Getting started with bc 2.0 in the cloud

Getting Started with IBM Blockchain Platform 2.0
An introduction for developers
6 June 2019
Lennart Frantzell
IBM Developer Advocate Blockchain
Blockchain Explained Series
Blockchain Explained
IBM Blockchain Platform Explained
Solutions Explained
Labs Explained
What’s New

A new area in business computing started during
the global financial crisis in October 2008
2
With Satoshi Nakamoto’s nine page paper: Bitcoin: A Peer-to-Peer
Electronic Cash System
He proposed a purely peer-to-peer version of electronic
cash without the need to go through financial institutions.
https://bitcoin.org/bitcoin.pdf g/

Contact and IBM Blockchain Code Patterns
3
LinkedIn.com/in/lennartfrantell/
https://developer.ibm.com/technologies/blockchain/

4
What is blockchain?
§ Blockchain lets you build a decentralized
permissioned business network
§ Blockchain builds on basic business concepts
§ Business networks connect businesses
§ Participants with Identity
§ Assets flow over business networks
§ Transactions describe asset exchange
§ Contracts underpin transactions
§ The ledger is a log of transactions
§ IBM Blockchain Platform allows you to
build, operate and grow blockchain networks
in heterogeneous environments

5
… with consensus, provenance, immutability and finality
Bank
records
Participant
B’s records
Auditor
records
Regulator
records
Blockchain
Insurer
records
Participant
A’s records
Blockchain: a shared, replicated, permissioned
ledger
Replace paper records with electronic records

Satoshi Nakamoto’s Blockchain promised to
disrupt the world’s business systems
7
Many

8
IBM has a long provenance
with blockchain…
Aug 2015
IBM starts developing first prototype of blockchain technology (Open Blockchain); first client engagements
Feb 2016
IBM becomes a founding member of Linux Foundation Hyperledger; donates code and intellectual property
Jun 2016
IBM opens first blockchain garages for clients; Hyperledger Fabric v0.6 released
Dec 2016
Number of IBM blockchain client engagements now totals over 400
Feb 2018
IBM Blockchain Starter Plan announced at THINK
Jul 2017
Fabric 1.0 released; IBM Blockchain announced soon after
Nov 2018
IBM introduces hybrid and multi-cloud networks
May 2019
IBM Blockchain Platform for IBM Cloud release

9
Let’s walk through a simple blockchain
for Supply Chain
https://www.ibm.com/thought-leadership/blockchainbean/
Brooklyn Roasting Company
Ethiopian Yirgacheffe coffee
Replace paper-based
supply chain with
blockchain based supply
chain.

10
From paper records digital records
The “Create a fair-trade supply network” code pattern shows you how to digitize
the paperwork and documents that are part of the supply chain.
Each step of the supply chain is recorded as a different function, in which the
participant will submit the relevant data.
Once the data is submitted, it is recorded on the blockchain, and will be available
to whomever has access to it.
And the data on the blockchain is shared by all parties and can never be
changed.

11
Step 1: Coffee Purchased
{
"$class": "org.ibm.coffee.submitFairTradeData",
"batchId": "vjv1dsqncq",
"fairtradePremiumInvested": "$182273",
"investmentAmount1": "$30,626",
"investmentTitle1": "School Classroom Addition",
"investmentTitle2": "Road Infrastructure",
"investmentTitle3": "Food Security",
"organizationDescription": "YCFCU is an Ethiopian coffee producing, processing, and
exporting cooperative union founded in 2002.
"reportName": "Fair Trade Coffee Supply Chain Report",
"reportYear": 2016,
"transactionId": "7bde4711554a69ff336551b4acbb465648355cbf2b80f6218d3cee59593fe3b3"
}

12
Step 2: Coffee exported.
{
"$class": "org.ibm.coffee.submitPackingList",
"PL_Bill_of_Lading_No": "961972237",
"PL_Container_No": "redacted",
"PL_FDA_NO": "15752850924",
"PL_ICO_Lot": "Lot 7",
"PL_ICO_no": "010/0150/0128",
"PL_Invoice_no": "0067",
"PL_IssueDate": "2017-09-19T00:00:00.000Z",
"PL_LoadedVessel": "NorthernMagnum",
"PL_Seal_no": "ML-Dj0144535 20 DRY 8’6",
"PL_VesselVoyage_No": "1707",
"PL_timestamp": "2018-06-17",
"grower": "resource:org.ibm.coffee.Grower#Grower-0201",
"trader": "resource:org.ibm.coffee.Trader#Trader-0791",
"transactionId": "2e3dfb77486cf5ad731777614741fd68c7adea8d87a103bd03e7296f46f87b82"
}

