ibm blockchain - associazione bitcoin sardegna · 2016-04-20 · ibm blockchain ©2016 ibm...

IBM Blockchain : IBM Confidential :: ©2016 IBM Corporation

IBM BLOCKCHAIN

April 13, 2016

Mauro Proserpio, IBM Distinguished Engineer

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IBM Blockchain ©2016 IBM Corporation

Blockchain will fundamentally change the way we do businessViewed simultaneously as Opportunity & Threat

Every CEO, from every client, wants to know about Blockchain

IBM Blockchain is underway and open for business in 2016IBM is viewed by many as an early mover and investing ahead of the curve.

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April 13, 2016

Blockchain: Essentials

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Have you recently…

Sold a Stock Leased a CarParked a self-

parking car

How long did it take for the

funds to show up? Fees?

Probably took weeks

to get your car Title

Who is liable if it crashes

when parking?

I bet you these all take some time, incur fees, and challenge your sense of trust.

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Blockchain fundamentally changes the game

Time Cost Risk

Reduces settlement time

from days to near

instantaneous

Removes overhead

and cost intermediaries

Reduces risk of collusion

and tampering

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IBM Blockchain ©2016 IBM Corporation 6

Problem: Electronic networks that transfer the ownership of assets between parties

according to business rules are inefficient, expensive and vulnerable.

Counter-party

recordsBank records

Party C’s Records Auditor records

Party B Records

Party A’s Records

System integrations grow x(x-1)

with each additional party x

API-integrations

Hack


Counter-parties Banks

Party C Auditors

Party B

Party A

Digitally Signed / Encrypted

Transactions & Ledger

Can still have private –

permissioned network

Consensus Algorithm

Prevents Double-spend

All Parties have

Replicated Ledger

Solution: Blockchain networks — simpler; no centralized control points; spread risk =

lowered costs; hardened inside (not just at perimeter).


What is Blockchain?

Entries in the ledger are

synchronized to all ledgers

in the network.

Consensus is used to

ensure all ledgers are

exact copies.

Permissions ensure

that networks members

can only see items in

ledger that you are

permitted to see.

Cryptography is used to

protect entries.

Transactions allow

assets to be indelible

entered into the ledger.

Business rules provide

the logic behind smart

contracts.

A Ledger is Replicated Shared Transactional

Business Network

Auto Dealer

Governance

Leasing Company

DMV (auditor)

Auto

Manufacturer

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Blockchain in a Nutshell: Our Perspective

• Blockchain = Replicated ledger + Crypto + Concensus + Logic

• Shared replicated ledger: a peer-to-peer append-only transaction database that is replicated and

shared across organizational boundaries/legal entities

• Embedded crypto layer: supporting secure authenticated verifiable multi-party transactions via

tokenization, digital identity, digital signatures, and other

• Business rules (evolving to Smart Contracts): ability to specify business logic, embed it in the

transaction database, and couple execution of the logic with transaction processing

Replicated shared state

Secure authenticated updates to shared state

Business rules derived from contracts trigger actions & workflows

Multi-party contracts defined around shared state & state changes

Org A

Org B

Org C

Org D


Blockchain is not cryptocurrency:

Blockchain makes the popular

cryptocurrency, Bitcoin possible,

ensuring that ‘coins’ passed

between parties are cash-like:

unique, immutable and final.

But the way Bitcoin implements

blockchain makes bitcoins an

unregulated, censorship-

resistant shadow currency.

IBM does not support this use.

Many aspects of Bitcoin, such as

miners solving cryptographic

puzzles, are unnecessary for

industrial uses of blockchain,

while many industrial

requirements, like private

transactions, are missing from

Bitcoin and other current fabrics.

http://cdn.americanbanker.com/media/ui/how-bit-works-big.jpg


Moving to Industrial Blockchain Characteristics

Confidential

permission

control

Private

un-linkable identity

Shared

single source of truth (ledger)

Secure

tamper proof

Auditable

prove identity &

ownership

Scalable

architecture


How to decide when to use blockchain

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1 By design, no one party can modify, delete, or

even append any record without consensus,

making the system useful for ensuring the

immutability of contracts and other legal

documents.

