Blockchain BTSym '16
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1. IBM Research is the world's largest IT research organization with over 3000 researchers across 12 labs. 2. The document discusses blockchain technology, providing an overview of key concepts such as consensus algorithms, benefits for various use cases, and the evolving ecosystem and industry. 3. It also provides a practical example using Watson IoT and blockchain to explore potential applications and recommendations.
Blockchain BTSym '16
- 1. Pag e © 2016 IBM Corporation 1© 2016 IBM Corporation Blockchain Explained BtSym ‘16 Percival Lucena IBM Research slideshare.com/plucena V3.3, 12 July 16
- 2. IBM Research ▪ World’s largest IT Research organization ▪ 3000+ researchers ▪ 12 labs in the world - Rio, Sao Paulo ▪ +70.000 patents - 7355 patents in 2015 ▪ Nobel Prizes ▪ 1973 Leo Esaki, of the Thomas J. Watson Research Center, earned the Nobel Prize in Physics for work in semiconductors ▪ 1986 Gerd Bining and Heinrich Rohrer, of IBM Research – Zurich for the scanning tunneling microscope ▪ 1987 Georg Bednorz and Alex Müller, of IBM Research – Zurich for research in superconductivity ▪ 2014 - Dr. William E. Moerner Former IBM Research scientist has been awarded the 2014 Nobel Prize for Chemistry “surpassing the limitations of the light microscope.”
- 5. Blockchain Hype-cycle Source: Bart Suichies – December 21, 2015
- 6. Introduction Key Concepts: Benefits: Key Concepts and Benefits
- 7. Introduction Problem - Inefficient, expensive, and vulnerableSolution - Consensus, provenance, immutability and finality Party A’s records Bank records Party A’s records Party C’s records Auditor records Party B’s records Party D’s records Party C’s records Auditor records Party B’s records Party D’s records Bank records Party A’s records Shared, replicated, permissioned Problem and Solution
- 8. Use Cases ▪ Securities ▪ Post-trade settlement ▪ Derivative contracts ▪ Syndicated Loans ▪ Supply Chain ▪ Healthcare ▪ Digital Rights Management ▪ Financial Audit: Triple Entry Accounting ▪ Retail Banking ▪ Cross border remittances ▪ Mortgage verification & contracts ▪ Fidelity Points ▪ Public Records ▪ Real estate records ▪ Vehicle registrations ▪ Citizen Identity ▪ Digital Property Management
- 9. Financial Use Cases Letter of Credit Microfinance ▪ Increase the speed of transactions execution ▪ Reduce cost and risk. ▪ Allows all counter- parties to have the same validated record of transaction and fulfillment. SmartContracts can be combined with IoT: ▪ Peer-to-peer money lending for subprime ▪ Social and conomic inclusion for development Countries
- 10. Non-Financial Use Cases Media Publishing Electronic Medical Records Collect and distribute money to songwriters and copyright holders ▪ Patients have full access to their own data ▪ Grant access to health-care providers
- 11. Introduction Time Ledger Blocks of Transactions Block 11 Proof of work: 0000005647kjp Previous block: 000000432qrza1 Transaction lk54lfvx Transaction 09345w1d Transaction vc4232v32 Block 12 Proof of work: 000000ahpoka9 Previous block: 0000005657kjp Transaction dd5g31bm Transaction 22qsx987 Transaction 001hk009 Block 13 Proof of work: 00000090b41bx Previous block: 000000ahpoka9 Transaction 94lxcv14 Transaction abb7bxxq Transaction 34oiu98a Block 13 Block 12 Block 11 Blocks of Transactions
- 12. Consensus Algorithms Process work to validate transactions Node .... Transactions to be processed Transactions already validated (and in the chain) Node Node Node ... Example of work: find right code to open the lock. Difficult to find the code, easy to verify it. Algorithm 1. Retrieve group of transactions from pending transactions to be validated Group to be validated 2. Process work to generate proof (e.g. lock code) 3. Broad cast proof-of-work to all nodes (e.g. code to open the lock) 4. Write transactions into the blockchain if proof-of-work is valid for majority of nodes (e.g. nodes can open the lock) Proof of Work
- 13. Introduction Source: CoinDesk and IBM LA Client Center LA Blockchain Mkt (estimate) in M$ 0.0 75.0 150.0 225.0 300.0 2016 2017 2018 2019 Conservative Somewhat Bullish Bullish Blockchain & Bitcoin – Addressable Market
- 14. Bitcoin & Blockchain Hardware & Storage Merchants Investments & Banking Wallets Payment Processors Blockchain Technology Exchange Blockchain Enterprise Solutions Blockchain Development Financial Services Mining Media & Advocacy Ecosystem Overview
- 15. Ecosystem
- 17. ▪ Collaborative program ▪ Headed by the Linux Foundation ▪ Announced December 17 2015 w/ 17 founders ▪ Now w/ 100 members ▪ Members are IT and/or Financial players ▪ IBM is a key contributor ▪ Work together to improve Blockchain technology ▪ As a cross-industry open standard for distributed ledgers ▪ On the path to rewrite how we do business transactions ▪ Open source ▪ Open standards ▪ Open Governance Linux Hyperledger Project
- 19. Community + Code Linux Hyperledger Project Open Source Code: Blockchain for business; Consensus | Provenance Immutability | Finality Open Governance – 40 member cross industry board Cloud IBM Blockchain Blockchain managed service on IBM Cloud and z Systems; Identity | Consensus | System Integration | Hardware-assist for Performance & Security IBM Blockchain on Bluemix Clients Blockchain Solutions Blockchain Garage Making Blockchain real for business Blockchain Garage; New York | London | Singapore | Tokyo Blockchain Services Practice Blockchain for Business – Our Point of View
- 20. Future Trends ▪ DAPPS: dUbber, dCarzip, dAirBnb ▪ Multiple Chains Integration ▪ Proof of stake implementations for consensus ▪ Analytics ▪ Search engine ▪ Oracles, Autonomous Agents ▪ Natural language contracts ▪ Proof of stake
- 21. "On the Blockchain, no one knows you're a fridge" Richard Brown – IBM Executive Architect for Banking and Financial Future Trends ▪ DAOs – Decentralized Autonomous Organizations ▪ No central control ▪ Virtual ▪ Transparent ▪ Delegative democracy ▪ Proposal based ▪ Device Democracy ▪ Autonomously managed ▪ Device to device messaging ▪ Agreement between devices
- 23. Pratical Example: Explore Watson IoT with Blockchain
- 24. Businnes Contract Pratical Example: Explore Watson IoT with Blockchain
- 25. Demo Link Pratical Example: Explore Watson IoT with Blockchain
- 26. Recommendations & Closing Remarks Patterns for Customer Adoption
- 27. Closing Remarks ... Do You Even Need a Blockchain? Source: Bart Suichies – December 21, 2015
- 28. 24Page© 2016 IBM Corporation Not for all … Blockchain is not … § Suited to high performance (millisecond) transactions § For just one participant (no business network) § A replicated database replacement § A messaging solution § A transaction processing replacement § Suited for low value, high volume transactions