13
Step 3: Coffee imported
{
"$class": "org.ibm.coffee.submitInboundWeightTally",
"bagsExpected": 150,
"coffeeBatch": "resource:org.ibm.coffee.Coffee#u94sf62run",
"condition": {
"$class": "org.ibm.coffee.Condition",
"condensation": false,
"holeInContainer": false
},
"dateStripped": "2017-10-06T00:00:00.000Z",
"insectActivity": false,
"marks": "010/0150/0128 Lot 7",
"transactionId": "cdcf476897109c6470e476eac2b90c05c223e64681311b2fabbb175f26ac8c8b"
}
https://www.ibm.com/thought-leadership/blockchainbean/

14
Step 4: Coffee Evaluated
{
"$class": "org.ibm.coffee.submitCupping",
"acidity": 8,
"afterTaste": 8,
"aroma": 9,
"body": 9,
"coffeeBatch": "resource:org.ibm.coffee.Coffee#4210",
"cupper": "Brian",
"date": "2018-04-12T00:00:00.000Z",
"finalScore": 89,
"flavor": 8,
"transactionId": "1604705fa77b4b387713370262aecd552963fc6c6861d2295745435a8b67317e"
}

16
IBM Tooling
•
https://hyperledger-fabric.readthedocs.io/en/release-1.4/
Blockchain Open Source Framework

17
IBM Blockchain Platform’s advanced tooling:
Build
§ Comprehensive developer tools for smart
contracts and client applications, based on
the popular Visual Studio Code environment
§ Broad range of industry code samples and
tutorials; smart contracts in JavaScript,
TypeScript, Java and Go
§ Simplified DevOps allows you easily move
from development to test to production from a
single console

18
Developing Hyperledger Fabric Apps

22
Blockchain in the IBM Cloud

23
IBM Blockchain Platform: Deploy anywhere
§ IBM Blockchain Platform can be deployed wherever
you want
§ IBM Cloud for an IBM-managed service
§ On-premises for greater deployment flexibility
§ In other cloud providers (e.g. AWS, Azure)
§ Fully heterogeneous: different components can be
deployed in different environments
§ Caters for different vendor biases in the business
network and avoids lock-in
AWS
Azure
On-prem
IBM Cloud
IBP
IBP
IBP
IBP

IBM free Lite Account
24
/https://www.ibm.com/cloud/free/

Free sign-up to the IBM Cloud
25
https://ibm.biz/BdzPWQ

26
§ Maintain complete control of your
blockchain: govern and operate ledgers,
channels, identities and other assets in one
intuitive console
§ Deploy only the blockchain components you
need and manage them - wherever they are
hosted
§ Support for highly available environments
and disaster recovery scenarios
Operate & Govern

27
§ Start small, pay as you grow for what you
use with no upfront investment and
upgrade easily through Kubernetes
§ Easily connect a single peer to multiple
industry networks
§ Connect to nodes running in any
environment (on-premises, public, hybrid
clouds)
Grow

28
IBM Blockchain Platform has affordable pricing
that scales with your network
§ Get what you need and only pay for
what you use
§ Pay less per CPU-hour as your network
grows
§ Customize your components and
compute allocation to fit your use-case
and budget with no fixed membership
fees!
VPC = Virtual Processor Core
CA = Certificate Authority
HA = High Availability
https://cloud.ibm.com/docs/services/blockchain?topic=blockchain-ibp-saas-pricing

30
1. Go to the IBM Cloud console
(cloud.ibm.com) and search
the catalog for blockchain
Starting with IBM Blockchain Platform for IBM Cloud
IAM = Identity and Access Management

31
2. Create your blockchain
service instance

32
2. Create your blockchain
service instance
3. Create and attach an IBM
Kubernetes Service cluster

33
the catalog for blockchain 2. Create your blockchain
service instance
4. Launch blockchain console

34
the catalog for blockchain 2. Create your blockchain
service instance
4. Launch blockchain console
5. Success! Create or join networks,
scale, customize, add HA…
…and you’re on your way!

