In this session we have discussed some block chain real world use cases, different block-chain network and demo to setup hyper-ledger fabric network on Azure VM and installing chain code on peers.

1. 2
Mohammad Asif Waquar
Senior Software Engineer
atABNAMRO Bank
@asifwaquar
BlockchainArchitecture&UseCase–Part-2

2. 2
about me
Senior Software Engineer at ABN AMRO
https://www.linkedin.com/in/mohammad-asif-6a6153111/

3. RoadMap
o Part-1 -Blockchain Introduction & Architecture on Azure.
o Part-2 -FabricArchitecture & Installation on Azure
o Part-3 - Block chain Hyper ledger deployment on Azure WorkBench
o Part-4 - CordaArchitecture & Deployment on Azure.
o Part-5 - Cordaworkflow & Swift paymentintegration.
o Part-6 - Blockchain with Ethereum & Quorum and deploying in DAPPSAzure.
o Part-7 - Handling Media & Documents in BlockChain
o Part-8 - Security in Blockchain.
o Part-9 - Block chain with IOT.
o Part-10 - Handson Workshop on Blockchain.

4. Today’sAgenda
o Recap part-1
o Blockchain use case for International Trade
o SingleVMandMultiVMArchitecture
o Demo of Fabric & chaincode Intsalltion

5. Recap –Part-1

6. How Blockchain Works ?

15. Hyperledger Fabric Architecture
Orderer
• Consensus
verification
• CreatesBlocks
CA
• Registration
ofidentities
• Manage
Certificates
Peer
• EndorsesTx
• SimulatesTx
• CommitsTx
3ComponentsofFabric
Ledger
Blockchain & WorldState
• createCar
• queryAllCars
• queryCarProperties
• changeCarColor
• changeCarOwner
• EndorsementPolicies
• Assets:Anythingthat’s
valuablefor theOrganization
• Transactions(Statechangesof
Assets)
• GossipProtocol: Theglue
that keepsthepeersin
healthystate.
Allthesecomponentscanbeclusteredfor scalabilityandto avoidSinglePointofFailure
Channels SmartContract OtherConcepts
• Private subnetfor a
set of parties based
on Smartcontract
• Ledger/Channel
• Peerscanhave
multipleChannels
• PrivateData
1
2

16. Blockchain Usecase for
International Trade

17. Compliance (KYC,AML)
Problems & deficiencies
✓ Work done in collecting KYC information unnecessary replicated by multiple institution .
✓ Isolated view of customer and their transaction insufficient to detect money laundering.
✓ Uncertainty in knowing if implemented practices are sufficient (over stringent policy hurtful for
business.)
✓ AMLprocess are too fragmented and dependent on subjective human decision.

18. Know your customer(KYC)

19. Know your customer(KYC)

20. Overview of International Trade
Inefficiencies
• 12 parties
• 27documents
• Lowautomation
Risks
• Currencyfluctuation
• Non-completion
Result
• Financing isexpensive
• SMEs lockedout
3

21. Blockchain Enabled Future State
No Reconciliation or Manual ValidationRequired
Ledger nodes replicated with identical content via distributedconsensus
Enhanced Trust through
Smart Contracts
E2E Real-time
Visibility
DocumentAccess
Participant
access based on
permissions
(Blockchain node)
Address
Complianceand
Fraud
Document state
and origin known
at all times
(Blockchain
content)
$14T+ in global
trade is financed
Upto 3 weeks
for documents
to be verified
$37.6B potential
cost saving by
eliminating paper

22. Single VM & Multi VM Network

23. Organisation

24. Nodes & Roles
Committing Peer: Maintains ledger and state. Commits transactions.May
hold smart contract(chaincode).
Endorsing Peer: Specialized committing peer that receives a transaction
proposal for endorsement, responds granting or denying endorsement.
Must hold smartcontract
OrderingNode: Approvesthe inclusion of transaction blocksinto the ledger
and communicates with committing and endorsing peer nodes. Doesnot
hold smart contract. Doesnot holdledger.
Consensus is achieved using the following transaction flow:
Endorse Order Validate

25. Ordering Service & Channel
Theordering service packagestransactions into blocks to be delivered to
peers. Communication with the service is viachannels.
Different configuration options for the ordering service
include:
– SOLO
• Singlenode for development
– Kafka: Crashfault tolerantconsensus
• 3 nodesminimum
• Odd number of nodesrecommended
O O
O O
Ordering-Service
Channelsprovide privacy between differentledgers
– Ledgersexist in the scopeofachannel
• Channels canbe shared acrossan entire network ofpeers
• Channels canbe permissioned for aspecific set of participants
– Chaincodeis installed on peers to accesstheworldstate
– Chaincodeis instantiated onspecific
– Peerscanparticipate in multiplechannels
– Concurrent execution for performanceand scalability
E0
E1
O O
O O
Ordering-Service

26. Single Channel Network
• All peers connect to thesamesystem
channel (blue).
• All peers have the samechaincodeand
maintain the sameledger
• Endorsement by peers E E E andE0, 1, 2 3
Key:
E1
Client
Application
S
D
K
Hyperledger FabricNetwork
P
B
A
B
E2
A
B
E3
A
B
E0
A
Endorser Ledger
Committing Peer Application
Ordering Node
SmartContract
(Chaincode)
Endorsement
Policy
O O
O O
Ordering-Service

27. Multi-Channel Network
• PeersE0and E3connect to the red
channel for chaincodesYandZ
• PeersE1and E2connect to the blue
channel for chaincodesAandB
Key:
E2
Hyperledger FabricNetwork
P
Y
Z
A
B
A
B
E3
Y
Z
E0
P
E1 Endorser Ledger
Committing Peer Application
Ordering Node
SmartContract
(Chaincode)
Endorsement
Policy
Client
Application
S
D
K
Client
Application
S
D
K
O O
O O
Ordering-Service

28. Consortium Network
Example of consortium network of 3 organisations
Org 1 and Org 3 run peers
Org 2 provide ordering service only.

29. Demo

30. Step1/3-Configure ordering service and setup peer nodes

31. Generating Configuration & Certs

32. Peer nodes starting

33. Step 2/3-Create and Join Channel

34. Creating & Joining Channel

35. Step 3/3-Instantiate chaincode in channel.
An Endorsement policy is applied once chain code is instantiated.

36. Step 3/3-Instantiate chaincode in channel.
An Endorsement policy is applied once chain code is instantiated.

37. Endorsement policy
An Endorsement policy describes the condition by which transaction can be endorsed.

38. Endorsement policy examples

39. Fabric Installation steps
https://github.com/asifwaquar/blockchain-architecture/blob/master/README.md
https://asifwaquar.blogspot.com/
Github Repo:
Blog:

40. Questions?
12

41. ThankYou
12