Gem's presentation from the Block Chain Conference SF in February highlights how blockchains create "smart networks" for solving computing problems like dual-write / double spend and how this introduces new models for connecting industries to value chains.

1. Blockchains and Smart Networks
Micah Winkelspecht
hello@gem.co
Automating workflows and introducing logic to the cloud

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This is a transaction.

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In reality, there’s a whole network of transactions.

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Aggregators organize and secure transactions.

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But in reality, it looks like this.

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Banks BanksClearinghouses

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Buyers SellersExchanges

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Drivers PassengersRidesharing Apps

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IoT Devices ConsumersAggregators

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Content
producers
ViewersSocial apps

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Smart Network

12. What is a smart network?
Subtitle
Month Day, Year
A smart network is…
a group of people or machines
performing automated interactions
based on reliable, shared data
and consistent, universally accepted rules
in order to accomplish shared goals.
Identity
Smart logic
Data integrity
Network

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Identity
Authentication
Authorization
Device health
a group of people or machines
performing automated interactions
based on reliable, shared data
and consistent, universally accepted rules
in order to accomplish shared goals.
A smart network is…

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Are you who you say
you are?
Authentication
Private Key Public Key
Anonymous or Known

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Authorization
Do you have
permission to
perform this action?

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Identity
Authentication
Authorization
Device health
a group of people or machines
performing automated interactions
based on reliable, shared data
and consistent, universally accepted rules
in order to accomplish shared goals.
A smart network is…

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Smart Logic
Authorization
Smart contracts
Multi-signature cosigning
Automated workflows
A smart network is…
a group of people or machines
based on reliable, shared data
and consistent, universally accepted rules
in order to accomplish shared goals.
performing automated interactions

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Authorization
At network level
Consensus rules
At transaction level
Smart contracts
At organization level
Cosigning server

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Smart contracts
Logic applied at a
transaction level and
enforced by the
entire network
Which identities can
perform this action?
Custom logic with
scripting languages
If:
Claim is under $10k
And:
John approves
And:
Sally approves
Then:
Submit claim
Example:

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Multi-signature cosigning
Cosigning rules allow
for enforcement at
organization level
Employee Organization

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Automated workflows
Ethereum-style smart contracts
Fully expressive programming language
Event notifications and hooks
If this, then that.
Fully auditable

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Data Integrity
Authenticity
Availability
Double-spend problem
Dual-write problem
Order matters (The importance of logs)
A smart network is…
a group of people or machines
performing automated interactions
and consistent, universally accepted rules
in order to accomplish shared goals.
based on reliable, shared data

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Authenticity
Is the data genuine
and from the right
person?
Has the data been
tampered with?
Record hash of data

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Availability
Is the data highly available?
What if part of the network goes down?
Eliminate single points of failure
Data storage can be separated from the
blockchain or combined (S3, IPFS, etc.)

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Double-spend problem
Mallory’s Bank Balance: $1,000
Who get’s the money? Alice or Bob?
Order matters.
Alice 1,000.00
One Thousand
2/10/2016
Scam Mallory S. Cammer
Bob 1,000.00
One Thousand
2/10/2016
Scam Mallory S. Cammer

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Dual-write Problem
http://www.amazon.com/Hutzler-571-Banana-Slicer/dp/B0047E0EII
Order of operations matters.
“If God does not exist, then how is it that a
banana fits so perfectly in this banana slicer?”

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Dual-write Problem
Qty: 1
Qty: 1
Qty: 1
Qty: 0
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$
out of stock

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Copyright Gem © 2016 All RiCopyright Gem © 2016 All Ri
Dual-write Problem
Qty: 1
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Qty: 1
Qty: 0
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$
$
Qty: -1
Qty: -1
REFUND

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Copyright Gem © 2016 All RiCopyright Gem © 2016 All Ri
Blockchain solution (or the importance of logs)
Qty: 1 Qty: 0
$
Qty: 0
out of stock

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Network consensus
Rules of the road
Trust model
Private vs Public vs Hybrid
Join existing or create new network
A smart network is…
a group of people or machines
performing automated interactions
based on reliable, shared data
in order to accomplish shared goals.
and consistent, universally accepted rules

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Gem Platform
31
Build blockchain data infrastructure without compromise.
Gem Identity
Authorize actions based on strong identity and
immutable audit logs.
Gem Logic
Automate workflows based on employee, partner and
market activity.
Gem Network
Launch or join permissioned blockchain networks to
share data with market partners
Gem Data
Execute on trusted data that is validated, standardized
and distributed cross-enterprise or cross-industry.
Eliminate complex API
integrations and data
reconciliation using
identity, logic,
networks and data to
create a new type of
infrastructure based
on strong identity and
integrity.

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Use case
A smart network is…
a group of people or machines
performing automated interactions
based on reliable, shared data
and consistent, universally accepted rules
in order to accomplish shared goals.
Fine jewelry
Consumers want authentic, ethical goods.
Suppliers want credibility and a final sale.
Retailers want returning customers and final sales.

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Suppliers ConsumersRetailers

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Smart Network