Ujjwal Kumar, Microsoft Singapore @ujjwalkr

"LEGO blocks (#0048)" (CC BY 2.0) by regan76 @ flickr . . Senior Technical Evangelist . [email protected] "BUSINESS(es) NEVER OPERATE in ISOLATION; They are ALWAYS Participants in a Business Network"

- Ujjwal "bitcoin" (CC BY 2.0) by stevegarfield @ flickr

"bitcoin" (CC BY 2.0) by Sean MacEntee @ flickr “Double Spend Problem”

"Blue And Pink Piggy Banks" (CC BY-SA 2.0) by kenteegardin @ flickr What’s so special about blockchain anyway? A ledger

Image (CC BY 2.0) by Andrew_Writer @ flickr Distributed Shared

“Sibelius Monument” by Carlos ZGZ @ flickr Immutable

“Written in Gold” (CC BY 2.0) by Anonymous Account @ flickr Cryptography

"Bletchley Park" (CC BY 2.0) by Cargo Cult @ flickr Open Anonymised

"Schooling" (CC BY-SA 2.0) by Benson Kua @ flickr Consensus

"May 5: Vote" (CC BY-SA 2.0) by pjohnkeane @ flickr Trust

"Trust" (CC BY 2.0) by schmollmolch @ flickr Why should I care? Potential for disruption

Eliminates Intermediaries Allows industries to redefine or create new business models. Reduces Fraud Highly secure and transparent, making it nearly impossible to change historical records. Increases Efficiency and Speed Simplifies transactions and enables T+Zero settlement time. Increases Revenue and Savings Potential savings and new revenue opportunities through more efficient processes and reduced costs. Consider the “Sharing Economy”

“Enabling people to share and monetize their assets, skills and time” Airbnb – I rent out “spare capacity” in my oh-so-trendy Paris apartment Etsy – I sell the output of my crocheting obsession EasyCar Club – I rent out the 911 when I’m in the Lambo Uber – I proffer my skills, time and asset for modest reward

Democratising? Undeniably yet these are centralised models…

Blockchain could potentially redefine the sharing economy Disintermediation means lower costs, greater efficiency, greater transparency Marketplaces become distributed applications on the blockchain Smart contracts executing transactions It’s not just about money

"money 1" (CC BY-SA 2.0) by allenthepostman @ flickr “The first generation of the digital revolution brought us the of information.

The second generation — powered by blockchain technology — is bringing us the Internet of value: a new platform to reshape the world of business and transform the old order of human affairs for the better.”

– Don Tapscott Global Findex 2014 infographic courtesy of The World Bank How does it work? 0x4fb8…

Jeremy 0xe618… Geoff 0x88d2… Transaction x 0xa37dcd8d2f8bb9f…

New Block

Previous Block 0x09aa5...

Transaction 9

Transaction 8 Transaction 7 Transaction 6 The chain forms

Block 0 (0x23e79…) Block 1 (0x09aa5……) Block 2 (0x7b5…)

Previous Block Previous Block Genesis Block 0x23e79... 0x09aa5...

Transaction 9

Transaction 3 Transaction 8 Transaction 2 Transaction 5 Transaction 7 Transaction 1 Transaction 4 Transaction 6 Blockchain x.0 Smart Contracts

Blockchain 2.0 + Smart Contracts Logic Tier Blockchain 1.0 Simple Ledgers that record transactions Smart Contracts

Like a physical contract but terms are converted into code and loaded onto the Blockchain Smart Contracts enforce themselves because they live on the blockchain Smart Contracts react to events and messages, include complex multiparty actions and actually transfer assets between parties. Think of a Smart Contract as a program running on the Blockchain that will continue running until it expires. This contract will leave a complete historical ledger of all of its interactions along with the identities of those interacting with it so it is completely transparent for auditing purposes. Smart Contracts

Blockchain 3.0 + Cloud Servicing Multilayer Middleware Blockchain 2.0 + Cryptlets + Smart Contracts Logic Tier Blockchain 1.0 Simple Ledgers that record transactions Ethereum Platform

“Next generation” blockchain – fully trustless smart contract platform

Ether is the “currency” of Ethereum Ethereum Virtual Machine (EVM) – Turing Complete Ethereum client eg go-ethereum (or Geth), Parity, cpp-ethereum Ethereum wallet / Mist Ethereum Development

Geth (client) allows us to deploy and exercise smart contracts Geth exposes API over JSON-RPC Web3.js SDK wraps API for JS (also .NET, Java, Ruby SDKs)

