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Enterprise Blockchain Application Development using Azure Blockchain Service
1.
2.
3.
4.
5. Our Vision
• Industry solutions
• Consortium setup and management
• Extended platform features
6.
7. Secure
Uses cryptography to create
transactions that are impervious to
fraud and establishes a shared truth.
Shared
Blockchain value is directly linked to the
number of organizations or companies that
participate in them. There is huge value to
even the fiercest of competitors to participate
with each other in these shared database
implementations.
Distributed
There are many replicas of the
blockchain database. In fact, the more
replicas there are the more authentic it
becomes.
Ledger
The database is
“write once” so it is
an immutable
record of every
transaction that
occurs.
Blockchain is a secure, shared, distributed ledger
8. Data is stored in a ledger
FROM TO PROPERTY VALUE
Alex Katie Payment $500
Jim Sally Payment $300
Alex Garth Asset Car
Katie Tony Payment $100
Molly Paula Message I love you
Example ledger Entire network
has same ledger
9.
10. When your project meets certain criteria
Answering a few questions can determine if blockchain
is appropriate
Can intermediaries
be removed?
Is there a
requirement for
verification?
Do multiple
parties share data?
Is this a business
process that crosses
trust boundaries?
11. Blockchain shows tremendous potential across
industries
Manufacturing
Asset tracking
Real time
auction for
supplier
contracts
Supply chain
transparency
Retail
Loyalty
tracking
Product
provenance
Logistics
management
Insurance
Claims
Management
MBS/Property
Payments
Fraud
detection
Automated
underwriting
Banking and
Capital Markets
Bond Issuance
Trade Finance
Loan
Syndication
Post Trade
Settlement
Cross Border
Payments
Derivatives
Trading
KYC/AML
Government
Licensing and
ID
Benefits
distribution
Aid tracking
Military
security
Healthcare
Personalized
medicine
Records
sharing
Compliance
12.
13. Blockchain has not been built for enterprise
Getting off the island - Integration
There are a number of challenges to
integrate a blockchain with existing IT
architecture
Enterprise-grade Ledgers
Ledgers designed for public network
cryptocurrencies lack the performance,
confidentiality, and governance
capabilities needed for commercial use
Smart contracts
Smart contracts were not designed to
leverage existing enterprise tools and skill
sets
16. Deploy in the topology of your choice
Dev/Test: Enable developers to get started
Single node (virtual machine)
1
Single member: Simulate production for multiple
divisions within a single organization
Multi-node across single region
2
Multi-member: Collaborate between
multiple divisions and organizations
Multi-node across multiple regions, Azure
subscriptions, and/or organizations
3
17. DApps can use the patterns, tech, and talent you
already trust
Write once, use for
multiple ledgers
Code in traditional
languages with
existing developers
Securely call
off chain data
Security Productivity Modularity
19. Accelerate development with Microsoft Azure
Get off the island
Automatically connect Blockchain
applications to services you care about
Reduce cost and time
Build Blockchain apps faster and easier and
reduce costs of development
Move towards production
Move towards production faster with
automatically built scaffolding
20. Building an end-to-end blockchain app is a huge
undertaking
Manually
deploy
ledger
Write business
logic
Orchestrate
signing, hashing
and routing
Store smart
contract
reference data
Synchronize
data with off-
chain DB
Ingest
messages and
events
Build web
client
API
management
Manage keys
Customize
integrations
Extend
capabilitie
Integrate with
existing
business apps
Configure
consortium
network
Link identities
to federated
systems
21. Blockchain Services and Tools on Azure
Azure Blockchain
Service and VM
Templates
BaaS and template
VMs for most of the
ledgers in use today
(Over 40 templates
and solutions)
• Azure Public
• Government
• China Cloud
Blockchain
Workbench
One click setup of
the complete
plumbing required to
put in place a PoC –
which can be
extended later to
production grade.
