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InterConnect
2017
Hands on Lab 2234
Integrating IBM Internet of
Things Platform and IBM
Blockchain
Rahul Gupta
Senior Software Architect
rahul.gupta@us.ibm.com
1 4/27/2017
@rahulguptaibm
Hands on Lab Agenda
2 4/27/2017
In this hands-on lab, you will deploy smart
contracts for IoT in IBM Blockchain, and
connect MQTT devices to send IoT data
to the blockchain using the IBM Watson
IoT Platform. In an IoT context, data
comes from "things" to private blockchain
ledgers for inclusion in shared
transactions with tamper-resistant
records. Attend this lab and start creating
a more efficient business network with the
IBM Watson IoT Platform and IBM
Blockchain.
IBM Watson IoT Platform IBM Blockchain
3
The Business Value of Blockchain
Blockchain is a shared ledger technology allowing any
participant in the business network to see
THE system of record (ledger)
4Page© 2016 IBM Corporation
Blockchain for business …
Append-only
distributed system of
record shared across
business network
Business terms
embedded in
transaction database
& executed with
transactions
All parties agree to
network verified
transaction
Ensuring appropriate
visibility; transactions are
secure, authenticated
& verifiable Privacy
Shared
ledger
… Broader participation, lower cost, increased efficiency
Smart
contract
Consensus
5Page© 2016 IBM Corporation
Problem …
… Inefficient, expensive, vulnerable
Bank
records
Party A’s
records
Party C’s
records
Auditor
records
Party B’s
records
Party D’s
records
6Page© 2016 IBM Corporation
Solution …
… Consensus, provenance, immutability, finality
Party C’s
records
Auditor
records
Party B’s
records
Party D’s
records
Bank
records
Party A’s
records
Shared, replicated, permissioned
7
Integrate Watson IoT Platform with Blockchain
Enable physical devices to participate in blockchain transactions.
• Enable business networks to use IoT devices
to supply data to blockchain transactions.
• Abstract devices from contracts. Watson IoTP
can provide data mapping and filtering between
devices and blockchain contracts.
• Examples: smart devices could send GPS
coordinates or temperature data, barcode or
RFID scanners could send registration or
update events.
03/21/2017 2017 IBM InterConnect 2017 8
IBM Watson IoT
Platform
Validating Peer 1
Validating Peer 0
Validating Peer 2
Elevator Manufacturing
Company
Government Inspection
agency
Elevator at Customer
Location
Blockchain Fabric
Shared, replicated, permissioned
Device data
transmitted on
MQTT REST API
Hands-on Lab Scenario
user_type1_2
user_type1_1
user_type1_0
Lab Guide Download
https://ibm.biz/iciotlab
Lab Simulator
https://ibm.biz/icsimulator
10 4/27/2017
Notices and disclaimers
Copyright © 2017 by International Business Machines Corporation (IBM).
No part of this document may be reproduced or transmitted in any form
without written permission from IBM.
U.S. Government Users Restricted Rights — use, duplication or
disclosure restricted by GSA ADP Schedule Contract with IBM.
Information in these presentations (including information relating to
products that have not yet been announced by IBM) has been reviewed
for accuracy as of the date of initial publication and could include
unintentional technical or typographical errors. IBM shall have no
responsibility to update this information. This document is distributed
“as is” without any warranty, either express or implied. In no event
shall IBM be liable for any damage arising from the use of this
information, including but not limited to, loss of data, business
interruption, loss of profit or loss of opportunity. IBM products and
services are warranted according to the terms and conditions of the
agreements under which they are provided.
IBM products are manufactured from new parts or new and used parts.
In some cases, a product may not be new and may have been previously
installed. Regardless, our warranty terms apply.”
Any statements regarding IBM's future direction, intent or product
plans are subject to change or withdrawal without notice.
