Get ready for Blockchain to alter your z-based transaction environment. Blockchain brings a new class of distributed ledger applications. Bitcoin, the first Blockchain system to grab mainstream data center attention, is rudimentary compared to what the Linux Foundation’s open HyperledgerProject will deliver.
As reported in CIO Magazine, Blockchain enables a distributed ledger technology with ability to settle transactions in seconds or minutes automatically via computers. This is a faster, potentially more secure settlement process than is used today among financial institutions, where clearing houses and other third-party intermediaries validate accounts and identities over a few days. Financial services, as well as other industries, are exploring blockchain for conducting transactions as diverse as trading stock, buying diamonds, and streaming music.
IBM in conjunction with the Linux Foundation’s HyperledgerProject expects the creation and management of Blockchain network services to power a new class of distributed ledger applications. With the HyperLedger and Blockchain developers could create digital assets and accompanying business logic to more securely and privately transfer assets among members of a permissioned Blockchain network running on IBM LinuxONE or Linux on z.
In addition, IBM will introduce fully integrated DevOps tools for creating, deploying, running and monitoring Blockchain applications on the IBM Cloud and enable applications to be deployed on IBM z Systems. Furthermore, by using Watson as part of an IoT platform IBM intends to make possible information from devices such as RFID-based locations, barcode-scan events, or device-recorded data to be used with IBM Blockchain apps. Clearly, IBM is looking at Blockchain for more than just electronic currency. In fact, Blockchain will enable a wide range of secure transactions between parties without the use of intermediaries, which should speed transaction flow. For starters, the company brought to the effort 44,000 lines of code as a founding member of the Linux Foundation’s HyperledgerProject
The z, with its rock solid reputation for no-fail, extreme high volume and performance, and secure processing, is a natural for Blockchain applications and system. In the process it brings the advanced cryptography, security, and reliability of the z platform. No longer content just to handle traditional backend systems-of-record processing IBM is pushing to bring the z into new areas that leverage the strength and flexibility of today’s mainframe. As IoT ramps up expect the z to handle escalating volumes of IoT traffic, mobile traffic, and now blockchain distributed ledger traffic. Says IBM: “We intend to support clients looking to deploy this disruptive technology at scale, with performance, availability and security.” That statement has z written all over it.
Further advancing the z into new areas, IBM reemphasized its advantages through built-in hardware accelerators for hashing and digital signatures, tamper-proof security cards, unlimited random keys to encode transactions, and integration to existing business data with Smart Contract APIs. IBM believes the z could take blockchain performance to new levels with the world’s fastest commercial processor, which is further optimized through the use of hundreds of internal processors. The highly scalable I/O system can handle massive amounts of transactions and the optimized network between virtual systems in a z Systems cloud can speed up blockchain peer communications.
An IBM Blockchain DevOps service will also enable blockchain applications to be deployed on the z, ensuring an additional level of security, availability and performance for handling sensitive and regulated data. Blockchain applications can access existing transactions on distributed servers and z through APIs to support new payment, settlement, supply chain, and business processes.
Use Blockchain on the z to create and manage Blockchain networks to power the emerging new classes of distributed ledger applications. According to IBM, developers can create digital assets and the accompanying business logic to more securely and privately transfer assets among members of a permissioned Blockchain network. Using fully integrated DevOps tools for creating, deploying, running, and monitoring Blockchain applications on IBM Cloud, data centers can enable applications to be deployed on the z. Through the Watson IoT Platform, IBM will make it possible for information from devices such as RFID-based locations, barcode scans, or device-recorded data to be used with IBM Blockchain.
However, Blockchain remains nascent technology. Although the main use cases already are being developed and deployed many more ideas for blockchain systems and applications are only just being articulated. Nobody, not even the Linux Foundation, knows what ultimately will shake out. Blockchain enables developers to easily build secure distributed ledgers that can be used to exchange most anything of value fast and securely. Now is the time for data center managers at z shops to think what they might want to do with such extremely secure transactions on their z.
DancingDinosaur is Alan Radding, a veteran information technology analyst and writer. Please follow DancingDinosaur on Twitter, @mainframeblog. See more of his IT writing at technologywriter.com and here.
Tags: API, blockchain, Cloud, distributed ledger, Hyperledger Project, IBM, IBM Cloud, Internet of Things (IoT), Linux, Linux Foundation, Linux on z, mainframe, RFID. DevOps, System z, technology, Watson