Download - Blockchain with HyperLedger (Public version)
© CloudCorporation 1IBM CONFIDENTIAL
Presented by:
April 2016
Benjamin Fuentes
Blockchain
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Introduction
But not only …
Why is everyone talking about Blockchain?
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Introduction
Blockchain = Bitcoin?
One blockchain to rule them all?
Can I be totally anonymous on the network?
Is Blockchain a business ready technology?
Is Blockchain an open door to illegal markets? (=>Silk Road Affair)
Do Smart contracts a legal value?
Will Blockchain replace the Dollar?
Will Blockchain replace Stock Markets and (Central) Banks?
Will Blockchain replace Governments?
Will Governments kill Blockchain?
Frequently Asked Questions
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Definitions
A block chain or blockchain is a distributed database, introduced by Bitcoin (2008) on Satoshi Nakamoto’s white paper, that maintains a continuously-growing list of data records that each refer to previous items on this list and is thus hardened against tampering and revision. Distributed systems answer to a problem called Byzantine Generals’ Problem described by Leslie Lamport (1982).
PERMISSIONED / PRIVATEPERMISSIONLESS / PUBLIC
It distributes identical copies of a ledger, but only to a limited number of trusted participants. As the network may have an owner(s), this methodology is better suited for applications requiring simplicity, speed, and greater transparency.
It allows anyone to contribute data to the ledger with all participants possessing an identical copy of the ledger. Since there is no single owner of the ledger, this methodology is more suitable for censorship resistant applications (e.g. Bitcoin)
Mesopotamian ledger
Blockchain
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Definitions
• Don’t trust anyone! => slower (as need for waiting for consensus to validate a block and get an agreement on the network)
• Need a magic anti-hacking mechanism => need miners to maintain the network
• If more than 51% of the network is controlledby one group then it could be hacked• On-chain assets• Censorship resistant
• Trust everyone! => faster (only need validators on the network for an agreement)
• Need a central administrator to control entry to the network
• Off-chain assets• Better irreversibility and control
PROOFOFWORK
Permissionless vs Permissioned BlockchainsImplications and differences
PERMISSIONLESS / PUBLIC PERMISSIONED / PRIVATE
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Definitions
PBFT & Zyzzyva
RAFTPAXOS
Mencius
A fundamental problem in distributed computing and multi-agent systems is to achieve overall system reliability in the presence of a number of faulty processes. This often requires processes to agree on some data value that is needed during computation.Consensus algorithms are used by a network to agree/validate on a computed result.
• TerminationEvery correct process decides some value.• ValidityIf all processes propose the same value v, then all correct processes decide v.• IntegrityEvery correct process decides at most one value, and if it decides some value v, then v must have been proposed by some process.• AgreementEvery correct process must agree on the same value.
Consensus
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Definitions
Creation Phase Execution Phase
contract mortal { /* Define variable owner of the type address*/ address owner; /* this function is executed at initialization and sets the owner of the contract */ function mortal() { owner = msg.sender; }
Block n New block
LOGIC CODE
Block Block Block
events
Actions/executions
Smart contracts are computer protocols that : • facilitate and verify• enforce the negotiation• performance of a contract• make a contractual clause unnecessary
Smart contracts
Condition has been validated
here
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IBM on Hyperledger
Hyperledger (or Hyperledger project) is a cross-industry collaborative effort to createblockchain-based open standard for distributed ledgers for globally conducted business transactions. The project has been started by Linux Foundation and backed by technological, financial, banking and supply chain companies worldwide.
The project aims to create an open-standard, public, decentralised public ledger based on blockchain technology to advance worldwide business transaction processing in terms of cost-effectiveness, speed and traceability.
Founding members of the initiative represent a diverse group of stakeholders:
• ABN AMRO• Accenture• ANZ Bank• Blockchain Ltd• BNY Mellon• Calastone• Cisco
• Deutsche Börse Group• Digital Asset Holdings• Fujitsu Limited• Guardtime• Hitachi• Wells Fargo
• CME Group• ConsenSys• Credits• The Depository Trust
& Clearing Corporation (DTCC)
• CLS
On Feb. 2nd 2016, IBM committed first 44K lines of code on
Github
• IBM• Intel• IntellectEU• J.P. Morgan• Red Hat• SWIFT
• NEC• NTT DATA• R3• State
Street• Symbiont• Vmware
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IBM on Hyperledger Find Hyperledger on Bluemix
1. Click on “CATALOG”
2. Search “Blockchain” or scroll down the list
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IBM on Hyperledger
SamplesSwagger APIBluemix Service
Deploying Marbles DemoOn Bluemix
Bluemix Blockchain : Service, API, Samples
A swagger API is available for each Blockchain project using the Bluemix service
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IBM on Hyperledger
Advantages • Help implement a layer over the Blockchain network using Swagger API or a JS client• Easily add/remove new nodes (coming soon)• Easily deploy a worldwide network• Help on DevOps tasks, monitoring• Use Bluemix as a PoT environment and then deploy the network locally • (Detailed documentation is coming)
Prerequisites• Go language is needed for chaincode development (but Java and Javascript are on the pipe!)
Disadvantages• The service is still experimental (limited to 2 peers)
Remaining QuestionsThe Blockchain is a distributed system based on different peers on the network,not all are coming from the same platform owner … so how to sell it on a cloud like Bluemix (that is centralized by nature)?
Why building a Blockchain on Bluemix?