Performance data contained herein was generally obtained in a
controlled, isolated environments. Customer examples are presented
as illustrations of how those customers have used IBM products and
the results they may have achieved. Actual performance, cost, savings or
other results in other operating environments may vary.
References in this document to IBM products, programs, or services
does not imply that IBM intends to make such products, programs or
services available in all countries in which IBM operates or does
business.
Workshops, sessions and associated materials may have been prepared
by independent session speakers, and do not necessarily reflect the
views of IBM. All materials and discussions are provided for informational
purposes only, and are neither intended to, nor shall constitute legal or
other guidance or advice to any individual participant or their specific
situation.
It is the customer’s responsibility to insure its own compliance with legal
requirements and to obtain advice of competent legal counsel as to
the identification and interpretation of any relevant laws and regulatory
requirements that may affect the customer’s business and any actions
the customer may need to take to comply with such laws. IBM does not
provide legal advice or represent or warrant that its services or products
will ensure that the customer is in compliance with any law.
11 4/27/2017
Notices and disclaimers
continued
Information concerning non-IBM products was obtained from the
suppliers of those products, their published announcements or other
publicly available sources. IBM has not tested those products in
connection with this publication and cannot confirm the accuracy of
performance, compatibility or any other claims related to non-IBM
products. Questions on the capabilities of non-IBM products should be
addressed to the suppliers of those products. IBM does not warrant the
quality of any third-party products, or the ability of any such third-party
products to interoperate with IBM’s products. IBM expressly disclaims
all warranties, expressed or implied, including but not limited to, the
implied warranties of merchantability and fitness for a particular,
purpose.
The provision of the information contained herein is not intended to, and
does not, grant any right or license under any IBM patents, copyrights,
trademarks or other intellectual property right.
IBM, the IBM logo, ibm.com, Aspera®, Bluemix, Blueworks Live, CICS,
Clearcase, Cognos®, DOORS®, Emptoris®, Enterprise Document
Management System™, FASP®, FileNet®, Global Business Services®,
Global Technology Services®, IBM ExperienceOne™, IBM SmartCloud®,
IBM Social Business®, Information on Demand, ILOG, Maximo®,
MQIntegrator®, MQSeries®, Netcool®, OMEGAMON, OpenPower,
PureAnalytics™, PureApplication®, pureCluster™, PureCoverage®,
PureData®, PureExperience®, PureFlex®, pureQuery®, pureScale®,
PureSystems®, QRadar®, Rational®, Rhapsody®, Smarter Commerce®,
SoDA, SPSS, Sterling Commerce®, StoredIQ, Tealeaf®, Tivoli® Trusteer®,
Unica®, urban{code}®, Watson, WebSphere®, Worklight®, X-Force® and
System z® Z/OS, are trademarks of International Business Machines
Corporation, registered in many jurisdictions worldwide. Other product
and service names might be trademarks of IBM or other companies. A
current list of IBM trademarks is available on the Web at "Copyright and
trademark information" at: www.ibm.com/legal/copytrade.shtml.
