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Week 3 Enterprise Blockchain - Coggle Diagram
Week 3 Enterprise Blockchain
required level on spectrum
trustless & decentralization
public use
high level but low efficiency
public blockchain
most widespread and well-known
anyone can read access to the blockchain
anyone can suggest to change the protocol
anyone may take part in the consensus mechanism
decentralized and censorship resistant
DApp
sensitive or private data like medical records, keys or passwords should be put into blockchain in plain text
trustless by math codes
private use
low level
not trustless
not open
no economic incentives
distributed ledger
basically, being considered as a highly specialized database
a network of trusted fault tolerance database
looser trust guarantee
centralized vs decentralized in terms of politics or geography
a single entity as political centralized
multiple databases of geographically centralized or decentralized
single centralized database
one server handling data processing
immediate update
single point of failure
lack of simultaneous read / write access from multiple users to the same set of data
one location
one storage
simple design
cost effective
minimal redundancy
distributed databases
allows fault tolerance
handle more loading
but
increased complexity
increased cost
increased potential points of failure
trust and cooperate to maintain a consistent shared view of data
distributed record keeping
decentralized exchange of value
permissioned ledgers
consortium blockchains
Ripple
R3
Hyperledger
nature
cross-company solution
cross-discipline solution
backbone
a controlled user group
semi-private
private blockchains
JP Morgan Quorum
BankChain
permissions are controlled by a central group of entities
write permission limited to one central entity
read permission may or may not be limited
change the rules at organizations' discretion
allow cheaper transactions
provide greater privacy
mitigate the risk of traditional consensus attack
not trust or open
solve the coordination problems among loose linked institutes
microsoft Azure platform
workbench
allow to build application on top of blockchain on Azure
Hyperledger by IBM & Linux Foundation
highly modular
highly configurable
for customizing their own blockchain solution
supply chain
Walmart
Nestle
track the food delivery
health care
Finance
Ethereum Enterprise Alliance
categorizations
infrastructure
blockchain system architecture
access type
access barrier
accessibility
consensus mechanism
misconceptions
always useful
all can be used
more efficient
decentralized but scalability
cheap in development
need a community to maintain
simple to deploy
issues
regulations
culture
caveats
advantages
preventing the possibilities of centralized corruption
buzzword
glorified public key cryptography
solving the coordination failure
maybe due to trust issue
horizontal integration
creating self-sovereign distributed and decentralized networks
data
immutability
integrity
audit-ability
authenticity
enforce a common API and data standard
allow multiple systems to be interoperable
disadvantages
fundamentally, it is not a good data structure
full replication of data
redundant computation on each node
only for specific use
situational
far less scalable
hacker / perpetrator
steal money directly
code base from models
Bitcoin
Litecoin / Dogecoin
using Scrypt of a memory-hard hash function
modify from codebase of Bitcoin
using smartcontract as a tool to encode business logic into existing platform
applications compete with each others for resources on network
e.g. cryptokitties, a blockchain game
high overhead
low optimization
consequence: increasing the trust by permission and hence lower the chance of attack and lower requirement of computational expenditure
enterprise blockchain platform
enable businesses to develop their own use case without from scratch
leverage the modularity in design
Ethereum
industry standard blockchain platform for project platform
smart contracts in Solidity which is turing-complete language
Enterprise Ethereum Alliance
open, standards-based architecture
JP Morgan, Microsoft, Intel
blockchain organizations
Tendermint
Chronicled
IC3
Ethereum co-founder, Joe Lubin
blockchain standard for businesses
ConsenSys
Ethereum focused applications, startups, developer tools
Hyperledger
Linux foundation's project
Brian Behlendorf
fin, healthcare, supply chain
allow businesses to design their custom blockchain from scratch
Hyperledger Fabric
by IBM, using Go Language
allow smart contract for confidential transaction among selected participants
consensus
PBFT, Kafka
permissioned only
privacy issue / comprimise
Hyperledger Sawtooth
by Intel
consensus
proof of elapsed time
Hyperledger Composer
deprecated in 2019
suggest to use Fabric 1.4 for developing tools
no native currency required like ethereum
CORDA
open source blockchain for business
consensus
by notaries who serves as an authority to sign off the transactions
sign for accept
sign for reject as double spend
validity consensus
Uniqueness consensus
for banking
record
manage
synchronize
R3CEV
Chain