Solidity is the language -> compiled to bytecode for deployment Truffle development framework testrpc is a local Ethereum client for testing Blockchain Network Dev Cycle

Local Authoring Truffle Ethereum (VS Code) Compile Node Deploy (testrpc)

Network Truffle Ethereum Compile Node Deploy (Geth) Types of blockchain Public vs Consortium

Public Unpermissioned (eg Bitcoin, Ethereum) Anyone has access No single owner – all participants are “owners” Anyone can verify transactions and consensus is used to determine “truth” Consortium Permissioned Public (eg Ripple) Anyone has access One or many “owners” Only designated actors can verify transactions and achieve consensus Permissioned Private (eg Bankchain) Access to the ledger is restricted One or many “owners” Only designated actors can verify transactions and achieve consensus Characteristics

Distributed, peer to peer network architecture Cryptographic tokens Shared database / ledger (everyone has a copy) Blocks of transactions to start of time (genesis block) Immutable Heartbeat – blocks are committed Consensus formation algorithm Virtual machine Consensus Forming Approach

Consensus requires participants with vested interest Proof of work (need to solve a puzzle) Proof of stake (I can demonstrate I own some stake in the system) Proof of burn (I’m prepared to make a sacrifice to participate)

It must come at a cost but be easy to verify (asymmetric)

Potential applications And it will disrupt multiple industries

Financial Healthcare Government Redesign costly legacy workflows, improve Removes third-party verifiers such as Increase transparency and liquidity and free up capital. Help reduce health information exchanges by traceability of how money is infrastructure costs, increase transparency, directly linking patient records to spent. Track asset registration, reduce fraud and improve execution and clinical and financial stakeholders. such as vehicles. Reduce settlement times. Provides fast, secure, authenticated fraud and operational costs. access to personal medical records across healthcare organizations and Retail & Manufacturing geographies. Better supply chain management, smart contract platforms, digital currencies, and tighter cybersecurity. New solutions to difficult business problems Financial Media Asset Titles IoT Trading Digital rights mgmt Diamonds Device to Device payments Deal origination Game monetization Designer brands Device directories POs for new securities Art authentication Car leasing & sales Operations (e.g. water flow) Equities Purchase & usage monitoring Home Mortgages & payments Grid monitoring Fixed income Ticket purchases Land title ownership Smart home & office management Derivatives trading Fan tracking Digital asset records Cross-company maintenance markets Total Return Swaps (TRS) Ad click fraud reduction 2nd generation derivatives Resell of authentic assets Government Payments The race to a zero middle office Real time auction & ad placements Voting Micropayments (apps, 402) Collateral management Vehicle registration B2B international remittance Settlements Computer Science WIC, Vet, SS, benefits, distribution Tax filing & collection Payments Micronization of work (pay for Licensing & identification Rethinking wallets & banks Transferring of value algorithms, tweets, ad clicks, etc.) Copyrights Know your client (KYC) Expanse of marketplace Consumer Anti money laundering Disbursement of work Identity Digital rewards Client and product reference data. Direct to developer payments Personal Uber, AirBNB, Apple Pay Crowd Funding API platform plays Objects P2P selling, craigslist Peer-to-peer lending Notarization & certification Families of objects Cross company, brand, loyalty tracking Compliance reporting P2P storage & compute sharing Digital assets Trade reporting & risk visualizations DNS Multifactor Auth Supply Chain Betting & prediction markets Refugee tracking Dynamic commodities pricing Medical Education & badging Real time auction for supply delivery Insurance Records sharing Purchase & review tracking Pharmaceutical tracking & purity Claim filings Prescription sharing Employer & Employee reviews Agricultural food authentication MBS/Property payments Compliance Shipping & logistics management Claims processing & admin Personalized medicine Fraud prediction DNA sequencing Telematics & ratings Microsoft and blockchain Open Accessible Enterprise Platform Ready | An Open Cloud

Infrastructure Databases App Frameworks Hyper Scale

Enterprise Grade

Hybrid

We’ve delivered an open, broad, and SQL Server flexible cloud across the stack Azure BaaS +Hundreds of community supported images on VM Depot

Applications Management Clients

Web App Gallery Dozens of .NET & PHP CMS and Web apps Platform Services Security & Hybrid Management Cloud Azure AD Security Center Content SQL Health Monitoring Media Media SQL Data DocumentDB Services Analytics Delivery Web Mobile Database Warehouse Network Apps Apps Portal AD Privileged Identity SQL Server Redis Storage Azure Management Azure Active API Cloud Stretch Database Cache Tables Search Directory Apps Services Domain Services Azure AD API BizTalk B2C Management Services Service Notification Fabric Hubs Logic Multi-Factor Backup Apps Cognitive Services Bot Framework Cortana Authentication Service Bus Functions