InterConnect
2017
Thank You
12 4/27/2017

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Integrating IBM Internet of Things Platform and IBM Blockchain

  • 1. InterConnect 2017 Hands on Lab 2234 Integrating IBM Internet of Things Platform and IBM Blockchain Rahul Gupta Senior Software Architect rahul.gupta@us.ibm.com 1 4/27/2017 @rahulguptaibm
  • 2. Hands on Lab Agenda 2 4/27/2017 In this hands-on lab, you will deploy smart contracts for IoT in IBM Blockchain, and connect MQTT devices to send IoT data to the blockchain using the IBM Watson IoT Platform. In an IoT context, data comes from "things" to private blockchain ledgers for inclusion in shared transactions with tamper-resistant records. Attend this lab and start creating a more efficient business network with the IBM Watson IoT Platform and IBM Blockchain. IBM Watson IoT Platform IBM Blockchain
  • 3. 3 The Business Value of Blockchain Blockchain is a shared ledger technology allowing any participant in the business network to see THE system of record (ledger)
  • 4. 4Page© 2016 IBM Corporation Blockchain for business … Append-only distributed system of record shared across business network Business terms embedded in transaction database & executed with transactions All parties agree to network verified transaction Ensuring appropriate visibility; transactions are secure, authenticated & verifiable Privacy Shared ledger … Broader participation, lower cost, increased efficiency Smart contract Consensus
  • 5. 5Page© 2016 IBM Corporation Problem … … Inefficient, expensive, vulnerable Bank records Party A’s records Party C’s records Auditor records Party B’s records Party D’s records
  • 6. 6Page© 2016 IBM Corporation Solution … … Consensus, provenance, immutability, finality Party C’s records Auditor records Party B’s records Party D’s records Bank records Party A’s records Shared, replicated, permissioned
  • 7. 7 Integrate Watson IoT Platform with Blockchain Enable physical devices to participate in blockchain transactions. • Enable business networks to use IoT devices to supply data to blockchain transactions. • Abstract devices from contracts. Watson IoTP can provide data mapping and filtering between devices and blockchain contracts. • Examples: smart devices could send GPS coordinates or temperature data, barcode or RFID scanners could send registration or update events.
  • 8. 03/21/2017 2017 IBM InterConnect 2017 8 IBM Watson IoT Platform Validating Peer 1 Validating Peer 0 Validating Peer 2 Elevator Manufacturing Company Government Inspection agency Elevator at Customer Location Blockchain Fabric Shared, replicated, permissioned Device data transmitted on MQTT REST API Hands-on Lab Scenario user_type1_2 user_type1_1 user_type1_0
  • 9. Lab Guide Download https://ibm.biz/iciotlab Lab Simulator https://ibm.biz/icsimulator
  • 10. 10 4/27/2017 Notices and disclaimers Copyright © 2017 by International Business Machines Corporation (IBM). No part of this document may be reproduced or transmitted in any form without written permission from IBM. U.S. Government Users Restricted Rights — use, duplication or disclosure restricted by GSA ADP Schedule Contract with IBM. Information in these presentations (including information relating to products that have not yet been announced by IBM) has been reviewed for accuracy as of the date of initial publication and could include unintentional technical or typographical errors. IBM shall have no responsibility to update this information. This document is distributed “as is” without any warranty, either express or implied. In no event shall IBM be liable for any damage arising from the use of this information, including but not limited to, loss of data, business interruption, loss of profit or loss of opportunity. IBM products and services are warranted according to the terms and conditions of the agreements under which they are provided. IBM products are manufactured from new parts or new and used parts. In some cases, a product may not be new and may have been previously installed. Regardless, our warranty terms apply.” Any statements regarding IBM's future direction, intent or product plans are subject to change or withdrawal without notice. Performance data contained herein was generally obtained in a controlled, isolated environments. Customer examples are presented as illustrations of how those customers have used IBM products and the results they may have achieved. Actual performance, cost, savings or other results in other operating environments may vary. References in this document to IBM products, programs, or services does not imply that IBM intends to make such products, programs or services available in all countries in which IBM operates or does business. Workshops, sessions and associated materials may have been prepared by independent session speakers, and do not necessarily reflect the views of IBM. All materials and discussions are provided for informational purposes only, and are neither intended to, nor shall constitute legal or other guidance or advice to any individual participant or their specific situation. It is the customer’s responsibility to insure its own compliance with legal requirements and to obtain advice of competent legal counsel as to the identification and interpretation of any relevant laws and regulatory requirements that may affect the customer’s business and any actions the customer may need to take to comply with such laws. IBM does not provide legal advice or represent or warrant that its services or products will ensure that the customer is in compliance with any law.