Smart contracts aim to provide security superior to

traditional contract law and to reduce other

transaction costs associated with contracting.

When everyone on an exchange can view the

same ledger, it is easy to broadcast an intention (or

offer) by appending it. For example, in a trading

network, all ask and bids would be visible to every

network participant.

Blockchain networks allow each participant to

create customized solutiongs using their own

proprietary business logic while running on the

same common ledger.

2 3 4

High Performance,

Millisecond Transactions?

Are You Managing

Contractual Relationships?

Consider

Alternative

Approaches

Do You Need to Keep Your

Transactions Private?

Does Identity

Matter?

Does it Require Greater

Than Two Parties?

Does This Require

a Market Approach?

Are You Looking

to Reduce Costs?

Are You Looking to

Improve Discoverability?Let’s Talk

Are you working with Complex

Business Logic?

Yes

Yes Yes

No

4

No

Yes

3

Yes

YesYes1

Yes2

Yes

No


A world of many Blokchain networks

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Participants & Nodes

Validating

Leader

Validating

Peer

Non

Validating

Peer

Application

Connection ✔ ✔ ✔Packages

Transactions

Into Blocks✔ ✖ ✖

Executes

Consensus

Algorithms✔ ✔ ✖

Executes

Smart

Contract✔ ✔ ✖

NVPVVL

Validators confirm

transaction blocks

App

NVP

V

VL

VVNVP

App

AppApp

App

App

AppApp

NVP NVP

NVP NVP

App App

App App


(3) Leasing Company

Nodes in Demo Example(1) Manufacturer

(2)

Dealership

(2) Dealership

(4)

Lessee

(5) Scrap Merchant

(0) Regulator

App

NVP

AppApp

App

App

App

App

App

App

App

App

App

App

NVPApp

App

App

NVP

App

App V

V

VVL

NVP

NVP

Many Individual Leasees with their own app or sharing an app


April 13, 2016

Blockchain: IBM point of view

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Blockchain for Business – Our Point of View

The Anatomy of

IBM’s Open Blockchain fabric

Collaboratively creating an

Industry blockchain standard in

Linux Hyperledger

Value-added Blockchain

Cloud Services

DevOps

Identity

Consensus

Audit/Compliance

WebSphere Integration

Differentiated Blockchain

Solutions for industry use-cases

Banking

Financial Markets

Compliance

Internet of Things

IBM Blockchain Cloud

WebSphere Blockchain Connect

Linux

Hyperledger Project

Blockchain Solutions

Blockchain Garage

Community + Code Cloud Clients

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Linux Foundation: Hyperledger Project

Companies in

Announce

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Now over 30

Inquiries to Join

2,3005x more than largest

in history

Media Impressions

31 Million

27% Share of Voice for IBM

Social Media Impressions

50.9 Million2/3 of IBM-Apple Announcement

DECEMBER 17th 2015

Community + Code

IBM is contributing tens of thousands of lines of code and corresponding intellectual property to the Linux Foundation

blockchain project, and it is committed to being a premier sponsor of the organization.

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Hyperledger members

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Community + Code


Get Going with OpenLedgerCommunity + Code


Community: Architecture & Code offered to Linux

Open Source Code: Blockchain built from the ground up for business;

Permission | Privacy

Confidential | Auditable

MEMBERSHIP

Identity, Privacy and Auditability of bockchain participants.

BLOCKCHAIN | TRANSACTIONS

Distributed transaction ledger whereby the ledger is updated by consensus

CHAIN-CODE

“Smart Contracts”, provide ability to run business logic against the blockchain.

