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The Role of Blockchain in Future Integrations

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Srinath Perera
Srinath Perera

We have critically evaluated blockchain-based integration use cases, their feasibility, and timelines. Emerging Technology Analysis Canvas (ETAC), a framework built to analyze emerging technologies, is the methodology of our study. Based on our analysis, we observe that blockchain can significantly impact integration use cases. In our paper, we identify 30-plus blockchain-based use cases for integration and four architecture patterns. Notably, each use case we identified can be implemented using one of the architecture patterns. Furthermore, we also discuss challenges and risks posed by blockchains that would affect these architecture patterns.

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Srinath Perera, Ph.D. VP Research WSO2, Apache Member, ( srinath@wso2.com) @srinath_perera The Role of Blockchain in Future Integrations
!2 Blockchain enable a group of untrusting parties to create and maintains a shared, decentralized, append-only immutable digital record
History of Integration !3
Integration Classical !4
Integration New !5
Trust is the Driver • Individuals and organizations need to interact with others who are not known • Currently, trust is built through rules, professionals (e.g., lawyers), and brokers. This process is both slow and expensive. • Blockchain could potentially establish trust faster and cheaper. • Centrally operated systems or services (Facebook, Land registry) has gained deep mistrust. • Blockchain enables us to decentralize those operations and limit the harm done by a few individuals. • blockchain enables keeping immutable records that can be audited and verified • The knowledge about immutability both reassures participants and deter the attackers. !6 @image Steve Jurvetson, https://www.flickr.com/photos/jurvetson/625205010
World is built on Trust • Historically communication, integration, and trust have improved efficiencies. • Cheaper trust enable more sophisticated but less expensive integrations • Replacing current trust alternatives and associated frauds can lead to significant savings. !7
Why blockchain in Integration?
Why? (1) Better Collaborations • Blockchain allows better collaborations with partners, suppliers, and other parties. • Examples: • Decentralized API Marketplace • Audit a Business Process • Ecosystem-level non-competitive Critical Services • Multi-organization Collaborations • Operating a consortium as a DAO !9
Why? (2) Foster Trust • Some companies face higher hurdles for engendering trust due to the nature of their business. A case in point is a provider of organic foods that needs to validate it meets regulatory definitions of “organic.”  • Examples: • Standards or Regulation Adherence • Attract Contributors by giving up control • Providing Supply Chain Visibility • A Global Reputation System • Implementing Organization Promises as Smart Contracts !10
Why? (3) To Avoid Coercion • A company may choose to give up this power because it is detrimental to them. • Examples: • Avoid Coercion as a Certification Authority !11
Why? (4) Enhance Customer Experience • Blockchain can bring new benefits to customers. • e.g., digitally handle vehicle ownership and maintenance records, which may create a better secondary market for used automobiles.  • Examples: • Issuing Customers Verifiable Claims • Managing Global miles or loyalty points • Give Users Control over their Health Data • Dynamic API Discovery and Composition • Enables dynamic API composition where applications operate by picking APIs from the marketplace at runtime. !12
Why? (5) For improved efficiency • The main financial benefits are derived from the use of Blockchain to enhance the efficiency of operations, thereby removing either the middleman or mechanisms currently required to enforce quality and integrity • Examples • Tracking Software Lifecycle • Auditing: Track who did what inside an Organization. • Managing Copyrights via Smart contracts • Token Revocation • Managing Objects via smart contacts !13
