The document outlines a presentation by Mohammad Asif Waquar on blockchain technology and its applications in enterprise solutions, particularly on Azure. It discusses various aspects of blockchain including architectures, deployment in different environments, consensus mechanisms, and integration with IoT. Additionally, it compares different blockchain platforms such as Ethereum, Hyperledger Fabric, and R3 Corda, highlighting their characteristics and use cases in various industries.

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Mohammad Asif Waquar
Senior Software Engineer
atABN AMRO Bank
@asifwaquar
BlockchainIntroduction&ArchitectureonAzure

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about me
Senior Software Engineer at ABN AMRO
https://www.linkedin.com/in/mohammad-asif-6a6153111/

3. 2
Team
@arrnagaraj @Sachit_Keshari
@SanjivVenkatram
@altfo@Sakthis

4. Road Map
o Blockchain Introduction & Architecture on Azure.
o Fabric Architecture & Installation in Block Chain
o Block chain Hyper ledger deployment on Azure Work Bench
o Handling Media & Documents in Block Chain
o Corda Architecture & Deployment on Azure .
o Corda workflow & Swift payment integration.
o Block chain with Ethereum & Quorum and deploying in DAPPS
Azure.
o Security in Block chain.
o Block chain with IOT.
o Hands on Workshop on Block chain.

5. Today’s Agenda
o What is Blockchain ?
o Enterprise Blockchain Concepts
o Consensus Overview
o Security
o Blockchain Solution Architecture in Hyperledger Fabric
o Blockchain Architecture on Azure
o Demo

6. Technology Movement
In the last 15 years or so, we have experienced a significant
business transformation because of open-source software,
cloud, big data and artificial intelligence (AI). These are not
just buzzwords anymore because enterprises have adopted various
technologies that fall under the umbrella of these terms.
Blockchain is at the same place where the cloud and big data were
several years ago.
e:https://www.forbes.com/sites/forbestechcouncil/2018/05/14/blockchain-in-enterprises

8. Blockchain Disruption
Blockchain is disruptive in the same way quantum computing
will be.
You can’t ignore the beauty of decentralization and this new
way of exchanging information without involving a
middleman.
Blockchain is not cryptocurrency, and it can fit into enterprises
as a part of their enterprise solutions.
Source: https://www.forbes.com/sites/forbestechcouncil/2018/07/09/seven-ways-
advancements-in-technology-will-change-the-near-future

10. Industries
✓ Banking & Finance
✓ Marketplace
✓ Healthcare
✓ Supply Chain
✓ Gaming
✓ Digital Assets Platform

11. For most people, their first
impression of the term
“Blockchain” was in relation to
Bitcoin or Cryptocurrency.
The question is “How
can I use blockchain in
my enterprise?”

12. What is Blockchain ?

13. What is block chain ?A decentralized computation and information sharing platform
That enables multiple authoritative domains, who do not trust
each other, to cooperate , coordinate and collaborate in rational
decision making process.

14. Microsoft or Google doc-sharing information
Traditional way of sharing documents

15. Microsoft or Google doc-sharing information
Sharing Microsoft Online doc both the users can edit simultaneously
The environments is still centralized . Does
centralized system harm ?

16. Problems with a centralized systems
A single point of failure
• If you do not have sufficient bandwidth to load Google doc,
you will not be able to edit.
• What if the server crashes ?

17. A Plausibly Ideal Solution
Everyone edits on their local copy of the document – the
internet takes care of ensuring consistency.

18. Blockchain-The Internet Database to Support
Decentralization
Blockchain
A decentralized database with strong consistency support.

19. Block chain & Public Ledgers
All transactions in block chain secured with Cryptographic Hash functions.

20. Consensus

21. A Very Simplified Look of The Blockchain

22. A Very Simplified Look of The Blockchain

23. Consensus Algorithm

24. Security

25. Cryptographic Hash Functions
Examples: MD5, SHA256
Cryptographically Secured:
One way, given a x, we can compute
H(x), but given a H(x), no
deterministic algorithm can compute
x
For two different x1 and x2, H(x1)
and H(x2) should be different
X is called the message and H(X) is
called the message digest
A small change in the data results in
a significant change in the output –
called the avalanche effect
Image source: Wikipedia

26. Also known as hash tree
every leaf node is labelled with the
hash of a data block
every non-leaf node is labelled with
the cryptographic hash of the labels
of its child nodes
Bayer, Harber and
Stornetta used Merkle Tree
in 1992 for timestamping
and verifying a digital
document - improved the
efficiency by combining
timestamping of several
documents into one block
Other uses of Merkle Tree
Peer to Peer Networks: Data blocks
received in undamaged and
unaltered; other peers do not lie
about a block
Merkle Trees (Ralph Merkle, 1979)
Root Hash
Hroot=Hash(H0+H1)
L1 Hash
H0= Hash(H00+H01)
L1 Hash
H1=Hash(H10+H11)
L2 Hash
H00=Hash(D1)
L2 Hash
H01=Hash(D2)
L2 Hash
H10=Hash(D3)
L2 Hash
H11=Hash(D4)
D1 D2 D3 D4

