How to Integrate Blockchain Technology into Your Applications

How to Integrate Blockchain Technology into Your Applications

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  How to Integrate Blockchain Technologyinto Your Applications Juarez Barbosa Junior Azure Developer Advocacy Lead, Blockchain Developer Advocate – Microsoft Western Europe HQ [email protected] @juarezjunior
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  Juarez Barbosa Junior • AzureDeveloper Advocacy Lead • Blockchain Expert • Past roles • Developer Advocacy & Strategy Director, Oracle EMEA • IBM Watson Evangelist • IBM Mobile Thought Leader & Evangelist • Software / Solutions Architect & Engineer • Passionate about Emerging Techs, Blockchain, Cloud, Programming Languages • Working in IT industry 20+ Years
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  Microsoft Tech X https://aka.ms/TechXDublin Don’tforget to add Microsoft Azure skill to your LinkedIn account to stay connected with our developer community in Ireland!
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  Types of blockchainnetworks Consortium Woodgrove Financial Contoso Bank Northwind Traders Bank b Insurance c Investment consortium c Bank A Blockchain Location 1 Location 2 Location 3 Location 4 Department A Department B Public blockchain Person a Woodgrove Financial Person B Northwind Traders Bank 6 Bank 1 Consortium 6 Public (permissionless) Consortium (permissioned) Private • Many, unknown participants • Writes by all participants • Reads by all participants • Consensus by Proof of Work • Known participants from one org • Write permissions centralized • Reads may be public or restricted • Multiple algorithms for consensus • Known participants from multiple orgs • Writes require consensus of n participants • Reads may be public or restricted • Multiple algorithms for consensus
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  Corda Chain Enterprise Ethereum Quorum P
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  Transaction 0 Transaction 1 Transaction2 Transaction 3 Transaction 4 New Hash + Block0 Hash First Hash New Hash + Block1 Hash New Hash + Block2 Hash
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  Node 1 Node 7 Node4 Node 5 Node 2 Node 3 Node 0 Node 6 First Hash
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  Node 1 Node 7 Node4 Node 5 Node 2 Node 3 Node 0 Node 6
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  Node 1 Node 7 Node4 Node 5 Node 2 Node 3 Node 0 Node 6
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  Node 1 Node 7 Node4 Node 5 Node 2 Node 3 Node 0 Node 6
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  Node 1 Node 7 Node4 Node 5 Node 2 Node 3 Node 0 Node 6 Transaction 0 Transaction 1 New Hash + Block0 Hash
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  Node 1 Node 7 Node4 Node 5 Node 2 Node 3 Node 0 Node 6 Transaction 2 Transaction 3 Transaction 4 New Hash + Block1 Hash
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  Business has alwaysbeen built on trust Seller’s Agent Land Registry Buyer Lending Bank Property Purchase Property Inspector Appraiser Insurer Source materials Freight Manufacture and assembly Quality Inspection Retailer Financing Consumer Industrial Supply Chain Inspection Company Issuing Bank Importer Exporter Adviser Bank Shipping Company Trade Finance
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  And losing itcan have serious consequences 69% of CEOs claimed their #1 priority over the last 12 months was to ensure their company is trusted 40% of credit card holders surveyed reported loss of trust in Equifax post a massive data breach 77% of organization suppliers don’t have strong transparency and visibility across the supply chain The truth is there is a high cost to a bad reputation. DARA KHOSROWSHAHI, UBER Our reputation is more important than the last hundred million dollars. RUPERT MURDOCH
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  Existing methods ofmanaging trust create friction and cost Intermediaries increase cost and reduce direct contact with consumers Manual verification is time-consuming and error-prone
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  Blockchain streamlines theway trust is established Asset Health Government Retail Banking and Capital Markets Insurance Manufacturing Enterprise Cryptocurrency Blockchain
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  Loyalty tracking Product provenance Logisticsmanagement Digital rewards P2P selling Ticket purchases Asset tracking Real-time auction for supplier contracts Supply chain transparency Dynamic commodities pricing Claims management MBS/Property payments Fraud detection Automated underwriting Risk visualizations Licensing and ID Benefits distribution Aid tracking Military security Copyrights Audit compliance Bond issuance Trade finance Loan syndication Post trade settlement Global payments Derivatives trading KYC/AML Personalized medicine Records sharing Compliance Agricultural authentication Pharmaceutical purity Manufacturing Retail Insurance Government Banking and Capital Markets Health And has applications across industries Asset Transfer Provenance Cross-Organizational Workflow High Assurance Audit
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  Keystone Research estimatedup to $100B of technology value capture in the US alone across industries​ Gartner forecasts the total business to value of blockchain to be $176B by 2025, $3.1T by 2030 Digitizing business processes will deliver massive business value Reduce security threats from fraud, hacking, and data manipulation Mitigate Risk Use a shared data source for transparency across organizations and increased end-to-end speed Increase Speed Remove friction and allow direct interaction between parties Reduce Cost
