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An Architectural Approach for Decentralized
Applications
Ayodya Dewangga S R
Version 1.0
Abstracts
2
The blockchain is a decentralized, trustless protocol that combines transparency, immutability, and consensus
properties to enable secure, pseudo-anonymous transactions. Smart contracts are built atop a blockchain to
support on-chain storage and enable Decentralized Apps to interact with the blockchain programmatically.
Programmable blockchains have generated interest as a potential solution to resolve key challenges, such as
gapped communications, inefficient report delivery, and fragmented records. In this presentation provides an
architectural approach for decentralized applications in terms of their feasibility, intended capability, and
compliance.
3
1. Introduction
2. Methodology
3. Results
4. Discussions
Table of Contents
1. Introduction
4
Source: xrmvision.com
A new wave of digital evolution, also known as Web 3.0
IT Trend Radar 2017
1. Introduction – Cont.
5
A decentralized peer-to-peer system representing a shared public ledger enabling secure transactions without the need of
intermediaries
Source: munichre.com
Top ten worldwide IT industry predictions
6. Through 2020, IoT will increase data center
storage demand by less than 3 percent.
7. By 2020, 40 percent of employees can cut
their healthcare costs by wearing a fitness
tracker.
8. By 2021, 20 percent of all activities an
individual engages in will involve at least one
the top-seven digital giants.
9. By 2022, a blockchain-based business will be
worth $10 billion.
10. By 2022, IoT will save consumers and
businesses $1 trillion a year in
maintenance, services and consumables.
1. Introduction – Cont.
6
1. By 2019, 20 percent of brands will abandon
their mobile apps.
2. Through 2019, every $1 enterprises invest in
innovation will require an additional $7 in core
execution.
3. By 2020, 100 million consumers will shop in
augmented reality.
4. By 2020, 30 percent of web browsing
sessions will be done without a screen.
5. By 2020, algorithms will positively alter the
behavior of more than 1 billion global workers.
Blockchain technology is established as the next revolution in transaction recording. A blockchain ledger provides an immutable, shared
view of all transactions between engaging parties.
Source: gartner.com
What is blockchain?
Blockchain is a peer-to-peer distributed ledger technology which
records transactions, agreements, contracts, and sales. [1]
1. Introduction – Cont.
7
Source: cloudfront.net
What do we mean by “blockchains are
trustless”?
We say that the blockchain enables trustless networks,
because the parties can transact even though they do not
trust each other. [2]
Source: slideshare.net
What do we mean by “blockchains are
transparency”?
This transparency eliminates the need for checks and
balances that often take up important resources and
manpower. With blockchain, payment transparency is
automatic. As a result, some predict financial reporting costs
could shrink by 70% [2]
1. Introduction – Cont.
8
What do we mean by “blockchains are
immutability”?
So, is the block really immutable? The answer is no.
Perfect immutability does not exist; blockchain, like any
other network, is technically prone to modification. But
because the computers, or nodes, on a blockchain network
are distributed, the mathematical puzzle and computing
power required to make changes makes modification nearly
impossible. [7]
Source: toughnickel.com
Source: slideshare.net
What do we mean by “blockchains are
consensus”?
All participants in the P2P network need to store blockchain
data on their own while synchronizing all of their blocks with
those stored by other peers based on a consensus model. In
fact, the consensus is represented by the longest chain
agreed upon by the majority of the peer nodes. [4]
1. Introduction – Cont.
9
Source: lisk.io
What do we mean by “Smart Contracts”?
Smart contracts are computer programs that can
be correctly executed by a network of mutually distrusting
nodes, without the need of
an external trusted authority. [5]
Source: codebrahma.com
What do we mean by “support on-chain
storage ”?
On-chain storage works by having a copy of the data available
on every node that is participating in the chain. [6]
1. Introduction – Cont.
10
Source: quoracdn.net
What do we mean by “enable Decentralized
Apps”?
As opposed to the most widespread software models that
are centralized (the server client model is centralized),
dApps are apps whose server-client models are
decentralized while others are distributed. [2]
Source: blockgeeks.com
What do we mean by “gapped
communications”?
A successful health app should leverage the blockchain to
enhance interoperability while maintaining its quality when
users or components of the app scale up and out [2]
1. Introduction – Cont.
11
Source: ieee.org
What do we mean by “inefficient report
delivery”?
