Presentation at API World September 12, 2018 in San Jose

Presented by: Sesh Raj, President dsapps inc!
©2018DSAPPSINC
dsapps
distributed secure apps
Designing with Blockchain APIs
for edge computing!

What we will cover!
1.  Introduce DSAPPS !
2.  Introduce blockchain technology and its major signiﬁcance to modern computing!
3.  Understand why edge computing is critical and perfect match for blockchain technology!
4.  Introduce and compare the major blockchain platforms.!
5.  Sample blockchain API providers!
6.  Use case – DSAPPS edge data security implementation with blockchain!
©2018DSAPPSINC
dsapps

•  Automate projects, business processes,
documents, issues!
•  Automate team collaboration with key
resources, vendors, partners, customers!
•  Encapsulate knowledge / best practices !
•  Automate risk management!
•  Drive digital enterprise transformation!
Solution 1!
Smart Enterprise Apps!
Automated smart city curb
price and park app
Smart City IOT and Blockchain Apps!
!
Manage safe,
secure and reliable
deployment of next
generation
transportation
technologies!
Manage smart contracts
in the palm of your hand
Supply chain blockchain
ledger automation
API for edge smart
data security
(blockchain enabled)
©2018DSAPPSINC
dsapps
Evaluate at www.dsapps.com!

©2018DSAPPSINC
Beyond crypto
currency it’s not
clear what is new?
dsapps

All above applications have been running successfully for several
decades centrally managed via cloud and database servers!
©2018DSAPPSINC
dsapps

Question: !
What is new and profound in Blockchain that cannot
be done with traditional database servers? !
©2018DSAPPSINC
dsapps
1.  Look at what blockchain technology consists of.!
2.  Compare a server update with a ledger update and understand beneﬁts of shared ledgers.!
3.  Examine how cryptographic chaining of data blocks in a blockchain ledger boosts trust.!
4.  Understand why the elimination of intermediaries revolutionizes the world of computing.!
5.  Examine several use cases and blockchain’s immense beneﬁts to the world of edge computing.!

Goal of blockchain technology is to build and maintain
trust through shared distributed, immutable and highly
trustable ledgers that enable multiple parties to prove
ownership, achieve consensus and transact automatically
through smart contracts without need for intermediaries !
©2018DSAPPSINC
dsapps

Distributed ledgers more
trustable than a central server!
We made a commitment and acted on it, !
We pushed the button and told the server!
We made a commitment and acted on it, !
We recorded in a highly trustable and
distributed blockchain ledger!
Server update! Ledger update!
The server was down.
Did we really act?
©2018DSAPPSINC
dsapps

Commitments and
actions are recorded and
set in stone, in an
immutable ledger.
Blockchain Basics!
©2018DSAPPSINC
dsapps

Blockchain technology provides the ability for N parties
to directly record and execute a trusted agreement !
without an intermediary, institution, escrow agent,
broker, supervisor or the cloud!
dsapps

Without blockchain
Blockchain changes the world of contracts, the foundation of
business and living commitments since humans have existed !
©2018DSAPPSINC
dsapps

Blockchain Requirements!
Immutable Distributed Ledger
Trusted, Visible, Verifiable
Transactions
Smart Contracts
Member Network with
Operating Consensus
Provides for the five security pillars: !
Availability, Auditability, Accountability, Integrity and Confidentiality.!
©2018DSAPPSINC
dsapps

A highly trusted app from
the last century!
I cannot trust the bank,
but I can always trust
my passbook!
All ﬁnancial transactions
require the bank – deposits,
withdrawals, bill payments,
revenue receipts etc.!
dsapps

Blockchain shared trusted ledger!
Directly transact services
Directly pay and receive!
Bank is optional, just another
member of network!
EDGE COMPUTING!
synchronize ledgers, credit check, loans!
CLOUD COMPUTING!
global transactions, large loans, analytics!
!
shop!
dsapps

Question: !
Why is edge computing critical and a perfect match
for blockchain technology? !
©2018DSAPPSINC
dsapps

