powerpoint presentation · distributed system of record shared across businessnetwork business...

Dr S B Goyal

drsbgoyal@gmail.com ; sb.goyal@city.edu.my

Dean, City University, Malaysia

Blockchain provides a fundamental shift from the Internet of information/communications to the internet value.

Assess Requirements to Apply Blockchain In Enterprises

The Blockchain Revolution(Digital Revolution is Underway)

Layout

• About Blockchain

• Why Blockchain

• Blockchain Components

• Questionnaire Before Selecting Blockchain

• Assess Requirements of Blockchain

• Types of Blockchain in Enterprises

• Myths about Blockchain

© 2016 IBM Corporation | 3

“Blockchain is a peer-to-peer distributed ledger technology for a new generation of transactional applications that

establishestrust, accountabilityand transparencywhilestreamliningbusiness processes”

Distributed ledger ≠ Blockchain; Blockchain ⇒ Distributed LedgerBitcoin ≠ Blockchain; Blockchain ⇒ Bitcoin

About Blockchain

Behind the Blockchain ProtocolProperties Blockchain Traditional Database

Operations Only Insert Operations Can Perform CRUD Operations

Replication Full Replication of block on every peer

Master-Slave; Multi-master

Consensus Majority of peers agree on the outcome of transactions

Distributed transactions (2 Phase Commit)

Invariants Anybody can validate transactions across the network

Integrity Constraints

WhyBlockchain Technology

Trusted Transaction

No third party involvement

Unalterable copied only

Real-time tracking only

Reduced Cost

No single point of failure Security

WhyBlockchain Technology

Blockchain ComponentsBlockchain for business…

Append-only

distributed system of

record shared across

business network

Business terms

embedded in

transaction database

& executed with

transactions

All parties agree to

network verified

transaction

Ensuring appropriate

visibility; transactions are

secure, authenticated

& verifiablePrivacy

Shared ledger

… Broader participation, lower cost, increased efficiency

Smart

contract

Consensus

Questionnaire Before selecting Blockchain

Network

A significant number of participants will be transacting on the network (>100)

You don’t trust the participants in the network and don’t need/ want to know them

PerformanceA limited amount of data needs to be stored for every transaction

The business process doesn’t requires a high throughput (scalability)

Business Logic

The business logic is simple

Privacy of transactions is not an important feature

The system will be standalone, it doesn’t need to access external data or be integrated in the IT legacy

Consensus

No arbitrator shall be involved in case of a dispute

All/ group participants can be involved in the validation of transaction

You need strict immutability of the record (no amend & cancel, even by admin)

Assess Requirements of Blockchain for Enterprises

Types of Blockchain In Enterprises

Public Private Consortium

Organization Type Individual Single Multiple

Permission Permission Less Permissioned

Participants Anonymous, could bemalicious

Identified and trusted

Mechanisms

Large Energy consumptionNo finality51% attack

Lighter, fasterLow Energy consumptionEnable finality

Mining (Proof of work) Voting/ Multi-party consensus algorithm

Transaction Approval Frequency

Long (e.g. 10 min) Short (100xmsec)

Use cases Crypto Currency Transactions in business networks, e.g. cross border payment, security transactions..

Criteria to take decision to choose public and private Blockchain

Blockchain Myths

• A magical database in the cloud

• To change the world

• Free

• Only one Blockchain

• Used for anything and everything

• The backbone of a global economy

• Locked and irrevocable

• Never be hacked or altered

• Used in the financial sector

• Bitcoin

• Designed for Business interactions only

• Smart contracts have the same legal value as regular contracts

Questions and Discussion

Dr S B GoyalDean, City University, Malaysiadrsbgoyal@gmail.com0164967715

Ji ShengResearcher, Trive Academy, Malaysiajs@trive.academy+60162857260