Posts Tagged ‘Hyperledger’

IBM Spotlights Blockchain and Hyperledger Fabric at IBM InterCONNECT

March 23, 2017

IBM announced earlier this week Hyperledger Fabric v 1.0 beta, with security for regulated industries, governance tools, and over 1,000 transactions per second possible.  This is represents the first enterprise-ready blockchain service based on the Linux Foundation’s open source Hyperledger Fabric version 1.0. The service enables developers to quickly build and host security-rich production blockchain networks on the IBM Cloud and underpinned by IBM LinuxONE.

Maersk and IBM transform global trade with blockchain

LinuxONE, a dedicated z-based Linux system with as much security as any commercial platform is likely to have, should play a central role in blockchain networks. The machine also delivers all the itys the z is renowned for: scalability, availability, flexibility, manageability, and more.

The Linux Foundation’s open source Hyperledger Fabric v1.0 is being developed by members of the Hyperledger consortium alongside other open source blockchain technologies. The Hyperledger consortium’s Technical Steering Committee recently promoted Fabric from incubator to active state, and it is expected to be available in the coming weeks. It is designed to provide a framework for enterprise-grade blockchain networks that can transact at over 1,000 transactions per second.

Safety and security is everything with blockchain, which means blockchain networks are only as safe as the infrastructures on which they reside, hence the underpinning on LinuxONE. In addition, IBM’s High Security Business Network brings an extremely secure Linux infrastructure that, according to IBM, integrates security from the hardware up through the software stack, specifically designed for enterprise blockchains by providing:

  • Protection from insider attacks – helps safeguard entry points on the network and fight insider threats from anyone with system administrator credentials
  • The industry’s highest certified level of isolation for a commercial system- Evaluation Assurance Level certification of EAL5+ is critical in highly regulated industries such as government, financial services and healthcare, to prevent the leakage of information from one party’s environment to another
  • Secure Service Containers – to help protect code throughout the blockchain application and effectively encapsulating the blockchain into a virtual appliance, denying access even to privileged users
  • Tamper-responsive hardware security modules –to protect encrypted data for storage of cryptographic keys. These modules are certified to FIPS 140-2 Level 4, the highest level of security certification available for cryptographic modules
  • A highly auditable operating environment – comprehensive , immutable log data supports forensics, audit, and compliance

IBM also announced today the first commercially available blockchain governance tools, and new open-source developer tools that automate the steps it takes to build with the Hyperledger Fabric, reportedly speeding the process from weeks to days.

The new blockchain governance tools also make it easy to set up a blockchain network and assign roles and levels of visibility from a single dashboard. They help network members set rules, manage membership, and enforce network compliance once the network is up and running.

This seems straightforward enough. Once setup is initiated, members can determine the rules of the blockchain and share consent when new members request to join the network. In addition, the deployment tool assigns each network a Network Trust Rating of 1 to 100. New network members can view this before joining and determine whether or not they can trust the network enough to participate. Organizations can also take steps to improve their Trust Ratings before moving into production.

To make it easier for developers to translate business needs from concept to actual code, IBM Blockchain includes a new open-source developer tools for the Hyperledger Fabric called Fabric Composer. Fabric Composer promises to help users model business networks, create APIs that integrate with the blockchain network and existing systems of record, and quickly build a user interface. Fabric Composer also automates tasks that traditionally could take weeks, allowing developers to complete them in minutes instead.

IBM Blockchain for Hyperledger Fabric v1.0 is now available through a beta program on IBM Bluemix. Hyperledger Fabric also is available on Docker Hub as an IBM-certified image available for download at no cost.

At this point, IBM has over 25 publicly named Blockchain projects underway. They address everything from carbon asset management to consumer digital ID, post trade derivatives processing, last mile shipping, supply chain food safety, provenance, securities lending, and more seemingly are being added nearly weekly.

