Posts Tagged ‘Hyperledger Project’

No letup by IBM on Blockchain

April 27, 2017

IBM continues to push blockchain. Its latest announcement on the subject, Three Blockchain Adoption Principles Essential for Every CEO, came early this week. The basic pitch: in certain market segments blockchain could potentially help save billions of dollars annually and significantly reduce delays and spoilage. Citing the World Economic Forum, the company adds: “reducing barriers within the international supply chain could increase worldwide GDP by almost five percent and total trade volume by 15 percent.”  That should be sweet music to any C-suite exec.

Blockchain enables transparent food chain

In a related announcement also this week, IBM Japan, Mizuho Financial Group, and Mizuho Bank are building a blockchain-based trade financing platform for trade financing. With the platform, Mizuho is aiming to streamline trading operations and improve supply chain efficiency. The resulting timely and highly secure exchange of trade documents turns out to be essential for stakeholders in the supply chain ecosystem. Digitizing trade information on a blockchain can help alter the way information is shared, infusing greater trust into transactions, making it easier for parties involved in the supply chain, including exporters, importers, shippers, insurance companies, port operators, and port authorities to share critical shipment data in near real-time.

IBM is emerging as a leader in secure open-source blockchain solutions built for the enterprise. An early member of the Linux Foundation’s Hyperledger Project, the company has worked with more than 400 clients across multiple business segments to implement blockchain applications delivered via the IBM Cloud.

DancingDinosaur has its own 3 reasons enterprise data center execs should be excited by blockchain. They are different and more z-centric than IBM’s. First, you probably already have a z System, and the z’s legendary security, availability, and scalability make it a natural for blockchain. Second, the z already comes optimized to handle transactions and most of your transaction data already lives on the z, making it very efficient from a processing standpoint.  Third, until or unless your blockchain grows to some enormous size, it will barely consume any system resources or generate overhead. In that sense, blockchain on your z comes virtually free.

The following blockchain principles are based on IBM’s customer experience:

  1. Blockchain has the potential to transform trade, transactions and business processes: The two concepts underpinning blockchain are “business network” and “ledger.” Taken together, these are what make blockchain a smart, tamper-resistant way to conduct trade, transactions and business processes. Network members exchange assets through a ledger that all members can access and share. The ledger syncs across the network with all members needing to confirm a transaction of tangible or intangible assets before it is approved and stored on the blockchain. This shared view helps establish legitimacy and transparency, even when parties are not familiar with one another.
  2. The value, it turns out, resides in the ecosystem as the blockchain network grows: This should be no surprise to an exec who saw the growth, first of LANs and WANs, and later the Internet and Web. So too, as a business network blockchain can include several different types of participants. Depending on the number of participants in a blockchain network, the value of assets being exchanged, and the need to authorize members with varying credentials adopters should observe the difference between “permissioned” and “permission-less” blockchain networks. The real value for blockchain is achieved when these business networks grow. With a strong ecosystem, blockchain networks can more easily reach critical mass, allowing the users to build new business models and reinvent and automate transaction processes.
  3. Blockchain can significantly improve visibility and trust across business: Block chains can reduce transaction settlement times from days or weeks to seconds by providing immediate visibility to all participants. The technology can also be used to cut excess costs by removing intermediary third-parties, those typically required to verify transactions. Because blockchain is built on the concept of trust, it can help reduce risks of illicit practices carried out over payment networks, helping to mitigate fraud and cybercrimes. Speed, cost efficiency, and transparency are among blockchain’s most significant benefits in the enterprise and within ecosystems of companies conducting trade. IBM, Walmart and Tsinghua University, for example, are exploring the use of blockchain to help address the challenges surrounding food safety [see graphic above]. By allowing members within the supply chain to see the same records, blockchain helps narrow down the source of a contamination

“Critical success factors in blockchain engagements require top-down executive support for innovative use cases and bringing key network participants into the dialogue from the start,” according to Marie Wieck, general manager, IBM Blockchain.

DancingDinosaur is Alan Radding, a veteran information technology analyst, writer, and ghost-writer. Please follow DancingDinosaur on Twitter, @mainframeblog. See more of his IT writing at technologywriter.com and here.

