Blockchain Introduction and Architecture on Azure

Slidedeck used during the Azure UG meetup in Singapore on 17th May 2019. Demonstrates Blockchain Application Use case and Architecture in Enterprise Application. We also cover-up Permission Block chain Hyper-ledger Fabric Architecture and Setup Consortium Network on Microsoft Azure .

Transcript

1. 2 Mohammad Asif Waquar Senior Software Engineer at ABN AMRO Bank @asifwaquar Blockchain Introduction & Architecture on Azure
2. 2 about me Senior Software Engineer at ABN AMRO https://www.linkedin.com/in/mohammad-asif-6a6153111/
3. 2 Team @arrnagaraj @Sachit_Keshari @SanjivVenkatram @altfo @Sakthis
4. Road Map o Blockchain Introduction & Architecture on Azure. o Fabric Architecture & Installation in Block Chain o Block chain Hyper ledger deployment on Azure Work Bench o Handling Media & Documents in Block Chain o Corda Architecture & Deployment on Azure . o Corda workflow & Swift payment integration. o Block chain with Ethereum & Quorum and deploying in DAPPS Azure. o Security in Block chain. o Block chain with IOT. o Hands on Workshop on Block chain.
5. Today’s Agenda o What is Blockchain ? o Enterprise Blockchain Concepts o Consensus Overview o Security o Blockchain Solution Architecture in Hyperledger Fabric o Blockchain Architecture on Azure o Demo
6. Technology Movement In the last 15 years or so, we have experienced a significant business transformation because of open-source software, cloud, big data and artificial intelligence (AI). These are not just buzzwords anymore because enterprises have adopted various technologies that fall under the umbrella of these terms. Blockchain is at the same place where the cloud and big data were several years ago. e:https://www.forbes.com/sites/forbestechcouncil/2018/05/14/blockchain-in-enterprises
8. Blockchain Disruption Blockchain is disruptive in the same way quantum computing will be. You can’t ignore the beauty of decentralization and this new way of exchanging information without involving a middleman. Blockchain is not cryptocurrency, and it can fit into enterprises as a part of their enterprise solutions. Source: https://www.forbes.com/sites/forbestechcouncil/2018/07/09/seven-ways- advancements-in-technology-will-change-the-near-future
10. Industries ✓ Banking & Finance ✓ Marketplace ✓ Healthcare ✓ Supply Chain ✓ Gaming ✓ Digital Assets Platform
11. For most people, their first impression of the term “Blockchain” was in relation to Bitcoin or Cryptocurrency. The question is “How can I use blockchain in my enterprise?”
12. What is Blockchain ?
13. What is block chain ? A decentralized computation and information sharing platform That enables multiple authoritative domains, who do not trust each other, to cooperate , coordinate and collaborate in rational decision making process.
14. Microsoft or Google doc-sharing information Traditional way of sharing documents
15. Microsoft or Google doc-sharing information Sharing Microsoft Online doc both the users can edit simultaneously The environments is still centralized . Does centralized system harm ?
16. Problems with a centralized systems A single point of failure • If you do not have sufficient bandwidth to load Google doc, you will not be able to edit. • What if the server crashes ?
17. A Plausibly Ideal Solution Everyone edits on their local copy of the document – the internet takes care of ensuring consistency.
18. Blockchain-The Internet Database to Support Decentralization Blockchain A decentralized database with strong consistency support.
19. Block chain & Public Ledgers All transactions in block chain secured with Cryptographic Hash functions.
20. Consensus
21. A Very Simplified Look of The Blockchain
22. A Very Simplified Look of The Blockchain
23. Consensus Algorithm
24. Security
25. Cryptographic Hash Functions Examples: MD5, SHA256 Cryptographically Secured: One way, given a x, we can compute H(x), but given a H(x), no deterministic algorithm can compute x For two different x1 and x2, H(x1) and H(x2) should be different X is called the message and H(X) is called the message digest A small change in the data results in a significant change in the output – called the avalanche effect Image source: Wikipedia
26. Also known as hash tree every leaf node is labelled with the hash of a data block every non-leaf node is labelled with the cryptographic hash of the labels of its child nodes Bayer, Harber and Stornetta used Merkle Tree in 1992 for timestamping and verifying a digital document - improved the efficiency by combining timestamping of several documents into one block Other uses of Merkle Tree Peer to Peer Networks: Data blocks received in undamaged and unaltered; other peers do not lie about a block Merkle Trees (Ralph Merkle, 1979) Root Hash Hroot =Hash(H0 +H1 ) L1 Hash H0 = Hash(H00 +H01 ) L1 Hash H1 =Hash(H10 +H11 ) L2 Hash H00 =Hash(D1 ) L2 Hash H01 =Hash(D2 ) L2 Hash H10 =Hash(D3 ) L2 Hash H11 =Hash(D4 ) D1 D2 D3 D4
