IBM Blockchain Platform Explained

An Introduction to IBM Blockchain Platform

Bob Blessing-Hartley
CTO, IBM Blockchain Platform
Blockchain Explained
IBM Blockchain Platform
Blockchain Solutions
Blockchain Composed
Blockchain Architected
Blockchain Explored
V1.08, 3 April 2018
Next Steps
Blockchain is creating extraordinary opportunities for
businesses to come together in new ways.

Create new value. Optimize ecosystems. Reduce risk.

Exploit new business Streamline business processes Replace uncertainty
models and eliminate and the exchange of value along with transparency and a
inefficiencies. your ecosystem. trusted, decentralized ledger.

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© 2017 IBM Corporation
Blockchain Basics

– Blockchain is a shared, replicated ledger

– Permissioned blockchains bring trust to business
networks through consensus, provenance,
immutability and finality

– Linux Foundation Hyperledger is a collaborative effort

created to advance cross-industry blockchain
technologies for business
– Hyperledger Fabric is a blockchain providing
implementation of a ledger, smart contracts, privacy
and consensus
– Hyperledger Composer is a suite of tools that make
it easy to develop blockchain applications

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 Blockchain Explored
Blockchain Technical Concepts

🔑 🔑

Peers are the networked Channels are defined Certificate authorities

services that maintain ledger subsets of the peer network provide identity services to
state and run smart contracts that share a single ledger participants on the network

✓ ✓ ✓
Smart contracts constitute the Consensus is the process by The Ordering Service agrees
transaction logic whose output is which agreement is obtained transaction sequence and
agreed by the peer network on the peer network distributes blocks to peers

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 IBM Blockchain Strategy
Drive the development of applications for specific business use-cases, to be deployed
to active blockchain networks

Ecosystem
Tap into our diverse ecosystem to develop strategic
partnerships and create your competitive advantage
Services

Solve critical industry challenges by building and

Solutions
joining new business networks and applications

Collaborate
with services Develop, govern and operate enterprise
Platform
teams from blockchain networks with speed and security
ideation all the
way to A founding, premier member of Hyperledger, IBM is
production committed to open source, standards & governance

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

IBM Blockchain Platform is a fully integrated enterprise-

ready blockchain platform designed to accelerate the
development, governance, and operation of a multi- Blockchain application

Governance Tools
Operational Tools
Developer Tools
institution business network
Hyperledger Composer
– Developer tools that make use of Hyperledger
Composer to quickly build your blockchain application Hyperledger Fabric

– Hyperledger Fabric provides the ledger, which is IBM Cloud

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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 Why IBM Blockchain Platform?

Reduces risk Saves time Enterprise ready Open

– Flexible pricing and – Implement blockchain – Architected for High – Based on popular and
support options for all projects more quickly Availability and Disaster open Linux Foundation
sizes of deployments Recovery Hyperledger technologies
– Extensive toolset for
– Democratic governance development, – Highly secured and – Avoid vendor lock-in!
policies to help prevent governance and suitable for transactional Embraces open source,
unauthorized network operation of blockchain workloads open standards and open
changes networks governance

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Developing Blockchain Applications
Client
Blockchain develops
Application
developer
D
SDK
develops submits

Smart emits
Contract !
event
accesses

‘get’, ‘put’, ‘delete’ recorded

Ledger
block
emits
txn txn txn
!
event
World state Blockchain
Peer
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Shifting Gears: Sync between z/TPF and IBP

IBM can help you to identify good

blockchain use-cases for Blockchain for IBP
your enterprise.
There should always be: z/TPF
1. A business problem to be solved
• That cannot be more efficiently solved with other
technologies
2. An identifiable business network
• With Participants, Assets and Transactions
3. A need for trust
• Consensus, Immutability, Finality or Provenance

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Building Communities in Blockchain Networks

