Blockchain & Smart Contracts! This document provides an introduction to blockchain and smart contracts. It discusses what a blockchain is, why many blockchains exist, consensus algorithms like proof of work and proof of stake, public versus private blockchains, smart contracts and how they work, examples of successful smart contracts, potential use cases, and CIT blockchain projects including Catena which provides blockchain as a service and an iRobot proof of concept.

2. Blockchain & Smart Contracts!
Introduction to Blockchain and Smart Contracts
Saad Zaher/ 21 March, 2018

3. Agenda
• What is a Blockchain ?
• Why do so many exist?
• Consensus Algorithms
• Smart Contracts
• Public vs Private
• Blockchain Generations
• Use Cases
• CIT and Blockchain
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4.  Pointnext Consulting has 55+ team
members based in Galway working for
Hybrid Cloud as well as Network,
Mobility and Blockchain.
 Agile Service Delivery, Management
approach.
 Very strong Knowledge Sharing and
collaboration.
 Mix of Engineers, Developers,
consultant, Architects
 Working from the office culture.
Areas of Expertise
 Cloud Innovation Team
OpenStack and related cloud technologies. We
help customers deploy, automate and orchestrate
on premise Cloud solutions as well as integrate
them with Public Cloud resources when required.
 WW Blockchain Team for Pointnext Consulting.
Deliver blockchain based projects using the latest
blockchain and cloud based technologies.
 Network and Mobility
Application and Workplace Services:
 App Migration & Lifecycle Mgt.
 Image Build | O365
 Mobile App Development leveraging Aruba
 Meridian Asset Tracking and Location
 Application Development for Edge & IOT
People
Galway
Ireland
 Galway is an HPE site in the west of
Ireland with a focus on research and
development for organizations like EG
Product development, Cyber Security
and Pointnext Services and tools
(Support and Consulting).
 Collaboration across organizations is
fast and encouraged.
 Good track record on near shore and
effective delivery.
 Large R&D Lab
Site
Success
Delivered
Hybrid Cloud & Network and MobilityHPE Pointnext Consulting Galway

5. Expertize
5
Development Databases Virtualization
Messaging BrokerContainersAutomationBlockchain

6. “The blockchain is the most important
technology since the internet itself.”
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Mark Andreessen: Cofounder of Netscape
Board of Directors of: Facebook, eBay, & HPE
World Wide Web Hall of Fame Member

7. What is a Blockchain ?
7

8. Blockchain
8
“A blockchain is a decentralized, “public” database/ledger that can record transactions in a verifiable and
permanent way in a trustless environment.” Sutardja Center Berkeley Engineering

9. Blockchain
“A blockchain is a decentralized, “public” database/ledger that can record transactions in a verifiable and
permanent way in a trustless environment.” Sutardja Center Berkeley Engineering
9
Peer to peer network of nodes without
central authority

10. Blockchain
“A blockchain is a decentralized, “public” database/ledger that can record transactions in a verifiable and
permanent way in a trustless environment.” Sutardja Center Berkeley Engineering
10
Every participant of a blockchain network can obtain
a copy of all data in the blockchain

11. Blockchain
“A blockchain is a decentralized, public database/ledger that can record transactions in a verifiable and
permanent way in a trustless environment.” Sutardja Center Berkeley Engineering
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TX 1
TX 2
TX 3
TX 4
TX 5
TX 6

12. Blockchain
“A blockchain is a decentralized, public database/ledger that can record transactions in a verifiable and
permanent way in a trustless environment.” Sutardja Center Berkeley Engineering
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Miners verify the transactions and use a consensus
algorithm to agree on the state of the system
Miners usually get paid a fee for their work

