BFT) is a
property of a distributed system such
that it can tolerate components of a
system failing in arbitrary was,
processing incorrect states, rather than
simply stopping or cashing

• Practical Byzantine Fault Tolerance(PBFT)

Raft agreement
• The leader election
• The normal operations (log
replication)

• Proof of work(POW)

• Proof of stake
https://www.ledger.com/academy/blockchain/what-is-proof-of-stake

• Delegated Proof of stake (DPoS)

• Ripple consensus algorithm
https://gaiax-blockchain.com/ripple https://gtgox.com/the-xrp-ledger-consensus-
process/

KEY ELEMENTS- Smart contracts
• Definition:
A smart contract is a computer protocol that can be self- enforced
and self-validated without additional human intervention after the
protocols is created and deployed. In technical terms, a smart
contract can be consider as a computer program that can
autonomously perform all or part of the contract- related
operations and produce verifiable evidence of the effectiveness of
the execution of the execution of the contract
https://www.ibm.com/blockchain

• Types of smart Contracts:
Smart contracts are classified into board smart contracts and
narrow smart contracts. Smart contracts, broadly defined as computer
programs that run on a blockchain, have a wide range of applications. In
the narrow sense, smart contracts is an event-driven, stateful computer
program that runs on the blockchain infrastructure based on agreed rules
and can save assets on the ledger. It uses program code to encapsulate
and verify complex transaction behaviors and realize information
exchange, values transfer and asset management and can be executed
automatically.
• Scripted smart contracts
• Turing- Complete smart contract
• Verifiable contract smart contract

• Smart contract operation mechanism
• Generated code
• Intelligent contract code written compilation
• Submission
• confirmation

• Smart Contract projects:
The simplest contract is: the information is upload to the blockchain
both parties sign and confirm both parties agree the contract is stored .
• Language
• Hawk
• OpenBazzar
• Ethereum
• Codius
• hyper ledger

• Basic features of smart contracts:
• Advantages
• Credibility
• Transaction require no third party
• Efficient real-time updates;
• Lower cost
• Current problem
• Irrevocable
• Legal effect
• Security breach

• Application scenarios of smart contracts
• Legal aspects
• The financial aspects
• Public welfare charity

Benefits of blockchain
• Higher trust
• Better Security
• Higher Efficiency
• What needs to change

Blockchain for industries
• The supply chain
• Health care
• The government
• Retail trade
• Media and Advertising
• Oil and gas industry
• The telecoms industry
• The insurance industry
• Financial industry
• Tourism industry

The supply chain
Supply chain data is not always visible, available , or trusted.
Blockchain helps supply chain partners share trusted data with
licensed Blockchain solutions
• Benefits
• Industry case
• Leveraging blockchain to advance global trade
• Pharmaceutical anti-counterfeiting
• Responsible mineral procurement

The government
By automating redundant process and sharing data among
permissioned network members in a decentralizes way, blockchain
reduces traditional friction between systems and unlock the value
long trapped inside hardened organizational silos
• Benefits
• Industry case
• Trusted vaccine distribution

The telecom industry
Blockchain has not only brought a brand new credit model to the
telecom industry, but also made its digital services more
competitive, thus helping the telecom industry to reduce costs and
bringing a brand new perspective to the field
• Benefits
• Industry case
• Business management
• Business services
• Network operation

Financial services
Leading financial institution are trailblazing the way forward with
Blockchain, working together to remove longstanding friction, create
new solutions and deliver tangible business outcomes
• Benefits
• Industry case
• Plastic Bank
• Improve cryptocurrency security
• First mover advantage in clearing and student settlement

BLOCKCHAIN SOLUTIONS
• Vaccine distribution
• Healthcare and life sciences
• Supply chain transparency
• Food trust
• Trusted supplier management
• Tradelens container logistics
• Guarantee
• Trade finance
• Digital identity management
• Learning certificate

Vaccine distribution
1. The solution: Open regulatory pharmaceutical network
Establish a licensed open source data exchange platform to unify
diverse, localizes vaccine management strategies into a single, integrated
view, while enabling participants to continue to use their preferred
recording and interactive systems
2. Application case: Drug anti- counterfeiting
in some countries or regions, counterfeit medicines account for 70
percent of all medicines in the supply chain. KPMG, Merck, Walmart, and
IBM recently ran a pilot project that used blockchain to cut the time it
takes to send a product recall alert across the supply chain from days to
seconds, building new trust in the system

Health care and life sciences
1. Solution for the healthcare industry: verify health credentials
Based on IBM Blockchain technology, the solution is designed to help
organizations verify health credentials in a privacy-ensuring manner, and
individuals can manage their information through an encrypted digital electronic
wallet on their smartphone.
2. Solution for the life science industry : Bring trust and transparency to clinical
trails .
Boehringer Ingelheim and IBM are exploring the use of blockchain technology in
clinical trials. The aim is to increase trust and transparency among all
stakeholders, particularly with regard to patient consent and data management

