Blockchain Beyond Finance - Cronos Groep - Jan 17, 2017

Blockchain Beyond FinanceTowards the internet of value & trust

Dimitri De Jonghe

@DimitriDeJonghe

● 2008 Master micro-electronics (KULeuven)

● 2013 PhD on applying machine learning to micro-electronics design (KULeuven)

● 2014 Machine learning startups (sydelity, scriptbook)

● >2014 founding member ascribe.io / BigchainDB ○ ascribe.io - bitcoin blockchain for online licensing○ BigchainDB - scalable blockchain database○ IPDB Foundation - interplanetary database, public

BigchainDB for commons○ Interledger co-chair - the internet of blockchains

Micro-electronics

Machine learning

Blockchain

● Dimitri De JongheBlockchain technologist & enthusiast

“My conclusion is that whatever you put on the internet you lose it.

Maybe keep the rights, but lose the power over it.”

-User on Shapeways blog (3D printing marketplace)

(digital) attribution, title, value

Your assets, your claims

(Digital) Trust by intermediaries & institutions

$ ping www.google.com< PING 172.217.17.36

Her

e’s

your

pers

onal

data

Do you need the middlemen?

Can you take control of your data?

2008 - Bitcoin

Shared single source of truth and conduct

Inter-mediary

Trusted third parties

peer to peerdecentralizedcentralized

Blockchain disrupts

Trusted Third Parties

Shared Single Source of Truth and Conduct

Blockchain:A “Spreadsheetin the Sky”

Shades of trust, reputation, blockchain...Public: Open networks

Writers: Everyone can participate

Trust: World consensus

Applications:

● Decentralized apps

● Cryptocurrencies, programmable money

● Smart contracts

Private: Ecosystems, federations

Writers: Participants known/reputation

Trust: Federated consensus (eg vote)

Applications:

● Enterprise

● Disintermediation: Clearing & settlement

● Transparency: Supply chain, AML, audit

trails, provenance

● Ownership: exchange, partial, trustless

To develop shared global compute infrastructure,

we must first understand the status quo of infrastructure,

…and how to change it accordingly.

To blockchain or not to blockchain?

● Need interaction with one or more parties?

● Do you want a crypto-secured shared single source of truth?

● Do you need apply and comply with a shared set of rules?

Status quo compute infrastructureModern apps use processing, file system, database

FILE SYSTEMe.g. S3, HDFS

APPLICATION

PROCESSINGe.g. EC2, Azure

DATABASEe.g. MySQL, MongoDB

PLATFORMe.g. AWS, Google App Engine, Heroku

CO

NN

ECT

NET

WO

RK

S e.

g. T

CP/

IP

Towards a decentralized compute infrastructure


APPLICATION


DATABASEe.g. MySQL, MongoDBBitcoin Blockchain?


CO

NN

ECT

NET

WO

RK

S e.

g. T

CP/

IP



APPLICATION




CO

NN

ECT

NET

WO

RK

S e.

g. T

CP/

IP

e-Cash/e-GoldBitcoin


FILE SYSTEMe.g. S3, HDFSIPFS, SWARM

APPLICATION

PROCESSINGe.g. EC2, Azure, Ethereum, Hyperledger, Tendermint, Lisk, Corda

DATABASEe.g. MySQL, MongoDBBigchainDB, IPDB

PLATFORMe.g. AWS, Google App Engine, Heroku, Eris/Monax, BlockApps

CO

NN

ECT

NET

WO

RK

S e.

g. T

CP/

IP, I

nter

led

ger

ILP

e-Cash/e-GoldBitcoin, zCash, Ripple,

Blockstream, Multichain

Decentralized Stack Interoperability

FILE SYSTEMe.g. IPFS, SWARM

PROCESSINGe.g. Ethereum, Hyperledger, Tendermint, Lisk, Corda

DATABASEe.g. BigchainDB, IPDB

PLATFORMe.g. Eris/Monax, BlockApps

e-Cash/e-GoldBitcoin, zCash, Ripple,

Blockstream, Multichain

Protocols:InterledgerIPLD

Hash Registry:E.g uPort

Contract Registry:E.g dapp.registry

Oracles:Push dataE.g. Oraclize

Backend specific OP-Codes

Configure stack: contract scripts, consensus, storage backends

2016 onwards● BaaS: Blockchain as a Service (Azure, Amazon, IBM, IPDB)

● Internet of value: connect blockchains and legacy (Interledger)

● Standardization: Asset definitions, comm. Protocols, API’s

● Borderless and instantaneous micropayments and exchanges

● Scalability: Big-data meets Blockchain (BigchainDB)

● Internet of things: digitization of real world assets

● Privacy: zero-knowledge proofs to mask transaction content

● Identity: e-governance, IoT identity on-chip

● ...

Provenance is important forAuthenticity

Chain of Ownership

Valuation

Why fight the physics of bits?

How to get PROVENANCE

Of TITLE?

How to get PROVENANCEOf COPIES?

Status quo compute infrastructureModern apps use processing, file system, database


APPLICATION




CO

NN

ECT

NET

WO

RK

S e.

g. T

CP/

IP

ascribe: a partly decentralized app (DApp)


APPLICATION: ascribe.io


DATABASEe.g. MySQL, MongoDBBitcoin Blockchain


CO

NN

ECT

NET

WO

RK

S e.

g. T

CP/

IP

OP_RETURN: copyright + author + metadata/URIs

Examples

Creative Commons

cc.ascribe.io

Cyland Video Archive

IkonoTV

left.gallerycointemporary.comlumenus.co

Online Marketplaces

Swallow the WEB

ML Image Search

Analytics

How to get Provenance of COPIES?

whereonthe.net Provenance of the COPIES

According to WhereOnTheNet, Detail from The Creation of Adam, appeared on 4,548 websites and 18,796 unique pages.