Blockchain
Development Kit
Reusable, low-code
plug and play
integration
mechanisms for LOB
applications
DevOps Pipelines
Heterogenous User
Interfaces
Azure Blockchain
Tokens
Deploy and manage
standard tokens built
on the standards
developed by the
Token Taxonomy
Initiative (TTI)
Azure
Marketplace
Partner Solutions
Applications
Consulting Offers
Consortium Path to
entry
32. Starbucks empowers each
member of its supply chain
Over the next two years, we will look to demonstrate
how technology and innovative data platforms can
give coffee farmers even more financial
empowerment
— Kevin Johnson
Starbucks CEO
Challenge • Starbucks needed increased visibility into the
movement of beans across its vast supply
chain
• 97% of farmers are small hold/one-acre farms
that have difficulty scaling production to meet
demand
Solution • Use blockchain based smart contracts to
define the responsibilities of each supply
chain participant and record their activities
• Provides immutable proof-of-end purchase to
farmers enabling access to higher quality
credit
• Monitor the movement of beans from farm to
pour using a shared, cloud-based app
33. And reinforces trust from farmers to customers
Farmers
Starbucks Customers
Farmers are financially empowered…
• Understand downstream movement of
their product and better forecast demand
• Receive immutable “proof-of-end
purchase” from Starbucks
• Establish creditworthiness to access
higher
quality credit and expand operations
Starbucks receives
immutable record of…
• Bean provenance
• Inventory state changes and
movement
Customers enjoy
increased transparency…
• Into the individual region
• The farm origin of the coffee
• Tactics used to farm
their high-end coffee
34. Using blockchain to reinforce trust from farmer to customer
Carrier
Authenticity is verified and beans
are delivered to the factory
Customer
At purchase can view certifications,
origin, and other quality details with
assurances from farm to pour
Manufacturer
Containers are verified and
coffee is processed and
bagged
Small Hold Farmer
Produce coffee beans under specified conditions
to earn organic and Fair Trade certifications.
Receive “proof of end purchase” from Starbucks
they can use to access credit for next years
harvest
Retailer
The bags reach the retailer having been
accounted for at each step of the journey
Farmer
✓ Plot #839049
✓ 25 tons of cocoa beans
✓ Certifications
Carrier
✓ Shipped 2/5/2018
✓ Organic
✓ Fair Trade
Manufacturer
✓ Delivered 2/12/2018
✓ Organic
✓ Fair Trade
Distributor
✓ Delivered 2/19/2018
✓ Organic
✓ Fair Trade
Retailer
✓ Delivered 2/26/2018
✓ Organic
✓ Fair Trade
Customer
✓ Guaranteed fresh
✓ Certified organic
✓ Certified Fair Trade
At various points in the journey, an IoT device scans the product and records its status and condition which are updated on the blockchain
Quality attestationProof of Purchase Consumer visibility
Distributor
The coffee is moved through distributor network
under high-quality assurance regulations
35. Singapore Airlines | Expand customer loyalty
Challenge
Singapore Airlines wanted to improve
customer participation and loyalty by
streamlining their rewards program
Strategy
Singapore Airlines partnered with KPMG
Digital Village and Microsoft to build a
blockchain-based rewards program that
linked their digital wallets to their KrisFlyer
reward miles
Results
• Empowered customers to easily use their
KrisFlyer miles for point-of-sale
transactions on an expanded retail partner
network
• Increased mileage program participation
and loyalty to the Singapore Airlines brand
“This groundbreaking development in which we will be using blockchain technology to ‘digitalise’
KrisFlyer miles is a demonstration of the investment we are making to significantly enhance the digital
side of our business for the benefit of our customers”
— Goh Choon Phong, Chief Executive Officer of Singapore Airlines
36. Blockchain in Action | Partner network management
Digital wallet
Reward points are stored in
the customer’s digital wallet
Partner retail location
Customers are able to redeem loyalty
points for goods and services from any
retail location in the partner network
SHARED LEDGER
Update: SFO → HKG: 7,000 miles
• Dec 2016 LAX → ICN: 6,000 miles
• Jan 2015 IAH → DME: 5,000 miles
• Jun 2015 JFK → FRA: 4,000 miles
• 7,000 miles = 700 points
• 6,000 miles = 600 points
• 5,000 miles = 500 points
• 4,000 miles = 400 points
• 2,200 points redeemed for:
o Free stay at hotel A
o Admittance to airport lounge B
o Spa treatment at resort C
Contract
updated
Contract
updated
Mobile app
Customers purchase their
ticket on their mobile device
Contract
created
Awarded miles
Each flight is worth miles that
are converted to rewards points
Contract
updated
37. XBOX | Blockchain for royalty payments
Challenge
Microsoft wanted to replace the
complicated, manual royalty calculation
process used to pay XBOX publishers with a
faster, more efficient approach
Strategy
Microsoft developed a blockchain-based
solution that automated processes to offer
XBOX royalty information in near real time
while maximizing security and transparency
Results
• Improved trust by making the royalty
payment calculation process more
transparent for publishers
• Gave publishers actionable business
insights, enabling them to proactively
respond to customer demand
• Reduced XBOX process efforts by two
thirds and saved publishers time by
eliminating the need for manual audits
“We are developing an ecosystem within the gaming industry that connects developers and publishers
to game performance. Providing near real-time access to data greatly improves the process’
effectiveness and insights that lead to a more enriching experience for the partners.”