BLOCKCHAIN SOLUTIONS: Supply Chain
Management

• Visibility for procurement with data analytics
• builds trust and offers visibility using permanently retained historical data to authenticate everyone
involved in a deal.
• each side can be assured of the other party’s trustworthiness
• Eliminates chances of fraud with incorruptible information
• brings transparency to a complex supply chain
• merges the physical, financial, and digital information together, to reveal sources of value leakage
• Ensures durable, robust, and secure processes
• sellers and buyers alike are always who they say they are and products are always the right ones
• Since prices cannot be modified, the whole process of invoices will be rendered obsolete in the
future
• If purchase order is represented as a block in the blockchain, it invariably becomes an immutable
digital entity.

• Digital contracts and payments simplify finance
• Decentralized ledger can simplify payments in retail banks, particularly international
payments that involve high fees and take several days to complete.
• brings down the capital required by banks to verify customer identities.

Supply chain transparency
1. The solution:Improve efficiency based on mutual trust
Create your own Blockchain ecosystem based on leading networks, leveraging IBM
Blockchain Transparent Supply to share data with trusted Supply chain partners. Speed up
transactions with real-time end-to-end visibility through an immutable shared ledger.
2. Application cases:
1)IBM Food Trust
More than 200 companies in the food ecosystem are sharing data and tracking food
journeys across the value chain.
2)Farger Connect
Built specifically for the coffee industry, this blockchain platform connects farmers and
consumers to create shared value and transform the entire industry.

Digital identity management
1. IBM Digital Credentials
Work with IBM to leverage this secure and trusted blockchain-based platform to
build the unique capabilities you need to issue, manage and verify digital credentials. IBM
Digital Credentials provides individuals and organizations with a security-rich hub for
credentials accumulated over a lifetime.
• 2. Learning Credential Network
Great jobs await great candidates, but matchmaking is difficult. Join the Learning
Credential Network, built by IBM and its partners, to help learners, job seekers,
employers and educators collaborate to develop skilled workers, and get the right people
in the right jobs.

Use cases of Blockchain for Cybersecurity
• Secure private messaging
• most of the users protect their services and data with weak and unreliable
passwords , causing data breaches and providing user information in the wrong
hands.
• Many messaging companies are switching to Blockchain to provide end-to-end
encryption and secure users’ data.
• IoT security
• Ex: vulnerable edge devices like Smart switches provide hackers easy access to the
overall home automation system.
• Blockchain efficiently secures such vulnerable systems and devices by decentralizing
their administration
• Blockchain combined with AI and IoT technology enables devices to make security
decisions on their own

• Secure DNS and DDoS
• DNS attack renders the website cashable, inaccessible and redirectable to other scam
websites.
• DDoS attack occurs when a targetted resource such as a server or a website is denied
service or access. Such attacks overload the site, dramatically slow down or shut
down the resource system.
• Blockchain decentralizing the DNS entries
• Decentralization removes the vulnerable single-point entry exploited by the
attackers.
• Provenance of software
• Verification of cyber-physical infrastructures
• Reduced human safety adversity caused by cyberattacks

Recruitment
• If you’ve ever tried to hire a project manager, for example, you’ll have
found that projects can range from building a nuclear power station
to arranging the office Christmas party.
• One way in which blockchain technology can simplify the work of
identifying potential candidates is to provide a database of people
with experience and skills that are accurately validated.

Taxes and Audit
• Makes managing cross-border payments and employee mobility
easier (including international expenses and tax liabilities).
• Blockchain makes it easy to record ones everyday transactions and
allow smart contracts to do the tax calculations for you.

• Telecom industry today has the most complex operations framework,
involving many partners, vendors, customers, distributors, network
providers, VAS providers
• There are a lot of trust issues and transparency challenges due to the
involvement of multiple entities.
• Also, there are no clear mechanism to track end-to-end activities of
every entity.

Blockchain opportunities for existing telecom
service providers

Telecom : Internal processes
• OSS (Operation Support System) and BSS processes (Business Support System)
such as billing and number portability databases can be streamlined using
blockchain
• The interest groups can validate billing without hassle. This is possible with the
help of an intercompany blockchain shared among customers, VAS providers,
VPMN, HPMN and telecom companies.
• Also, a migrating customer can be quickly on-boarded on network after receiving
a porting request, if receiving operator shares blockchain with porting
customer’s operator.

Telecom: Roaming
• Blockchain can solve the age old problem of operators to integrate
high-cost systems and provide access/authentication settings for
enabling roaming calls across networks and operators.
• Blockchain can enable complex datasets across multiple parties, in
real time with high trust and security, particularly for establishing
subscriber identity.