34 Use cases • https://github.com/wso2/ETAC/blob/master/blockchain/blockchain-usecases.md !14
Pros and Cons !15
Challenges • Limited scalability and latency • about 8 minutes and about 2 to 3 transactions per second. • Most use cases are not feasible under these limits. • Private blockchain has faster algorithms, although they provide lesser guarantees. • Limited privacy. • Blockchain only provides pseudo anonymizations. • However, by analyzing the transaction graph and other related information, it is often possible to link users to transactions. • Once one transaction is linked to a user, all his transactions become known. !16
Risks • Irrevocability. • an appeal is not possible • Some use cases, this can be handled with undo transaction, but some others (e.g., land registry) mistake is not reversible without the current owner complying • Regulator Absence. • A regulator plays a key role in some use cases. • Although not popular, regulators play a crucial role in many systems (e.g., avoid fraud and pyramid schemes). • With Blockchain-based systems, it is impossible or expensive to fill the missing regulator’s role. • Misunderstood Side Effects. • impact beyond Computer Science • Unclear Regulatory Responses. • Potential future regulations and laws governing blockchains !17
Blockchain Architecture Patterns •Four architectures pattern that can support all 34 use cases • IAM • Registry • Auditable History • Smart Contracts & Managed Things •We will explore those architectures and then their feasibility in the face of challenges and risks !18
IAM Architecture 1) Alice records her DID, profile link, and a hash of the content, and a public key. She adds a new record when the profile has changed 2) The profile has verifiable claims. An authority has recorded the claim with (CLAIMID, link, hash) 3-4) Bob can retrieve the profile, verify it and get to know about Alice from verifiable claims ** Bob can authenticate Alice by using a challenge-response protocol !19
Registry Architecture • Registry client record all changes to the registry as a blockchain transaction ( large data is stored outside with a link and hash included) • Registry client retrieve all records, verify ( via hashes) and build a most recent view • The client periodically retrieves updates and update the current view. !20
Auditable History Architecture 1. Alice submits tax 2. Service Provider (e.g., Tax Server) records the link and hash to receipt in the blockchain 3. Service Provider shares the receipt 4. Interested parties ( Alice) verify the records ** Owner can’t deny the records later !21
Managed Things Architecture 1. Manufacturer starts by adding a record to the resource (e.g., car) and specifying the owner (DID). 2. Only the current owner can add a record to do an ownership transfer 3. The car reads records, verify the manufacturer’s entry, verify that each ownership transfer is valid, and decide current owner 4. Then the current owner can login by demonstrating that he has a private key for owner’s DID via a challenge-response !22
!23
Conclusion • There are integration use cases in both public and private blockchain. • Trust is the main driver • Identified five motivations: • Collaborate More Effectively • Foster Trust • Avoid Coercion • Enhance Customer Experiences • For improved Efficiency • We identified four architecture pattern candidates that support those use cases: • IAM (feasible) • Auditable History or Workspace ( feasible) • Registry or Marketplace (feasible or moderate deployments) • Smart Contracts and Managed Things (needs breakthroughs) !24
Analysis based on ETAC !25 This is analysis of blockchain for integration, based on the Emerging Technology Analysis (ETAC) framework
Read the paper • A detailed analysis is in our recently published paper, “The Role of Blockchain in Future Integrations”. !26
To receive updates to ETAC and ETAC-based emerging technology analysis, subscribe to our Newsletter. Thanks for reading!!

