Ibm system storage solutions handbook

© 2016 IBM Corporation

IBM’s Open BlockchainMaking Blockchain Real for Enterprises

Anthony O’Dowd, STSM IBM Blockchain Labs

Christopher Ferris, CTO Open Technology, IBM

IBM Blockchain – April 2016

© 2016 IBM Corporation 2

Blockchain Business Terminology

Business Networks

• Participants who are customers,suppliers, banks, partners

• Cross geography & regulatoryboundary

Wealth is generated by the flow ofgoods & services across businessnetwork

Markets are central to this process

• Public: fruit market, car auction

or

• Private: supply chain financing,bonds

LedgersTHE system of record for a business

Business will have multiple ledgers formultiple business networks in which theyparticipate

Transaction: an asset transfer onto and offof the ledger

• John gives a car to Anthony (simple)

Contract: conditions for transaction to occur

• If Anthony pays John money, then carpasses from John to Anthony (simple)

• If car won't start, funds do not pass toJohn (as decided by third partyarbitrator) (more complex)

Assets

Anything that is capable of beingowned or controlled to produce value

Two fundamental types of asset

• Tangible, e.g. a house

• Intangible e.g. a mortgage

Intangible assets subdivide

• Financial, e.g. bond

• Intellectual e.g. patents

• Digital e.g. music

Cash is also an asset

• Has property of anonymity


The Blockchain Solution – a shared, replicated, permissioned ledger

Counter-partyrecords

Bank records

Party C’s Records Auditor records

Party B Records

Party A’s Records

Ledger

Ledger

Ledger

Ledger

Ledger

Ledger


Blockchain defined

Blockchain is a technology for a new generation of transactional applications that establishes trust,accountability and transparency while streamlining processes in business networks. Think of it as

an operating system for interactions between participants in a business network. It has the potentialto vastly reduce the cost and complexity of getting things done.

Blockchain is a designpattern made famous by itsuse in Bitcoin. But its usesgo far beyond.

Blockchain can reimaginethe world's most fundamentalbusiness interactions andopen the door to invent newstyles of digital interactions.

IBM is applying Blockchainto a very broad range ofbusiness applications


IBM’s point-of-view on Blockchain

1. Blockchain is a new-style distributed-database technology that enables enterprises tointeract more efficiently and securely across a wide variety of business application

2. Blockchain is not bitcoin; and while it was made popular by bitcoin, the computer sciencebehind blockchain has been in development for the past two decades

3. Blockchain must be built in the open. IBM supports the Linux Foundation’s Hyperledgerproject because of it’s focus on balanced governance methodology and open sourcemeritocracy. This approach will lower risk of adoption and has lead to record adoption bytop industry companies and regulators.

4. Blockchain must be made ready for enterprise applications with a focus on privacy,confidentiality, auditability, performance and scalability. IBM OBC fabric, is built from theground up with these attributes and was donated to the Hyperledger project

5. Blockchain must be permissioned to ensure greater trust across members, whileenabling more optimized forms of consensus which avoids the need to mine, whichcomes are great cost in compute power and performance. Hence, IBM’s view ofblockchain does not include mining of coins, fuel, or any form of currency.


IBM’s point-of-view on Blockchain

6. Blockchain must be extensible to enable experimentation that will lead to innovations inconsensus algorithms, storage, integration and performance. Hyperledger supports a modulararchitecture which allows 3rd parties to create and plug-in new value that they can eithermonetize or place back into the community.

7. Cloud-based deployments will provide the automation needed to quickly and accurately enabledevelopers and operator to adopt blockchain

8. Use-cases for blockchain range from bold ideas to imagine (or re-imagine) business processesto more humble usage patterns to adopt sooner (2016) versus later. IBM defines four styles ofusage with increasing level of difficulty: compliance ledger, asset exchange, consortium ledgerand high value market ledger.

9. IBM Blockchain is conducting business in 2016 across three areas:

– Community development (Hyperledger)

– Cloud deployment which expands Hyperledger with value added features

– Client engagement via the Blockchain Garage.

10. IBM is engaging government and regulators to educate, demonstrate and encourage the broadadoption of Blockchain for Enterprise usage.


