Enterprise Adoption of Blockchainseattleblockchaintraining.com/reference/OracleBlockchain... · 2018-09-08 · Copyright © 2018, Oracle and/or its affiliates. All rights reserved

Copyright © 2018, Oracle and/or its affiliates. All rights reserved.

Enterprise Adoption of Blockchain

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Mark RakhmilevichSenior DirectorBlockchain Product Management Oracle

www.linkedin.com/in/markrakhmilevich/

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. |

Safe Harbor Statement

The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

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Copyright © 2018, Oracle and/or its affiliates. All rights reserved. 4

The Promise of Blockchain

"The technology most likely to change the next decade of business is not the social web, big data, the cloud, robotics, or even artificial intelligence. It’s the blockchain...“

—Harvard Business Review"The Impact of Blockchain Goes Beyond Financial Services"


Where’s the Money?$2.1 billion: Global spending on blockchain solutions in 2018

42.8%: The expansion of the blockchain space every year to 2022

3x: The number of blockchain-related LinkedIn job postings more than tripled over the last year.

22%: of industry CIOs are in a planning stage or experimenting with blockchain, and another 43% have it on their radar but have not initiated plans

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | 6

Sample of Our Customer & Partner Initiatives

Financial Services

• Intra-Bank Cross Border Payments/Remittances

• Inter-Bank National Payments

• Brokerage funds transfer

• Corporate B2B Payments

• Bank Guarantee

• Supplier / Vendor Finance

• Invoice Factoring

• Full Trade Lifecycle Mgmt

• Securitization

• Customer onboarding/KYC

• Lending/Credit Advance

• Loyalty points networks

Supply Chain

•Genealogy and traceability of parts, components, ingredients

•Maintenance parts tracking in multi-layered distribution

•Parts & maintenance tracking for aircraft & other regulated assets

•Farm-to-table food provenance

•Country of origin traceability

•Electronic compliance records

•Quality control records

•Tamper-proof IoT sensor data, non-repudiation of monitored activities

Public Sector

• Government records (titles, birth certificates, licenses, etc.) sharing

• Customs (import/export licensing, excise taxes)

• Regulatory certifications (food, pharma, etc.)

• Procurement/Acquisitions

• Citizen services, e.g., benefits, multi-agency programs

• Digital Employee Records

• Digital Identity and Identity Proofing

Healthcare

• Electronic Health Records

• Service provider credential management

• Revenue cycle – claims adjudication, disputes

• Clinical Tamper-proof IoT sensor data, non-repudiation of monitored activities, trials

• Anti-counterfeit track & trace for drugs

• Cold chain track & trace

• Integration with IoT devices monitoring health or equipment


What You Can Use Blockchain For?

Enable distributed, autonomous marketplaces

Securely maintain and share decentralized records

Reduce friction in business transactions and reconciliations

Track the provenance of products and materials

Single source of Truth

Trusted transactions

Near-real time data sharing

Immutable ledger store

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Hyperledger Fabric – Key AdvantagesBlockchain for Business

• Permissioned– Identity management and enrollment

through Membership Services Providers

• Programmable – System chaincode defines operations

rules and manages policies, deploys application chaincode

– Application chaincode for running smart contracts

• Scalable– Separates smart contract execution

(endorsement) from consensus (ordering)

– Enables partitioning of chaincodes between validating nodes (peers) and channels (subnets)

• Confidential/Private– Channels enable segregation of nodes

and ledgers into subnets

– Private transactions between specific channel members

– Access control mechanisms

• Modular/Extensible– Allows pluggable CA, consensus, ledger

store

– Pluggable endorsement policies


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Hyperledger Fabric Component Architecture • MSP (Membership Services Provider)

– Enrolls member organizations– Issues & validates X509 enrollment certificates for enrollment, used for identity validation

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• Peer Nodes 1. Committer - Maintains ledger (blocks) and world state