  • 11. 11 4/27/2017 Notices and disclaimers continued Information concerning non-IBM products was obtained from the suppliers of those products, their published announcements or other publicly available sources. IBM has not tested those products in connection with this publication and cannot confirm the accuracy of performance, compatibility or any other claims related to non-IBM products. Questions on the capabilities of non-IBM products should be addressed to the suppliers of those products. IBM does not warrant the quality of any third-party products, or the ability of any such third-party products to interoperate with IBM’s products. IBM expressly disclaims all warranties, expressed or implied, including but not limited to, the implied warranties of merchantability and fitness for a particular, purpose. The provision of the information contained herein is not intended to, and does not, grant any right or license under any IBM patents, copyrights, trademarks or other intellectual property right. IBM, the IBM logo, ibm.com, Aspera®, Bluemix, Blueworks Live, CICS, Clearcase, Cognos®, DOORS®, Emptoris®, Enterprise Document Management System™, FASP®, FileNet®, Global Business Services®, Global Technology Services®, IBM ExperienceOne™, IBM SmartCloud®, IBM Social Business®, Information on Demand, ILOG, Maximo®, MQIntegrator®, MQSeries®, Netcool®, OMEGAMON, OpenPower, PureAnalytics™, PureApplication®, pureCluster™, PureCoverage®, PureData®, PureExperience®, PureFlex®, pureQuery®, pureScale®, PureSystems®, QRadar®, Rational®, Rhapsody®, Smarter Commerce®, SoDA, SPSS, Sterling Commerce®, StoredIQ, Tealeaf®, Tivoli® Trusteer®, Unica®, urban{code}®, Watson, WebSphere®, Worklight®, X-Force® and System z® Z/OS, are trademarks of International Business Machines Corporation, registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the Web at "Copyright and trademark information" at: www.ibm.com/legal/copytrade.shtml.

Editor's Notes

  1. 3
  2. So Blockchain technology comprises these four main blocks, that can lead to increased efficiencies, and cost reduction across the business network. We will “unpack” CONSENSUS PRIVACY & SMART CONTRACT in the next couple of slides. Shared LEDGER has been already covered, and a SMART CONTRACT enables the business rules implied by the contract to be embedded in the Blockchain and executed with the transaction
  3. This is the “BEFORE” picture representing the “status quo” for business networks. Each participant keeps their own ledger(s) which are updated to represent business transactions as they occur. This is EXPENSIVE due to duplication of effort and intermediaries adding margin for services. It is clearly INEFFICIENT, as the business conditions – the contract – is duplicated by every network participant It is also VULNERABLE because if a central system (e.g. Bank) is compromised due to an incidents this affects the whole business network. Incidents can include fraud, cyber attack or a simple mistake.
  4. The novel Blockchain architecture give participants the ability to share a ledger which is updated every time a transaction occurs through peer to peer replication. Cryptography is used to ensure that network participants see only the parts of the ledger that are relevant to them, and that transactions are secure, authenticated and verifiable. Blockchain also allows the contract for asset transfer to be embedded in the transaction database determining the conditions under which the transaction can occur. Network participants agree how transactions are verified through consensus or similar mechanisms. Government oversight, compliance & audit can be part of the same network. Participants SAME AS BEFORE – this is not a disintermediation play CONSENSUS– means all participants agree that a transaction is valid PROVENANCE– means participants know where the asset came from and how it’s ownership has changed over time IMMUTABILITY– means no participant can tamper with a transaction once it’s agreed. If a transaction was in error then a NEW transaction must be used to reverse the error, with both visible FINALITY– means that there is ONE place to determine the ownership of an asset or completion of a transaction. This is the role of the SHARED LEDGER.
  5. Enable physical devices to participate in blockchain transactions. Enable business networks to use IoT devices to supply data to blockchain transactions. Abstract devices from contracts. Watson IoTP can provide data mapping and filtering between devices and blockchain contracts. Examples: smart devices could send GPS coordinates or temperature data, barcode or RFID scanners could send registration or update events.