27. Enterprise Blockchain

28. In a ‘trust gap’
environment ,you
introduce a third
party that everyone
should trust.
Problem :Difficult to Track Asset Transfer in Business Network
The third party
introduces fees.
Inefficiencies in data
reconciliation
..Inefficient ,Expensive ,Vulnerable
CustomerA
Records
Insurer
Records
Bank
Records
Regulators
Records
Auditors
Records
MerchantA
Records

29. How Blockchain Solves this problem..
CustomerA
Records
Insurer
Records
Bank
Records
Regulators
Records
Auditors
Records
MerchantA
Records
BlockchainLedger
Ashared,replicated, permissionedledger
✓ Consensus
✓ Immutability
✓ Provenance
✓ Finality

30. Types of Blockchain
Public Private (Permissioned) Consortium

31. Blockchain in a nutshell
Shared Contract
Shared Ledger
Consensus
Ensuring secure,
authenticated & verifiable
transactions
Business terms embedded in
transaction database &
executed with transactions.
All parties agree to network
verified transaction
Append-only distributed
system of record shared
across business network
Security
Overheads and cost
intermediaries
Tampering, fraud
& cyber crime
Reduces
Time
Removes
Cost
Reduces
Risk
Enables New
Business
Models
IoT Integration
into supply chain
Transaction time
from days to near
instantaneous

32. Permission-less vs Permissioned Blockchains
Permission-less Permissioned
Access Open read/write accessto database Permissionedread/write accessto
database
Scale Scaleto alarge number of nodes,
but not in transaction throughput
Scalein terms of transactionthroughput,
but not to alarge number of nodes
Consensus Proof of work/ proof of stake Closedmembership consensus
algorithms
Identity Anonymous/pseudonymous Identities of nodes are known, but
transaction identities canbe
private/anonymous/pseudonymous
Asset Native assets Anyasset/data/state

33. Ethereum Vs. HyperLedger Fabric Vs. R3 Corda
Characteristics Ethereum HyperLedgerFabric R3Corda
Description of
the Platform
Generic Blockchain Platform Modular BlockchainPlatform
Specialized distributed ledger
platform for FinancialIndustry
ReleaseHistory July2015
v0.6Sept 2016,v1.0 July2017,
v1.32018
v-m0.0 May 2016,v1.0 Oct2017,
v3.0Mar 2018
Crypto Currency
Ether / Tokens(Usage,Work)via
Smart Contract
None
Currency and Tokensvia Chaincode
None
Governance
Ethereum Developers
Enterprise EthereumAlliance
LinuxFoundation
IBM
R3
Consensus
Mining basedon Proof of Work
(POW)–All participants need to
agree.
Ledger Level
Selective Endorsement. Consensus
can be even within a channel with
select parties instead of everyone.
Transaction Level
Specific understanding of
Consensus.(Validity, Uniqueness)
Transaction Level
Network Permissionless, Public or Private Permissioned, Private Permissioned, Private
State Account Data
Key-value Database
Transaction Log,World State
Vault contains States
Historic & CurrentState
SmartContracts Solidity Chaincode (GoLang,Node.JS, Java) Smart Contract (Kotlin, Java)
GoLang,C++,Python Java,Node.JS,Python (Post 1.0) Java,KotlinDevelopment
01L-0a2-n20g19uages

34. Degree of Centralization
o Censorship-resistant
o Scaletolargenumberofnodes
Oneglobalblockchain
o Privacy Scaleintransaction throughput
o Many interactingblockchains

35. Blockchain Solution
Architecture in
Hyperledger Fabric

36. Actors in Blockchain Solution

37. Actors in Blockchain Solution

38. Components in Blockchain Solution

39. A ledger often consist of two data structures

40. Block Transaction Details

41. Ledger example: Ownership change

42. Application workflow with ledger

43. Blockchain Events

44. Integration with existing Applications

45. Hyperledger Fabric Architecture
Orderer
• Consensus
verification
• CreatesBlocks
CA
• Registration
ofidentities
• Manage
Certificates
Peer
• EndorsesTx
• SimulatesTx
• CommitsTx
All thesecomponentscanbeclustered for scalability andto avoidSinglePoint ofFailure
3ComponentsofFabric
Ledger
Blockchain& WorldState
• createCar
• queryAllCars
• queryCarProperties
• changeCarColor
• changeCarOwner
• EndorsementPolicies
• Assets : Anythingthat’s
valuablefor theOrganization
• Transactions(Statechanges of
Assets)
• GossipProtocol: Theglue
that keepsthe peersin
healthystate.
Channels SmartContract OtherConcepts
• Privatesubnetfor a
set of parties based
on Smart contract
• Ledger/ Channel
• Peerscanhave
multipleChannels
• PrivateData
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46. Fabric
Deployment
Modelinevery
Enterprise CustomerA MerchantB Bank Insurer
GossipProtocolfor P2PCommunication
Orderer
• Consensus
Verification
• CreatesBlocks
CA
• Registration
ofidentities.
• Certificate
Management

47. Blockchain Architecture
on Azure

48. Preconfigured
Templates
Cloud Resources
Applications
Azure Blockchain Workbench architecture

49. Azure Blockchain Workbench architecture

50. Demo

51. Questions?
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52. ThankYou
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