– Validates transactions in blocks and appends them to the ledger

2. Committer and Endorser– Executes application chaincode & signs results– Validates transactions in blocks and

appends them to the ledger

• Orderers/Ordering Service– Cluster of orderers– Orders transactions into batches

and delivers to committing peers

• Client – Submits transactions and queries– Collects endorsements and sends to ordering service– Listens for and consumes events

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. 10Copyright © 2017, Oracle and/or its affiliates. All rights reserved. 10

Hyperledger Fabric Network

Validating Nodes / Peers

Ordering Service

Smart Contract/ Chaincode

Ledger (World State)

Membership Service

Peer Node

Smart Contract

Ordering Service

Distributed Ledger

Membership Service

Smart Contract

Peer NodeUsers and

ApplicationsUsers and ApplicationsApplications

(SDK based)


Industrialized, Hardened Enterprise Blockchain Platform

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Infrastructure and PaaS ServicesManaged HA VMs, Isolated Containers, Kafka Service,

Identity CS (identity and key mgmt), Management Service

Hyperledger Fabric Blockchain Nodes & ContainersPeer Nodes, Smart Contract Containers, Membership Services, Ordering Service

REST Proxy Synchronous & Asynchronous

Integration APIs

Data ServicesObject Store CS

AdministrationDynamic Configuration,

Monitoring and Troubleshooting

Pre-assembled Managed service Production-ready Public or private cloud

On PremisesPaaS

SaaS

Oracle Cloud Infrastructure (OCI)

REST

gRPCREST

gRPC

*

*coming soon


Business ValueDrivers and ROI Vectors

“Blockchain technology is coming to change all sorts of industries …

It'll be the supply chain teams who are the fastest to react who will be able to reap the rewards, enjoying a boost in performance that's comparable to the change from hand-written paperwork to

electronic databases. Inc Magazine, May 2018


Enterprises Adopting Blockchain


GA Announced July 16

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Multi-brand loyalty network

E-COMMERCE

Maritime shipping documentation

LOGISTICS

CORP. FINANCE & FINANCIAL SERVICES

Excise Licensing and Taxes

IMPORT/EXPORT

Solar Energy Project Tracking & Rewards Solution

PROJECT MANAGEMENT

Food Provenance & Quality Tracking

SUPPLY CHAIN

Bank Guarantee

Funds Transfer

Sample of ISVs adopting OABCS

PHARMACEUTICALS Anti-counterfeit drugs tracking


Banks: Cross Border Funds Transfer Among Subsidiaries

• A large bank with multiple regional subsidiaries

• Current cross-border transfers between the subsidiaries use SWIFT services, which

– Are not real-time and require too many manual interventions

– Charge fees and other expenses

• Blockchain benefits

– Smart contracts enable automated transfers based on rules

– Real-time handling of transfers

– Integrated audit trail of transfer requests and confirmations, available to clients through mobile and Internet banking interfaces

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Corp. Finance/Procurement: BG Preparation and Issuance• Current Bank Guarantee process is paper based and manual

• Beneficiary is dependent on the Vendor for interactions with the Banks

• Significant manual effort, cost, and delays

– Lack of transparency between all parties leads to discrepancies

– Potential tampering requires extra verification

– Lack of tracking complicates amending or invoking


Bank Guarantee on Blockchain

BanksVendors

• Current Bank Guarantee process is paper based and manual



Beneficiary

Blockchain to streamline Bank Guarantee process

• Trusted network for authorized transactions

• Direct interactions

• Verification of the Digital BG

• Irrefutable BG records

• Real-time status visibility

• Reduced manual effort


Flexible, Global Deployments

BanksVendors

• Current Bank Guarantee process is paper based and manual



Beneficiary

Dubai

Europe

China

India

US

Benefits

• Global deployment across multiple Oracle Cloud regions and datacenters

• Customer datacenter deployment using Oracle Cloud@Customer

• Able to integrate with open source Hyperledger Fabric deployments on premises and 3rd party cloud

On-premises or 3rd party cloud


Banks: Global Loyalty Network (GLN)