13. “Why do we have so many blockchains ?”
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14. What is different
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15. What is different
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16. Consensus Algorithms
Proof of Work (PoW)
– Is the validation of the work that happened and proving it is
correct.
– Nodes should provide not only the correct answer to a
certain math problem but also a proof of steps
– Prevents DDoS attacks (very expensive to attack the
network)
– Problems:
– Requires more electric power (more cost)
– High computing power hardware is expensive
– Miners could move to a different coin if the reward is higher or
better
Proof of Stake (PoS)
– It will pick the validator based on the amount of stake
(coin) they have and the respective age of the stake.
– It you move your coin from one address/wallet to another
the aging gets reset
– The amount of stake is like a security deposit
– Way more efficient than PoW
– More greener (energy saver) and cheaper distributed
form of consensus.
– Forging
– Problems:
– Safety
– Cheaper to attack
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17. Blockchains
Public
– Publicly available
– Based on proof of work, proof of stake or other consensus
algorithms
– Anyone can participate
– Bitcoin, Litecoin, Ethereum, Monero
– Slower due to large network
– Identity mostly anonymous
Private
– Private property of an individual or an organization
– Write permissions are kept centralized to one
organization.
– Read permissions may be public or restricted.
– It has some security advantages
– Pre-approved participants
– Faster
– Known identities
– Any asset
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18. Blockchain 1.0
Public Blockchains
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19. Blockchain 1.0
First Generation Blockchain
19
++
• Specific use-cases:
• Cryptocurrency (Bitcoin)
• Decentralized DNS (NameCoin)
• Public irreversible database (ColoredCoin)

20. Bitcoin
– Decentralized Digital Currency
– A peer to peer electronic cash system that enables online cryptocurrency payments
– Created in 2009 by an unidentified entity under the pseudonym Satoshi Nakamoto
– As of today all bitcoins in existence are worth $150+ Billion
– Can be traded for real cash at online exchanges
– Major companies (Microsoft, Virgin etc.) accept bitcoins as payment
– Bitcoin is transaction centric and largely stateless and that makes it difficult to build real world applications
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21. Bitcoin
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22. Blockchain 2.0
Smart Contracts!
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23. Blockchain 2.0
Second Generation Blockchain
23
++
• Ethereum
• Corda
• Hyperledger
+

24. Smart Contracts!
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25. What is a Smart Contract?
– Smart contracts help you exchange “money”, property, shares or anything of value in a transparent,
conflict-free way while avoiding the services of a middleman.
– Pre-written logic in the form of computer code
– Stored and replicated on the blockchain
– Executed and run by the network of computers running the blockchain
– Can result in updates to accounts on the ledger i.e. (payment for an executed contract)
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26. How Smart Contracts work?
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Mutually agreed
upon conditions
for execution “if
this, then that”
Send 5 ETH if
contract is
executed
Uses code and
math to decide if
contract conditions
are met, if so funds
are transferred
automatically Receives 5 ETH
if contract is
executed

27. Benefits of Smart Contracts
– Autonomy: There is no need to rely on third parties, which could be biased or not have your interests at heart.
– Trust: Your documents are encrypted on a shared ledger and all parties can have access to them
– Redundancy: Documents are duplicated many times over the blockchain and can’t ever be lost.
– Safety: Documents are encrypted, making them near-impenetrable by hackers.
– Speed: Smart contracts are automatically self-execute, saving you time.
– Savings: Smart contracts save you money by taking out the middleman.
– Precision: Smart contracts execute the exact code provided, ensuring zero errors.
– Transparency: Smart contracts could add another level of transparency to dealings.
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28. Smart Contracts Resources
– Solidity
– Blockapps Strato
– Cakeshop JP Mogran Chase
– State of the Dapps
– Etherparty
– OpenZeppelin
– Truffle
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CakeShop