More Related Content

The Role of Blockchain in Future Integrations

  • 1. Srinath Perera, Ph.D. VP Research WSO2, Apache Member, ( srinath@wso2.com) @srinath_perera The Role of Blockchain in Future Integrations
  • 2. !2 Blockchain enable a group of untrusting parties to create and maintains a shared, decentralized, append-only immutable digital record
  • 6. Trust is the Driver • Individuals and organizations need to interact with others who are not known • Currently, trust is built through rules, professionals (e.g., lawyers), and brokers. This process is both slow and expensive. • Blockchain could potentially establish trust faster and cheaper. • Centrally operated systems or services (Facebook, Land registry) has gained deep mistrust. • Blockchain enables us to decentralize those operations and limit the harm done by a few individuals. • blockchain enables keeping immutable records that can be audited and verified • The knowledge about immutability both reassures participants and deter the attackers. !6 @image Steve Jurvetson, https://www.flickr.com/photos/jurvetson/625205010
  • 7. World is built on Trust • Historically communication, integration, and trust have improved efficiencies. • Cheaper trust enable more sophisticated but less expensive integrations • Replacing current trust alternatives and associated frauds can lead to significant savings. !7
  • 8. Why blockchain in Integration?
  • 9. Why? (1) Better Collaborations • Blockchain allows better collaborations with partners, suppliers, and other parties. • Examples: • Decentralized API Marketplace • Audit a Business Process • Ecosystem-level non-competitive Critical Services • Multi-organization Collaborations • Operating a consortium as a DAO !9
  • 10. Why? (2) Foster Trust • Some companies face higher hurdles for engendering trust due to the nature of their business. A case in point is a provider of organic foods that needs to validate it meets regulatory definitions of “organic.”  • Examples: • Standards or Regulation Adherence • Attract Contributors by giving up control • Providing Supply Chain Visibility • A Global Reputation System • Implementing Organization Promises as Smart Contracts !10
  • 11. Why? (3) To Avoid Coercion • A company may choose to give up this power because it is detrimental to them. • Examples: • Avoid Coercion as a Certification Authority !11
  • 12. Why? (4) Enhance Customer Experience • Blockchain can bring new benefits to customers. • e.g., digitally handle vehicle ownership and maintenance records, which may create a better secondary market for used automobiles.  • Examples: • Issuing Customers Verifiable Claims • Managing Global miles or loyalty points • Give Users Control over their Health Data • Dynamic API Discovery and Composition • Enables dynamic API composition where applications operate by picking APIs from the marketplace at runtime. !12
  • 13. Why? (5) For improved efficiency • The main financial benefits are derived from the use of Blockchain to enhance the efficiency of operations, thereby removing either the middleman or mechanisms currently required to enforce quality and integrity • Examples • Tracking Software Lifecycle • Auditing: Track who did what inside an Organization. • Managing Copyrights via Smart contracts • Token Revocation • Managing Objects via smart contacts !13
  • 14. 34 Use cases • https://github.com/wso2/ETAC/blob/master/blockchain/blockchain-usecases.md !14
  • 16. Challenges • Limited scalability and latency • about 8 minutes and about 2 to 3 transactions per second. • Most use cases are not feasible under these limits. • Private blockchain has faster algorithms, although they provide lesser guarantees. • Limited privacy. • Blockchain only provides pseudo anonymizations. • However, by analyzing the transaction graph and other related information, it is often possible to link users to transactions. • Once one transaction is linked to a user, all his transactions become known. !16
  • 17. Risks • Irrevocability. • an appeal is not possible • Some use cases, this can be handled with undo transaction, but some others (e.g., land registry) mistake is not reversible without the current owner complying • Regulator Absence. • A regulator plays a key role in some use cases. • Although not popular, regulators play a crucial role in many systems (e.g., avoid fraud and pyramid schemes). • With Blockchain-based systems, it is impossible or expensive to fill the missing regulator’s role. • Misunderstood Side Effects. • impact beyond Computer Science • Unclear Regulatory Responses. • Potential future regulations and laws governing blockchains !17
  • 18. Blockchain Architecture Patterns •Four architectures pattern that can support all 34 use cases • IAM • Registry • Auditable History • Smart Contracts & Managed Things •We will explore those architectures and then their feasibility in the face of challenges and risks !18
  • 19. IAM Architecture 1) Alice records her DID, profile link, and a hash of the content, and a public key. She adds a new record when the profile has changed 2) The profile has verifiable claims. An authority has recorded the claim with (CLAIMID, link, hash) 3-4) Bob can retrieve the profile, verify it and get to know about Alice from verifiable claims ** Bob can authenticate Alice by using a challenge-response protocol !19
  • 20. Registry Architecture • Registry client record all changes to the registry as a blockchain transaction ( large data is stored outside with a link and hash included) • Registry client retrieve all records, verify ( via hashes) and build a most recent view • The client periodically retrieves updates and update the current view. !20
  • 21. Auditable History Architecture 1. Alice submits tax 2. Service Provider (e.g., Tax Server) records the link and hash to receipt in the blockchain 3. Service Provider shares the receipt 4. Interested parties ( Alice) verify the records ** Owner can’t deny the records later !21
  • 22. Managed Things Architecture 1. Manufacturer starts by adding a record to the resource (e.g., car) and specifying the owner (DID). 2. Only the current owner can add a record to do an ownership transfer 3. The car reads records, verify the manufacturer’s entry, verify that each ownership transfer is valid, and decide current owner 4. Then the current owner can login by demonstrating that he has a private key for owner’s DID via a challenge-response !22
  • 23. !23
  • 24. Conclusion • There are integration use cases in both public and private blockchain. • Trust is the main driver • Identified five motivations: • Collaborate More Effectively • Foster Trust • Avoid Coercion • Enhance Customer Experiences • For improved Efficiency • We identified four architecture pattern candidates that support those use cases: • IAM (feasible) • Auditable History or Workspace ( feasible) • Registry or Marketplace (feasible or moderate deployments) • Smart Contracts and Managed Things (needs breakthroughs) !24
  • 25. Analysis based on ETAC !25 This is analysis of blockchain for integration, based on the Emerging Technology Analysis (ETAC) framework
  • 26. Read the paper • A detailed analysis is in our recently published paper, “The Role of Blockchain in Future Integrations”. !26
  • 27. To receive updates to ETAC and ETAC-based emerging technology analysis, subscribe to our Newsletter. Thanks for reading!!