The document discusses Amazon Managed Blockchain, a fully managed service that makes it easy to create and manage scalable blockchain networks using popular open source frameworks like Hyperledger Fabric and Ethereum. It introduces blockchain concepts and components. It then explains how Amazon Managed Blockchain works, including how to create networks, its pricing model, and security features. The document also provides an overview of how transactions flow in Hyperledger Fabric.

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Deep Dive on
Amazon Managed Blockchain
Jonathan Fritz
Amazon Managed Blockchain
jonfritz@amazon.com

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Agenda
What is blockchain?
Introducing Amazon Managed Blockchain
Hyperledger Fabric – a deeper look
Demo

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Customer problems with complex business networks
• Many existing business networks rely on central authorities, which can
be inefficient, expensive, and requires time-consuming auditing
• A consortium could achieve better outcomes by sharing information,
but cannot agree on how data can be securely and fairly shared
• Multiple organizations need to independently verify transaction
history and need a single, up to date, accurate view of data
• Business logic among multiple organizations could be simplified
through automation
• Asset transfers require an expensive and inefficient escrow
• A public network needs a way to maintain a tamper-proof history of
transactions and global state

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Blockchain builds trust in a network
• Eliminates the need for central authority in business networks
• Three main components: distributed ledger, consensus
mechanism, and “smart contract” execution environment

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Blockchain components: ledger database
The journal records an immutable log of all transactions and is
maintained by nodes in the blockchain network
Block 59
Transaction
Previous Block Hash:
0000d68b2f0a3b
Timestamp
Block 60
Transaction
Previous Block Hash:
000057ec2fda71
Block Hash:
000087ea2ffe94
Timestamp
Transaction
Block 61
Previous Block Hash:
000087ea2ffe94
Block Hash:
000044bf2efe32
Timestamp
Transaction
Transaction
Transaction
Block Hash:
000057ec2fda71

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Blockchain components: ledger database
C | H
J Journal
C | H Current | History
Current | History
Journal
Ledger comprises
J
L
Ledger databaseL
Journal determines Current | History

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Blockchain components: consensus mechanism
Some important attributes: Byzantine fault tolerance, transaction
rate, energy consumption, hardware requirements, and security

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Blockchain components: “smart contracts”
• Rules embedded in dApp
• Verified execution of code
• Conditional operators
• Application writes to ledger
• Contract can interact with
components outside of the
blockchain network (off-chain)

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Public and permissioned networks
Public networks allow anyone to
participate in the network. Members are
incentivized to maintain the network.
Permissioned networks limit the
members to known entities.

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Customers are experimenting in many industries
Proof of Ownership
Digital Security Trading
Documents/Contracts
Enterprise Platforms
Financial
Insurance
Mortgage Loans
Voting Mechanisms
Patient Records
Corporate Governance
HCLS
Real Estate
Legal
Agriculture
Gaming
M & E
Transportation
Digital Advertising
Power/Utilities
Retail
Capital Markets
Cloud
OWNERSHIPPRIVATE MARKETS
DERIVATIVES
WAGERS
GLOBAL PAYMENTS
REMITTANCE
NOTARISATION
EQUITY
MICROFINANCE
INTELLECTUAL PROPERTY
TITLE RECORD
ESCROW
DIGITAL RIGHTS
E-COMMERCE
DEBT
CROWDFUNDING
P2P LENDING
HEALTHCARE
VOTING
TRUSTEES
SMART
CONTRACTS
DIGITAL
CURRENCY
SECURITIES
RECORD
KEEPING
BLOCKCHAIN
TECHNOLOGY

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Blockchain in supply chain
• Each organization has a
trusted copy of the supply
chain data
• Payments can be
automated through smart
contracts
• Identity of components are
immutably tracked as they
move through the supply
chain
• Quality of products can be
monitored and
immediately acted on

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Blockchain in financial services

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Difficult to create blockchain networks
• Provisioning hardware
• Complex to configure software and networking
• Need to secure certificates and access control
• Monitoring and management of complex systems
• Adding and removing members
• Governing the network
• Scaling performance as the transaction rate grows

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What is Amazon Managed Blockchain?
Amazon Managed Blockchain is a fully managed service that
makes it easy to create and manage scalable blockchain networks
using popular open source frameworks:
Hyperledger Fabric and Ethereum

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Amazon Managed Blockchain features
Low cost
Only pay for resources used
Open-source variety
Support for two frameworks
Integrated
Send data to Amazon QLDB
for secure analytics
Fully managed
Create a blockchain network in minutes
Reliable & scalable
Backed with Amazon QLDB technology
Decentralized
Democratically govern the network

