smart contract platforms - mainsummit · automated, programmable contracts can ensure contract...
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Chair of Software Engineering for Business Information Systems (sebis)
Faculty of Informatics
Technische Universität München
wwwmatthes.in.tum.de
Smart Contract PlatformsProf. Dr. Florian Matthes Mainsummit, EIKONA,16.10.2019
1. Relevance of Blockchain-based Systems
2. Implementation of Blockchain-based Systems using a Smart Contract Platform
3. Alternative Approaches to Smart Contract Platforms
4. Governance in Blockchain-Based Systems
Outline
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What is a „Blockchain“?
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“A blockchain […] is a distributed
database that maintains a continuously-
growing list of ordered records called
blocks. Each block contains a timestamp
and a link to a previous block. By design
blockchains are inherently resistant to
modification of the data: once recorded,
the data in a block cannot be altered
retroactively.”https://en.wikipedia.org/wiki/Blockchain_(database)
[...] are systems that enable parties
who don’t fully trust each other to form
and maintain consensus about the
existence, status and evolution of a
set of shared facts.
Richard Brown, R3 CTO
Technical definition Functional description
The potential of blockchain technologies
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They enable intermediary-free transactions of digital, non-copyable goods without the need to trust
the other party.
Digital identities of people or machines can enter into secure transactions and all transaction details
are stored immutable and decentralized.
Automated, programmable contracts can ensure contract compliance.
"We believe that the Blockchain will have the greatest influence on contracts, logistics and supply chain,
healthcare, public administration, asset clearing, property and transactions."
- Greg LaBlanc
Current and future use cases (B2B & B2C)
5
Finance
Replacement of intermediaries in transactions Crypto currencies Microcredit and crowdfunding peer-to-peer ICOs: Start-up financing
Pharma und
Medical
Automotive
Sharing
Economy
Supply chain tracking Digital identity of a car Digital mobility solutions (e.g. car sharing)
Documentation
Elimination of some notary services Traceable supply chain Service & maintenance protocols Digital certificates of origin
Access to decentralized patient records Prevention of prescription abuse Prevention of counterfeit drugs
Transactions without a central platform provider Decentralized documented bartering Pay-as-you-use insurances
Cross-industry, peer to peer
Energy
Private suppliers of electricity Micro power networks Electricity trading
Industries
Digital
Identity
Refugees pay by retina scan Direct remuneration of license holders Certificates of origin of digital certificates
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IP Management
Preservation of patents, art or ideas on the blockchain (incl. time stamp)
Securing 3D printer models Direct remuneration of license holders
Our current projects on blockchain-based systems engineering
Development projects
Chip Card Solutions, DRK: Securing blood products with RFID and Blockchain-technologies
Tr8cy: Peer2Peer Trade financing platform
TUM: Digital university certificates
Research projects
Identity management in open blockchain-based systems
Language engineering for smart contracts (with Noumena Digital AG, Switzerland)
Education and consulting
TUM lecture Blockchain-based Systems Engineering
TUM executive education program DLT and Blockchain Manager
GS1 Cologne: Blockchain governance (pallet exchange platform)
Blockchains for public administrations (Bavarian ministries of justice, finance, social and digitalization)
Blockchain Hackathons (IBM, TUM, Ethereum, …)
Associations
blockchain.tum.de
Blockchain Bayern e.V.
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Applying design thinking to blockchain-based solutions
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People
Benefits
Business
Viability
Technology
Feasibility
Which pain of which
people / businesses
do we solve?
How to solve the
problem?
How to create a sustainable
business?
Functional Innovation
• Digital currency
• Digital token
• Digital wallets
• …
Emotional Innovation
• Trust
• Decentralized
• Democratic
• …
Process Innovation
• Peer 2 Peer
Network
• Decentralized
Governance
• …
Innovative
Solution
Blockchain technologies have a reputation problem
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• Incredible waste of energy and
resources
• Use for shady business models
• Speculative trading
• Gambling
• Trafficking (humans, drugs, …)
• Cyber crime
• Ransomware attacks
• …
• Casino economy
• ICO scams
• Exchange frauds
• “Lost” or “locked” crypto money
• …
• Huge gap between expectations and
maturity of the technology
Interdisciplinary collaboration is required
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People
Benefits
Business
Viability
Technology
Feasibility
Which pain of which
people / businesses
do we solve?
How to solve the
problem?
How to create a sustainable
business?
Law
Compliance
How to ensure
compliance with the law?
1. Relevance of Blockchain-based Systems
2. Implementation of Blockchain-based Systems using a Smart Contract Platform
3. Alternative Approaches to Smart Contract Platforms
4. Governance in Blockchain-Based Systems
Outline
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Historical development of the concept of Smart Contracts
The term “Smart Contract” was coined long before blockchain technology emerged (Szabo, 1994).
Initially described the formalization of processes in public networks like the Internet.
Possible applications:
DRM (Digital Rights Management)
Payment
Connection to the “real world” through sensors and actuators
However, there was a lack of technology to realize these ideas at that time.
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Szabo, Nick (1994): Smart Contracts.
https://web.archive.org/web/19971008001022/http://www.virtualschool.edu/mon/Economics/SmartContracts.html
In 2015, Vitalik Buterin revived the idea in his white paper “Ethereum: A Next Generation Smart Contract &
Decentralized Application Platform“
Idea
Replace the fixed data structures, algorithms and protocols of individual blockchain solutions (e.g. Bitcoin,
voting, bidding, lottery, proof of ownership, …) by programs, written in a domain-specific programming
language (e.g. Solidity) on top of a single public blockchain (Ethereum) and currency (Ether).