APIs, SDKs, CLI

Gives developers the ability to programmatically control the blockchainnetwork Openchain Services

Openchain APIs, SDKs, CLI

CHAIN-CODE

Chain-code

ServicesAP

Membership

Services

Registration

Attributes

Reputation

Blockchain Services

Consensus

Manager

Distributed

Ledger

P2P

Protocol

Ledger

Storage

Secure

Container

Secure

Registry

TRANSACTIONSBLOCKCHAINMEMBERSHIP

Event Hub

Community + Code

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Capabilities

• Complete DevOps Lifecycle via Bluemix

• Smart contract language and API standards

• Enterprise-grade identity, security and privacy

• Seamless hybrid integration with legacy systems

• Market leading performance and scalability

IBM Differentiators

• Deep cryptography: skills, assets, IP from Research

• Hybrid Integration: WebSphere gateway & connectors

• Optimization: on Z with crypto hardware & blue cores

• Industry & domain expertise manifest in IBM solutions

• Future: Analytics & cognitive leadership on blockchain

IBM Blockchain Platform – Powering Always-On Business Networks

IBM Cloud

Linux Hyperledger Fabric

IBM

DevOps

Service

IBM

Identity

Service

IBM

Consensus

Service

IBM

Smart Contract

Service

Public | Dedicated | Local : Bluemix | Softlayer | Z Cloud

IBM Blockchain PlatformReady for IBM & Partner Solutions

Hyb

rid

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Community + Code


Blockchain on IBM CloudCloud

Linux Foundation creates demand

and a funnel for developers on Bluemix

ON BLUEMIX NOW!

Blockchain DevOps

Start working on a

Blockchain in seconds

COMING SOON!

Blockchain Identity Service

Blockchain Consensus

Blockchain Audit

Blockchain DevOps for Developers on Bluemix

plus Value Added Services and Solutions soon

LINUX

Hyperledger Project

Working to create an industry

standard Blockchain for business

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WebSphere Blockchain ConnectCloud

Blockchain

Connect from Blockchain Cloud

to your Systems of Record

Safely retrieve data from

your systems of record;

DB2 | CICS | IMS | REST

WebSphere Blockchain Connect is available to ALL WebSphere customers; providing safe and encrypted passage

from your blockchain cloud to your enterprise. Enables Smart Contracts to access data from SoRs

Blockchain Gateway Blockchain Connectors

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IBM Blockchain – Bluemix Demo

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ON BLUEMIX NOW!

IBM Blockchain

DevOps

Start working on a

Blockchain in seconds

Cloud


ClientsClients

Discover > Learn > Try

IBM Blockchain Solutions Partner Solution

Capital

Markets

Commercial

BankingCompliance Internet

of Things

Client Briefings

hundreds

F2F & Web

Technology

Hands-on

dozens

Delivered or in-plan

External Events

many

Keynotes, main

tent, panels

First

Projects

several

Underway

Key Sectors

Financial Services

Govt & other sectors

following

IBM Bluemix Garage for Blockchain

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illustrative

Partners

$

FintechNetworks Regulators


Engagement Process

1. Discuss Blockchain

technology

2. Explore customer

business model

3. Show Blockchain

Application demo

1. Understand Blockchain

concepts & elements

2. Hands-on with Blockchain

technology

3. Standard demo

customization

1. Business pilot

2. Design Thinking

workshop to define

business challenge

3. Agile iterations

incrementally build

project functionality

1. Scale up pilot or Scale out

to new projects

2. Business Process Re-

engineering

3. Systems Integration

IBM-led: Digital delivery IBM-led: Digital delivery Joint delivery: Client & IBM Joint delivery: Client & IBM

Conversation &

Demonstration

Technology

Hands-onFirst Project Scale

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Clients

IBM Blockchain : IBM Confidential :: ©2016 IBM Corporation 2

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IBM BLOCKCHAIN

April 13, 2016

Mauro Proserpio, IBM Distinguished Engineer

ibm blockchain - associazione bitcoin sardegna · 2016-04-20 · ibm blockchain ©2016 ibm...

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