IBM Demonstrates Blockchain Progress and Clients

December 9, 2016

IBM must have laid off its lawyers or something since never before has the company seemed so ready to reveal clients by name and the projects they’re engaged in.  That has been going on for months and recently it has accelerated.  Credit IBM’s eagerness to get blockchain established fast and show progress with the open community HyperLedger Project.

walmart-ibm-and-tsinghua-university

Exploring the use of blockchain to bring safer food

Since early in 2016 IBM announced almost 20 companies and projects involving blockchain. A bunch are financial services as you would expect. A couple of government entities are included. And then, there is Walmart, a household name if ever there was one.  Walmart is turning to blockchain to manage its supply chain, particularly in regard to food safety and food provenance (tracking where the food came from and its path from source to shelf to the customer).

Here’s how it works: With blockchain, food products can be digitally tracked from an ecosystem of suppliers to store shelves and ultimately to consumers. When applied to the food supply chain, digital product information such as farm origination details, batch numbers, factory and processing data, expiration dates, storage temperatures and shipping detail are digitally connected to food items and the information is entered into the blockchain along every step of the process. Each piece of information provides critical data points that could potentially reveal food safety issues with the product. The information captured and if there is a problem it becomes easy to track down where the process went wrong.

Furthermore, the record created by the blockchain can also help retailers better manage the shelf-life of products in individual stores, and further strengthen safeguards related to food authenticity. In short, Walmart gains better visibility into the supply chain, logistics and food safety as they create a new model for food traceability, supply chain transparency, and auditability using IBM Blockchain based on the open source Linux Foundation Hyperledger Project fabric.

Walmart adds: “As advocates of promoting greater transparency in the food system for our customers, we look forward to working with IBM and Tsinghua University to explore how this technology might be used as a more effective food traceability solution,” said Frank Yiannas, Vice President, Food Safety, Walmart.  If successful, it might get rolled out to North America and the rest of the world.

IBM is not expecting blockchain to emerge full blown overnight. As it noted in its announcement on Wed. blockchain has the potential to transform the way industries conduct business transactions. This will require a complete ecosystem of industry players working together, allowing businesses to benefit from the network effect of blockchain. To that end IBM introduced a blockchain ecosystem to help accelerate the creation of blockchain networks.

And Walmart isn’t the only early adopter of the HyperLedger and blockchain.  The financial services industry is a primary target. For example, the Bank of Tokyo-Mitsubishi UFJ (BTMU) and IBM agreed to examine the design, management and execution of contracts among business partners using blockchain. This is one of the first projects built on the Hyperledger Project fabric, an open-source blockchain platform, to use blockchain for real-life contract management on the IBM Cloud.  IBM and BTMU have built a prototype of smart contracts on a blockchain to improve the efficiency and accountability of service level agreements in multi-party business interactions.

Another financial services player, the CLS Group (CLS), a provider of risk management and operational services for the global foreign exchange (FX) market, announced its intent to release a payment netting service, CLS Netting will use blockchain for buy-side and sell-side institutions’ FX trades that are settled outside the CLS settlement service. The system will have a Hyperledger-based platform, which delivers a standardized suite of post-trade and risk mitigation services for the entire FX market.

To make blockchain easy and secure, IBM has set up a LinuxONE z System as a cloud service for organizations requiring a secure environment for blockchain networks. IBM is targeting this service to organizations in regulated industries. The service will allow companies to test and run blockchain projects that handle private data. The secure blockchain cloud environment is designed for organizations that need to prove blockchain is safe for themselves and for their trading partners, whether customers or other parties.

As blockchain gains traction and organizations begin to evaluate cloud-based production environments for their first blockchain projects, they are exploring ways to maximize the security and compliance of the technology for business-critical applications. Security is critical not just within the blockchain itself but with all the technology touching the blockchain ledger.

With advanced features that help protect data and ensure the integrity of the overall network, LinuxONE is designed to meet the stringent security requirements of the financial, health care, and government sectors while helping foster compliance. As blockchain ramps up it potentially can drive massive numbers of transactions to the z. Maybe even triggering another discount as with mobile transactions.

DancingDinosaur is Alan Radding, a veteran information technology analyst, writer, and ghost-writer. Please follow DancingDinosaur on Twitter, @mainframeblog. See more of his IT writing at technologywriter.com and here.

 

IBM Racks Up Blockchain Success

July 15, 2016

It hasn’t even been a year (Dec. 17, 2015) since IBM first publicly introduced its participation in the Linux Foundation’s newest collaborative project, Open Ledger Project, a broad-based Blockchain initiative.  And only this past April did IBM make serious noise publicly about Blockchain on the z, here. But since then IBM has been ramping up Blockchain initiatives fast.