These features may include health information self-
reporting, access of personal medical records or
prescription history from different providers, auditing
existing accesses to patient health records, and the ability
to share or revoke access to patients’ own medical data [2]
Source: ieee.org
What do we mean by “fragmentation”?
patients have better access and control of their
medical records to reduce information fragmentation
and inaccuracy caused by communication delays or
coordination errors [2]
1. Introduction – Cont.
12
What do we mean by “feasibility”?
An important assessment of a DApp’s feasibility is thus how
it handles large amounts of traffic on the blockchain.
Source: ieee.org Source: bchainconsult.com
What do we mean by “capability”?
Blockchain’s tracking capabilities (including timestamping)
provide a full audit trail which can be used to protect
consumers from counterfeit goods and also gives businesses
increased confidence in the authenticity and quality of goods,
impacting sourcing decisions [8]
1. Introduction – Cont.
13
Source: inmind.com.uy
What do we mean by “compliance”?
Ben Thomas, CEO said, “We’re seeing a tremendous
increase in pre-ICO companies looking to address security
and compliance risks in the early stages. No company wants
to be the target of a multimillion dollar hack. ” [9]
Source:
openaccessgovernment.org/
14
1. Introduction
2. Methodology
3. Results
4. Discussions
Table of Contents
15
Developing a long-term Blockchain strategy and roadmap
2.1 Publish a white paper on the DApp with a
“roadmap”
2.2 Launch an Initial Coin Offerings.
2.3 Begin development.
Collecting results
2.4 Launch the product.
2. Methodology [10]
16
2.1 Publish a white paper on the DApp with a “roadmap”
Source: https://cdn-images-1.medium.com/max/2000/1*kLD89m_-cBEP7ZEAG5ANUA.png
Then you can start focusing on the impact of Blockchain on your core business and developing a long-term
Blockchain strategy and roadmap, including your intended objectives such as increased efficiencies, reduced risks,
better governance or quality improvements. [11]
2. Methodology - Cont.
17
2.1 Publish a white paper on the DApp with a
“roadmap”
In a coin offering, you sell your crypto-coins which will fuel your DApp
2.2 Launch an Initial Coin Offerings.
2.3 Begin development.
2.4 Launch the product.
2. Methodology - Cont. [10]
18
2.2 Launch an ICO
Source: youtube.com
One of the friction points for Ethereum dapp adoption is that the users have to a pay gas (transaction (txn) fee) to get their
transactions recorded on the blockchain. The simple voting dapp that lets anyone vote for candidates, and the votes are stored
on the blockchain. A user who wants to record her vote on the blockchain has to pay a transaction/gas fee.
2. Methodology – Cont.
19
2.1 Publish a white paper on the DApp with a
“roadmap”
2.2 Launch an ICO.
It’s time to begin development
2.3 Begin development.
2.4 Launch the product.
2. Methodology – Cont.
20
3.3 Begin development.
2. Methodology - Continued
Source: medium.com
The blocks for each element of computing, and some examples of systems manifesting each block
21
2.1 Publish a white paper on the DApp with a
“roadmap”
2.2 Launch an ICO.
2.3 Begin development.
Launch the product with release notes stating the maintenance plans so that the community is involved.
2.4 Launch the product.
2. Methodology - Continued
22
1. Introduction
2. Methodology
3. Results
4. Discussions
Table of Contents
3. Results
23
Popular Ethereum-based DApps
CryptoKitties is a new game or app that gives its users
access to digital cats which they can buy, sell or breed.
These cats or kitties are called cryptocollectibles. The
CryptoKitties app, a blockchain powered game, is also
hosted on the Ethereum blockchain. [13]
Ethlance is like Upwork – a marketplace for jobs. [13]
Source: coinsutra.com
Source: coinsutra.com
3. Results
24
Popular Ethereum-based DApps
Prism is a decentralized and trustless asset portfolio market
by ShapeShift hosted on the Ethereum blockchain. [13]
uPort is an identity management platform powered by the
Ethereum blockchain. [13]
Source: coinsutra.com
Source: coinsutra.com
25
1. Introduction
2. Methodology
3. Results
4. Discussions
Table of Contents
4. Discussions
26
Conclusions
Transparency, immutability,
and consensus
Limitations
1.Complexity
2.Network size
3.Transaction costs,
network speed
4.Unavoidable security
flaw
Suggestions for Future
Research
increasing features found
on web 2.0
References
1. CHRISTIDIS, Konstantinos; DEVETSIKIOTIS, Michael. Blockchains and smart contracts for the internet of things. Ieee Access, 2016, 4: 2292-2303.