This image has had around 56 occurrences on Twitter, which is less then 1% of all occurrences.

Rogier van der Weyden, Portrait of a young Lady, around 1440/45, Staatliche Museen zu Berlin, Gemäldegalerie

(Image: Public Domain)

Where is Portrait of a young Lady ?

Over 1279 copies

Website : wikiart.org/Occurrences : 164

Provenance of TITLE (IP)

ascribe.io

Provenance of COPIES

whereonthe.net

70 GB3 tx/s

What about planetary scale?

Netflix uses 37% of Internet bandwidthUsing a modern distributed “big data” database

http://techblog.netflix.com/2011/11/benchmarking-cassandra-scalability-on.html

Writes / s vs. # nodes

Blockchain meets Big Data

ScalabilityQueryability

2 ways to scale up

Big data-fy blockchains• Builds on man-decades of work• Significant scalability hurdles

<or>

Blockchain-ify big data• Builds on man-centuries (millennia?) of work• Scalability challenges already resolved• How to blockchain-ify? …

payment channels / trust lines / side chains (e.g. blockstream)

high-speedtrust line slow-speed sync

Big data-fy the blockchain

What’s the difference between a database and a csv file?Querying. From M’s of records, find the relevant ones.

1 Line of standard code, optimizedvs

50-500 lines of slow custom code, unoptimized

How do “big data” databases scale? Answer: Distribute storage across many machines, i.e. sharding

A “consensus” algorithm keepsdistributed nodes in sync.

Native assets

How to build a scalable blockchain database (BigchainDB)1. Start with an enterprise-grade distributed DB, e.g. MongoDB2. Engineer in blockchain characteristics

• Each DB node is a federation nodeDecentralized / Shared Control

• Append-only• Chain hashes

Immutable / Audit Trails

• “Own” = have private key• Asset lives on the database

Federated Consensus Architecture

Blockchain Consensus

Database Consensus

IMPLEMENT A 2 PHASE CONSENSUS

FEDERATION

Single Database

or

MongoDB RethinkDB

Database Options

BigchainDB: Big Data meets Blockchain- a blockchain database

Immutability

Decentralized Control

Native Assets

Scalable

Queryability

Operationalized

TraditionalDatabases

Traditional blockchains

BigchainDB

BigchainDB: simple contracts iso smart contracts

Product Roadmap

FaultTolerant

Multi-INMulti-OUT

Tx

DivisibleTx

VM +Policies

Tx +Status

API

RethinkDB

SimpleContracts

QueryContracts

Change- FeedWatch

DB WireFirewall

Global Block

ordering

List QueryAPI

Amazon

BlocksVotesAPI

Assets

Docker MongoDBAzure

BFT Block ordering

Python Driver

JSDriver

CustomQueries

EthereumIPFS

Zero Knowledge

BigchainDB v0.8 V.0.9 + Q1 Q2 > Q2

Where is BigchainDB used today

Vertical:IP – Music rights

Value proposition:A streaming service owned by all

Vertical:IP – Digital art

Value proposition:Enables creators of digital art to get compensated, via claiming attribution & licensing

ascribe

Interledger

Vertical:Identity

Value proposition:Low-friction assurance, sovereign personal data

Authenteq

©ITU/L.Berney, (CC BY 2.0)

Interledger

Vertical:Government – Land Registry

Value proposition:Low-cost registry, less risk of corruption

BenBen

©ITU/L.Berney, (CC BY 2.0)

Vertical:ID - Education Credentials

Value proposition:reduce fraudulent degrees, lower HR friction

Recruit

Vertical:Energy

Value proposition:manage $ flow in energy deregulation

Vertical:Supply Chain / Health

Value proposition:government-mandatedtransparent $ flow

Generating Opportunities: Vertical x Benefit

Decentralized /Shared Control

Immutability / Audit trail

Tokens /Exchanges

Intellectual Property

Identity

Finance

Energy

Government

Dig art – ascribe

Supply Chain

R3

Retail marketplace - OpenBazaar

RWE You?

You?

You?

Res( )nate

Tangent90 Everledger

Recruit

BenBen

Ownage

IPDB: Interplanetary DatabasePowered by BigchainDB

• For everyone, everywhere

• Free until heavy usage, then pay web service style

• Initial tech is BigchainDB

• Member caretakers will operate validating nodes

IPDB Caretakers

Long-standing commitment to the decentralized internet

At least half non-profit

Fewer than half in any given country

IPDB Caretakes (so far)

BlockstackCOALA

Dyne.orgInternet Archive

OpenMediaUnMonastery

ascribe / BigchainDBConsensys

Eris/Monax IndustriesProtocol Labs (IPFS)SmartContract.com

SynereoTendermint

Taking the next step with blockchains

• Identify use cases, e.g. using tools here

• Validate use cases with blockchain experts

• Start experimenting, e.g github.com/bigchaindb

• Find the right expertise ;-)

Dimitri De Jonghe

[email protected]@DimitriDeJonghehttps://be.linkedin.com/in/dimitridejonghe

+32 496 80 94 14

My projects:https://ascribe.iohttps://bigchaindb.comhttps://ipdb.foundationhttps://github.com/bigchaindbhttps://interledger.orghttp://datanews.knack.be/ict/nieuws/bigchaindb-maakt-blockchain-principe-schaalbaar/article-normal-720789.html

Thanks for listening

Technology

Blockchain Beyond Finance - Cronos Groep - Jan 17, 2017