Transcript to the presentation

Blockchain as a
Service in Azure
Thomas Conté @tomconte
Technical Evangelist
Microsoft DX
What is Blockchain?
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Blockchain is a secure, shared, distributed ledger
Shared
Secure
Ledger
Distributed
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That decentralizes data in a trustless environment
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Traditional ledgers are centralized and use 3rd parties and middlemen to approve and record transactions
Blockchain safely distributes ledgers across the entire network and does not require any middleman
The technology maintains multiple replicas like p2p torrent file sharing
Traditional System
Centralized system
with stored ledger
Blockchain System
Distributed system
with distributed ledger
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Decentralization has great benefits & changes
fundamental processes & models
Eliminates Intermediaries
Reduces Fraud
Increases Efficiency and Speed
Increases Revenue and Savings
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How are people using it?
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And it will disrupt multiple industries
Financial
Healthcare
Government
Retail & Manufacturing
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Popular scenarios where Blockchain adds value
Financial
Trading
Deal origination
POs for new securities
Equities
Fixed income
Derivatives trading
Total Return Swaps (TRS)
2nd generation derivatives
The race to a zero middle office
Collateral management
Settlements
Payments
Transferring of value
Know your client (KYC)
Anti money laundering
Client and product reference data.
Crowd Funding
Peer-to-peer lending
Compliance reporting
Trade reporting & risk visualizations
Betting & prediction markets
Insurance
Claim filings
MBS/Property payments
Claims processing & admin
Fraud prediction
Telematics & ratings
Media
Digital rights mgmt
Game monetization
Art authentication
Purchase & usage monitoring
Ticket purchases
Fan tracking
Ad click fraud reduction
Resell of authentic assets
Real time auction & ad placements
Computer Science
Micronization of work (pay for
algorithms, tweets, ad clicks, etc.)
Expanse of marketplace
Disbursement of work
Direct to developer payments
API platform plays
Notarization & certification
P2P storage & compute sharing
DNS
Medical
Records sharing
Prescription sharing
Compliance
Personalized medicine
DNA sequencing
Asset Titles
Diamonds
Designer brands
Car leasing & sales
Home Mortgages & payments
Land title ownership
Digital asset records
IoT
Device to Device payments
Device directories
Operations (e.g. water flow)
Grid monitoring
Smart home & office management
Cross-company maintenance markets
Government
Voting
Vehicle registration
WIC, Vet, SS, benefits, distribution
Licensing & identification
Copyrights
Payments
Micropayments (apps, 402)
B2B international remittance
Tax filing & collection
Rethinking wallets & banks
Identity
Personal
Objects
Families of objects
Digital assets
Multifactor Auth
Refugee tracking
Education & badging
Purchase & review tracking
Employer & Employee reviews
Consumer
Digital rewards
Uber, AirBNB, Apple Pay
P2P selling, craigslist
Cross company, brand, loyalty tracking
Supply Chain
Dynamic ag commodities pricing
Real time auction for supply delivery
Pharmaceutical tracking & purity
Agricultural food authentication
Shipping & logistics management
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How does it work?
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Example: Basic blockchain to track financial transactions
In this example, Alex wants to send Katie $500 via a financial transaction blockchain system
Tx
Tx
Alex
Katie
Payment
$500
Signature
Tx
Signature
Signature
Tx
Signature
Transaction (Tx)
From: Alex (0xf5e…)
To: Katie (0x992…)
Amount: 500
2. Transaction is confirmed
though mining.
Digital signature
0x23e423s3234…
1. Transaction information goes
through hash functions (to secure
it as well as create a time stamp)
Tx
Tx
Signature
Signature
Tx
Signature
3. Confirmed transaction
gets pushed to network
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Blockchain evolving from simple ledgers, to cryptlets that fetch trusted
and agreed-upon external data needed to execute Smart Contracts
Microsoft Innovation
Smart Contracts are unable to access external data or events based on time or market conditions. Calling code or
data outside of a Smart Contract or blockchain breaks the general trust barrier and authenticity of transactions.
Cryptlets will allow the blockchain to access external data securely, while maintaining the integrity of the blockchain.
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More complex example: Blockchain 2.0 & Smart Contracts
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Blockchain 1.0 is a simple ledger that records transactions in sequence. It represents the state of the network at any given
moment. Blockchain 1.0 was focused on transacting payments. However, folks quickly realized that you could encrypt
pretty much anything and put it on the blockchain. There are marriage proposals written to the blockchain, photographs
stored, etc.
What if you stored whole agreements on the blockchain, what would that look like?
Blockchain 2.0 expands the power of the ledger to include additional logic (code) through Smart Contracts
₋ Smart Contracts contain code and execute various terms written in that contract
₋ Like normal contracts, these Smart Contracts are based on reaching agreed-upon conditions
₋ Smart Contracts are now stored on and exist within Blockchain 2.0’s distributed ledger
₋ Think of Smart Contracts as the computer code representation of a legal contract
Examples: Contracts can be as simple as recording a loan and making payments on that loan or as complex as swaps.