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Hyperledger Fabric
• Create permissioned networks with
channels to limit the transactions on
the ledger each member can see
• Chaincode (smart contracts) written
in Go and are executed in Docker
containers
• Validation policy for executing
chaincode is configurable
• Does not require a native
cryptocurrency for chaincode
execution

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Ethereum
• Create smart contracts using the
Solidity language that run across
nodes in the network
• Very scalable
• Create permissioned networks or use
public Ethereum network
• Configured to use Proof-of-Work
consensus algorithm for public
network and Proof-of-Authority for
private networks
• Anyone who can access the network
can see all data on the ledger

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Create a network

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Network 1 – Managed Blockchain
VPC endpoint
VPC endpoint
Account A
Account B

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Who ”owns” the network?
• Networks are decentralized and can remain active even after
the initial creator leaves
• Inviting members to join
• Preview: network creator can invite
• GA: members vote on who to invite and remove
• Network-wide settings
• GA: members can vote on network-wide settings and configure the actual
voting rules (e.g. majority rules or one member decides)
• Each member pays for their resources
• Amazon Managed Blockchain manages shared components like
the ordering service and networking settings

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Pricing dimensions
• Pay-as-you-go with no
upfront costs
• Hourly rates billed per-second
• Each member pays for their
own resources and the data it
writes to the network
• VPC endpoints created to
access resource endpoints are
billed separately
• Standard data transfer rates

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Starter Edition and Standard Edition
Starter Edition
- Test and small production networks
- Up to 5 members/network
- Up to 2 peer nodes/member
- bc.t3.small and bc.t3.medium
- 1 TiB maximum/peer node
- Ordering service provisioned has lower
transaction throughput and availability
than that in a Standard Edition network
Membership pricing rate is different for each edition
Standard Edition
- Production networks
- Up to 30 members/network
- Up to 10 peer nodes/member
- bc.t3, bc.m5, and bc.c5 instance families
- 15 TiB maximum/peer node
- Ordering service provisioned has higher
transaction throughput and availability
than that in a Starter Edition network

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Transaction flow with Hyperledger Fabric

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Augmented Hyperledger Fabric
• Ordering service
• Core component of a Fabric network to guarantee delivery and order of
transactions
• Production grade networks using open source will utilize Apache Kafka for this
component
• Managed Blockchain uses Amazon QLDB technology, increasing durability and
reliability
• Certificate authority (CA)
• Open source uses a “soft” HSM
• Managed Blockchain uses AWS Key Management Service (KMS) to secure the
CA service

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Chaincode basics
• Code executed on the network, and can query and update ledger
• Fabric supports chaincode in three languages:
• Chaincode execute within a docker container on peer nodes
• Chaincode has two operations in its interface:
• Init() – Initializes the chaincode with parameters
• Invoke() – Invokes the chaincode with parameters

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Peer nodes
• Stores a copy of the ledger database
• Executes chaincode and endorses transactions
• Validates transactions before the final commit to ledger

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Channels for access control
Member 1 Member 2 Member 3
Channel 2
Ledger
Channel 1
Ledger
Channel 2Channel 1
Member 2
Peer
Member 3
Peer
Member 1
Peer

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Endorsement policies
Member 1
client
Member 1
Peer
Member 2
Peer
Ledger Ledger

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Managed Blockchain preview information
Hyperledger Fabric available now, Ethereum coming soon.
Resource limits
- 1 network per account with up to 6 channels per network
- 5 members per network (any given account can own 3)
- 1 peer per member, with bc.t3.small instance type available
- 30 GiB maximum storage peer node storage
Adding members
- Network creator can add accounts
Additional features will be added during the preview. Please check the preview notes for
known issues and updates. Amazon Managed Blockchain is not billing during preview.

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Amazon Managed Blockchain resources
• Preview signup: https://pages.awscloud.com/AmazonManagedBlockchain-
preview.html
• Webpage: https://aws.amazon.com/managed-blockchain/
• Getting Started: https://docs.aws.amazon.com/managed-
blockchain/latest/managementguide/managed-blockchain-get-started-
tutorial.html
• FAQs: https://aws.amazon.com/managed-blockchain/faqs
• Documentation: https://docs.aws.amazon.com/managed-blockchain
• Pricing: https://aws.amazon.com/managed-blockchain/pricing
• Hyperledger Fabric documentation: https://hyperledger-
fabric.readthedocs.io/en/release-1.2/

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Join our preview

36. Thank you!
© 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved.
Jonathan Fritz
jonfritz@amazon.com
amazon-managed-blockchain-help@amazon.com