Key Concepts and Benefits of Blockchain for Business

SmartContract

SmartContract

PermissionsPermissionsSharedLedgerSharedLedger

ConsensusConsensus

Ensuring appropriatevisibility; transactions aresecure, authenticated &verifiable

Ensuring appropriatevisibility; transactions aresecure, authenticated &verifiable

Business terms embeddedin transaction database &

executed with transactions

Business terms embeddedin transaction database &

executed with transactions

All parties agree tonetwork verifiedtransaction

All parties agree tonetwork verifiedtransaction

Append-only distributedsystem of record sharedacross business network

Append-only distributedsystem of record sharedacross business network

SavesSaves

Time

Transactiontime from days

to nearinstantaneous

LowersLowers

Cost

Overheads andintermediary

costs

ReducesReduces

Risk

Tampering, fraud &cyber crime

Benefits:

Key Concepts:


Shared Ledger and Smart Contracts

Shared Ledger

• Records all transactionsacross business network

• Shared between participants

• Participants have own copythrough replication

• Permissioned, so participantssee only appropriatetransactions

• THE shared system of record

Smart Contracts

• Business rules implied by thecontract …embedded in theBlockchain &

• Executed with the transaction

• Verifiable, signed and encoded inprogramming language

• Example:

– Defines contractual conditionsunder which corporate Bondtransfer occurs


Privacy and Pluggable Consensus

Permissions for Privacy

• Ledger is shared, but participantsrequire privacy

• Participants need:

– Transactions to be private

– Identity not linked to atransaction

• Transactions need to beauthenticated

• Cryptography central to theseprocesses

Consensus to verify transactions

• Anonymity is expensive

– Bitcoin cryptographic mining

• Participants known & trusted

– Lowers cost of consensus

• Pluggable Consensus alternatives

– Proof of Stake

– Multi-Signature (e.g. 3 of 5)

– PBFT (cross checked securemessage exchange)


BlockchainUser

CertificateAuthority

BlockchainDeveloper

BlockchainNetworkOperator Traditional

ProcessingPlatforms

TraditionalData

Sources

Blockchain

B2Btransactions

access to logic

accessto data

createsapplications

operates

accessessecurity

certificates

Regulator

performsoversight

The Participants in a Blockchain Network

RU

D

O


ValidatingNode B

ValidatingNode B

Validating Node CValidating Node C

ValidatingNode A

ValidatingNode A

ValidatingNode D

ValidatingNode D

ValidatingNode E

ValidatingNode E Blockchain Network A chain network that services

solutions built for a particular industry.

Shared Ledger: Records all transactions across business network

Consensus: Transaction validation & commitment

Non- ValidatingNode

Non- ValidatingNode

ChaincodeChaincode

StateStateLogicLogicChaincodeChaincode

ChaincodeChaincode

ChaincodeChaincode

Proprietor(s) setup and define thepurpose of a chain network. They are thestakeholders of a network.

Auditors(s): Individuals or organizationswith the permission to interrogatetransactions and the blockchain network.

Solution Users: end users typically initiate transactionson a chain network through applications made availableby solutions providers.

Non-Validating node: Constructstransactions and forwards them tovalidating nodes. Peer nodes keepa copy of all transaction recordsso that solution providers canquery them locally.

Solution Provider: Organizations thatdevelop mobile/web applications forsolution users to access chain networks.,they own either NV or Validating node.

Public transactions:transactions with itspayload in the clear

Membership Service (PKI)

ECAECA TCATCA TLS-CATLS-CAReg. AReg. A

Registration Authority: Assigns registration username & registration password pairs to networkparticipants. This username/password pair will be used to acquire enrollment certificate from ECA.

Enrollment CA (ECA): Issues enrollment certificates (ECert) to network participants that have alreadyregistered with a membership service. ECerts are long term certificates used to identify individual entitiesparticipating in one or more networks.

Transaction CA (TCA): Issues transaction certificates (TCerts) to ECert owners. An infinite number ofTCerts can be derived from each ECert. TCerts are used by network participants to send transactions.

TLS CA: Issues TLS certificates to systems that transmit messages in a chain network. TLS certificates areused to secure the communication channel between systems.

Chaincode (Smart Contract): Applicationlogics stored and executed on the blockchain.

Chaincode State: Chaincodes accessinternal state storage through state APIs.States are created and updated bytransactions calling chaincode functions withstate accessing logic.