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  Building from scratchis a huge undertaking Choose your ledger Write smart contract Manage node health Build the network Manually deploy ledger Write business logic Assign node identities Connect nodes Provision members Network governance Extend to additional networks Manage permissions Establish node roles Enforce policies Customize integrations
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  Microsoft breaks blockchaindown to the essential steps Launch and manage the network Model smart contracts Build and extend the application
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  Microsoft has thebest cloud for blockchain Analysts place us ahead of the competition Our open, app-focused approach has been validated by Gartner, Forrester and many other third-party analysts We have designed a thoughtful product portfolio We have spent 4 years developing the most open and comprehensive blockchain portfolio to simplify development of this new class of apps Customers and partners trust us Businesses have built thousands of blockchain apps on Azure working with our rich ecosystem of blockchain partners ​
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  And a comprehensiveset of tools and services for developers Launch and manage the network Build, deploy, and manage blockchain networks Model smart contracts VS Code Author and test smart contracts Azure Blockchain Service Build and extend the application Dev Kit Extend your app and move to production Workbench Prototype your application
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  Build and extenda new class of applications Sensors and IoT (unstructured) Ingest Transform Attest Read & Route Apps Transaction Builder Logs (unstructured) Service Bus Project WestlakeMedia (unstructured) Files (unstructured) Business/ custom apps (structured) Power BI Azure IoT Hub Application InsightsAzure Key Vault Virtual NetworkingAzure AD DLT Watcher Power Apps Event Grid Flow Cloud Database Off-chain storage Off-chain database Azure Development Kit
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  Customers and partnersare building blockchain apps on Azure PARTNERS CUSTOMERS
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  Starbucks empowers each memberof its supply chain Over the next two years, we will look to demonstrate how technology and innovative data platforms can give coffee farmers even more financial empowerment — Kevin Johnson Starbucks CEO Challenge • Starbucks needed increased visibility into the movement of beans across its vast supply chain • 97% of farmers are small hold/one-acre farms that have difficulty scaling production to meet demand Solution • Use blockchain based smart contracts to define the responsibilities of each supply chain participant and record their activities • Provides immutable proof-of-end purchase to farmers enabling access to higher quality credit • Monitor the movement of beans from farm to pour using a shared, cloud-based app
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  And reinforces trustfrom farmers to customers Farmers Starbucks Customers Farmers are financially empowered… • Understand downstream movement of their product and better forecast demand • Receive immutable “proof-of-end purchase” from Starbucks • Establish creditworthiness to access higher quality credit and expand operations Starbucks receives immutable record of… • Bean provenance • Inventory state changes and movement Customers enjoy increased transparency… • Into the individual region • The farm origin of the coffee • Tactics used to farm their high-end coffee
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  Using blockchain toreinforce trust from farmer to customer Carrier Authenticity is verified and beans are delivered to the factory Customer At purchase can view certifications, origin, and other quality details with assurances from farm to pour Manufacturer Containers are verified and coffee is processed and bagged Small Hold Farmer Produce coffee beans under specified conditions to earn organic and Fair Trade certifications. Receive “proof of end purchase” from Starbucks they can use to access credit for next years harvest Retailer The bags reach the retailer having been accounted for at each step of the journey Farmer ✓ Plot #839049 ✓ 25 tons of cocoa beans ✓ Certifications Carrier ✓ Shipped 2/5/2018 ✓ Organic ✓ Fair Trade Manufacturer ✓ Delivered 2/12/2018 ✓ Organic ✓ Fair Trade Distributor ✓ Delivered 2/19/2018 ✓ Organic ✓ Fair Trade Retailer ✓ Delivered 2/26/2018 ✓ Organic ✓ Fair Trade Customer ✓ Guaranteed fresh ✓ Certified organic ✓ Certified Fair Trade At various points in the journey, an IoT device scans the product and records its status and condition which are updated on the blockchain Quality attestationProof of Purchase Consumer visibility Distributor The coffee is moved through distributor network under high-quality assurance regulations
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  Singapore Airlines |Expand customer loyalty Challenge Singapore Airlines wanted to improve customer participation and loyalty by streamlining their rewards program Strategy Singapore Airlines partnered with KPMG Digital Village and Microsoft to build a blockchain- based rewards program that linked their digital wallets to their KrisFlyer reward miles Results • Empowered customers to easily use their KrisFlyer miles for point-of-sale transactions on an expanded retail partner network • Increased mileage program participation and loyalty to the Singapore Airlines brand “This groundbreaking development in which we will be using blockchain technology to ‘digitalise’ KrisFlyer miles is a demonstration of the investment we are making to significantly enhance the digital side of our business for the benefit of our customers” — Goh Choon Phong, Chief Executive Officer of Singapore Airlines
