First Steps with Blockchain
- 1. @horeaporutiu Horea Porutiu Developer Advocate, Emerging Tech First Steps with Blockchain
- 2. Agenda @horeaporutiu 1. Blockchain overview 2. Hyperledger overview 3. Demo
- 3. What is blockchain? • Blockchain - a continuously growing list of records, called blocks, which are linked and secured using cryptography. • A digital ledger that is replicated across all network participants @horeaporutiu • Network participants collaborate to maintain the ledger
- 4. Imagine • Walk into your favorite grocery • You have two options $5.99/lb $9.99/lb Farm-raised 🤔 🤔🤔 WildVs. @horeaporutiu
- 5. Problem @horeaporutiu Fisherman Processor Distributor Plate • There are so many parties involved • Different parties have different incentives • Hard to trust that your fish is actually organic Traceability of fish from ocean to plate
- 6. Traceability @horeaporutiu Fisherman Processor Distributor Plate Insert grocery here Traceability of fish from ocean to plate
- 7. Trust Trust - firm belief in the reliability, truth, ability, or strength of someone or something. @horeaporutiu
- 8. Blockchain and trust Blockchain helps establish trust between different participants in a business network @horeaporutiu
- 9. Proof of traceability • What if we can see on a map exactly where the fish was caught via a sensor? @horeaporutiu
- 10. Proof of traceability • What if we can see the fish changing hands from fisherman, to processor and so on @horeaporutiu
- 11. Proof of traceability • And then see the journey it took to get to the shelf? @horeaporutiu
- 12. Traceability @horeaporutiu Fisherman Processor Distributor Plate Traceability of fish from ocean to plate • Every year, 1 in 10 people fall ill and 400,000 die due to contaminated food
- 13. IBM + Walmart = traceability @horeaporutiu http://www-03.ibm.com/press/us/en/pressrelease/53013.wss
- 14. Break @horeaporutiu • Any questions up to this point?
- 15. Shared database? • A common question is: why can’t I just use a shared database? • A shared database does not take care of the trust aspect and immutability. @horeaporutiu • You can think of blockchain as a database with some very special characteristics.
- 16. Identify blockchain use-cases • If data is used only by one organization, then it’s most likely not a good use of blockchain @horeaporutiu Distributed Ledger Distributed Smart ContractsImmutable Share data across multiple companies Permanent record of transactions No central point of ownership Business rules visible to all members
- 17. Problem Bank records Party A’s records Party C’s records Auditor records Party B’s records Party D’s records • Today’s business networks: inefficient, expensive, vulnerable @horeaporutiu
- 18. Solution Bank records Party A’s records Party C’s records Auditor records Party B’s records Party D’s records Shared, replicated, permissioned ledger @horeaporutiu • Blockchain benefits: consensus, provenance, immutability, and finality
- 20. Types of blockchain Public Private @horeaporutiu • Open to anyone • Large computational requirement • Participants incentivized with cryptocurrency • Bitcoin • Need permission to join the network • Walmart solution • Less computational power required • Cryptocurrency is typically not involved • Transactions can be kept private
- 21. Smart Contracts • Rules agreed by all parties within a network before the genesis block • Provide controlled access to ledger • Can execute automatically @horeaporutiu
- 22. Consensus • Process to keep all ledgers on the network consistent • Ensures all participants have same transactions in the same order •Implementation varies @horeaporutiu
- 23. Break @horeaporutiu • Any questions up to this point?
- 24. Linux Foundation • Helps host Node.js, Linux, and Kubernetes projects • Open source • Dev cost of projects = $16Billion @horeaporutiu
- 25. Hyperledger Fabric • Framework of Hyperledger project • Write smart contracts •Collaborative effort to advance cross-industry blockchain technologies @horeaporutiu
- 27. Hyperledger Composer • A tool that works on top of Hyperledger Fabric • Allows for smart contracts to be written in Javascript! @horeaporutiu
- 28. Hyperledger Composer Architecture @horeaporutiu Model File .cto Access Control .acl Script File .js Assets, participants, and transactions Transaction functions Access Control Rules Business Network Packaged business network definition Archive .bna Hyperledger Fabric Cloud/local Browser/Node.js Online
- 29. Demo Composer Sandbox @horeaporutiu https://composer-playground.mybluemix.net/editor
- 30. Starting Hyperledger Fabric Locally @horeaporutiu
- 31. Deploy Business Network Archive @horeaporutiu
- 32. Start the Web UI @horeaporutiu
- 33. Explore the Composer files @horeaporutiu
- 34. Sell item on auction! @horeaporutiu
- 35. What we learned • Why is blockchain important? • Immutability, smart contracts, consensus • Hello world with Hyperledger Composer @horeaporutiu
- 36. Resources • Link to the code pattern I demoed: https:// github.com/IBM/BlockchainNetwork- CompositeJourney Thanks Ishan for writing this! • Installing Hyperledger Composer locally: https:// hyperledger.github.io/composer/next/installing/ installing-index @horeaporutiu • Hyperledger Composer Sandbox: https:// composer-playground.mybluemix.net/
- 37. Contact • Questions: horea.porutiu@ibm.com • Social: Tweets @horeaporutiu • Site: https://horeaporutiu.github.io/ @horeaporutiu