Telecom: Smart connection
• With the help of Blockchain, device connection can be provided to
multiple local hotspots and WIFIs based on permission and adherence
to certain terms and conditions.
• It also helps with automatic generation of billing amount and
payments.

Telecom : Smart transaction
• Blockchain has enabled purchasing of digital assets, including music,
mobile games, gift cards and loyalty points .

Telecom: Mobile money
• Blockchain has enabled cost-effective international remittances
across the globe with very minimal transaction charges.
• Telecom operators can become global remittance providers.

Identity management
• Operators could develop identity management tool that are
accessible to organizations, devices and applications.

Blockchain Startups Impacting The Telecom Sector
• Telcoin – Smartphone-Based Money Transfers
• Japanese startup Telcoin leverages blockchain to enable telecommunication
operators to provide money transfer services.
• Telcoin Wallet is built on the Ethereum blockchain, and mobile users make
global transfers instantly, irrespective of local mobile service providers.
• The startup issues TEL (native tokens) to telecom operators, based on the
volume of their transactions and integration capabilities.
• This service also offers considerably lower foreign exchange rates, making it
an affordable money transfer option.

Ammbr – Autonomous Bandwidth Sharing
• Singapore-based startup Ammbr develops a wireless mesh network for
internet sharing.
• With the help of blockchain, the startup enables users to connect their routers
to a wireless mesh network.
• Ammbr uses AMR, a cryptocurrency, capable of autonomously buying and
selling internet bandwidth.
• This also enables the startup to support a large volume of micro-transactions,
in turn, ensuring a smooth and seamless exchange of internet bandwidth
between users.

QLC chain – Text Message-Based Billing
• Chinese startup QLC Chain utilizes blockchain technology to provide
network-as-a-service (NaaS) solutions.
• This network utilizes a multidimensional block-lattice structure
embedded with telecommunication capabilities.
• Telecom operators use this ledger as a short message service (SMS)-
based billing system that allows for instant clearance and secure
transactions.
• The startup’s suite of wallets also supports the NEO Enhancement
Protocol (NEP)-5

BitMinutes – Decentralized Mobile Minutes
• The US-based startup BitMinutes uses its proprietary smart token
technology to provide end-users with prepaid minutes.
• With the help of both traditional and blockchain-based payment
networks, the startup provides BitMinute utility tokens (BMTs) to its
users.
• The startup issues BMTs to senders only with a custom unique
identifier (UID) in order to prevent fraud and money laundering.
• These BMTs are later sent to the recipient’s mobile wallet in a text
message, email, or using a smartphone app.

FIX Network – Cellular Device Security
• Lithuanian startup FIX Network provides blockchain-based solutions
for cellular security.
• With the help of a decentralized ledger, the startup enables smooth
transitions between devices for users.
• A secure blockchain protocol stores the private keys and personal
data, in turn, allowing mobile operators to protect their customers’
digital currencies and identities.

Way Forward
• Blockchain solutions are instrumental in enabling interoperability
between
• internal as well as external systems for telecom companies.
• This can bring down infrastructure as well as compliance cost, and
save operators from roaming/identity fraud.
• Telecom industry today faces the challenge of eroding margins.
• There is a high pressure to cut down the cost and at the same time
adopt service innovations.
• Blockchain is the right tool to not only bring in service efficiencies and
innovation, but also keep a check on fraudulent practices.

BLOCKCHAIN IN TRAVEL AND HOSPITALITY
Passengers store their authenticated “single travel ID” on the
blockchain for use in lieu of travel documents, identifications cards,
loyalty programs IDs, and payment data

BLOCKCHAIN IN INSURANCE
When autonomous vehicles and other smart device communicate
status updates with insurance providers via the blockchain, premium
costs decrease as the need for auditing and authenticating data
vanishes

BLOCKCHAIN IN ENERGY
Decentralized energy transfer
and distribution are possible
via micro- transactions of data
sent to blockchain, validated,
and re-dispersed to the grid
while securing payment to the
submitter

BLOCKCHAIN IN EDUCATION
• Educational institutions could
utilize the blockchain to store
credentialing data around
assessments, degrees, and
transcripts eliminating chance
of lost of results slips

BLOCKCHAIN IN GOVERNMENT
Blockchain offers premise as a technology to store
personal identify information, criminal background,
and “e-citizenship,” authorized by biometrics

• JD Digits Blockchain as a Service Platform (JDBaaS)
• Safe and reliable
• Flexible and easy
• Platform empower
• Cross- Chain transaction

Blockchain as a Service (BaaS)
• Blockchain as a Service (BaaS) is a type of blockchain service offering
that allows business customers to use cloud-based solutions to
develop, host and adopt their own blockchain applications, smart
contracts and other relevant functions on the blockchain while the
cloud-based IT partner or service provider manages all the required
tasks and activities to keep the infrastructure up and running.