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  Blockchain in Action| Partner network management Digital wallet Reward points are stored in the customer’s digital wallet Partner retail location Customers are able to redeem loyalty points for goods and services from any retail location in the partner network SHARED LEDGER Update: SFO → HKG: 7,000 miles • Dec 2016 LAX → ICN: 6,000 miles • Jan 2015 IAH → DME: 5,000 miles • Jun 2015 JFK → FRA: 4,000 miles • 7,000 miles = 700 points • 6,000 miles = 600 points • 5,000 miles = 500 points • 4,000 miles = 400 points • 2,200 points redeemed for: o Free stay at hotel A o Admittance to airport lounge B o Spa treatment at resort C Contract updated Contract updated Mobile app Customers purchase their ticket on their mobile device Contract created Awarded miles Each flight is worth miles that are converted to rewards points Contract updated
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  XBOX | Blockchainfor royalty payments Challenge Microsoft wanted to replace the complicated, manual royalty calculation process used to pay XBOX publishers with a faster, more efficient approach Strategy Microsoft developed a blockchain-based solution that automated processes to offer XBOX royalty information in near real time while maximizing security and transparency Results • Improved trust by making the royalty payment calculation process more transparent for publishers • Gave publishers actionable business insights, enabling them to proactively respond to customer demand • Reduced XBOX process efforts by two thirds and saved publishers time by eliminating the need for manual audits “We are developing an ecosystem within the gaming industry that connects developers and publishers to game performance. Providing near real-time access to data greatly improves the process’ effectiveness and insights that lead to a more enriching experience for the partners.” — Tim Stuart, Chief Financial Officer of Xbox
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  • Game Purchased •Publisher ID • Price • Customer Age • Customer Gender • Location CONTRACT CREATED CONTRACT VISIBILITY • Top Grossing Content • Publisher Royalty • Publisher Demand • Net Revenue Blockchain in action | Manage royalty payments XBOX Platform SHARED LEDGER DATA CONTENT PUBLISHER A VISIBILITY • Customer ID • Content Dev ID • Licensing ID • Marketing ID • Distributor ID • Content Provider ID Publisher C • Customer ID • Content Dev ID • Licensing ID • Marketing ID • Distributor ID • Content Provider ID Publisher B • Customer ID • Content Dev ID • Licensing ID • Marketing ID • Distributor ID • Content Provider ID Publisher A Content Publishers Gain visibility into sales data and royalty revenue, enabling them to make near real time decisions. $ $ $ $ $ Licensing Marketing Distribution Content Provider Content Developer $12.99 $59.99 $3.99 Media Purchase Movie Video game Song Quantity Quantity XBOX Platform Consumers purchase digital content through the XBOX platform. The data then is written to the shared ledger. This automatically makes royalty data visible to the XBOX publishers. XBOX PAYS ROYALTIES Media Sale: July 13th
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  XiaoMi | SupplyChain Finance Service Challenge XiaoMi works with a broad ecosystem of partners and suppliers that lacked the connectivity and transparency needed to scale trust and quickly verify credit for banking and factoring Strategy XiaoMi worked with Microsoft to streamline trust on a shared, blockchain-based data layer that easily connects with the apps and systems used throughout their ecosystem Results • Improved cash efficacy by digitizing credit establishment • Shortened the timeframe of factoring and banking processes from weeks to days • Expanded the business network for multi-layer supply chain hierarchy with minimal IT efforts “Our partners and suppliers form an important ecosystem that we want to continue to grow, so our digital transformation couldn’t just improve our products, services, and operations—it needed to build a platform of trust, transparency, and efficacy for our partners and suppliers as well.” — TBD
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  Blockchain in action| Supply Chain Finance service Shared ledger data SRM App Core Enterprise SAP ERP System BPM App Approval Bank C, Supplier 3, … • Transaction Stages -> CreatePO, … • Events/Logs • Entities -> PO, ASN, GR -> FA, Payments Bank B, Supplier 2, … • Events/Logs • Transaction Stages -> CreatePO, … • Entities -> PO, ASN, GR -> FA, Payments Provider ID Bank A, Supplier 1, … • Transaction Stages -> CreatePO, … • Events/Logs • Entities -> PO, ASN, GR -> FA, Payments Create ASN Create GR Pay for FA Pay for Payment -Sheet Create PO Supply chain data is shared on the blockchain to inform POs, ASNs, GRs, FAs, and Payments Workflow Group visibility Contracts visibility • In all workflow groups • Workflow initiator • Owners configuration • Roles configuration Core Enterprise • Supplier, Bank, Core- Enterprise group set up with owners, observers • Shared transactions and Shared entities are independent smart contracts Contracts created Suppliers Banks and SCF System