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IBM on Hyperledger
Blockchain infrastructure does not replace company clouds, it is a democratized cloud between peers. This virtual network of decentralized computers are bound together with blockchain’s consensus rules where some logic code could be executed (like smart contracts)
In charge of the platform
In charge of auditing
Add/Feed executable logic code into the blockchain
ACTIVE MEMBERS
AUDITORS
BLOCKCHAINPROVIDER
ChainCode
ChainCode
Entering a new shape of infrastructure
One part of the network could be on-premise peersBilling based on logic code execution
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Market Picture
Blockchain DUBLIN
HACKCOIN ATHENS
HACKCOIN MALAYSIA
HACKCOIN LONDON
WanXiang - Deloitte Blockchain hackathon
SHANGHAI
FinTech weekLONDON
Consensus
NYC
Blockchain visionPARIS
ETHEREUM Meetup LONDON
Arctic chain HackathonSWEDEN
Bitcoin Hackathon MIAMI
HACKCOIN MUMBAI
HACKCOIN HONG-KONG
GtecBERLIN
Chainthon ATHENS
DbsSINGAPOUR
Blockchain Trade Show TORONTO
Business Blockchain Conf TORONTO
Money 20/20COPENHAGEN
COINFESTWORLDWIDE
Blockchain Conf SAN FRANCISCO
Blockchain weekBARCELONA
Blockchain Summit ISLAND
Bitcoin Conf RUSSIA
Keynote2016DUBAIAdcca
SYDNEY
SIX Hackathon LONDON + ZURICH
Events : Hackathon, Chainthon, Conferences
EcoD participation!
Europe strong activity
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Market Picture
Gennaro CuomoIBM Fellow
Craig YoungSWIFT CTO
Todd McDonaldR3 COO, cofounder
Blythe Masters(Board Chair)Digital Asset Holdings
Chris Ferris (TSC Chair)IBM Distinguished Engineer
Vitalik ButerinCreator, founder
Ming ChanExecutive Director
Jeffrey WilckeCofounder
Casey KuhlmanCEO
Preston ByrneCOO
Chris LarsenCEO
Blockchain communities
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Market PictureBlockchain as a Service (BaaS)Competitors
Well, a lot is said about it but in reality is
still ongoing stuff …
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Market Picture Blockchain Ecosystem
sourceIBM is more involved than it
can appear here
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Business use casesOpportunities
SMART CONTRACTS FINANCIAL SECTOR
RECORD KEEPING DIGITAL CURRENCY SECURITIES
IBM potential Businesses
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Business use casesOpportunities
Land and property registry / proof of ownership• Land is often split into parts, Legal rules apply
Software contracts• Pricing rules based on CPU, users, etc… => consumption
Music rights for artists• Distribution based on diffusion
Medical history and reimbursements• Free access to authorized person, automatic health
redemption
IoT• Automatic triggering of smart objects coming from a
commercial contract negotiation
Smart contract and Record keeping niche
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Business use casesOpportunities
Who will disappear or will be transformed?• Clearing houses• Collateral management• Swift : Today Swift is the “trusted” network. It
transports, validates and rejects messages. It authorized banks access to the network. It gives proof and certifies message delivery between two peers.
Are banks ready to cooperate ?• Yes : reducing costs and risk, transparency with
authorities, being ahead on the competition.• No : specific country based sanctions,
complicated to set up, inherent blockchain coding complexity, fast evolution is a threat for their business. Fear of the unknown. How to hide balances and trades to the others ?
Financial sector
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Business use casesOpportunities
“No, I’m not suggesting the moonshot of immediately redoing our global financing, lending system on a blockchain. But we have now employed a shadow chain: my definition of shadowchain is it’s not replacing the primary business process, it’s being used to enrich that business process with a useful function that it currently doesn’t do.” --Jerry Cuomo, IBM
Success Stories around Blockchain
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Business use casesOpportunities
Blockstream’s core area of innovation is sidechains, a technology focused on improving on the blockchain, the most powerful public utility for distributed trust systems.Sidechains are blockchains that are interoperable with each other and with Bitcoin, avoiding liquidity shortages, market fluctuations, security breaches and outright fraud associated with alternative crypto-currencies.
Success Stories around Blockchain
Montreal
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Business use casesOpportunities
Everledger provides immutable ledger for diamond ownership & related transaction history verification for insurance companies, claimants.
Success Stories around Blockchain
Accelerator London Nice
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Business use casesOpportunities
Dynamis is a smart contract for peer to peer insurance running on the Ethereum platform. It provides supplementary unemployment insurance by using the LinkedIn social network as a reputation system. Applicants for a new policy can use LinkedIn to verify their identity and employment status. Claimants can use their LinkedIn connections to validate that they are looking for work.
Success Stories around Blockchain
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Business use casesOpportunities
InsurETH lets you insure your flight directly with an ethereum smart contractThe contract is resolved automatically on the Ethereum blockchain
Success Stories around Blockchain
London
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Business use casesOpportunities
Augur is a decentralized prediction market built on the Ethereum blockchain. It allows you to forecast events and be rewarded for predicting them correctly (Gambling)
Success Stories around Blockchain
San Francisco
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Business use casesOpportunities
OpenBazaar is an open source project to create a decentralized network for peer to peer commerce online— using Bitcoin — that has no fees and no restrictions.
Success Stories around Blockchain
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Business use casesOpportunities
P2P trade system, commerce online : First class privacy, smart contracts, escrow protection, exceptional resilience, submarket design
Success Stories around Blockchain
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Business use casesOpportunities
Community microgrids are a new approach for grid operations that achieve a sustainable, secure, and cost-effective energy system by providing long-term, locally generated power security prioritized for the community. Microgrids, have ability to separate from the larger electric grid during extreme weather events or other emergencies, providing the backbone for resilient, sustainable and more efficient energy production.
Success Stories around Blockchain
Brooklyn
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