36
Iconic Blockchain Applications

Topics CommunitiesTechnologies
• Bitcoin
• Ethereum
• Hyperledger
• CORDA
• Ripple
• BigChainDB
• Quorum(Ethereum Enterprise
Platform)
• Stellar
• +++
Blockchain in 2019
• Shared Ledger & smart contracts
• Public, private
• Permissioned, permission-less
• Tokens and incentive mechanisms
• Identity and Zero Knowledge
• Consensus mechanisms
• On-chain, off-chain
• Systems integration
• Inter-ledgering
• Physical-digital with IOT
• Bitcoin
• Ethereum
• Linux Foundation / Hyperledger
• EEA (Enterprise Ethereum Alliance)
• ISO/TC 307 – Blockchain & DLT
• IEEE Blockchain
• W3C Blockchain Community
• Accord Project (Smart Legal Projects)
• Sovrin (Self-sovereign Identity)
• DIF (De-centralized Identity
Foundation)

38
Trade
Finance
Universal
Payments
Global
Trade
Identity
Healthcare
Bank
Guarantees
Food
Government Distributed
Energy
Clearing &
Settlement
Provenance
Unlisted
Securities
Insurance
IBM is making blockchain real for
business with cross-industry solutions
and over 100 active networks.

39
• Trade finance platform:
backed by a consortium of
major international banks
• Full function:
enables accurate trading
posture information, order to
settlement control, risk
coverage, track and trace
options
• Near-real time:
exchange of information
• Discovery:
Allows buyers to discover
trusted sellers and vice-versa
Re-imagining digital business processes
World Wire
• Connects the ecosystem:
brings together ports,
terminals, ocean carriers,
government authorities, etc
• Drives true information
sharing: real-time and
seamless actionable insight
• Fosters collaboration and
trust: automate cross-org
business processes
• Shared visibility and shared
state for shipments
• Manage quality risk:
enable rapid, low cost, food
recalls
• End to End transparency:
data sharing extends beyond
'one up, one down’!
• Trust and Audit:
ensure provenance with
easily trusted, auditable
records.
• Consumer confidence:
comprehensively
communicate with end
consumer
• 24x7 payments:
payment support regardless of
size, origination, destination or
asset type
• Higher visibility:
for streamlined transactions
with reduced disputes and
reconciliation needs
• Regulatory compliance:
enhanced through improved
transparency
• Secure network:
with interaction and eligibility
criteria & robust access
control

40
More than $16 trillion
in goods are shipped
across international
borders each year
80% of the goods
consumers use daily
are carried by the
ocean shipping industry
By reducing barriers
within the international
supply chain, global
trade could increase
by nearly 15%,
boosting economies
and creating jobs2
In many cases the
administrative cost of
moving a container is
higher than the cost of
physically moving it
1) Maersk Strategy Group (May 19, 2016) based on World Bank data for World Trade Costs
2) The World Economic Forum: Enabling Trade Valuing Growth Opportunities 2013
The cost of global trade is estimated at $1.8 trillion annually1
with potential savings from more efficient processes of ~10%
40
: digitizing the global supply chain

41
• We.trade is a blockchain-
based international trading
platform for a consortium of
major world banks
• Enables accurate trading
posture information, order to
settlement control, risk
coverage, track and trace
options
• Near-real time exchange of
information
• Allows buyers to discover
trusted sellers and vice-versa

42
IBM Food Trust addresses key issues in the food ecosystem
Consumer demandSupply Chain Food wasteFood safety
1 out of 10 contract
foodborne illness
each year
One third of global
fresh food is thrown
away
80% of CPG
business is paper
based
Only 1 in 4
consumers trust
today’s food system
*Part of 2018 roadmap for delivery
Food Supply Chain
Ecosystem
Blockchain
Technology
IBM Food Trust leverages blockchain’s unique properties to create a secure, shared, and permissioned transaction record
IBMFoodTrust
The result is a safer, smarter, and more sustainable food supply chain

43
18

45
Governance of blockchain networks
Permissioned
Permission-less Permissioned, tokenized
tokens
N
Y
policyN Y
Digital tokens Digital policy

