Blockchain ExplainedAn Introduction to Blockchain for Business

Blockchain Architected

Blockchain Explored

Blockchain Solutions

Blockchain Composed

Next Steps

Blockchain Explained

IBM Blockchain Platform

V5.02, 30 November 2017

Jennifer FoleyIntegration Architect & NA Blockchain LeaderClient Center for System Innovationfoleyje@us.ibm.com@MsJennSays

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• Client Center Briefings• Client visits• Industry Conferences• Meet-ups• Demonstrations Use Case demonstrations Frameworks demonstrations

• Discovery WorkshopsInnovation via Design Thinking• Fast Start Workshops

Solution Exploration for specific IBM offerings

• Architectural Design/Review Workshops

• Proof of Concepts• Performance Benchmarks• Detailed Use Case reviews• Hands on prototyping

Large Scale deployments supplemented by

• Use case expansion, costs & benefits analysis

• Architect support• Deployment and

integration

• Hosting

Onsite, virtual or in Client Center Face to face Face to face, virtual or in

Client Center Face to face

Free of charge Free of charge Free of charge / For fee For fee

Let’s Talk

Detailed First Project

Scale

IBM Systems Client Centers Engagement Model & Offerings

What is Blockchain?

Why is it relevant for our business?

How is IBM applying blockchain?

How can you get started?

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Ledgers are key

Ledgers are THE system of record for a business.Businesses will have multiple ledgers for the multiple business networks in which they participate.

• Transaction: an asset transfer onto or off the ledger– John gives a car to Anthony (simple)

• Contract: the conditions for a transaction to occur– If Anthony pays John money, then car passes

from John to Anthony (simple)– If car won't start, funds do not pass to John (as

decided by third party arbitrator) (more complex)

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Problem…

… inefficient, expensive, vulnerable

Insurer records

Auditor records

Regulator records

Participant A’s records

Bank records

Participant B’s records

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… with consensus, provenance, immutability and finality

Auditor records

Regulator records

Bank records

Participant B’s records

Blockchain

Insurer records

Participant A’s records

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A shared, replicated, permissioned ledger …

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Other types of blockchain exist

– The first blockchain application– Defines an unregulated shadow-currency– Resource intensive

• Blockchains for business are generally permissioned and private, and prioritize:

– Identity over anonymity– Selective endorsement over proof of work– Assets over cryptocurrency

is an example of an unpermissioned, public ledger:

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Blockchain for business requires trust

Append-only distributed system of record shared across

business network

Business terms executed with transactions

Transactions are provably endorsed by relevant participants

Transactions are secure with

appropriate visibility Privacy

Shared ledger

Smart contract

Proof

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Benefits1. Trust increased, no authority

"owns” provenance

2. Improvement in system utilization

3. Recalls "specific" rather than cross fleet

What • Provenance of each component part in complex system hard to track

• Manufacturer, production date, batch and even the manufacturing machine program

How • Blockchain holds complete provenance details of each component part

• Accessible by each manufacturer in the production process, the aircraft owners, maintainers and government regulators

Example:Supply chain

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Hyperledger: A Linux Foundation project

• A collaborative effort created to advance cross-industry blockchain technologies for business

• Announced December 2015, now over 180 members

• Open source, open standards, open governance

• Five frameworks and four tools projects

• IBM is a premier member of Hyperledger

www.hyperledger.org

Brian BehlendorfExecutive Director

Blythe MastersBoard Chair

Chris FerrisTSC Chair

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Hyperledger Fabric: Distributed ledger platform

• An implementation of blockchain technology that is a foundation for developing blockchain applications

• Emphasis on ledger, smart contracts, consensus, confidentiality, resiliency and scalability.

• V1.0 released July 2017– 159 developers from 27 organizations– IBM is one contributor of code, IP and

development effort to Hyperledger Fabric

http://hyperledger-fabric.readthedocs.io/

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Hyperledger Composer: Accelerating Time to Value

• Features– Model your business networks, test and expose via APIs– Applications invoke transactions to interact with business network– Integrate existing systems of record

• Fully open and part of Linux Foundation Hyperledger

• Try it in your web browser now: http://composer-playground.mybluemix.net/

https://hyperledger.github.io/composer

• A suite of high level application abstractions for business networks• Emphasis on business-centric vocabulary for quick solution creation• Reduce risk, and increase understanding and flexibility

Business Application

Hyperledger Composer

Blockchain(Hyperledger Fabric)

© 2017 IBM Corporation

Introducing the IBM Blockchain Platform http://ibm.biz/Platform_Demo

Hyperledger Composer

Dev

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IBM Cloud Ope

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Gov

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Tool

sBlockchain application

Hyperledger Fabric

IBM Blockchain Platform is a fully integrated enterprise-ready blockchain platform designed to accelerate the development, governance, and operation of a multi-institution business network

– Developer tools that make use of Hyperledger Composer to quickly build your blockchain application

– Hyperledger Fabric provides the ledger; managed through a set of intuitive operational tools

– Governance tools for democratic management of the business network

– Flexible deployment options, including a highly secure and performant IBM Cloud environment

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Detailed Reference ArchitecturePUBLIC NETWORK CLOUD NETWORK ENTERPRISE NETWORK

ENTERPRISEAPPLICATION

ENTERPRISEUSER DIRECTORY

ENTERPRISE DATA

USER

EDGE SERVICES

API MANAGEMENT

APPLICATION LAYER

ENRICHMENT LAYER

BLOCKCHAIN LAYER

CONTINUOUSIMPROVEMENT

CONTINUOUSDELIVERY

CONTINUOUS INTEGRATION

SECURITY

DEVOPS – THINK | CODE | DELIVER | RUN | MANAGE | LEARN | CULTURE

API MANAGEMENT

MONITORING &LOGGING

PROCESSAUTOMATION

CLOUDDATA SOURCE

CERT. AUTHORITY

GOVERNANCE

TRANSFORMATION &CONNECTIVITY

DEVICE

SECURITYMONITORING

AI

SHAREDLEDGER

SHARED LEDGER

LEDGERTOOLING

APPLICATION

CONTENT MANAGEMENT

APPLICATIONLOGIC

GATEWAY

MICROSERVICESBACKEND FOR FRONTEND

PRESENTATION LAYER

EVENTS

BUSINESS NETWORK

TRANSFORMATION &CONNECTIVITY

SMART CONTRACT MEMBERSHIP CONSENSUS

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IoT

Questions? Tweet us or go to ibm.com/blockchain

@IBMBlockchainIBM BlockchainIBM Blockchain

Thank you

Jennifer FoleyIntegration Architect & NA Blockchain LeaderClient Center for System Innovationfoleyje@us.ibm.com@MsJennSays

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