blockchain for enterprises · 2020-07-05 · 101 blockchains is the world’s leadingonline...

101 Blockchains Think Tank Webinar Series

LIVE WEBINAR

A Framework for Blockchain Interoperability

Presented by:

Nadia HewettBlockchain and Data for Common Purpose Project LeadWorld Economic Forum

Jonas Sveistrup SøgaardNextGen Lead (Industrial PhD)Deloitte Denmark

Sigrid SømodNextGen Senior ConsultantDeloitte Denmark

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101 Blockchains Think Tank Webinar Series

LIVE WEBINAR

A Framework for Blockchain Interoperability

Presented by:

Nadia HewettBlockchain and Data for Common Purpose Project LeadWorld Economic Forum

Jonas Sveistrup SøgaardNextGen Lead (Industrial PhD)Deloitte Denmark

Sigrid SømodNextGen Senior ConsultantDeloitte Denmark

A few housekeeping tips

Use the Q&A feature to ask your questions

Agenda

Blockchain Deployment Toolkit 01Interoperability 10102Blockchain interoperability model03Two types of data for interoperability04Four conceptual scenarios for interoperability05Three approaches to blockchain interoperability06Q&A07

Redesigning Trust: Blockchain Deployment Toolkit

What is it?

World Economic Forum ®

Redesigning Trust: Blockchain

Deployment Toolkit

This toolkit is designed to guide you and your

organisation through the development and deployment of

a new blockchain solution.

This toolkit provides tools, resources, and know-how to

organisations undertaking blockchain projects. It

contains:

💭 Insights from 100+ orgs

✅ Interactive tools & checklists

🔎 Case studies from 40+ use cases

8

Digital, Interactive Toolkit

Print-friendly (PDF) Handbook

9

Functional and Non-functional success factors

Blockchain Deployment

Series of Inter-Connected

Topics

Identified as the most important

considerations in supply chain

blockchain solutions

10 | Copyright © 2019 Deloitte Development LLC. All rights reserved.

Interoperability 101

11 | Copyright © 2019 Deloitte Development LLC. All rights reserved.

Key questions to address DLT interoperability

K E Y Q U E S T I O N S

What requirements and prerequisites are necessary for interoperability across different permissioned distributed ledgers – or between a permissioned and public ledger?

What solution scenarios can be imagined with and without a trusted central party orchestrating transactions – and what are the pros and cons of the various setups?

How can interoperability efficiently be supported and can there be made any general recommendations for creating interoperability?

12 | Copyright © 2020 Deloitte

BLOCKCHAIN SOLUTIONS HAVE BEEN FORMED AROUND MVE


… BUT GLOBAL SUPPLY CHAINS INTERSECT MULTIPLE ECOSYSTEMS

DELOITTE’S 2020 GLOBAL BLOCKCHAIN SURVEY

Blockchain of blockchains.

“85% of respondents are stating that they are

working with suppliers, vendors, customer or

competitors on solving value chain issues.”


A distinction between business requirements and technical requirements is crucial to highlight non-technical issues such as governance, data ownership and commercial

business models that incentivize ecosystem stakeholders to collaborate with each other.

The blockchain interoperability model

Source: World Economic Forum Interoperability module, Redesigning Trust: Blockchain Deployment toolkit


Interoperability fundamentals

Approaches to

blockchain

interoperability

Interoperability is: (a) the ability

for computer systems to

exchange and make use of

information and (b) entailing the

ability to transfer an asset

between two or more systems

while keeping state and

uniqueness consistent.

Defining

interoperability

Interoperability

layers: business

model, platform

and infrastructure

Two types of data

interoperability:

digital asset and

arbitrary data

1 2 3 4

CCross-

authentication

OOracle

AAPI Gateway

Source: World Economic Forum Interoperability module, Redesigning Trust: Blockchain Deployment toolkit


Two types of data for interoperability: digital asset exchange and arbitrary data exchangeDigital asset exchange cover exchange of an asset like a cryptocurrency, while arbitrary data doesn’t necessarily represent an item of value, but could instead be an

event tracked on the blockchain. Arbitrary data exchange will be required to support even the most basic cross-platform use cases.

D I G I T A L A S S E T E X C H A N G E

Example:

Making bitcoin spendable in Ethereum dApp.

A R B I T R A R Y D A T A E X C H A N G E

Example:

Changing ownership of Bill of Lading from shipper on Ethereum to consignee on Hyperledger.

Shipper ConsigneeBitcoin in Ethereum dApp Verification to Ethereum that BoL is verified

BoL on Hyperledger

Shipper Consignee


Four conceptual scenarios for interoperabilityThe most suitable solution and consequently standard for interoperability depends on the scenario. It is therefore important to outline which scenarios for

interoperability are identified.

One DLT/blockchain to one

database/legacy system.

Example: Hyperledger fabric to

SAP

SCENARIO 1 SCENARIO 2 SCENARIO 3 SCENARIO 4

One application to multiple

DLT/blockchains.