Use cases for edge smart blockchain!
For SPEED AT THE EDGE!
Smart cities, managing fast changing traffic!
Automating smart curbs, dealing with sudden contingencies!
Getting ready for autonomous mobility economies!
!
To COMMUNICATE WITH POOR CLOUD ACCESS!
Smart global supply chains !
Re-working smart contracts !
Dealing with unexpected and stormy events!
!
For HANDLING MACHINE DATA BUILDING MACHINE TRUST!
Recording infinite numbers of data sensors reliably!
Handling scale beyond capacity of central computing!
Communicating and managing untrustable machines!
!
Smart traffic routing! Smart parking contracts!
Global supply chains! Smart re-work of contracts!
Machine data and talk! Ensure trust and obedience!
Monitor complex manufacturing! Ensure reliability!
For MANAGING COMPLEX REMOTE OPERATIONS!
Smart monitoring of manufacturing!
Demanding performance and reliability !
Ensuring reliability without the cloud!
!
©2018DSAPPSINC
dsapps

Comparing Traditional Cloud Services
with Edge Smart Blockchain !
Traditional Cloud Server! Edge Smart Blockchain!
Control and Communication!
Centralized control, excellent for
global communication!
Distributed shared ledger !
(supporting local copies)!
Reliability! Can be down sometimes! Highly trustable!
Performance! Can be slow sometimes! Edge can be very fast!
Simplicity! Complex to set up, rigid rules!
Simple, !
everyone understands a ledger!
Typical deployment! Data center operation!
On the ﬁeld, on the road, !
on the ship!
Data Structure! Highly structured! Flexible, could be unstructured!
Adaptive - !
New commitments New actions!
Not designed for fast changes!
Perfectly suitable for change!
Supports smart contracts!
©2018DSAPPSINC
dsapps

The Challenge: How do we integrate
blockchain with edge and cloud?!
©2018DSAPPSINC
dsapps

Mapping the edge with cloud!
!
!
!
!
!
Edge Smart Node or Gateway
with Blockchain support
u  Share and communicate
blockchain ledger!
u  Maintain session status!
u  Encrypt / decrypt data!
u  Maintain encryption keys!
u  Register and Track parties!
u  Update commitments!
u  View commitments!
u  Generate reports!
u  Execute smart contracts!
u  OffCloud / OnCloud
management!
u  Application specific
configuration!
Edge computing
-  Create/maintain
members!
-  create/maintain
contracts!
-  receive notifications!
-  communicate locally!
Cloud
•  Centralized and
legacy databases!
•  global
communication!
•  advanced Analytics!
•  data mining!
•  regulatory reporting!
©2018DSAPPSINC
dsapps

Compare Blockchain Platforms!
Characteristics Ethereum Hyperledger
Age! Founded 2015! Founded 2017!
Purpose! For B2C and public facing apps! For B2B businesses!
Currency! Ether! None!
Mode of participation! Public/private and permissionless network! Private and permissioned network!
Consensus mechanism! Proof of work! Pluggable consensus algorithm!
Cost of operation! Every smart contract is executed globally and has
a cost for the account!
Privately controlled. No public charge.!
Programming language! Solidity! Chaincode written in Golang!
Governance! Ethereum Alliance! Linux foundation!
Transaction visibility! Everyone has total transparency! Controlled!
Performance! Poor performance and scalability! Can be scaled up easily adding
unlimited nodes!
Ease of use! Simple allows easy development of smart contracts! Complex and powerful platform!
©2018DSAPPSINC
dsapps

In summary Ethereum is fully decentralized with each node
running the Ethereum Virtual Machine. Centralization of
computing though is forced with users having to pay a
transaction fee where they are charged for every smart contract
execution. !
Hyperledger platform is decentralized with nodes
independently executing a copy of the hyperledger fabric.
Networks have a choice of connecting to the cloud of a major
vendor such as IBM, Oracle, SAP, AWS etc to ensure network
control, governance and integrate with legacy applications.!
©2018DSAPPSINC
dsapps

Microsoft Azure Blockchain Workbench
with Ethereum exchange integration!
Includes a REST-based gateway service API that controls writing to blockchain and smart contracts!
©2018DSAPPSINC
dsapps

IBM Blockchain Platform!
•  Model business
networks !
•  Expose
blockchain data
and business
logic via auto-
generated REST
APIs !
•  Create
applications that
consume
blockchain data !
©2018DSAPPSINC
dsapps

Edge computing is dependent on a
strong identity management system
for edge devices often through X509
certiﬁcates!
©2018DSAPPSINC
dsapps