financial service
federated consensus mechanism
quorum
m-of-n signatures
cloud based ledger
Sequence
ledger as a service
offer infastructure
the participating entity keeps its own private key
Ripple
XRP
Federated Consensus mechanism
network members
bank
payment co
network users
use cases
Mobility
autonomous + IoT + blockchain
Mobility Open Blockchain Initiative
Tokenize Assets
similar to securitizations
crypto assets
inter-bank transfer
privacy
tractability
Travel and Tourism
digital identity
Vetri
selective disclosure
Uport
Sovrin
Health care
data persistence
availability
integrity
Insurance
clear history of insured items
potentially able to solve asymmetric info bias
optimize claims
automatic payouts
shorter wait times
fewer human errors
fraud detection
European insurers
blockchain insurance industry initiative (B3i
security
transparency
Supply Chain
Walmart
Provenance
tracing growers, distributors, retailers
Alibaba
counterfeit
garbage in garbage out
IoT
Single point failure under attack
DDoS
IoT devices collect and push data
verify and codify the data and append to the blockchain
smart contract to make decision based on the parameters
advantages
make IoT device secured
make IoT device trustful
unlike singe centralized database which may provide fraud or comprised data that could not be verified
trusted IoT Alliance
Real Estate
blockchain land registration
secure the ownership
traceable
available
persistent
create a hash of every land registry
store that hash on chain
so the corresponding private key for claiming the land title
every node should have a copy of record
advantages
prevent the record lost from some sorts of natural disasters
avoid the malicious amendment on land registry due to government corruptions
Foreign aid
no cash aid
crypto-currency based vouchers
to redeem somethings like food or basic need items at participating markets
cash aid
advantage
monitor and understand where the donated fund goes to
target recipients?
traceable
prevent fraud
improve transparency
lack of disbursement infrastructure
lower transaction fee
transfer to stable coin
convert to local concurrency at kiosk / bank
Generalization
context
needed?
viable but may not be necessary
over-engineered solution?
efficiency?
time required or allowed for a transaction confirmation
data storage
need of immutability?
need of integrity?
need of auditability?
need of authenticity?
cost incurred by blockchain
the task is
mission-critical
fault tolerance system
cryptography needed?
pure decentralization needed?
a centralized solution may not work?
censorship resistant?
disintermediation of power
privacy important?
self-govenance?
need to solve coordination failures?
what is the incentive schemes to guide participants?
use technology to solve social problem?
crowdfunding
to fund public infrastructure
honor the commitments through smart contracts
participants follows the same set of protocols
need to coordinate among trustless members?
allow to have a trusted central authority?
community support
globally accessible
horizontal integration
combine data silos
enforce common API and data standard
increase network effect
trouble of adapting
same platform and format / syntax
coveats
cost to be decentralized ?
deep integration
all users have to upgrade as the blockchain system does
fixing bugs not as easy as the central system solution
need all users' consensus for protocol changes
no control on the access right, and read & write permission
need replication of data across many nodes
adaptive issue for human errors
main question to ask and check the appropriateness
why a blockchain is better than a decentralized database ?
Consensus mechanism
Usage assumptions / Trilemma
Scalability
increasing number of users & transactions make the network slow down
performance bottleneck
Sharding techniques - divisions of data
child chain stemming into main platform
Lightning network
Security
Bitcoin / Ethereum focuses
Decentralization
Bitcoin / Ethereum focuses
ICO
unregulated fund raising for blockchain startup
sell the token
token associated with the company name
each token representing an unit
well develop their protocols
but what regulation to help out fund raising ?
standards
ICOs business models
life cycle?
fixed or dynamic amount of token to supply
stage to sell
fixed vs dynamic price
to determine regulatory and compliance law to abide?
which country allow the sales of token legally?
type of token vs compliance ?
smart contracts
ownership info,
functionality to send and receive
ICO functionality --> smart contract security and vulnerability
hacking happened
security vs access token
culture
belief: technology success --> demand up --> token value rising
no group of accredited investors
fund infusion for project
let the initial investors to use the token to request the services
open source development
vs proprietary for technology lock in
via ICOs to monetize their efforts
white paper to describe your project
tokenomics
structure
theory
caveats
examples
Cosmos
providing infrastructure for blockchain interoperability
raise 16.8 million of USD
filecoin
file storage distributed network