Automation Operational Analytics

Scheduler Machine HDInsight Stream Analytics Mobile Learning Visual Studio Import/Export Container VM Engagement Service Scale Sets Key Vault Data Data Lake Catalog Analytics Service Data Lake Store VS Team Services Batch Xamarin Azure Site Store/ RemoteApp Recovery Marketplace IoT Hub Event Data Power BI Application HockeyApp Hubs Factory Embedded Insights VM Image Gallery StorSimple & VM Depot Infrastructure Services FAIL FAST & CHEAP Tenets in a development test environment of our MIX & MATCH Strategy from the best available blockchain technologies

CREATE & INNOVATE by building solutions on blockchain quickly

SHARE SOLUTIONS through a worldwide distributed platform

PROVISION with one-click to test & iterate Project “Bletchley” POCs

Banking, Discrete Retail & CPG Healthcare Government Capital Manufacturing Markets Build and learn Professional Services & Support Horizontal SaaS & Adapters 1st Party 3rd 3rd 3rd Part Party ….. Party

y Industry Solutions Industry

Distributed Develop key Azure Identity & Key Encryption ML & BI Ledger Gateway Services Services Services

middleware services Services Middleware Crypto services & architecture (secure containers, attestation, etc.)

Smart Contract-Based Distributed Ledger Stacks UTXO + others Grow the ecosystem Blockchain Virtual Machine Adapters 3rd party 3rd party 3rd party DL 1st party DL Stack

DL stack A DL stack B stack C… Base Platform Base Azure – Blockchain resource provider Create a tight feedback loop between POCs & MS engineering to enable quick iterations on our offerings

POCs

Banking, Discrete Retail & CPG Healthcare Government Capital Manufacturing

Markets

Industry Industry Solutions

Learn quickly, discover customer Influence and adjust Blockchain needs, and galvanize partners product design and roadmap through POCs

Distributed Identity & Key Encryption ML & BI Ledger Gateway Services Services Services

Services Middleware Engineering Crypto services & architecture (secure containers, attestation, etc.)

Smart Contract-Based Distributed Ledger Stacks UTXO + others

Blockchain Virtual Machine Adapters

rd rd 3rd party DL 1st party DL Stack 3 party 3 party

DL stack A DL stack B stack C… Base Platform Base Azure – Blockchain resource provider Drive partner innovation and scale by providing blockchain tools and pre-configured solutions through or marketplaces

Promote engagement and innovation by onboarding ISVs into Azure Marketplace and AppSource Enable customers and partners to discover, publish and transact blockchain components and services from smart contracts to complete SaaS offerings

Azure Marketplace and AppSource with 3rd party solutions, smart contracts, and other blockchain components

cryptlet

cryptlet Build enterprise-ready blockchain middleware

POCs

Banking, Discrete Retail & CPG Healthcare Government Capital Manufacturing Distributed Ledger Gateway Services Markets Provides communication between multiple Professional Services & Support Blockchain technologies/implementations. Horizontal SaaS & Adapters 1st Party 3rd 3rd 3rd Identity and Key Services Part Party ….. Party y Helps with authentication, authorization, access, and Solutions Industry lifecycle management.

Encryption Services Distributed Identity & Key Encryption ML & BI Ledger Gateway Provides encryption for blockchain transactions and Services Services Services

fields Services Middleware Cryptlet Services Crypto services & architecture (secure containers, attestation, etc.) Provides runtime for cryptlets and communication between blockchain and cryptlet trusted host Smart Contract-Based Distributed Ledger Stacks UTXO + others Machine Learning and Business Blockchain Virtual Machine Adapters 3rd party 3rd party 3rd party DL Intelligence 1st party DL Stack DL stack A DL stack B stack C… Rich data services, such as BI analytics, auditing, and

machine learning Base Platform Base Azure – Blockchain resource provider Get started SIGN UP FOR AN AZURE ACCOUNT https://azure.microsoft.com/

READ ABOUT BLOCKCHAIN ON AZURE https://azure.microsoft.com/en-gb/solutions/blockchain/

TRY THE CONSORTIUM BLOCKCHAIN TEMPLATE https://azure.microsoft.com/en-us/blog/project-bletchley- blockchain-infrastructure-made-easy/

FIND OUT MORE ABOUT PROJECT ‘BLETCHLEY’ https://github.com/Azure/azure-blockchain- projects/tree/master/Bletchley/ Thank you