Confidential transactions:transactions where its payload isencrypted and is only visible tostakeholders of this transaction

Confidential chaincode:chaincodes that only pre-definedsubset of validators can view andexecute

The Blockchain Network


Blockchain Technical Terminology

Membership

Smart Contract Systems Management

Events

Consensus Network Wallet

Shared Ledgercontains the current world state of the ledger anda Blockchain of transaction invocations

encapsulates business network transactions incode. transaction invocations result in gets andsets of ledger state

a collection of network data and processing peers forminga Blockchain network. Responsible for maintaining aconsistently replicated ledger

manages identity and transaction certificates, aswell as other aspects of permissioned access

creates notifications of significant operations on the Blockchain(e.g. a new block), as well as notifications related to smartcontracts. Does not include event distribution.

provides the ability to create, change and monitor Blockchaincomponents

securely manages a user’s security credentials

responsible for integrating Blockchain bi-directionally with externalsystems. Not part of Blockchain, but used with it.

Systems Integration


BlockchainforBusiness–IBMStrategy

Open Source Code: Blockchain builtfrom the ground up for business;Permission | PrivacyConfidential | Auditable

Open Governance – 40 memberboard.

Blockchain value-addedmanged service on SoftLayerand System Z:Identity | Consensus | Audit |System Integration |Hardware-assist forPerformance & Security.

Blockchain Solutions forFinancial Services;Trade Finance | Capital Markets

Blockchain GarageNY | London | Singapore | Japan

Blockchain GBS Practice

IBM BlockchainLinux

Hyperledger ProjectBlockchain SolutionsBlockchain Garage

Community + Code Cloud Clients


IBMBlockchainPlatform

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 Architecture &Code offered to Linux Foundation

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

TRANSACTIONSBLOCKCHAI

NMEMBERSHIP

Event HubEvent Hub

MEMBERSHIPIdentity, Privacy and Auditability ofblockchain participants.

BLOCKCHAIN | TRANSACTIONSDistributed transaction ledgerwhereby the ledger is updated byconsensus

CHAIN-CODE“Smart Contracts”, provide ability torun business logic against theblockchain

APIs, SDKs, CLIGives developers the ability toprogrammatically control theblockchain networkOpen Source Code: Blockchain built from the ground up for business;

Permission | Privacy | Confidential | Auditable


Blockchain – Perfect for Open Source

● New, potentially revolutionary technology

● Requiring multiple specialized skills to develop

● Used by multiple parties

● Controlled and monetized by no one

● Strong governance model

So the Hyperledger Project was created at the Linux Foundation


Introducing Hyperledger

A collaborative effort created to advance blockchaintechnology by identifying and addressing important

features for a cross-industry open standard fordistributed ledgers that can transform the waybusiness transactions are conducted globally.


NEWLY ANNOUNCED


Election Announcements

BlytheMasters

CEO

Board Chair:Technical SteeringCommittee Chair:

General Member BoardRepresentatives:

Chris FerrisCTO Open Technology

Craig YoungCTO

CharlesCascarilla

CEO


Connecting with the Hyperledger Project Community

• Mailing Lists: http://lists.hyperledger.org/

• Github : http://www.github.com/hyperledger

• Slack (if you need an invite, please click https://slack.hyperledger.org/)

• Wiki: https://github.com/hyperledger/hyperledger/wiki

• IRC: #hyperledger on freenode.net

• Code of Conduct https://github.com/hyperledger/hyperledger/wiki/Hyperledger-Project-Code-of-Conduct

• Working Group Meetings (Calendar)https://github.com/hyperledger/hyperledger/wiki/PublicMeetingCalendar


6 Proposed Code contributions


60+ Developers Attended First Hackathon


Consolidation begins?

Fabric

Sawtooth Lake


Current activity

• Requirements & Use cases WG – Patrick Holmes, Intel

• Architecture WG – Ram Jagadeesan, Cisco

• Identity WG – Christopher Allen, Blockstream

• Whitepaper WG – Dave Voell, J.P. Morgan

• Fabric Incubator

• Sawtooth Lake Incubator

• Release Integration - TBD


What’s next?

• Monthly “hackathon”

• Hire an Executive Director

• Exploration of Sawtooth Lake Incubator

– What can Fabric learn from STL and vice-versa

• Initial draft of Whitepaper to be published

• Requirements review by Technical Steering Committee

The future is wide OPEN …

Thank you for dialing in! Stay engaged with dWOpen:

developerWorks Open home pagehttps://developer.ibm.com/open

Full list of developerWorks Open projectshttps://developer.ibm.com/open/projects

Follow us on Twitterhttps://twitter.com/IBMdwOpen

Upcoming calls and eventshttps://developer.ibm.com/open/events

See all our Tech Talk replays!https://developer.ibm.com/open/videos/

Ibm system storage solutions handbook

Technology

Transcript of Ibm system storage solutions handbook