47
Self-Sovereign Identity: Status and Standards
OPEN
Interoperability
& standards
Self sovereign identity
providers
Non-profit foundational
network
Linux Foundation: Project Indy
Open source implementation
Standards specification for
specifying and verifying
credentials
Decentralized key
management system
Portability
Low High
High
User
control
centralized
federated
Self sovereign
User centric

48
Self-Sovereign Identity example
Doctor
Acquires, Stores, Presents
Hospital
Requests, Verifies
University
Issues
Issues
Credential
Presents
Credential
Decentralized Identifiers (DIDs)
Blockchain
You’re
now a
Doctor
Yes,
you’re a
Doctor
Signs
Credential
Countersigns
Credential
Verifies
Signatures
I’m a
Doctor
Verifiable
credential
Verifiable
credential
Verifiable
credential

49
Discovery Workshop
Engage an IBM Blockchain architect to
help you plan and define the architecture
for your enterprise blockchain solution,
which includes a two-day in person
workshop.
Design Thinking Workshop
Combine an IBM Design Thinking
workshop with IBM Blockchain’s
approach to solution architecture to define
the minimal viable product, as well as, a
blockchain solution architecture.
Develop a functioning blockchain
solution using agile methodologies,
leveraging experts in IBM Blockchain,
UX/UI design and development, and
cloud architecture.
Engage with an IBM Blockchain technical
expert to learn about Hyperledger Fabric,
IBM Blockchain, and general blockchain
concepts.
Length: Half Day
Length: 2 days
Length: 4 – 12 weeks
Length: 1 week
Length: 3 days
Length: Up to 1 week
Understand market opportunities and
select a use case which represents the
value your organization and your
business network seek, while also
gaining a deeper insight in blockchain
technology.
Architecture Workshop
Apply IBM Design Thinking principles to
evaluate current business processes,
identify business network and define the
minimal viable product for your
blockchain solution.
Design Thinking &
Architecture Workshop
MVP Build-up Blockchain Education
Getting Started
Services
IBM Cloud Garage with
Blockchain Offerings
provide you the services
you need to get started
with Blockchain.

50
Quickstart Deployment
Provide an expert review of your current
Blockchain architecture, configuration
and implementation to identify issues and
areas for improvement, resulting in
recommendations for improvement.
Planning Assessment
Holistic review of the client app and
blockchain network to identify potential
performance bottlenecks. Starts with
architectural review and leverages an IBM
test harness to compare client’s
environment to a predefined benchmark.
Deploy a custom IBP network on IBM Cloud Private based on recommendations from
planning assessment. Suitable for a broad range of requirements and use cases.
Length: 1 week
Length: 1 week
Length: custom
Length: 1 week
Length: 2 weeks
Deploy a Distributed Peer on IBM Cloud
Private with an existing IBM Blockchain
Platform network instance on IBM Cloud
or deploy a Full Network including CA
and Orderer.
Health Check
Evaluate client readiness for deploying
IBM Blockchain Platform on IBM Cloud
Private. May require multiple 1-week
assessments.
Performance Assessment
Remote Peer Deployment
Deployment and
Production Services
Expert services to help you
deploy your network in
production and perform at
scale.

51
The future belongs to a
“network of networks”

52
Key Takeaways
• IBM Blockchain puts the experience of
over 500+ client engagements and
multiple active networks at your
ecosystem’s fingertips.
• IBM is the #1 blockchain vendor1 with
32% of the blockchain market2
• It has the only integrated business-ready
platform that empowers a group of
institutions to activate a decentralized
blockchain network in record-time
52
1 Source: Juniper Research
2 Source: WinterGreen Research

Questions? Tweet us or
go to ibm.com/blockchain
@IBMBlockchain
IBM Blockchain
IBM Blockchain
Thank you
Lennart Frantzell

© Copyright IBM Corporation 2019. All rights reserved. The information contained in these
materials is provided for informational purposes only, and is provided AS IS without warranty
of any kind, express or implied. Any statement of direction represents IBM's current intent, is
subject to change or withdrawal, and represents only goals and objectives. IBM, the IBM
logo, and other IBM products and services are trademarks of the International Business
Machines Corporation, in the United States, other countries or both. Other company, product,
or service names may be trademarks or service marks of others.

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