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 and Northern Trust Collaborate on Blockchain for Private Equity Markets

March 3, 2017

At a briefing for IT analysts, IBM laid out how it sees blockchain working in practice. Surprisingly, the platform for the Hyperledger effort was not x86 but LinuxONE due to its inherent security.  As the initiative grows the z-based LinuxONE can also deliver the performance, scalability, and reliability the effort eventually will need too.

IBM describes its collaboration with Northern Trust and other key stakeholders as the first commercial deployment of blockchain technology for the private equity market. Although as the private equity market stands now the infrastructure supporting private equity has seen little innovation in recent years even as investors seek greater transparency, security, and efficiency. Enter the open LinuxONE platform, the Hyperledger fabric, and Unigestion, a Geneva, Switzerland-based asset manager with $20 billion in assets under management.

IBM Chairman and CEO Ginni Rometty discusses how cognitive technology and innovations such as Watson and blockchain have the potential to radically transform the financial services industry at Sibos 2016 in Geneva, Switzerland on Weds., September 28, 2016. (Feature Photo Service)

IBM Chairman and CEO Ginni Rometty discusses  blockchain at Sibos

The new initiative, as IBM explains it, promises a new and comprehensive way to access and visualize data.  Blockchain captures and stores information about every transaction and investment as meta data. It also captures details about relevant documents and commitments. Hyperledger itself is a logging tool that creates an immutable record.

The Northern Trust effort connects business logic, legacy technology, and blockchain technology using a combination of Java/JavaScript and IBMs blockchain product. It runs on IBM Bluemix (cloud) using IBM’s Blockchain High Security Business Network. It also relies on key management to ensure record/data isolation and enforce geographic jurisdiction. In the end it facilitates managing the fund lifecycle more efficiently than the previous primarily paper-based process.

More interesting to DancingDinosaur is the selection of the z through LinuxONE and blockchain’s use of storage.  To begin with blockchain is not really a database. It is more like a log file, but even that is not quite accurate because “it is a database you play as a team sport,” explained Arijit Das, Senior Vice President, FinTech Solutions, at the analyst briefing. That means you don’t perform any of the usual database functions; no deletes or updates, just appends.

Since blockchain is an open technology, you actually could do it on any x86 Linux machine, but DancingDinosaur readers probably wouldn’t want to do that. Blockchain essentially ends up being a distributed group activity and LinuxONE is unusually well optimized for the necessary security. It also brings scalability, reliability, and high performance along with the rock-solid security of the latest mainframe. In general LinuxONE can handle 8000 virtual servers in a single system and tens of thousands of containers. Try doing that with an x86 machine or even dozens.   You can read more on LinuxONE that DancingDinosaur wrote when it was introduced here and here.

But you won’t need near that scalability with the private equity application, at least at first. Blockchain gets more interesting when you think about storage. Blockchain has the potential to generate massive numbers of files fast, but that will only happen when it is part of, say, a supply chain with hundreds, or more likely, thousands of participating nodes on the chain and those nodes are very active. More likely for private equity trading, certainly at the start, blockchain will handle gigabytes of data and maybe only megabytes at first. This is not going to generate much revenue for IBM storage. A little bit of flash could probably do the trick.

Today, current legal and administrative processes that support private equity are time consuming and expensive, according to Peter Cherecwich, president of Corporate & Institutional Services at Northern Trust. They lack transparency while inefficient market practices leads to lengthy, duplicative and fragmented investment and administration processes. Northern Trust’s solution based on blockchain and Hyperledger, however, promises to deliver a significantly enhanced and efficient approach to private equity administration.

Just don’t expect to see overnight results. In fact, you can expect more inefficiency since the new blockchain/Hyperledger-based system is running in parallel with the disjointed manual processes. Previous legacy systems remain; they are not yet being replaced. Still, IBM insists that blockchain is an ideal technology to bring innovation to the private equity market, allowing Northern Trust to improve traditional business processes at each stage to deliver greater transparency and efficiency. Guess we’ll just have to wait and watch.

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.

 


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