Enhance Customer Experience• Can use your country points in other countries.• Typical use cases – payments, offline/online

shopping, remittance• No complex transfers that take weeks or months to

complete

Increase Operational Excellence• All participating companies simultaneously store

identical transaction data -> enables accurate settlement without additional reconciliations

Create Business Value• Good way to consume debt• New business model based on exchange of digital

currencies between global financial institutions• Your customers My customers Our customers

Bank-anchored global integrated platform that offers cross-border use of loyalty points and benefits around the world

BENEFITS


E-Commerce: Mileage Exchange Platform

Enhance Customer Experiences

Create Business Value

Increase Operational Excellence

Using Blockchain, all participants simultaneously manage identical transaction data for mileage status, mileage history per customer without additional reconciliation.

Can swap your transportation mileage for commercial loyalty points.

• For transportation company Debt to revenue

• For operating company, new business model based on exchange of different loyalty programs

Providing global integrated mileage platform that converts insufficient transportation mileage into new opportunities.

Mileage

Points

ICO tokenTransportation

Companies

RetailCompanies

Integrated Mileage Blockchain Platform


Single Inventory Ledger between the Distributor/Wholesaler and the Supplier

• Settling the ship and debit claims

• Unique Customer Reference Number tracking for inventory

• Chain of custody – including country of origin

• Fee for service models - end to end traceability/visibility for the supply chain owner

• Supply Chain as a service

• Eventual Replacement for B2B/EDI

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Distributor/Wholesaler


Logistics: Maritime Shipping Documentation

Current Issues• Poor Tracking

• Lack of Transparency and Trust

• Delayed Documentation & Disputes

• Detention & Demurrage Fees

Emerging Consortium of Ocean Carriers and Other Participants• Traceable documents• Tamper-proof Audit trail• Context-based documentation with

validation and collaboration

Benefits• Bring visibility to increase trust and simplify

tracking• Reduce disputes about various fees• Simplify and accelerate BL updates, increase

freight bill accuracy• Reduce detention and demurrage times &

costs with accurate doc• Reduce ship inspections and turnaround

times, time to clear customsSaving industry participants millions of dollars


Supply Chain: Food Provenance & Quality Certification

System to certify the supply chain of the olive oil producer, through production, packaging and shipment phases

Increases quality control, ensures only authorized sellers & buyers, and ensures a more credible reputation for the company


Supply Chain: Food Provenance & Quality Certification

1. Product Provenance Tracking

2. Production quality & ingredients testing visibility

3. Product journey tracking (temperature, etc.)

4. Change of ownership and custody verification

5. Paperless logistics


Mfg.: Invoice Factoring in a Multi-LOB Conglomerate

Corp Finance

LOB X

LOB Y

LOB Z

Pre-defined Factoring Programs

Investor marketplace

Before Blockchain

• Internal validations• Costly and error prone

reconciliations• Manual submission to

investors• Delayed settlement

• Manual on-boarding of investors

• Limited to bigger investors• Largely a manual process• Limited liquidity

Blockchain Benefits

• Improved visibility & pool management

• No reconciliations• Automated reports• Faster settlement

• Automated on-boarding• Easier to bring on smaller

investors• Better pricing using bids• Faster settlement


Project Management & Rewards: Solar Site Design

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• NetSuite Customer since 2007

• Manages ecosystem of solar stakeholders

• Designed and implemented automated lead to cash process with NetSuite and SuiteCloud

• Needed Distributed Ledger (Blockchain) to achieve scale, track state, gamify and automate reward system for all site stakeholders

• Co-founded Energy Blockchain Network (EBN) in 2017 to achieve goals

• EBN joined SweetBridge consortium in 2018


Lead to Cash Process using Oracle’s Blockchain Solution

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Oracle Blockchain Cloud Platform