Hyperledger Fabric CA
(Certificate Authority)!
Register identity, !
!
Issue enrollment certificates!
!
Renew and revoke certificates!
©2018DSAPPSINC
dsapps

ChromaWay sends notifications about bitcoin transactions and confirmations.!
!
Bitcore is a full bitcoin node allowing apps run orders of magnitude faster than a centralized API. !
!
Neuroware non-financial protocols to leverage the benefits of distributed ledger technologies. !
!
Tierion offers ChainPoint for recording data in the blockchain and generating blockchain receipts. !
!
Gem API hides much of the complexity of working with cryptocurrencies. !
!
Coinbase’s API to build new bitcoin apps and integrate bitcoin into existing applications. !
!
Colored Coin APIs to issue new assets, transfer assets between addresses and query for asset. !
!
Blockchain APIs to send and receive payment, create user wallets, access currency exchanges. !
!
Factom API to store enterprise shared data securely in public blockchain. !
!
Colu engine provides infrastructure to issue and manage digital assets on bitcoin blockchain. !
!
BlockCypher API with unconfirmed transaction confidence factor, payment forwarding etc.!
Sample Blockchain API Providers!https://applikeysolutions.com/blog/10-best-blockchain-api-providers-for-developers!
©2018DSAPPSINC
dsapps

!
Mastercard Blockchain developer.mastercard.com
!
Blockchain Use Cases!
Mastercard Blockchain facilitates new commerce opportunities for the digital transfer of value by allowing businesses and
financial institutions to transact on a distributed ledger. Our technology can power multiple use cases and can help take
time, cost and risk out of financial flows. For example, use cases may include:!
!
Proof of provenance!
Counterfeiting costs 7 percent of global economic output, or $1.7 trillion per year, and is rising at 15 percent per annum.
Today, there is no efficient and effective way to prove that goods and services are what they claim to be and that they have
not been altered, forged, reproduced or duplicated in any way. Leverage the Mastercard Blockchain and Authorization
Network to easily track high value pharmaceuticals, art, luxury goods as they are created, transferred, purchased and re-
sold. For example, use a Mastercard plastic card with a standard payment terminal to record that the asset arrived at a
location on the Blockchain.!
!
Cross-border B2B Payments!
When two parties agree to transfer funds they write a settlement request to the Blockchain. The Mastercard Settlement
Network reads the Blockchain and will transfer the funds between two banks. It then writes a confirmation of transfer to the
Mastercard Blockchain.!
!
Mastercard Blockchain APIs!
Blockchain Core API!
Run your own blockchain nodes, define your own transaction types, and manage your participation in a blockchain network.!
Smart Contracts API!
Write custom scripts using Mastercard’s Smart Contract language for use in your custom blockchain applications.!
©2018DSAPPSINC
dsapps

Factory automation, edge computing!
©2018DSAPPSINC
dsapps
FAR-EDGE is a reference architecture adopted by a consortium of leading manufactureres. Integrates edge, blockchain
ledgers and cloud computing https://www.edge4industry.eu/2018/02/15/far-edge-ra-structuring-factory-automation-systems-
based-edge-computing-blockchain-technologies/!

Edge Smart Data Security!
Step Rest API Edge Blockchain Cloud
Create user member network! POST! •  Add user member! •  Synch to blockchain!
Document owners store
encrypted data shreds across
multitude of decentralized nodes!
POST! •  Store location information and
encryption keys accessible only by
permissioned member network.!
•  Add document verification details!
•  Stores document metadata for
analytics and communication.!
•  Does not store secret location
info and encryption keys.!
Members access documents !
!
Abnormal access alarm
notifications sent to members!
!
GET! •  Access details added to blockchain!
•  Abnormal access alarms
automatically generated via smart
contract – even without cloud
access!
•  Access details synched with
blockchain!
•  Alarm notifications sent to
members if abnormal access
detected based on limits set.!
Update security alarm notifiers! PUT! •  Members reach consensus!
•  Alarm limits updated in blockchain!
•  Alarm limits updated in
database!
Update member profile! PUT! •  Profile updated in cloud
database!
Get access analytics ! GET! •  Generated from cloud database!
©2018DSAPPSINC
dsapps

Presentation at API World September 12, 2018 in San Jose

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Presentation at API World September 12, 2018 in San Jose