2. ZHANG, Peng, et al. Metrics for assessing blockchain-based healthcare decentralized apps. In: e-Health Networking, Applications and Services
(Healthcom), 2017 IEEE 19th International Conference on. IEEE, 2017. p. 1-4.
3. MYLER, LARRY, 2018, Transparent Transactions: How Blockchain Payments Can Make Life Easier For B2B Companies. Forbes [online]. 2018.
[Accessed 27 November 2018]. Available from: https://www.forbes.com/sites/larrymyler/2017/11/09/transparent-transactions-how-
blockchain-payments-can-make-life-easier-for-b2b-companies/
4. CAI, Wei, et al. Decentralized Applications: The Blockchain-Empowered Software System. IEEE Access, 2018, 6: 53019-53033.
5. ATZEI, Nicola; BARTOLETTI, Massimo; CIMOLI, Tiziana. A survey of attacks on ethereum smart contracts (sok). In: Principles of Security and
Trust. Springer, Berlin, Heidelberg, 2017. p. 164-186.
6. How Does Blockchain Storage Work?, 2018. Bitcoin Isle [online],
7. https://www.weforum.org/agenda/2018/04/how-secure-is-blockchain/
8. https://www2.deloitte.com/content/dam/Deloitte/uk/Documents/ConsumerIndustrialProducts/deloitte-uk-blockchain-in-retail-and-cpg.pdf
9. https://www.huffingtonpost.com/entry/compliance-on-blockchain-secure-roadmap-for-icos_us_5a57d7cfe4b0c198cb444b88
10. https://coinsutra.com/dapps-decentralized-applications/
11. https://datafloq.com/read/develop-blockchain-strategy-blockchain-roadmap/4769
12. https://medium.com/blockchannel/how-to-save-your-ethereum-dapp-users-from-paying-gas-for-transactions-cfc665891ab4
13. https://coinsutra.com/ethereum-dapps/ 27
28
Thank You

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An architectural approach for decentralized applications

  • 1. An Architectural Approach for Decentralized Applications Ayodya Dewangga S R Version 1.0
  • 2. Abstracts 2 The blockchain is a decentralized, trustless protocol that combines transparency, immutability, and consensus properties to enable secure, pseudo-anonymous transactions. Smart contracts are built atop a blockchain to support on-chain storage and enable Decentralized Apps to interact with the blockchain programmatically. Programmable blockchains have generated interest as a potential solution to resolve key challenges, such as gapped communications, inefficient report delivery, and fragmented records. In this presentation provides an architectural approach for decentralized applications in terms of their feasibility, intended capability, and compliance.
  • 3. 3 1. Introduction 2. Methodology 3. Results 4. Discussions Table of Contents
  • 4. 1. Introduction 4 Source: xrmvision.com A new wave of digital evolution, also known as Web 3.0
  • 5. IT Trend Radar 2017 1. Introduction – Cont. 5 A decentralized peer-to-peer system representing a shared public ledger enabling secure transactions without the need of intermediaries Source: munichre.com
  • 6. Top ten worldwide IT industry predictions 6. Through 2020, IoT will increase data center storage demand by less than 3 percent. 7. By 2020, 40 percent of employees can cut their healthcare costs by wearing a fitness tracker. 8. By 2021, 20 percent of all activities an individual engages in will involve at least one the top-seven digital giants. 9. By 2022, a blockchain-based business will be worth $10 billion. 10. By 2022, IoT will save consumers and businesses $1 trillion a year in maintenance, services and consumables. 1. Introduction – Cont. 6 1. By 2019, 20 percent of brands will abandon their mobile apps. 2. Through 2019, every $1 enterprises invest in innovation will require an additional $7 in core execution. 3. By 2020, 100 million consumers will shop in augmented reality. 4. By 2020, 30 percent of web browsing sessions will be done without a screen. 5. By 2020, algorithms will positively alter the behavior of more than 1 billion global workers. Blockchain technology is established as the next revolution in transaction recording. A blockchain ledger provides an immutable, shared view of all transactions between engaging parties. Source: gartner.com
  • 7. What is blockchain? Blockchain is a peer-to-peer distributed ledger technology which records transactions, agreements, contracts, and sales. [1] 1. Introduction – Cont. 7 Source: cloudfront.net What do we mean by “blockchains are trustless”? We say that the blockchain enables trustless networks, because the parties can transact even though they do not trust each other. [2] Source: slideshare.net