Global Trade: Customs Service Excise Licensing and Taxes

Before Blockchain

• Paper based records

• Records often lost in transit

• Complicated and error-prone reconciliation processes

• Delayed settlement

• Manual on-boarding of excise traders

• Limited scale to collect duty

• Largely a manual process

• Low transparency for government and regulatory bodies

Blockchain Benefits

• Digital immutable records

• Digital delivery of records

• No reconciliation required

• Faster settlement

• Automated on-boarding

• Scalable solution to collect duty

• Automated processes

• Greater transparency to government and regulatory bodies

Customs

Food & Drug Agency

Exporter / Importer

Standards Agencies

Moving from a paper based excise duty collection and licensing process to utilizinga blockchain network built on Oracle Autonomous Blockchain Cloud Service as the single source of truth for license issuance and excise duty payments


Government: Identity Tracking and Asylum Case Status Sharing

• A major European country handling large influx of refugees

– Identity proofing and tracking across multiple federal and state agencies

– Case status and benefits coordination across multiple agencies

• Expected blockchain benefits

– Single source of truth reconciled between multiple ministries at the federal and state level

– Better integration of benefits eligibility and access to eliminate gaps and fraud in the system

– Automatic notifications across agencies on status changes in near real-time

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Federal Agencies

State & Local Agencies, NGOs


Digital Identity for Individuals

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Identity Authority

Digital Identity

verified

A keypair for the user gets generated after identity is verified.

• A provincial government in CA is looking to establish a Digital ID program for its citizens

– Identity proofing based on mobile app

– Once verified, DID is linked to proofing documents/attestations on blockchain

• Expected outcomes

– Common Identity Proofing Across Government

– Digital credentials to access government programs and services

– Can also leverage it in commercial sector for opening bank accounts, utility registration, etc.


Digital Identity for Individuals

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Identity Verification Authority

Digitally Sign

Virtual Identity

Digital Identifier

Controlled by the real entity with proof of

ownership

The public key of the digital identity is signed by the ID Authority and recorded on the blockchain


Decentralized Identity Management / Proofing in B2B Space

• Enable enterprises to manage information about their B2B partners and their industry accreditations (ISO standards, etc.) as digital identities and attributes in a permissioned blockchain (versus in a private data store)

• Benefits

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– Turnkey Identity Management application on top of Oracle Autonomous Blockchain Cloud Service

– Permissioned application allows enterprise to invite partner communities and trust authorities to participate in the blockchain network

Large Company

– Lower costs of verifying identities of B2B partners and validating their attestations and industry accreditations– Reduces risks of breach by eliminating private data stores, thereby reducing liability– Identity Wallet for B2B partners improves their data privacy by allowing them to manage their own digital identities

and validation of accreditations – Single immutable source of truth prevents issues of data corruption, stale data and unauthorized data modifications


Anti-counterfeit Drugs Tracking in India

• Problem by the numbers:

– India accounts for 10% of WW production

– WHO estimates 20% of all drugs sold in India are fake

– As the largest producer of generic drugs in the world, India is reported to be the source of 35% of all counterfeit drugs sold worldwide

• Solution

– Track drugs from Mfg to Distribution & Retail using IOT and Blockchain

– Pilot involves premier super specialty hospital, Apollo Hospitals and a global pharma company, Strides Pharma Sciences


Real-time Patient Monitoring

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Fighting Fraud in Insurance Claims

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• Claim Details are owned by different insurance corporations

• Potential fraud cases due to duplicate claim against multiple insurance corporations

• Access to claim details is restricted and based on permission

• Automation & audit


Pilot Projects on Oracle Blockchain in EA/Beta ProgramsGeo Vertical Customer/Partner Use Case

NA Manufacturing Multi-national Conglomerate Invoice Factoring and inter-company billing

NA Banking Tier I Bank Corporate & Institutional Customer Onboarding

EMEA Banking Regional Bank Cross-Country Payments Among Subsidiaries

EMEA ISV/FSI ISV in Receivables Financing Invoice Factoring and Receivables Financing

NA Supply Chain SI Regional SI & Farming Coop Food Provenance Tracking

LAD Supply Chain Logistics Service Provider Logistics/TMS Track & Trace

APAC Supply Chain Container Shipper Maritime Shipping Reputation Net

EMEA PS/Federal Government Ministry Identity Management and Asylum Process Tracking