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  Bühler | Ensuringfood safety We’re not only going to get economic results, but hopefully we can transform and save lives at the same time. It’s the most exciting and valuable project I’ve worked on in my 40 years with the company. It’s a really big thing. — Ben Deefholts Senior Research Engineer Challenge • A lack of connectivity, transparency, and traceability in the food supply chain caused food waste and inefficiencies. • 25% of all harvested grain is contaminated with mycotoxins and nearly half a billion people are at risk of consuming aflatoxin contaminated crops. Solution • Buhler and Microsoft developed a blockchain strategy to track grain and ensure it’s handled according to regulations. • Augmented physical machines with an AI-enabled insights platform to ensure all grains processed are toxin-free Results • Digitally verify that all grains are handled compliantly as they move through the supply chain, providing transparency to each counterparty through a shared ledger. • Assess any contamination and alert all parties in real-time to avoid a public safety issue. • Create a shared food-safety utility for the agricultural industry that could guarantee crop safety from farm to fork
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  Bühler | Ensuringfood safety Carrier 1 The product is securely shipped and handled per manufacturer’s regulations and compliance standards Miller The grains are milled and must be handled per manufacturer’s regulations and compliance standards Granary The grains are stored per manufacturer’s regulations and compliance standards Retail store Rejects the pasta products sent by food processor A due to poor handling procedures Harvest The grains are harvested and assessed for contaminants. The remaining grains are then packaged for shipment. Food processors Transform the grains into packaged goods for consumption per manufacturer’s regulations and compliance standards A B C Smart contract created Grain needs to be harvested and shipped. Carriers • Grains delivered • Compliant handling Granary • Grains stored • Compliant handling Miller • Grains milled • Compliant handling Food processors A: Pasta products B: Bread products C: Rice products Retail store A: Rejected – non- compliant handling B: Accepted C: Accepted Harvest • 25% of grains have toxins • 75% of grains are shipped Food processor A has breached the contract and is liable for penalty 25% of grains are found to have toxins and are rejected. SHARED LEDGER
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  Interswitch | Seamless supplychain financing Armed with a single version of the truth across the supply chain, Nigerian lenders and suppliers can identify and build relationships with high performing entrepreneurs. That will help empower people to create more jobs, more wealth, and a more prosperous Africa. — Eghosa Ojo Designer Thinker and Head of Innovation at Interswitch Challenge • To bridge the gap between the existing corporate-based financing infrastructure in Nigeria and a growing number of small to mid-size enterprises in need of capital. • Supply chain financing involves multiple counter-parties who lack end-to-end visibility, exposing lenders to risk, delaying financing, and jeopardizing projects. Solution • Interswitch partnered with Microsoft to develop a blockchain-based supply chain financing service that brings together major financial institutions from different countries to seamlessly manage trade finance. Results • Banks reduce their exposure to loss or fraud and streamline financing decisions, giving more people access to more funding, while lenders can deliver more value. • Borrowers now secure financing in three weeks or less, so they can take on more work in less time. • Project contractors and suppliers can better predict requirements, accelerate turnaround, and increase sales cycles and volumes.
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  Interswitch | Seamlesssupply chain financing Contract updated • The supplier receives the guarantee and fulfills the purchase Contract updated • Entrepreneur receives the supplies Contract updated • Bank and the supplier agree on guarantee terms Smart contract created • Entrepreneur submits a purchase order to a supplier Supplier Requires a bank guarantee for the purchase Entrepreneur Submits a purchase order to the supplier Supplier Receives the guarantee and fulfills the order Entrepreneur Receives supplies Bank Admin Creates sales contract Corp. Sales Officer Verifies the customer with the bank Bank Manager Issues the bank guarantee Corp. Sales Director Approves bank guarantee terms Bank Admin Releases ATC to customer Bank Manager Option to contend the guarantee terms Contract updated • Supplier requests a bank guarantee SHARED LEDGER
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  Digitize trust withMicrosoft Azure Blockchain Seamlessly integrate blockchain with your business using built-in connections to Azure and the tools you're already familiar with— all on an open, trusted, globally available cloud platform Iterate and validate blockchain scenarios quickly with an intuitive UI for modelling smart contracts and prebuilt blockchain templates and commands Cut development time with painless network deployment, built-in governance and extensible, fully-managed infrastructure Simplify development Get up and running quickly Innovate with confidence
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  Get started now Launchyour first network today with Azure Blockchain Service Learn how businesses are leveraging blockchain Join the conversation on Azure Advisors Contact your account team to connect with a blockchain expert Learn more at the Azure Blockchain Blog
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