Posts Tagged ‘IBM Cloud’

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.

 

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.

 

IBM Simplifies Internet of Things with developerWorks Recipes

August 6, 2015

IBM has a penchant for working through communities going back as far as Eclipse and probably before. Last week DancingDinosaur looked at the developerWorks Open community. Now let’s look at the IBM’s developerWorks Recipes community intended to address the Internet of Things (IoT).

recipes iot sensor tag

TI SensorTag

The Recipes community  will try to help developers – from novice to experienced – quickly and easily learn how to connect IoT devices to the cloud and how to use data coming from those connected devices. For example one receipe walks you through Connecting the TI Simplelink SensorTag (pictured above) to the IBM IoT foundation service in a few simple step. By following these steps a developer, according to IBM, should be able to connect the SensorTag to the IBM quickstart cloud service in less than 3 minutes. Think of recipes as simplified development patterns—so simple that almost anyone could follow it. (Wanted to try it myself but didn’t have a tag.  Still, it looked straightfoward enough.)

IoT is growing fast. Gartner forecasts 4.9 billion connected things in use in 2015, up 30% from 2014, and will reach 25 billion by 2020. In terms of revenue, this is huge. IDC predicts the worldwide IoT market to grow from $655.8 billion in 2014 to $1.7 trillion in 2020, a compound annual growth rate (CAGR) of 16.9%. For IT people who figure out how to do this, the opportunity will be boundless. Every organization will want to connect its devices to other devices via IoT. The developerWorks Recipes community seems like a perfect way to get started.

IoT isn’t exactly new. Manufacturers have cobbled together machine-to-machine (M2M) networks Banks and retailers have assembled networks of ATMs and POS terminals. DancingDinosaur has been writing about IoT for mainframe shops for several years.  Now deveoperWorks Recipes promises a way for just about anyone to set up their own IoT easily and quickly while leveraging the cloud in the process. There is a handful of recipes now but it provides a mechanism to add recipes so expect the catalog of recipes to steadily increase. And developers are certain to take existing recipes and improvise on them.

IBM has been trying to simplify  development for cloud, mobile, IoT starting with the launch of Bluemix last year. By helping users connect their IoT devices to IBM Bluemix, which today boasts more than 100 open-source tools and services, users can then run advanced analytics, utilize machine learning, and tap into additional Bluemix services to accelerate the adoption of  IoT and more.

As easy as IBM makes IoT development sound this is a nascent effort industry wide. There is a crying need for standards at every level to facilitate the interoperability and data exchange among the many and disparate devices, networks, and applications that will make up IoT.  Multiple organizations have initiated standards efforts but it will take some time to sort it all out.

And then there is the question of security. In a widely reported experiment by Wired Magazine  hackers were able to gain control of a popular smart vehicle. Given that cars are expected to be a major medium for IoT and every manufacturer is rushing to jam as much smart componentry into their vehicles you can only hope every automaker is  scrambling for security solutions .

Home appliances represent another fat, lucrative market target for manufacturers that want to embed intelligent devices and IoT into their all products. What if hackers access your automatic garage door opener? Or worse yet, what if they turn off your coffee maker and water heater? Could you start the day without a hot shower and cup of freshly brewed coffee and still function?

Running IoT through secure clouds like the IBM Cloud is part of the solution. And industry-specific clouds intended for IoT already are being announced, much like the Internet exchanges of a decade or two ago. Still, more work needs to be done on security and interoperability standards if IoT is to work seamlessly and broadly to achieve the trillions of dollars of economic value projected for it.

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

 

 

 

 

 

 

 

 


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