"Technical approach how to integrate Blockchain technology into business and government sectors."

1. A framework
for private blockchains
Alex Shevchenko
ITEM, 24 -25 March 2018

2. / 1
Brief introduction
Blockchain
Technology
01

6. Trust index
53 %
- 3
43 %
0
52 %
- 1
43 %
-10
Non
Govermental
Organizations
Mass Media Business Government

7. / 6
Blockchain is
a decentralized database with tamper-
resistant log and built-in auditability
• A way of storing information: in atomic
transactions, grouped in blocks
• Blocks joined in a chain with the aid of
cryptography
Blockchain

8. /
Only restricted set of nodes are validators:
• ‘Mining’ incentivizing is outside the solution
• Transaction creation and audit is regulated
by blockchain maintainer
Anyone can become a ‘miner’:
• Built-in cryptocurrency with mining
• Single platform for everybody
Private blockchainPublic blockchain
7Blockchain
Security: High
Performance: Low
Security: Low
Performance: High

9. / 8
Chaining the Past, Changing the Future
Exonum
Framework
02

10. / 9Exonum Framework
is an open source framework
for private blockchains
• A library without any business logic
(UTXOs, built-in cryptocurrency)
• Best in class architecture & algorithms
solutions
• Includes tools for development
• Smart contract functionality enabled

11. /
Private blockchain
Public blockchain
10Exonum Framework
Security: High
Performance: Low
Security: Low
Performance: High
Security: High
Performance: High

12. / 11Exonum Framework
Consensus
BFT Algorithm
• High performance:
5 000 tps,
0.5 s latency
• Secure
( ed25519, sha-256 )

13. / 12Exonum Framework
Anchoring
to Bitcoin Blockchain
• Resistance to collusion
• Raises security to the level of
public blockchain
• Also Byzantine fault tolerant

14. / 13Exonum Framework
Light Client
Software Library
• Client-side software
• Auditability and transparency
• Proofs verification
+ helper functions
• Anchoring verification

15. / 14
• The first public release covered on Coindesk
• 600+ stars on GitHub repos
• Current version is 0.6 (release is every 2 months)
Exonum Framework
Exonum 0.1
Release
July 17, 2017

16. / 15
Community
• 500+ developers worldwide
• 20+ outside ICO projects,
including Top ones
( DMarket, > $ 19 000 000 )
• 50+ non-ICO projects
in development
Exonum Framework
Exonum Team
• 45+ team members
and expanding
• Top tech education and
software experience
Project Teams
• Western Europe
• CIS
• USA
• Asia

17. / 16
Real world applications
Use Cases
03

18. / 17Exonum Framework
DevOps Process
Speeding Product Development
• Multiple companies involved
• Lack of trust and consistent information
• Leads up to 50% increase in
development time
• Same problems in any supply chain
• +33% developer productivity

19. /
Thank You!
Alex Shevchenko
Head of Exonum
aleksandr.shevchenko@bitfury.com
@ExonumAlex
What’s next?
Docs & Tutorials: https://exonum.com/doc/
Github: https://github.com/exonum exonum_blockchain
Join Telegram Channel

20. / 19
• With anchoring private blockchains are almost the same as public
blockchains, however…
• Lack of standardization. Solvable by ERC-20-like cryptocurrencies.
• The necessary element is investors’ trust
(a.k.a. why won’t you switch off the blockchain? ).
Actually, the same problem for public blockchain.
Solvable by non-commercial consortia + the ability to join consortia
• Private BC ICOs are similar to local/private money issuance.
See: F. Hayek. The denationalization of money
Exonum Framework
Pre-sale
Crowd Sale
Production? Production
Public Private
Pre-sale?
Crowd Sale?
Exonum & ICOs

21. / 20
ICO in the Box
Exonum Bundle
The idea was to gather all the necessary functionality for
ICO projects in a single product (Exonum Bundle):
• developer hours to build specific ICOs,
• tech expertise (architecture)
• Bitfury marketing.
Clients pass rigorous tech due diligence.
ICO in a Box

22. /
✕ No responsibility (DAO hack and resulting Blockchain split);
✕ No transaction processing guarantees (see DDoS attacks);
✕ Complicated smart contract storage and persistence model
with large attack surface;
✕ Untrustworthy toolchain (see Solidity security concerns);
✕ Much effort to adapt to the permissioned environment,
resulting in suboptimal security;
Popular cryptocurrency;
Strong developer community.
Well-defined responsibility scope for parties (platform
providers, service providers, clients);
SLA with platform guarantees transaction processing;
Intuitive smart contract model; small attack surface thanks to
limited contract interfaces;
Rust for smart contracts, strong static analysis guaranty;
Environment naturally scales to production;
May use external cryptocurrencies;
The project is open sourced.
Ethereum
Permissionless Environment
Exonum
Permissioned Environment
21Exonum Framework
VS

23. /
✕ Faulty proven BFT (was in 0.6, excluded in 1.0). Low to
medium performance (500 tps);
✕ No difference vs. distributed databases or computing;
✕ Can be rewritten in case of maintainers collusion;
✕ There’s no way to automatically audit the system for a client;
High system modularity, including consensus algorithm;
✕ Written in Go. Many modules are absent or insufficiently
tested;
A big company in SW development behind the project.
Own BFT Consensus algorithm with mathematically proven
features. High-end performance (up to 9000 tps);
Has all the necessary Blockchain features;
Bitcoin anchoring makes system resistant to malicious
behavior;
Light client validates cryptographic proofs, provided with
each Blockchain response;
Medium system modularity, consensus is fixed;
Written in Rust that guarantees thread safety;
The project is open sourced
Fabric
Narrow Part of Blockchains
Exonum
Full Blockchain Functionality
22Exonum Framework
VS