APAC PS & Banking Customs in Asia Multi-Bank Trade Finance Application

EMEA PS & Supply Chain Customs in Africa Excise Automation

EMEA PS & Banking Customs in the Middle East Export Fraud Prevention

APAC Banking Large National Bank Merchant Payment Transaction Reconciliation

APAC Supply Chain/FSI Large Oil & Gas Co. Issuance of Bank Guarantees

EMEA Banking Major European Banking Group Intercompany Financials Reconciliation

APAC Banking Korean Financial Group Global Loyalty Network

NA Banking Coalition of Leading Banks Multi-Bank Trade Finance Info Exchange Hub

LAD PS/Banking Tax Authority Handling B2B Invoices Invoice Factoring Marketplace

APAC FSI Fintech Multi-brand loyalty for turning miles into shopping credits

NA PS ISV & Provincial Government Digital Identity Program for Common Identity Proofing

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Key Requirementsand Solutions


• Fast to provision

• Easy to configure changes

• Quick to onboard new members

• Fast to develop & test smart contracts and integrate applications

• Performance and scalability

• HA and operational resilience

• Security and confidentiality

• Plug-n-Play enterprise integration

• Supportability and management

• Policy-based governance

Enterprise Demands from Blockchain Platforms

Rapid Experimentation Production-Ready

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Copyright © 2018, Oracle and/or its affiliates. All rights reserved. |Copyright © 2018, Oracle and/or its affiliates. All rights reserved. |

Oracle Blockchain StrategySecurely, reliably extend business processes and accelerate B2B transactions

PRE-ASSEMBLED, ENTERPRISE-GRADE MANAGED PAAS• Rapid, global provisioning & simplified operations• Secure and confidential permissioned blockchain• Built-in monitoring, IdM, HA, autonomous recovery

EXTENDS ENTERPRISE BOUNDARIES• Plug-n-Play integration with Oracle SaaS and PaaS,

and custom/3rd party cloud and on premises apps• Out-of-the-box API access in Netsuite ERP, Flexcube core banking,

Open Banking API Platform

SAAS BLOCKCHAIN APPLICATIONS• Supply chain track & trace use cases and more

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DISTRIBUTED LEDGER

CONSENSUS

SMART CONTRACTS

PRIVACY


Pre-Assembled

Enterprise-Grade

Autonomous

Plug and Play Integrations

Open

Oracle Autonomous Blockchain Cloud Service

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ORACLE AUTONOMOUS

BLOCKCHAIN CLOUD SERVICE

Oracle’sExperience and

Expertise+


Effort Required To Deliver Enterprise–Grade Blockchain

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Applications(Client SDK)

Validating Nodes/ Peers

Distributed Ledger (Single Version of Truth)

Smart Contract (aka Chaincode)

Membership Service

Ordering Service

Identity Management (for member enrollment)

Fault Tolerant Event Hub (for ordering event mgmt.)

Container Lifecycle Management (for system and chaincode containers)

Configuration & Monitoring Tools

Autonomous Recovery (when components fail)

Managed Patching & Upgrades

Elastic scaling on demand

Multi-datacenter DR(with backup of ledger and config info)

Bring your own…


Oracle Blockchain Cloud Platform

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Container services

Identity Management Services

Events Management Services

Data Services

ORACLE CLOUD INFRASTRUCTURE and PAAS SERVICES

ON PREMISES APPS

CONSENSUSValidates transactions before adding to chain

SMART CONTRACTSBusiness logic based on agreements

DISTRIBUTED LEDGERWhole state data and its history

CONFIDENTIALITY Permissioned blockchain with private channels

REST API / SDKs for Go, Java, and Javascript

ORACLE BLOCKCHAIN PLATFORM

Hyperledger Fabric Peers in Customer

Datacenters or 3rd Party Clouds

External Members

SCMERP HCM CX

ORACLE SAAS

CRM

OPEN SOURCE HYPERLEDGER FABRIC

3rd Party SaaS

Custom Cloud Apps

Autonomous PaaS

Industrialized, hardened blockchain cloud platform for enterprise applications

Pre-Assembled

Enterprise-Grade

Autonomous

Plug and Play Integrations

Open

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. |Copyright © 2018, Oracle and/or its affiliates. All rights reserved. |