29. Successful Smart Contracts (Dapps)
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30. Successful Smart Contracts (Dapps)
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31. Successful Smart Contracts (Dapps)
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32. Blockchain 3.0
???
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33. Smart Economy: NEO
– NEO is a non-profit community-based blockchain project that utilizes blockchain technology and digital identity to
digitize assets, to automate the management of digital assets using smart contracts, and to realize a "smart
economy" with a distributed network.
– Digital Assets + Digital Identity + Smart Contracts = Smart Economy
– In Neo 2.0:
– Cross-chain protocol
– Quantum-resistant cryptography
– Distributed storage protocol
– Secure communication protocol.
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34. Use Cases
34

35. 35

36. 36

37. CIT Blockchain Projects
37

38. Catena
Blockchain as a Service
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39. Catena: Blockchain as a service
– Opensource!
• A framework that simplifies the deployment and usage of private blockchains on cloud platforms
• Currently supported Cloud platforms:
• Azure
• OpenStack
• Docker containers
• Supports Ethereum
• Ethereum Proof of Work
• Ethereum Proof of Stack
• What it does
• Automate the deployment of blockchains
• Automate the configuration of blockchains
• Scale your blockchain (add/remove nodes to the chain)
• Dashboards and monitoring tools
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40. Catena: Blockchain as a service
40

41. Catena: Blockchain as a service
41

42. iRobot
– POC for monetizing pay-as-you-go services using Blockchain
– Presentation and interactive demo delivered at HPE Discover 2017 in Las Vegas
– Deliver end-to-end experience and functionality using Ethereum, Azure and IOT to transform traditional
services business to the services of the future
– Provide visual appealing environment for all parties involved to interact, participate and manage the
platform
– Technologies used:
– Ethereum
– Blockchain as a Service on Microsoft Azure
– Smart Contracts, Proof of Authority Consensus
– Roomba iRobot with built in IOT device for data collection, monitoring and interacting with the environment
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43. iRobot
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Request
Cleaning Schedule Job
Notify Job Done
Request
Electricity
Release payment to Electricity
Provider
Charge
Completed
Recharge
Release payment to provider
Charge Battery
Activate Power
Socket
Drive to
room and
clean
Drive to the hub
to charge
End User Smart Contract Cleaning Robot Smart Socket Electricity
Provider
Service
Provider

44. IoT: Rewards for sharing sensor and driving data
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Primary Actor
- Car sensors
- Driver
- Data buyer (e.g. for deep learning,
advertisement, etc.)
Goal in Context
- Driver controlled sharing of sensor and driving
data with rewards
Scope
- Collect as much as possible sensor and driving
data
- Store data on Blockchain
- Agree via Smart Contract to share data to
interested data buyers and get rewarded in
return
Stakeholders and Interests
- Drivers
- Fleets
- Data collectors
- Advertisers
Precondition
- Access to car sensor data (e.g. rain sensor,
GPS, etc.) and driving behavior measurement
(e.g. acceleration, speed, etc.)
- Blockchain node in the car
- Upload and data replication function via internet
- Possibility to show information on car-display to
show rewards
Minimal Guarantees
- Sensor data can be sold via Smart Contract
and rewards are earned
Success Guarantees
- Showcase is demonstrably on events like
HPE Discover without driving
Trigger
- Ignition is switched
Basic Flow
- Ignition is switched on
- Display asked drive whether she wants to
share upcoming trip-data and get rewarded
- After accepting, data is collected and sold
- Earned rewards are shown on display
Extensions
- Data buying platform with bid-function
Technology & Data Variations List
- Tbd.
Time to implement
- Tbd.

45. Architecture
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Client Blockchain (Baas) Car (including Edgeline)
Web3/Ethjs
Interface (index.js)
Website
(index.html
including
required scripts)
Metamask
(localhost)
Geth
Smart
Contract
Factory
(RaindataFact
ory.sol)
Smart Contract
(RainDataMoneti
zer.sol)
Sensor and
CANBus
Shared Memory
Web3
(carsensor.js)

46. Tools
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47. Please give us your feedback!
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48. Thank you
Saad Zaher
saad.zaher@hpe.com
eng.szaher@gmail.com
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