Blockchain & microsoft

Real World
Blockchain
by Cavit Yantaç, et.al.
University Degree
Certification
Can you prove your degree or
certification to me?
What happens if your university
(or edX, courser, etc.) disappears next year?
Can we have a universally applicable,
decentralized smart contract structure for
“certificates or degrees”?

What is blockchain?
Blockchain is a secure, shared, distributed ledger
Secure
Shared
Distributed
Ledger

It is a Journey
VALUE
TIME
Phase 2: Build a Minimal Viable Product and learn
• Establish a targeted part of a prioritized business process on blockchain
• Validate integration assumptions for systems, data, and identity
• Connectivity with other participant(s) established.
Phase 1: Establish a lab environment
• Help provide secure infrastructure
• Enable experimentation and initial innovation
Phase 3: Build a Production Pilot
• Additional capability from analytics, BI, machine learning
• Security and resiliency for the solution realized
• Operation and support processes implemented
• Recognizing value with initial partners.
• Chat bots can provide details on process status

İbrahim Kıvanç
Software Development Engineer
ikivanc@microsoft.com
@ikivanc
Blockchain ve Microsoft

7
Yes? Blockchain can:
Before you begin, it is important to assess whether or
not blockchain is right for you:
Ask yourself:
Is this a business process that crosses trust
boundaries?
Do multiple parties manipulate the same
data?
Are there any intermediaries that control the
single source of truth?
Does the process involve low-value, manual
verification steps?
Track asset provenance, recording full transaction history on
a shared source of the truth
Enable real-time monitoring and an immutable record of
each party’s activities
Accelerate transaction verification and settlement, reducing
the need for intermediaries
Simplify operations by eliminating the manual efforts
required to resolve disputes

8
Ledger: Blockchain uses a distributed ledger to track transactions
Entire network has
same ledger
FROM TO PROPERTY VALUE
Alex Katie Payment $500
Jim Sally Payment $300
Alex Garth Asset Car
Katie Tony Payment $100
Molly Paula Message I love you
Example ledger

General Propose Chain
General Propose Chain
Blockchain | Multiple Chain Types
Blockchains
Alternative
blockchains (altchains)
(Decentralized
Transport)
(cryptocurrency) (cross-industry collaborative)
(cross-industry collaborative)
(FSI consortium)
open platform for
developers and devops
to build blockchain apps
(banking industry collaborative)
(Social News
Blockchain DB)
(IBM Open Blockchain )

Blockchain wasn’t built for enterprise
Integration
There are a number of challenges to integrate
a blockchain with existing IT architecture
Ledgers
Ledgers designed for public network lack
the performance, confidentiality, and
governance capabilities needed for
commercial use
Smart Contracts
Smart contracts were not designed to
leverage existing enterprise tools and skill sets

Evolution of Blockchain
Blockchain 1.0 – A simple ledger

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.
Blockchain 2.0 – Introducing Smart Contracts

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.
Blockchain 3.0 – Microsoft evolving the ledger to address the big problem

Blockchain 3.0 | State-of-the-art cryptlets innovation
▪ 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
Value
0x893423022ef8s92d1
223412dds321ac
Code
Contract accountRegistry(mapping
(string=> address) accountMap;
function accountRegistry()(…
Property
0x117292138928
edc23dc21323c
Value
0x893423022ef8s92d1
223412dds321ac
Code
Contract accountRegistry(mapping
(string=> address) accountMap;
function accountRegistry()(…
Interest Rate
0x132945934528
asf0439dsa3x

SMART CONTRACT
IoT Enabled
The package has to
be maintained at :
Temperature
< 10º C
Humidity < 65%
Origin
8ºC
60%
At various points in the journey, the IoT device from the package sends the Temperature & Humidity data which are recorded on the blockchain
11ºC
66%
The conditions of the contract have been violated.
Carrier 3 is liable for penalty as the temperature of the package
when it reached the retail store was above the prescribed limit
Freight Transportation
SHARED LEDGER
Warehouse
9ºC
64%
Carrier 2
9ºC
64%
Store
11ºC
66%
PRODUCER
Milk producer supplies Milk to Food
Processing Company
Food Processor
The milk product is sealed in an IoT
enabled package for shipping
CARRIER 1
The terms of shipping are registered using
a smart contract on the Blockchain
WarehouseCARRIER 2
Retail Store
SMART CONTRACT
UPDATED