27. Enterprise Blockchain
28. In a ‘trust gap’ environment ,you introduce a third party that everyone should trust. Problem :Difficult to Track Asset Transfer in Business Network The third party introduces fees. Inefficiencies in data reconciliation ..Inefficient ,Expensive ,Vulnerable CustomerA Records Insurer R ecords Bank R ecords R egulators Records Auditors Records MerchantA Records
29. How Blockchain Solves this problem.. CustomerA Records Insurer R ecords Bank R ecords R egulators Records Auditors Records MerchantA Records BlockchainLedger A shared, replicated, permissionedledger ✓ Consensus ✓ Immutability ✓ Provenance ✓ Finality
30. Types of Blockchain Public Private (Permissioned) Consortium
31. Blockchain in a nutshell Shared Contract Shared Ledger Consensus Ensuring secure, authenticated & verifiable transactions Business terms embedded in transaction database & executed with transactions. All parties agree to network verified transaction Append-only distributed system of record shared across business network Security Overheads and cost intermediaries Tampering, fraud & cyber crime Reduces Time Removes Cost Reduces Risk Enables New Business Models IoT Integration into supply chain Transaction time from days to near instantaneous
32. Permission-less vs Permissioned Blockchains Permission-less Permissioned Access Open read/write access to database Permissioned read/write accessto database Scale Scale to a large number of nodes, but not in transaction throughput Scale in terms of transactionthroughput, but not to alarge number of nodes Consensus Proof of work/ proof of stake Closed membership consensus algorithms Identity Anonymous/pseudonymous Identities of nodes are known, but transaction identities can be private/anonymous/pseudonymous Asset Native assets Any asset/data/state
33. Ethereum Vs. HyperLedger Fabric Vs. R3 Corda Characteristics Ethereum HyperLedgerFabric R3Corda Description of the Platform Generic Blockchain Platform Modular BlockchainPlatform Specialized distributed ledger platform for FinancialIndustry ReleaseHistory July2015 v0.6 Sept 2016, v1.0 July2017, v1.3 2018 v-m0.0 May 2016, v1.0 Oct2017, v3.0 Mar 2018 Crypto Currency Ether / Tokens (Usage, Work)via Smart Contract None Currency and Tokens via Chaincode None Governance Ethereum Developers Enterprise EthereumAlliance LinuxFoundation IBM R3 Consensus Mining based on Proof of Work (POW) –All participants need to agree. Ledger Level Selective Endorsement. Consensus can be even within a channel with select parties instead of everyone. Transaction Level Specific understanding of Consensus. (Validity, Uniqueness) Transaction Level Network Permissionless, Public or Private Permissioned, Private Permissioned, Private State Account Data Key-value Database Transaction Log, World State Vault contains States Historic & CurrentState SmartContracts Solidity Chaincode (GoLang, Node.JS, Java) Smart Contract (Kotlin, Java) GoLang, C++,Python Java, Node.JS, Python (Post 1.0) Java,Kotlin Development 0 1 L- 0 a2 - n2 0 g1 9 uages
34. Degree of Centralization o Censorship-resistant o Scale to large number ofnodes One globalblockchain o Privacy Scale in transaction throughput o Many interactingblockchains
35. Blockchain Solution Architecture in Hyperledger Fabric
36. Actors in Blockchain Solution
37. Actors in Blockchain Solution
38. Components in Blockchain Solution
39. A ledger often consist of two data structures
40. Block Transaction Details
41. Ledger example: Ownership change
42. Application workflow with ledger
43. Blockchain Events
44. Integration with existing Applications
45. Hyperledger Fabric Architecture Orderer • Consensus verification • CreatesBlocks CA • R egistration ofidentities • Manage Certificates Peer • EndorsesTx • SimulatesTx • CommitsTx All these components can be clustered for scalability and to avoid Single Point ofFailure 3 Components ofFabric Ledger Blockchain & WorldState • createCar • queryAllCars • queryCarProperties • changeCarColor • changeCarOwner • EndorsementPolicies • Assets : Anythingthat’s valuable for theOrganization • Transactions (Statechanges of Assets) • Gossip Protocol : Theglue that keeps the peers in healthystate. Channels SmartContract OtherConcepts • Private subnetfor a set of parties based on Smart contract • Ledger / Channel • Peers can have multipleChannels • PrivateData 1 2
46. Fabric Deployment Model inevery Enterprise CustomerA MerchantB Bank Insurer Gossip Protocol for P2PCommunication Orderer • Consensus V erification • CreatesBlocks CA • Registration ofidentities. • Certificate Management
47. Blockchain Architecture on Azure
48. Preconfigured Templates Cloud Resources Applications Azure Blockchain Workbench architecture
49. Azure Blockchain Workbench architecture
50. Demo
51. Questions ? 12
52. Thank You 12