  • 8. What do we mean by “blockchains are transparency”? This transparency eliminates the need for checks and balances that often take up important resources and manpower. With blockchain, payment transparency is automatic. As a result, some predict financial reporting costs could shrink by 70% [2] 1. Introduction – Cont. 8 What do we mean by “blockchains are immutability”? So, is the block really immutable? The answer is no. Perfect immutability does not exist; blockchain, like any other network, is technically prone to modification. But because the computers, or nodes, on a blockchain network are distributed, the mathematical puzzle and computing power required to make changes makes modification nearly impossible. [7] Source: toughnickel.com Source: slideshare.net
  • 9. What do we mean by “blockchains are consensus”? All participants in the P2P network need to store blockchain data on their own while synchronizing all of their blocks with those stored by other peers based on a consensus model. In fact, the consensus is represented by the longest chain agreed upon by the majority of the peer nodes. [4] 1. Introduction – Cont. 9 Source: lisk.io What do we mean by “Smart Contracts”? Smart contracts are computer programs that can be correctly executed by a network of mutually distrusting nodes, without the need of an external trusted authority. [5] Source: codebrahma.com
  • 10. What do we mean by “support on-chain storage ”? On-chain storage works by having a copy of the data available on every node that is participating in the chain. [6] 1. Introduction – Cont. 10 Source: quoracdn.net What do we mean by “enable Decentralized Apps”? As opposed to the most widespread software models that are centralized (the server client model is centralized), dApps are apps whose server-client models are decentralized while others are distributed. [2] Source: blockgeeks.com
  • 11. What do we mean by “gapped communications”? A successful health app should leverage the blockchain to enhance interoperability while maintaining its quality when users or components of the app scale up and out [2] 1. Introduction – Cont. 11 Source: ieee.org What do we mean by “inefficient report delivery”? These features may include health information self- reporting, access of personal medical records or prescription history from different providers, auditing existing accesses to patient health records, and the ability to share or revoke access to patients’ own medical data [2] Source: ieee.org
  • 12. What do we mean by “fragmentation”? patients have better access and control of their medical records to reduce information fragmentation and inaccuracy caused by communication delays or coordination errors [2] 1. Introduction – Cont. 12 What do we mean by “feasibility”? An important assessment of a DApp’s feasibility is thus how it handles large amounts of traffic on the blockchain. Source: ieee.org Source: bchainconsult.com
  • 13. What do we mean by “capability”? Blockchain’s tracking capabilities (including timestamping) provide a full audit trail which can be used to protect consumers from counterfeit goods and also gives businesses increased confidence in the authenticity and quality of goods, impacting sourcing decisions [8] 1. Introduction – Cont. 13 Source: inmind.com.uy What do we mean by “compliance”? Ben Thomas, CEO said, “We’re seeing a tremendous increase in pre-ICO companies looking to address security and compliance risks in the early stages. No company wants to be the target of a multimillion dollar hack. ” [9] Source: openaccessgovernment.org/
  • 14. 14 1. Introduction 2. Methodology 3. Results 4. Discussions Table of Contents
  • 15. 15 Developing a long-term Blockchain strategy and roadmap 2.1 Publish a white paper on the DApp with a “roadmap” 2.2 Launch an Initial Coin Offerings. 2.3 Begin development. Collecting results 2.4 Launch the product. 2. Methodology [10]
  • 16. 16 2.1 Publish a white paper on the DApp with a “roadmap” Source: https://cdn-images-1.medium.com/max/2000/1*kLD89m_-cBEP7ZEAG5ANUA.png Then you can start focusing on the impact of Blockchain on your core business and developing a long-term Blockchain strategy and roadmap, including your intended objectives such as increased efficiencies, reduced risks, better governance or quality improvements. [11] 2. Methodology - Cont.