Consortium Based Network Founder Directed Network Community Based Network

Member Founder Member Member Member Member

Founder
Member Founder

Member Member
Member Founder Member Member

Founders are equal among other Individual founder in a Driven by industry standards
participants, may include a joint legal position to provide strong bodies or existing non-
entity among the founders (e.g. – Joint direction blockchain network owners
Venture)

Examples: Examples: Examples:

IBM Food
Trust

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You, as a blockchain architect A
Blockchain
Architect

For a successful solution, blockchain architects need a good understanding

of many development and operational concerns:

Applications Smart contracts Events and Integration

Peers Consensus Security

However there are additional considerations for architects to bear in mind from the outset.
For example:
Business Design
concerns Tradeoffs

$
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Integrating with existing systems – possibilities

2. Blockchain
events 1. System
events
! Client SDK Channels
Application (HFC)
! Existing
! Events
systems
Local
MSP

3. Call into blockchain network

from existing systems

Transform

Blockchain network Existing

systems

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Blockchain Applied

Trade Finance Pre and Post Trade Complex Risk Coverage Identity / KYC

Unlisted Securities / Private Medicated Health Data

Incentive Program Government
Equity Fund Exchange

Distributed Energy / Carbon

Supply Chain Food Safety Provenance / Traceability
Credit

And more…

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Example:
Supply chain

What • Provenance of each component part in complex Benefits

system hard to track
1. Trust increased, no authority
• Manufacturer, production date, batch and even
the manufacturing machine program "owns” provenance
2. Improvement in
system utilization
How • Blockchain holds complete provenance details
of each component part 3. Recalls "specific"
• Accessible by each manufacturer in the production rather than cross fleet
process, the aircraft owners, maintainers and
government regulators

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Example:
Audit and compliance

What • Financial data in a large organization dispersed Benefits

throughout many divisions and geographies
1. Lowers cost of audit and
• Audit and Compliance needs indelible record of all regulatory compliance
key transactions over reporting period
2. Provides “seek and find”
access to auditors and
How • Blockchain collects transaction records from diverse regulators
set of financial systems
• Append-only and tamperproof qualities create high 3. Changes nature of
confidence financial audit trail compliance from
• Privacy features to ensure authorized user access
passive to active
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 Letter of credit
Republic of A B-land
Sales contract
Example: Company A:
Buyer/
applicant
Company B:
Seller/beneficiary

Letter of credit Buyer applies

for LC
Seller’s bank authenticates
LC and credits Company B
Buyer’s bank issues
Bank A LC and sends to Bank B
seller’s bank

What • Bank handling letters of credit (LOC) wants to offer Benefits

them to a wider range of clients including startups
1. Increase speed of execution
• Currently constrained by costs & the time to execute (less than 1 day)
2. Vastly reduced cost

How • Blockchain provides common ledger for letters of credit 3. Reduced risk,
e.g. currency fluctuations
• Allows all counter-parties to have the same validated
record of transaction and fulfillment 4. Value added services,
e.g. incremental payment

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Blockchain is much more than technology

Dream big Motivation The whole is

and act drives greater than
intentionally momentum the sum of
the parts

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Learn More About Blockchain
• Engage with an IBM Cloud Garage with Blockchain to in a discovery or design thinking workshop or to
develop an MVP
www.ibm.com/blockchain/garage
• Read The Founder’s Handbook to understand best practices in Blockchain adoption and network creation
https://www-01.ibm.com/common/ssi/cgi-bin/ssialias?htmlfid=28014128USEN
• Explore common use cases
https://www.ibm.com/blockchain/use-cases/
• Sign up for a no cost “starter” network during our beta period
https://www.ibm.com/blockchain/getting-started.html
• Activate and grow your production network
https://www.ibm.com/blockchain/platform/
• Learn more about other IBM Hyper Protect Services
• https://www.ibm.com/cloud/hyper-protect-services

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Thank you

Bob Blessing-Hartley
CTO, IBM Blockchain Platform

Questions? Tweet us or
go to ibm.com/blockchain
@IBMBlockchain
IBM Blockchain
IBM Blockchain
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