Today, you can codify a workflow as a smart contract
Traditional Contract Mortgage
Variable Items
% Rate
Payment Amount
Static Items
Payment Date | Late Date | Term
Assets or Security | Amount Financed
Total Sale
Date Payment Late Fee
12/1/16 $500.00 $0
1/1/17 $500.00 $0
Payments & Fees Recorded in Ledger

Blockchain + Cryptlets
Cryptlets
(Business Logic)
Business Logic
Traditional 3-Tier
Software Architecture
Presentation LayerPresentation Layer Presentation Layer
Early blockchain Dapp
architecture
Blockchain (Data Layer)
Smart Contracts
(Data Handling)
Data Layer
Stored Procedures
(Data Handling)
Blockchain (Data Layer)
Smart Contracts
(Business Logic)
You need a re-imagined architecture

Layers
Interaction/Integration
Our shared execution layer
Our shared ledgers
Existing systems
Enterprise Smart Contracts & Cryptlets
Ethereum, EE (Quorum), Fabric, Corda, Chain…Ledger

Why Microsoft for Blockchain?
Azure
• Open Blockchain Ecosystem
• Our platform will integrate with your investments
• Regulatory and Compliance Ready (including Financial Services)

Virtual
Machines
Ethereum
Consortium
Blockchain
by Microsoft
STRATO
Blockchain
LTS
by Blockapps
Chain Core
Developer
Edition
by Chain
Ethereum
Studio
by Ether.camp
Emercoin
Blockchain
Engine
by Emercoin
Blockchain as a
Service (BaaS)
Bletchley Framework
Microsoft Azure | Azure Blockchain Solutions

Tenets
of our
BaaS
Strategy
FAIL FAST & CHEAP
MIX & MATCH
CREATE & INNOVATE
SHARE SOLUTIONS
PROVISION

Blockchain Scenarios for all Industries
Retail & Manufacturing
Financial Healthcare
Government
Construction

26
Popular scenarios where Blockchain adds value
Asset Titles
Diamonds
Designer brands
Car leasing & sales
Home Mortgages & payments
Land title ownership
Digital asset records
Government
Voting
Vehicle registration
WIC, Vet, SS, benefits, distribution
Licensing & identification
Copyrights
Identity
Personal
Objects
Families of objects
Digital assets
Multifactor Auth
Refugee tracking
Education & badging
Purchase & review tracking
Employer & Employee reviews
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
IoT
Device to Device payments
Device directories
Operations (e.g. water flow)
Grid monitoring
Smart home & office management
Cross-company maintenance markets
Payments
Micropayments (apps, 402)
B2B international remittance
Tax filing & collection
Rethinking wallets & banks
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
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
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 detection/prediction
Telematics & ratings
Digital authentication
Asset management
Automated underwriting
Self-administered insurance

Blockchain Maturity Model & Needs
• Multiple, well defined scenarios
• Multiple years of Blockchain experience
• Operations and support processes well defined
• Seeking early access and technical guidance for platform features
• Target scenario well defined
• Some Blockchain experience
• Operations and support processes may be defined
• Seeking help with a Production Pilot
• Potential scenario(s) identified
• Limited Blockchain experience
• Operations and support processes not defined
• Seeking help with a Minimal Viable Product (MVP) Proof of Concept
• Scenarios not identified
• No Blockchain experience
• Operations and support processes not defined
• Seeking education and strategy for business and IT
• Briefing
• EAP for Blockchain vNext
Features (such as Cryptlets
Fabric)
• Briefing
• Strategy / Arch Workshop
• DA Engagement
• Consulting Delivery (24-30
weeks)
• Briefing
• DA Engagement
• Consulting Delivery (8-12
weeks)
• Briefing
• Technical Training
• Lab Setup
• Hackathon

Doğa Öztüzün
Software Development Architect
Blockchain

Kültür Değişimi
● Bireyler
● Topluluklar
● Organizasyonlar

“Governance means stewardship,
not government or regulation.”
- Don Tapscott & Alex Tapscott
~ Realizing the Potential of Blockchain, WEF

Decentralized
Autonomous
Organizations
Agency
Mash

Thanks!
Contact us:
Your Company
123 Your Street
Your City, ST 12345
no_reply@example.com
www.example.com

Open Zeppelin
ERC20 Standardi
Token
Fonlama

Stratis
.Net Core C# Fullnode
Proof of Stake
Masternodes
Sidechains
Azure

Blockchain & microsoft

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