— Tim Stuart, Chief Financial Officer of Xbox
38. • Game Purchased
• Publisher ID
• Price
• Customer Age
• Customer Gender
• Location
CONTRACT CREATED
CONTRACT VISIBILITY
• Top Grossing Content
• Publisher Royalty
• Publisher Demand
• Net Revenue
Blockchain in action | Manage royalty payments
XBOX Platform
SHARED LEDGER DATA
CONTENT PUBLISHER A VISIBILITY
• Customer ID
• Content Dev ID
• Licensing ID
• Marketing ID
• Distributor ID
• Content Provider ID
Publisher C
• Customer ID
• Content Dev ID
• Licensing ID
• Marketing ID
• Distributor ID
• Content Provider ID
Publisher B
• Customer ID
• Content Dev ID
• Licensing ID
• Marketing ID
• Distributor ID
• Content Provider ID
Publisher A
Content Publishers
Gain visibility into sales
data and royalty revenue,
enabling them to make
near real time decisions.
$
$
$
$
$
Licensing
Marketing
Distribution
Content
Provider
Content
Developer
$12.99
$59.99
$3.99
Media
Purchase
Movie
Video game
Song
Quantity
Quantity
XBOX Platform
Consumers purchase digital content
through the XBOX platform. The
data then is written to the shared
ledger. This automatically makes
royalty data visible to the XBOX
publishers.
XBOX PAYS
ROYALTIES
Media Sale: July 13th
39. XiaoMi | Supply Chain Finance Service
Challenge
XiaoMi works with a broad ecosystem of
partners and suppliers that lacked the
connectivity and transparency needed to
scale trust and quickly verify credit for
banking and factoring
Strategy
XiaoMi worked with Microsoft to streamline
trust on a shared, blockchain-based data
layer that easily connects with the apps and
systems used throughout their ecosystem
Results
• Improved cash efficacy by digitizing credit
establishment
• Shortened the timeframe of factoring and
banking processes from weeks to days
• Expanded the business network for multi-
layer supply chain hierarchy with minimal
IT efforts
“Our partners and suppliers form an important ecosystem that we want to continue to grow, so our
digital transformation couldn’t just improve our products, services, and operations—it needed to build
a platform of trust, transparency, and efficacy for our partners and suppliers as well.”
— TBD
40. Blockchain in action | Supply Chain Finance service
Shared ledger data
SRM App
Core Enterprise
SAP ERP System
BPM App
Approval
Bank C, Supplier 3, …
• Transaction Stages
-> CreatePO, …
• Events/Logs
• Entities
-> PO, ASN, GR
-> FA, Payments
Bank B, Supplier 2, …
• Events/Logs
• Transaction Stages
-> CreatePO, …
• Entities
-> PO, ASN, GR
-> FA, Payments
Provider ID
Bank A, Supplier 1, …
• Transaction Stages
-> CreatePO, …
• Events/Logs
• Entities
-> PO, ASN, GR
-> FA, Payments
Create
ASN
Create
GR
Pay for
FA
Pay for
Payment
-Sheet
Create
PO
Supply chain data is shared
on the blockchain to
inform POs, ASNs, GRs,
FAs, and Payments
Workflow Group visibility
Contracts visibility
• In all workflow groups
• Workflow initiator
• Owners configuration
• Roles configuration
Core Enterprise
• Supplier, Bank, Core-
Enterprise group set up with
owners, observers
• Shared transactions and
Shared entities are
independent smart contracts
Contracts created
Suppliers
Banks and
SCF System
41.
42. Digitize trust with Microsoft Azure Blockchain
Seamlessly integrate blockchain
with your business using built-
in connections to Azure and
the tools you're already familiar
with—all on an open, trusted,
globally available cloud
platform
Iterate and validate blockchain
scenarios quickly with an
intuitive UI for modelling smart
contracts and prebuilt
blockchain templates and
commands
Cut development time with
painless network deployment,
built-in governance and
extensible, fully-managed
infrastructure
Simplify
development
Get up and
running
quickly
Innovate with
confidence
43. Azure Blockchain @ Microsoft TechX
Scan this QR-code to access free educational
resources, step-by-step learning guides as well as
get practical experience in Blockchain on Azure!
https://aka.ms/BlockchainTechX
Don’t forget to add Microsoft Azure skill to your LinkedIn
account to stay connected with a developer community.
+ Microsoft Azure
We post the latest announcements about free events for
developers in Ireland on our official Twitter account.
@MSDevIRL
44. Learn more
Visit Azure
Blockchain
Service as well
as Azure
Blockchain
Workbench and
Azure Blockchain
Development Kit
Visit the Azure
Blockchain Blog
Connect with the
Microsoft Tech
Community
Join the
conversation on
MSDN
Sign up for an
Azure account
and start and
instance of
Azure
Blockchain
Service