Blockchain would be the future trend. The critical milestone would be the enterprise applications such as fintech, IoT, supply chain, vendor, and etc.

1. Blockchain Applications in Enterprises
LightBlue Chang
https://www.lightblue.asia/about/

2. ● Let’s Start From a Survey...
● Blockchain Essential
○ Block and Chain
○ Consensus Mechanism
○ Smart Contract
● Ethereum and Hyperledger Fabric Offerings
● Challenges
Agenda

3. How Enterprises Think About Blockchain?

4. 2018 PWC China Blockchain Survey
* https://www.pwccn.com/en/risk-assurance/2018-china-blockchain-survery-report-en.pdf

5. 2018 PWC China Blockchain Survey

7. Blockchain Essential - Technical Aspect
▶ Distributed ledger managed by peer-to-peer network
▶ Actually a distributed database
▶ Inspired by cryptography and distributed computing
▶ Key features
▶ Decentralize
▶ Indelible
▶ Trackable
▶ Anonymous

8. Blockchain Essential - Economic Aspect
▶ Blockchain provides solution for low cost trust network
▶ Consensus decides value
▶ Users compete for right to record block on ledger
▶ Token (bitcoin) is the reward
▶ Targeting self-sustainable network

9. Blockchain Essential - Hash and Block
▶ Hash = func(Nonce, Data)
▶ Targeting 4 leading zeros

10. Blockchain Essential - Hash and Block
▶ Little changes result in huge differentiate

11. Blockchain Essential - Mining
▶ Change Nonce brutely
until we get 4 leading
zeros
▶ Difficulty is time-variant
Get 4 leading zeros again!

12. Blockchain Essential - Block and Chain

13. Blockchain Essential - Cost of falsifying blocks

14. Bitcoin Network Status
* http://bitcoin.sipa.be/

15. Kinds of Blockchain
* https://www.slideshare.net/nuricankaya/blockchain-on-azure-and-use-cases

16. Consensus Mechanism
Proof of work
A miner solves the computation
problem and broadcast the
answers across the blockchain.
Other miners verify the answers
and achieve the consensus.
POW
Advantage
● Easy to implement
Disadvantage
● Consume huge power
● Hard to shorten confirmation
time
● Easy to produce fork
Proof of stake
The ones who own more stake
have higher opportunity to create
next block.
POS
Advantage
● Low power consumption
● Stakeholders tend to protect
the game rules
Disadvantage
● Stakeholders may not want to
handle the ledgers
Practical byzantine fault tolerance
PBFT
Advantage
● Low power consumption
● Faster consensus
● Hard to fork
Disadvantage
● System failure when more than
1/3 nodes are down
PBFT is supported by mathematical
models. It is usually used on
consortium blockchain because it has
no way to prevent from forging fake
nodes

17. Smart Contract on Ethereum
DApp
* https://smart-lab.ru/blog/419495.php

18. Smart Contract - Compare DAPP with Web APP
Tools Computing Interface Database Storage
Browser Server HTTP API
RDBMS /
NoSQL
Server or CDN
Wallet
Browser
P2P network
Smart Contract
ABI (Application
Binary Interface)
Distributed in
blockchain
Referenced
distributed
storage
(e.g. IPFS)
Web APP
DAPP

19. Smart Contract - Oracle
▶ The connections between blockchain and real world
▶ Truth is subjective, oracles delegate subjectivity
* https://smartcontract.com

20. Smart Contract - What Is “Truth”?
▶ Depends on other
centralized system
▶ Law of large number
ill-managed official site

22. Enterprise Blockchain Ecosystem
Ethereum Enterprise Alliance Hyperledger

23. Hyperledger Fabric Architecture
* https://www.skcript.com/svr/understanding-hyperledger-fabric-s-architecture/
▶ Modular
▶ Scalable
▶ Secure

24. Hyperledger Fabric Model
* https://www.trustnodes.com/2017/07/26/race-ethereum-hyperledger-continues-10-new-members-added

26. Negative Checklist for Enterprise’s Blockchain Adoption
Your partners will spend high cost for
using blockchain03
● Blockchain ensures security but no privacy
● Currently no good solutions for off-chain
communication
Your business works well on classic
databases02
● Blockchain only provides eventual consistency
● Block size is limited
● Not efficient way to trace back arbitrary block
Your business needs centralized
authority processes01
● Blockchain works better when there are multiple
independent subjects
● Hard to implement complex business logic

27. Challenges - Blockchain TPS is Extremely Low
* https://usa.visa.com/dam/VCOM/download/corporate/media/visanet-technology/aboutvisafactsheet.pdf
* https://www.iota.org
▶ Possible Solutions: side chains(lightening network), sharding, and DAG

28. Challenges - GDPR
▶ The indelible nature of blockchain means it’s no way to “remove” user data
entirely
▶ Store personal data on manageable side-chain
▶ How to protect privacy in smart contract?
▶ Public Key Infrastructure
▶ Zero Knowledge Proofs
▶ Blockchain security, speed, and privacy are usually paradox

29. Summary
▶ Blockchain generations
▶ 1.0: Cryptocurrency (Bitcoin)
▶ 2.0: Smart contract (Ethereum, Hyperledger)
▶ 3.0: Chain of value (IOTA?)
▶ Does your enterprise really need blockchain?
▶ Depends on industry, business, and lawfulness
▶ Consortium blockchain is better for B2B
▶ Use BaaS (Blockchain as a service) may be practical of PoC