Discussion

Professor Michael Solomon

BLCN 532 Blockchain development

Chapter 1

Chapter 1

• Blockchain – Enterprise and Industry Perspective

• Definition

• Building solutions

• Blockchain applications

• Enterprise design principles

• Business considerations

What is a blockchain?

Immutable ledger for recording transactions

• Distributed network

• Untrusting peers

Public blockchain (permissionless)

• Anyone can access without first getting permission

Private blockchain (permissioned)

• Owner permission required before access

Blockchain basics

• Consensus protocol • Proof of Work (PoW) is

popular

Public blockchain

• Access restricted based on identity

Private blockchain

• Mandatory execution of programmable logic

Smart contract

Comparing blockchain to centralized

Core building blocks

• Shared ledger

• Cryptography

• Smart contracts

• Trust system

Fundamentals of secure transactions

Blockchain use cases

Good fit for

blockchain

• Applications that:

• adhere to trade, truest, and ownership

• fundamentally transactional in nature

• Business networks that are comprised of non- monopolistic participants

Enterprise considerations

Transaction requirements

• Ability to verifiably transfer item of value

Trade

• Assurance of any asset’s owner • At a point in time

Ownership

• Agreement that transactions are valid

• Persistent integrity

Trust

Blockchain technology

Trust system

• Consensus

• Mining

• Public ledger

Private communication on open network

• Cryptography and encryption

Non-repudiation

• Identity and transparency

Blockchain Business Drivers

Consensus models

Control and governance

Digital asset generation

Authority for issuance

Security considerations

Blockchain Design Principles

Principles for

adoption

• How well does the solution map to, and support, business activities?

Business blueprint

• Does the technology provide the utility required to run the business?

Technology blueprint

• Does the proposed solution integrate with legacy and external systems?

Enterprise integration

Summary

• Adopting blockchain technology requires balance

• Legacy processes must not be disrupted

• May encounter additional regulatory obstacles

• Disruption can be good, but not always comfortable