Criteria for Selecting a Blockchain as a Service
Partner

Blockchain versions
Blockchain 1.0: Currency
The implementation of DLT (distributed ledger technology) led to its first and obvious
application: cryptocurrencies. This allows financial transactions based on blockchain
technology. It is used in currency and payments. Bitcoin is the most prominent example in
this segment.
Blockchain 2.0: Smart Contracts
The new key concepts are Smart Contracts, small computer programs that “live” in the
blockchain. They are free computer programs that execute automatically, and check
conditions defined earlier like facilitation, verification, or enforcement. It is used as a
replacement for traditional contracts.
Blockchain 3.0: DApps:
DApps is an abbreviation of decentralized application. It has its backend code running on
a decentralized peer-to-peer network. A DApp can have frontend Blockchain example
code and user interfaces written in any language that can make a call to its backend, like a
traditional App.

Pros of Blockchain
• Improved accuracy by removing human involvement in verification
• Cost reductions by eliminating third-party verification
• Decentralization makes it harder to tamper with
• Transactions are secure, private, and efficient
• Transparent technology
• Efficiency and speed

Limitations of Blockchain technology
• Higher costs: Nodes seek higher rewards for completing Transactions
in a business that work on the principle of Supply and Demand
• Slower transactions: Nodes prioritize transactions with higher
rewards, backlogs of transactions build-up
• Smaller ledger: It is not possible to a full copy of the Blockchain,
potentially which can affect immutability, consensus, etc.
• Transaction costs, network speed: The transactions cost of Bitcoin is
quite high after being touted as ‘nearly free’ for the first few years.

• Risk of error: There is always a risk of error, as long as the human
factor is involved. In case a blockchain serves as a database, all the
incoming data has to be of high quality. However, human involvement
can quickly resolve the error.
• Wasteful: Every node that runs the blockchain has to maintain
consensus across the blockchain. This offers very low downtime and
makes data stored on the blockchain forever unchangeable. However,
all this is wasteful because each node repeats a task to reach a
consensus.

IBM & Blockchain
• IBM offers Blockchain as a Service (announced this Monday)
https://www.ibm.com/blockchain/getting-started.html
• Create private and secure digital assets in test applications that can be traded quickly and
securely over a permissioned network
• Uses hyperledger fabric
https://hyperledger-fabric.readthedocs.io/en/latest/
• This is also on github
https://github.com/hyperledger/fabric/blob/master/docs/source/index.rst
• In June 2016, IBM opened an incubator in Singapore where 5,000 computer scientists
work to build rapid prototypes using the company's blockchain and Watson Al tools for
businesses in the APAC region
• "Watson and blockchain are two technologies that will rapidly change the way we live
and work" - Randy Walker, IBM CEO APAC

Microsoft & Blockchain
• Blockchain as a Service
https://azure.microsoft.com/en-us/solutions/blockchain/
• Ethereum Blockchain as a Service on Azure
https://www.oreilly.com/topics/data-fintech
• Project Bletchley is Microsoft's Blockchain Architectural approach
https://github.com/Azure/azure-blockchain-
projects/blob/master/bletchley/bletchley-whitepaper.mdf
• Open source code is on github
https://github.com/Azure/azure-blockchain-projects/tree/master/bletchley
• They learned that Consortium blockchains, which are members-only, permissioned
networks for consortium members to execute contracts, are ideal

Blockchain and IOT
The blockchain functions as a distributed transaction ledger for
various IOT transaction

BLOCKCHAIN – BASED SMART CITY

BLOCKCHAIN – BASED SMART CITY
• Blockchain application in smart city
• Credible urban infrastructure
• City- level data sharing exchange platform
• Operation security audit system
• Improvement the efficiency level of urban governance
• Build trust
• Strengthen business synergies

BLOCKCHAIN + FEDERAL LEARNING
Artificial intelligence is productivity, bloackchain is production
relationship, big data is the factor of production, which is the
consensus of most blockchain practitioners.
How to maintain the balance between data privacy protection and
data open sharing has become the biggest constraint on large-scale
application landing. The industry generally uses federal learning
technique to solve problems. It enables independent AI system to
use their data more efficiently and accurately for model training and
prediction, while meeting data privacy, security, and regulatory
requirements .

Programming Blockchain
Applications

DAPP on Ethereum
• How to write a contract
• Test it on a local blockchain
• Deploy it on an external blockchain for deep testing
• Commmercial Use

Technologies
• Solidity: an object-oriented language for contract development
• Reminx: an open source IDE for developing and testing contracts.
• Ganache : To deploy the tested contract on an external Blockchain
• MyEtherWallet : To create a wallet for each such client.

Contract Development (Remix IDE)
• http://remix.ethereum.org

Blockchain Platforms
• Hyperledger Fabric

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