  • 17. 17 2.1 Publish a white paper on the DApp with a “roadmap” In a coin offering, you sell your crypto-coins which will fuel your DApp 2.2 Launch an Initial Coin Offerings. 2.3 Begin development. 2.4 Launch the product. 2. Methodology - Cont. [10]
  • 18. 18 2.2 Launch an ICO Source: youtube.com One of the friction points for Ethereum dapp adoption is that the users have to a pay gas (transaction (txn) fee) to get their transactions recorded on the blockchain. The simple voting dapp that lets anyone vote for candidates, and the votes are stored on the blockchain. A user who wants to record her vote on the blockchain has to pay a transaction/gas fee. 2. Methodology – Cont.
  • 19. 19 2.1 Publish a white paper on the DApp with a “roadmap” 2.2 Launch an ICO. It’s time to begin development 2.3 Begin development. 2.4 Launch the product. 2. Methodology – Cont.
  • 20. 20 3.3 Begin development. 2. Methodology - Continued Source: medium.com The blocks for each element of computing, and some examples of systems manifesting each block
  • 21. 21 2.1 Publish a white paper on the DApp with a “roadmap” 2.2 Launch an ICO. 2.3 Begin development. Launch the product with release notes stating the maintenance plans so that the community is involved. 2.4 Launch the product. 2. Methodology - Continued
  • 22. 22 1. Introduction 2. Methodology 3. Results 4. Discussions Table of Contents
  • 23. 3. Results 23 Popular Ethereum-based DApps CryptoKitties is a new game or app that gives its users access to digital cats which they can buy, sell or breed. These cats or kitties are called cryptocollectibles. The CryptoKitties app, a blockchain powered game, is also hosted on the Ethereum blockchain. [13] Ethlance is like Upwork – a marketplace for jobs. [13] Source: coinsutra.com Source: coinsutra.com
  • 24. 3. Results 24 Popular Ethereum-based DApps Prism is a decentralized and trustless asset portfolio market by ShapeShift hosted on the Ethereum blockchain. [13] uPort is an identity management platform powered by the Ethereum blockchain. [13] Source: coinsutra.com Source: coinsutra.com
  • 25. 25 1. Introduction 2. Methodology 3. Results 4. Discussions Table of Contents
  • 26. 4. Discussions 26 Conclusions Transparency, immutability, and consensus Limitations 1.Complexity 2.Network size 3.Transaction costs, network speed 4.Unavoidable security flaw Suggestions for Future Research increasing features found on web 2.0
  • 27. References 1. CHRISTIDIS, Konstantinos; DEVETSIKIOTIS, Michael. Blockchains and smart contracts for the internet of things. Ieee Access, 2016, 4: 2292-2303. 2. ZHANG, Peng, et al. Metrics for assessing blockchain-based healthcare decentralized apps. In: e-Health Networking, Applications and Services (Healthcom), 2017 IEEE 19th International Conference on. IEEE, 2017. p. 1-4. 3. MYLER, LARRY, 2018, Transparent Transactions: How Blockchain Payments Can Make Life Easier For B2B Companies. Forbes [online]. 2018. [Accessed 27 November 2018]. Available from: https://www.forbes.com/sites/larrymyler/2017/11/09/transparent-transactions-how- blockchain-payments-can-make-life-easier-for-b2b-companies/ 4. CAI, Wei, et al. Decentralized Applications: The Blockchain-Empowered Software System. IEEE Access, 2018, 6: 53019-53033. 5. ATZEI, Nicola; BARTOLETTI, Massimo; CIMOLI, Tiziana. A survey of attacks on ethereum smart contracts (sok). In: Principles of Security and Trust. Springer, Berlin, Heidelberg, 2017. p. 164-186. 6. How Does Blockchain Storage Work?, 2018. Bitcoin Isle [online], 7. https://www.weforum.org/agenda/2018/04/how-secure-is-blockchain/ 8. https://www2.deloitte.com/content/dam/Deloitte/uk/Documents/ConsumerIndustrialProducts/deloitte-uk-blockchain-in-retail-and-cpg.pdf 9. https://www.huffingtonpost.com/entry/compliance-on-blockchain-secure-roadmap-for-icos_us_5a57d7cfe4b0c198cb444b88 10. https://coinsutra.com/dapps-decentralized-applications/ 11. https://datafloq.com/read/develop-blockchain-strategy-blockchain-roadmap/4769 12. https://medium.com/blockchannel/how-to-save-your-ethereum-dapp-users-from-paying-gas-for-transactions-cfc665891ab4 13. https://coinsutra.com/ethereum-dapps/ 27