Example: Nasdaq Financial

Framework to Bitcoin and

Ethereum

Multiple applications to one

blockchain. Often the

applications use different

versions of the underlying

ledger.

Example: CargoSmart and

Tradelens to Hyperledger

Multiple applications to

multiple ledgers.

Example: CargoSmart on

Hyperledger and Insurwave on

Corda.


The nature of DLT projects indicate the need for a wide interoperability scopeThe most interesting projects from shipping and adjacent industries are mapped in the below model for visualizing potential scope of the interoperability

complexity. The shipping industry solutions are still at a rather simple level of complexity while other industries build around more advanced cases.

Complexity of use cases

Involved industries

No

tary

Sh

are

d

led

ger

IoT

To

ken

ized

eco

syst

em

Shipping Insurance Trade FinanceLogistics

Insurwave

Interoperability can be solved relatively simply if the scenario is limited to multiple dAppson a single DLT platform as with the two applications in the blue area.

Ecosystems develop around DLT platforms, but these are expanding beyond the initial industry in the pursuit to unlock business value. Moreover, DLT is maturing and platforms may fall out of fashion as concerns around security, performance and scalability are addressed.


Three approaches to blockchain interoperabilityThere are three overall approaches to interoperability; cross-authentication is the most complex solution

ORACLES

Oracles can be used to fetch data for smart-contract execution, and can likewise be used to push data

API GATEWAY

API gateways can be used for communication between blockchains, but still require cross-authentication between nodes

CROSS-AUTHENTICATION

Cross-authentication covers three different methods; hashed time-locks, notary functions and relays / multichains


Three different technical approaches to cross-authenticationRelays offer similar capabilities in a more trust minimized setting, but have drawbacks in terms of compatibility with existing networks and present an alternative

direction for the evolution of blockchains. Hashed time locks represents the most trust-less and practical approach at the cost of scope limitation to digital asset

exchange and can not be used for arbitrary data exchange.

Source: A primer on blockchain interoperability – Medium, Vitalik Buterin – Blockchain interoperability

HASHED TIME LOCKS

KEY CHARACTERISTICS:

ONLY DIGITAL ASSET EXCHANGE

HIGH LEVEL OF DECENTRALIZATION

PROVEN TECHNICALLY IN SEVERAL SOLUTIONS

NOTARY SCHEMES


BOTH DIGITAL ASSET AND ARBITRARY DATA EXCHANGE

LOW LEVEL OF DECENTRALIZATION

PROVEN TO A LIMITED EXTEND IN FEW SOLUTIONS

RELAYS / MULTICHAIN


BOTH DIGITAL ASSET AND ARBITRARY DATA EXCHANGE

HIGH LEVEL OF DECENTRALIZATION

LIMITED PROVEN TECHNICAL SOLUTIONS, DESPITE MANY SOLUTIONS PENDING TO EXPAND FUNCTIONALITY


Existing POCs are limited in scope but have created valuable insightsDeloitte and Accenture have both announced successful interoperability proof of concepts. Accenture has conducted generic proof of concepts testing out

interoperability between platforms while Deloitte also has conducted shipping and financial specific interoperability prototypes.

The POCs have helped drive understanding of what is required to support interoperability for specific use cases. It should be considered that none of the POCs

has used an advanced decentralized method for solving the interoperability challenge, instead two solutions use an API based solution and one has used smart

contracts (hashed time-lock).


Summary of interoperability There are several technical solutions for interoperability which solves different needs. The requirements for practical implementation are still unclear, and it is

required to analyze potential use cases further to uncover the requirements

There are several methods and

solutions for interoperability

But all remain too immature to

constitute a fit-for-purpose

solution especially within the

space of permissioned ledgers

Both Start-ups, established

technology companies and

standard initiatives are working on

standards

Progress in the field is expected

within the next couple of years, but

the results this far has been limited

POCs exploring interoperability

for specific use cases is so far the

best way to create reliable

knowledge on the subject due to

the speed of technology

development and nascent nature

of existing solutions

There is no ‘one solution fits all’ for blockchain interoperability.

The complexity of the challenge is highly dependent on the number of platforms involved and especially the complexity of the use case which the interoperability solution is supporting.

NO MATURED FIT-

FOR-PURPOSE

SOLUTIONS

POCS ARE THE WAY

FORWARDINTEROPERABILITY

COMPLEXITY IS HIGHLY

CONTEXTUAL

LIMITED PROGRESS

ON STANDARDS

Toolkit Value Modules

7

14

13

12

11

10

89

1

2

3

4

655

Interoperability

Enable End-to-End Value Chain Integration across 100+ Blockchain Platforms in Production Today

Focus Areas

1. Fundamental Concepts

2. Top Requirements

3. Approaches

4. Approach Selection

Tools and Resources

5. Requirement Structure

5

A few housekeeping tips

Use the Q&A feature to ask your questions

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blockchain for enterprises · 2020-07-05 · 101 blockchains is the world’s leadingonline...

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