LinuxONE rockhopper

Courtesy of IBM: LinuxONE Rockhopper

Just this week IBM made its security framework for blockchain public, first announced in April, by releasing the beta of IBM’s Blockchain Enterprise Test Network. This enables organizations to easily access a secure, partitioned blockchain network on the cloud to deploy, test, and run blockchain projects.

The IBM Blockchain Enterprise Test Network is a cloud platform built on a LinuxONE system.  Developers can now test four-node networks for transactions and validations with up to four parties.  The Network provides the next level of service for developers ready to go beyond the two-node blockchain service currently available in Bluemix for testing and simulating transactions between two parties. The Enterprise Test Network runs on LinuxONE, which IBM touts as the industry’s most secure Linux server due to the z mainframe’s Evaluation Assurance Level 5+ (EAL5+) security rating.

Also this week, Everledger, a fraud detection system for use with big data, announced it is building a business network using IBM Blockchain for their global certification system designed to track valuable items through the supply chain. Such items could be diamonds, fine art, and luxury goods.

Things continued to crank up around blockchain with IBM announcing a collaboration with the Singapore Economic Development Board (EDB) and the Monetary Authority of Singapore (MAS). With this arrangement IBM researchers will work with government, industries, and academia to develop applications and solutions based on enterprise blockchain, cyber-security, and cognitive computing technologies. The effort will draw on the expertise in the Singapore talent pool as well as that of the IBM Research network.  The Center also is expected to engage with small- and medium-sized enterprises to create new applications and grow new markets in finance and trade.

Facilitating this is the cloud. IBM expects new cloud services around blockchain will make these technologies more accessible and enable leaders from all industries to address what is already being recognized as profound and disruptive implications in finance, banking, IoT, healthcare, supply chains, manufacturing, technology, government, the legal system, and more. The hope, according to IBM, is that collaboration with the private sector and multiple government agencies within the same country will advance the use of Blockchain and cognitive technologies to improve business transactions across several different industries.

That exactly is the goal of blockchain. In a white paper from the IBM Institute of Business Value on blockchain, here, the role of blockchain is as a distributed, shared, secure ledger. These shared ledgers write business transactions as an unbreakable chain that forms a permanent record viewable by the parties in a transaction. In effect, blockchains shifts the focus from information held by an individual party to the transaction as a whole, a cross-entity history of an asset or transaction. This alone promises to reduce or even eliminate friction in the transaction while removing the need for most middlemen.

In that way, the researchers report, an enterprise, once constrained by complexity, can scale without unnecessary friction. It can integrate vertically or laterally across a network or ecosystem, or both. It can be small and transact with super efficiency. Or, it can be a coalition of individuals that come together briefly. Moreover, it can operate autonomously; as part of a self-governing, cognitive network. In effect, distributed ledgers can become the foundation of a secure distributed system of trust, a decentralized platform for massive collaboration. And through the Linux Foundation’s Open Ledger Project, blockchain remains open.

Even at this very early stage there is no shortage of takers ready to push the boundaries of this technology. For example, Crédit Mutuel Arkéa recently announced the completion of its first blockchain project to improve the bank’s ability to verify customer identity. The result is an operational permissioned blockchain network that provides a view of customer identity to enable compliance with Know Your Customer (KYC) requirements. The bank’s success demonstrated the disruptive capabilities of blockchain technology beyond common transaction-oriented use cases.

Similarly, Mizuho Financial Group and IBM announced in June a test of the potential of blockchain for use in settlements with virtual currency. Blockchain, by the way, first gained global attention with Bitcoin, an early virtual currency. By incorporating blockchain technology into settlements with virtual currency, Mizuho plans to explore how payments can be instantaneously swapped, potentially leading to new financial services based on this rapidly evolving technology. The pilot project uses the open source code IBM contributed to the Linux Foundation’s Hyperledger Project.

Cloud-based blockchain running on large LinuxONE clusters may turn out to play a big role in ensuring the success of IoT by monitoring and tracking the activity between millions of things participating in a wide range of activities. Don’t let your z data center get left out; at least make sure it can handle Linux at scale.

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.

 

IBM Puts Blockchain on the z System for a Disruptive Edge

April 22, 2016

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.

ibm-blockchain-adept1

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.

 


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