SITIST 2018 Part 1 - Blockchain and Enterprise Use Cases
- 1. Blockchain Technology and Enterprise Use Cases ABDULBASIT GÜLŞEN
- 2. Agenda • Blockchain Overview • Blockchain Types • Benefits of Using Blockchain • Smart Contracts • Blockchain in Enterprise • Blockchain use Cases
- 3. Blockchain Overview • Blockchain is a decentralized continious growing list of blocks which are linked using cryptography • Each block contains the hash of the current transactions + hash of the previous block + nonce data • Secured by the cryptography, it is almost impossible to change the data in the ledger • Transactions are verified by consensus of multiple users Block 1 • Transactions • Hash • Nonce Block 2 • Transactions • Hash • Nonce Block 3 • Transactions • Hash • Nonce
- 4. Decentralized Database Transaction data is not stored in a single centralized database but instead in a distributed public (but secure) ledger which makes it more safe and reliable than the central databases. Centralized Decentralized
- 5. Blockchain Types • Permissionless Blockchain: Every node in the network participate in the consensus process : Bitcoin, Ethereum • Permissioned Blockchain: Only permissioned nodes in the network participate in the consensus process : Hyperledger
- 6. Blockchain Benefits • Decentralization : Eliminate the need to the third party processors to validate transactions • Transparency : The data on blockchain is more reliable and transparent compared to traditional databases • Immutability : The data stored across a network of nodes instead of centralized server, makes it difficult for hackers to compromise the transaction data • Security : All information is secured with cryptographic algorithms • Simplification : Simplifies the transaction flows when multiple parties are interacts each other for different business processes
- 7. Smart Contracts • Smart Contracts helps to exchange money, property, etc. in a secure and transparent way without need of a middleman • First proposed by Nick Szabo in 1995 • Nick Szabo designed first digital currency bit gold in 1998 but it was never implemented. • Smart Contract Implementations: • Bitcoin – Limited to the currency use case • Ethereum – Allows developers to write their own programs • Hyperledger - Open Source Permissioned (Private) Blockchain Implementations
- 8. Blockchain in Enterprise • SAP Cloud Platform Blockchain Service • IBM Blockchain Technology • Hyperledger Projects • Blockchain on Azure • Oracle Blockchain Cloud Service
- 9. SAP Blockchain Cloud Service • Blockchain extensions for existing applications across industries and lines of business • SAP solutions including distributed ledger features will be integrated in the blockchain ecosystem to create synergies, especially in multi-party processes • Blockchain technology is embeded into SAP Leonardo offerings to allow for combination with other next-generation technologies, such as Internet of Things capabilities
- 10. Blockchain in Enterprise Hyperledger A Greenhouse Incubator for Blockchain Projects hosted by the Linux Foundation. Current projects: • Hyperledger Fabric • Hyperledger Indy • Hyperledger Sawtooth • Hyperledger IROHA • Hyperledger Burrow
- 11. Use Cases When to use the Blockchain Technology? • There must be multiple parties involved in a business process who need to exchange transactional data with each other. • There is a situation that we need to establish a trust between people or companies. • You want to eliminate the need for third parties and complete a transaction via peer-to-peer communication. • You must have large number of transactions.
- 12. Use Cases • Financial Services • Internet of Things • Digital Rights Management • Public Sector • Identity Management • Healthcare • Supply Chain • …
- 13. Blockchain Use Cases Supply Chain Blockchain technology has the potential to improve transparency and accountability across the supply chain. Applications are already being used to track and trace materials back to the source, prove authenticity and origin, get ahead of recalls, and accelerate the flow of goods. Public Sector The public sector is looking at the potential of blockchain to serve as the official registry for government and citizen-owned assets like buildings, houses, vehicles, and patents. Blockchains could also facilitate voting, reduce fraud, and improve back-office functions like purchasing. Utilities Blockchain software solutions are being tested for a wide range of applications in the utilities industry: peer-to-peer solar energy sales between neighbors, energy trading among utility conglomerates, automated billing for autonomous electric vehicle charging stations, and more.