Transaction
Digital signature
0x23e423s3234…
Smart Contract
Event
Executed transaction
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A Summary of Blockchain 1.0 to 2.0 Changes
Blockchain 1.0
Blockchain 2.0
BENEFITS
Bitcoin Blockchain
Ethereum, Corda, Hyperledger, Sawtooth Lake,
many others yet to come
Not locked into one vendor
Simple Transactions
Generic Contracts
Can handle more complex needs
Can partition information & pick
different chains for different needs
(location, regulation, speed, privacy,
etc.)
One Blockchain
Multiple, Linked Blockchains
Public Only
Public, Private, Consortium, or Domain Specific
Solves many regulatory and privacy
needs
Proof of Work Only
Different ways to reach Consensus optimized for
need – Proof of Work, Stake, Identity, Vote, etc.
Overcomes some of the existing
Blockchain issues such as speed and
computational cost
Always Open &
Distributed
User Choice
Craft blockchain solutions around
the business needs
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Blockchain 3.0, Project “Bletchley,” extends the power of
blockchain through state-of-the-art “cryptlets” innovation
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Blockchain 2.0 introduced the power of Smart Contracts…
…but Smart Contracts are unable to access external data or events based on time or market conditions
₋ Calling code or data outside of a Smart Contract or blockchain breaks the general trust barrier and authenticity of
transactions
Cryptlets will allow the blockchain to access external data securely, while maintaining the integrity of the blockchain
Cryptlets are a Microsoft innovation and solve a significant hurdle to enterprise blockchain adoption
Property
0x117292138928
edc23dc21323c
Value
0x893423022ef8s92d1
223412dds321ac
Property
0x117292138928
edc23dc21323c
Property
0x117292138928
edc23dc21323c
Value
Value
0x893423022ef8s92d1
223412dds321ac
Code
Contract accountRegistry(mapping
(string=> address) accountMap;
function accountRegistry()(…
0x893423022ef8s92d1
223412dds321ac
Contract accountRegistry(mapping
(string=> address) accountMap;
function accountRegistry()(…
Code
Interest Rate
0x132945934528
asf0439dsa3x
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Announcing Microsoft “Bletchley” v1
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Bletchley v1 Objective
Streamline consortium network deployment and management
Create consortium network architecture patterns
Simplify for the customer
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Pre- ARM Template
3 weeks
To set up a mock consortium network in Azure today:
1.
Review public Ethereum network documentation
2.
Determine topology for a consortium network
3.
Map topology to Azure resources (VMs, Storage Accounts, etc.)
4.
Write ARM template or script OR manually deploy
5.
Configure Ethereum client via Linux BASH scripts to support private network (peering, isolate mining nodes, etc.)
6.
Configure other Ethereum protocol properties (genesis block, max peers, etc.)
7.
Set up Ethereum accounts and allocate ether
8.
Trial and error to make above steps work
9.
Integrate with other Azure services, such as AAD and Key Vault
10. Test template
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Post- ARM Template
To set up a mock consortium network in Azure today:
1.
Review public Ethereum network documentation
2.
Determine topology for a consortium network
3.
Map topology to Azure resources (VMs, Storage Accounts, etc.)
4.
Write ARM template or script OR manually deploy
5.
Configure Ethereum client via Linux BASH scripts to support private network (peering, isolate mining nodes, etc.)
6.
Configure other Ethereum protocol properties (genesis block, max peers, etc.)
7.
Set up Ethereum accounts and allocate ether
8.
Trial and error to make above steps work
9.
Integrate with other Azure services, such as AAD and Key Vault
10. Test template
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ARM
Template
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How to get started?
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How do you
get started?
SIGN UP FOR AN AZURE ACCOUNT
• https://azure.microsoft.com/en-us/solutions/blockchain/
DEPLOY DEV/TEST BLOCKCHAIN ENVIRONMENT TO LEARN
Marketplace Offerings: https://azure.microsoft.com/enus/marketplace/?term=blockchain
Azure Quickstart Templates:
https://github.com/Azure/azure-quickstart-templates
SETUP BLOCKCHAIN NETWORK ON AZURE
Create your custom private/consortium network
https://azure.microsoft.com/enus/documentation/templates/ethereum-consortium-blockchainnetwork/
START BUILDING OUT SCENARIOS AND APPSDevelop your own
Smart Contracts and DApps:
http://hypernephelist.com/2016/09/22/smart-contract-on-azurebletchley.html
CONNECT WITH BLOCKCHAIN ENGINEERING TEAM
Join Blockchain Azure Advisors group on Yammer:
http://aka.ms/AzureAdvisors
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