Business uses for blockchain
- 1. An Introduction to Blockchain & its Business Uses Blockchain smart contracts A smart contract is a program developed on blockchain which automatically executes, controls or documents legally relevant events, transactions and actions according to the terms of a contract or an agreement. Smart contracts are most effective when parties have unequal oversight of contractual fulfilment and when using Internet of Things (IoT) data e.g. sensors. Atkins capabilities in Blockchain › Smart contract development using Ethereum and Hyperledger › Technology consulting/architecture Blockchain key features Accountability Each block is timestamped and signed with the author’s public key – providing a clear provenance. Redundancy Replicating the ledger across nodes removes a single point of failure for malicious actors. Transparency Data is distributed across all nodes and not held by a privileged authority. Integrity Blockchain is append-only. Consensus mechanisms guard against false data. ‘Chaining’ blocks together makes tampering apparent. Misconceptions about Blockchain 1. Blockchain is cryptocurrency Cryptocurrency is one, albeit the most famous application of blockchain. Applications exist beyond finance. 2. Blockchain is immutable As an append-only ledger secured by a consensus mechanism, blockchain is almost immutable. Data though, can be altered if a malicious party takes over more than half of a network’s nodes. 3. Blockchain is file storage Blockchain is a distributed ledger of electronic transactions/ interactions – it cannot store conventional file types such as PDFs, JPEGs etc. 4. Blockchain guarantees the truthfulness of information Network members agree what information should be added to the ledger via a consensus mechanism. This agreement does not necessarily equate to the truthfulness of information. 5. There is one Blockchain platform There are multiple blockchain platforms which differ in: use cases, governance, and other factors. Popular platforms include: Ethereum, Hyperledger Fabric and R3 Corda. What is Blockchain? › Blockchain acts as a write-only ledger of electronic transactions/interactions bundled into units called ‘blocks’. The blockchain ledger is not centrally stored nor is it maintained by a single party. Rather, it is stored across multiple network members (nodes) who each hold a copy of the ledger and contribute to it. › Blocks are submitted by nodes for inclusion in the ledger and are permanently recorded only after validity confirmation by a consensus mechanism. Upon the successful inclusion of a new block, the ledger is updated and replicated across all nodes. › Each block includes a hash uniquely computed from its contents and the previous block’s hash. Alterations to a previous block will invalidate the hashes of all subsequent blocks (hence, blocks are ‘chained together’). › Every block is time-stamped and ‘signed’ by its author through public key cryptography. This creates a ‘digital footprint’ of activities. For futher information please contact: Faraz Ahmad, Principal Consultant Faraz.Ahmad@atkinsglobal.com atkinsglobal.com snclavalin.com Compliance & Audit › Provide greater audit assurance › Real time compliance monitoring › Reduce manual audit processes Supply Chain Management › Trace goods & services through the supply chain › Automatically execute contracts › Automate ‘back-office’ functions › Onboard new suppliers more quickly Information Assurance › Secure records of file authorship/ownership › Detect unauthorised file modification Commercial Contract Management › Automatically execute commercial contracts › Simplify dispute resolution › Automate benefits management Self Sovereign Identity › Automate ID/qualification verification › E-governance/verify eligibility for government services Cybersecurity › Secure cyber physical systems › Secure public key infrastructures › Secure software code signing Potential uses of Blockchain