Ease of Integration and Systems of Record Connectivity

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NEW SAAS BLOCKCHAIN APPLICATIONS

• Supply chain track & trace use cases and more

• Oracle GBU applications in selected industries

ORACLE INTEGRATION CLOUD

• Adapters for Oracle & 3rd party applications in cloud and on-prem: ERP, SCM, CX, HCM…

• Technology adapters (MFT, JMS…)

• Turn application events into REST calls to run blockchain transactions

REST API-DRIVEN INTEGRATION

• Invoke txn’s in sync & async mode

• Get txn status

• Register event callback URL

• Query ledger data

• Provisioning API

• Operations/Configuration APIs

JAVA, GO, AND NODE.JS CLIENT SDKS

• Invoke txn’s asynchronously

• Get txn status

• Query ledger data

• Subscribe to events

• Add channels/peers

• Enroll new members

Apps Apps


Delivering Enterprise Grade Capabilities

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Performance at ScaleParallel executionElastic scale-outMuch faster world-state DBAuto-tuning and dynamic scaling

Operational ResilienceHigh availability VMsAutonomous recovery agentsContinuous backup to object storeAutonomous multi-AD DR

Security & ConfidentialityIntegrated identity managementData encryption at-restCertificate revocation managementFine-grained access control mechanism

Supportability & OperationsDynamic configurationMonitoring dashboardsZero-downtime managed patching Multi-datacenter deploymentsGovernance for consortia

Development & IntegrationOffline dev/test supportSQL-based rich queriesSynchronous & async REST APIsJava, GO, and Node.js SDKsEnterprise App AdaptersRich queries for history DBAnalytics integration


Flexible, Global Deployments

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On-premises or 3rd party cloud


Comprehensive Blockchain Platform

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Membership Service

Membership Service

Applications

Validating Nodes/ Peers

Distributed Ledger (Single Version of Truth)

Smart Contracts (aka Chaincode)

Ordering Service

Ordering Service

REST Proxy

Operations

Admin/Operations Console

Integrated backplane of supporting services

Oracle value-add

Rich integration tools for SORs & new apps

App

App

SDK

REST proxyREST

Flexible, global, interoperable deployments

Autonomous, Oracle-managed PaaS

SQL-based rich queries over K-V ledger

P P

P

Pre-assembled Dependencies

Copyright © 2018 Oracle and/or its affiliates. All rights reserved. | 47

Oracle Helping Enterprises Adopt Blockchain

Enterprise-Ready• Highly secure, built-in privacy

• Scalable business networks

• Highly resilient, built-in backups and recoverability, HA+DR

• Flexible, hybrid deployments

Ease of Integration• REST API for API-driven integration

• Plug-n-Play Enterprise Adapters

• Embedded blockchain APIs in Netsuite ERP, Flexcube, Open Banking API platform, upcoming SCM applications

Quick Time-to-Value• Pre-assembled, managed PaaS

Cloud offering

• Dynamic configurability and member on-boarding

• Development support to start developing applications within minutes

Extending Enterprise Boundary

• Extend ERP/GL/SCM business processes in Oracle SaaS, on-prem and non-Oracle systems to share data and conduct trusted transactions with others

• Helping customers build consortia with trading partners through enabling technology for policy-based governance


Learn More

http://oracle.com/blockchainhttp://cloud.oracle.com/blockchain

http://developer.oracle.com/blockchainNext Stepshttps://www.f6s.com/oraclescaleup

https://cloud.oracle.com/en_US/tryit

Documents

Enterprise Adoption of Blockchainseattleblockchaintraining.com/reference/OracleBlockchain... · 2018-09-08 · Copyright © 2018, Oracle and/or its affiliates. All rights reserved