Use cryptography to secure the immutability of the program code (contract)
Wallet owners agree on the contract(s) to be used for their future interactions
No or very limited access of the code to the “real world” (sensors, actuators)
Similar to data-centric architectures for workflow management and automated case management
Smart Contracts on blockchain-based platforms
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Smart Contracts
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To be clear, at this point I quite regret adopting the term "smart contracts".
I should have called them something more boring and technical, perhaps something like "persistent scripts".
Vitalik Buterin, 2018
A reference architecture for a Smart Contract platform
Example:
Safe transfusion medicine
Blood product supply chain involving
Clinics
Labs
Logistic companies
Blood donor centers
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Execution
States
Virtual Machine
(Execution platform for Smart Contracts)
Smart
Contracts
Execution
History
Local interactive
User interfacesLocal IT-Systems
Internet
API
Sen-
sors
Actua-
tors
„Real World “
Platform-wide
Rules
1. Relevance of Blockchain-based Systems
2. Implementation of Blockchain-based Systems using a Smart Contract Platform
3. Alternative Approaches to Smart Contract Platforms
4. Governance in Blockchain-Based Systems
Outline
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Implementations of the reference architecture
Centralized platforms
Blockchain-based platforms
Permissionless
platforms
Permissioned platforms
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Advantages
Decentralized management (trust in one party trust in a system of multiple parties)
Transparency of all transactions
Traceability of the complete transaction history
Pseudonymity of the wallet owners
Built-in financial incentives for early adopters and network growth ( business model)
Opportunities
Innovation thrust for IT solutions in the global finance system
Lowered entry barriers for IT-savvy players with limited financial resources
Impetus to re-evaluate established business models and economic mechanisms
Comparison with established centralized solutions
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Centralized platforms
There are established non-technical measures to ensure trust, e.g. cooperatives, third-party (or state) supervision, Open Source licenses, etc.
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Benefits
Efficient
Scalable
Standardized components
Drawbacks
Requires trust in platform
provider
Availability
Sufficient resources
Fair conditions (e.g.
pricing)
No manipulations
Permissionless Blockchain-based platforms
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Benefits
Consensus of nodes on
shared set of facts
Traceability of the complete
transaction history
Optimized for cross-
organization collaboration
Decentralized and redundant
(Transparency of all
transaction details)
Pseudonymity of the wallet
owners
Financial incentives for
network growth
Drawbacks
Dependency on a crypto
currency
Energy consumption
Severely limited transaction
throughput
Risk of centralization at the
network level
Permissioned Blockchain-based platforms
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Benefits
Consensus of nodes on
shared set of facts
Traceability of the complete
transaction history
Optimized for cross-
organization collaboration
Decentralized and redundant
Upward compatibility with
established IT technologies
Identity management
Development tools
Data models & standards
…
Drawbacks
Interoperability between
different consortia
System complexity
Blockchain governance
Ecosystem / participants
Applications / contracts
Platform technology
1. Relevance of Blockchain-based Systems
2. Implementation of Blockchain-based Systems using a Smart Contract Platform
3. Alternative Approaches to Smart Contract Platforms
4. Governance in Blockchain-Based Systems
Outline
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The governance challenge
Centralized platforms today (e.g. Google Maps)
Centralized data
management
Non-transparent platform
operations
Exclusive platform
ownership
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The governance challenge
Decentralized platforms tomorrow?
Decentralized data
management
Transparent platform
operations
Shared platform ownership
Blockchain Governance
Ecosystem
Applications
Infrastructure
!
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Blockchains are a team sport
The parties in the ecosystem interact via shared executable contracts on shared blockchains.
Banking: R3 Consortium (2014)
200+ members
Energy: Energy Web Foundation (1/2018)
Insurance: B3i Consortium (3/2018)
Achmea, Aegon, Ageas, Allianz, Generali, Hanover Re, Liberty Mutual, Munich Re, SCOR, Swiss Re, Tokio Marine, XL Catlin, Zurich Insurance Group
Mobility: Mobi Open Blockchain Initiative (5/2018)
BMW, General Motors, Renault, Ford, Bosch, ZF, …
Connect, Understand, Design, Do, Learn: Blockchain Bayern (9/2019)
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www.blockchain-bayern.de
Blockchain Bayern e.V.
Foundation CeremonySeptember 25th 2019
IHK für München und Oberbayern
We thank our sponsors.
Greetings
Dr. Eberhard Sasse
President
IHK für München und Oberbayern
Greetings
Prof. Dr. Florian Matthes
Maximilian Irlbeck
Application Pitches
Part 1
Joachim Klaus
Allgäuer Überlandwerk
Wir danken unseren Sponsoren.
Lisann JanetzkyCommunity Manager München
31
Page 32BMW GROUP | 2019.
Blockchain Technology has an immense potential across the entire automotive value chain of the BMW GROUP.
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C-CHAINThe High Performance Blockchain for Secured IoT
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High Performance
Low Cost
Simple Infrastructure
Perfectly Scalable
Suitable for Lightweight
IoT and Microcontrollers
C-CHAINBLOCKCHAIN
Blockchain
Miners
Consensus (PoW, PoS, PoA)
→Many small Transactions-Chains
→ Certified C-chain Manager
→ One-time static certification
(PoC)
BENEFITS
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Der ressourcenschonende Blockchain Hybrid
für die Smart Economy.
Privatheit & DSGVO-Fähigkeit
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35
Alexander Bogensperger,
Andreas ZeiselmairForschungsstelle für Energiewirtschaft
Wir danken unseren Sponsoren.
Prof. Dr. Nils Urbach
Universität Bayreuth & Fraunhofer Blockchain-Labor
Fraunhofer Blockchain-Labor
Das Fraunhofer Blockchain-Labor ist eine der
Thematik entsprechende dezentrale Einrichtung
zur Konzeption, Entwicklung und Evaluation von
Blockchain-Lösungen.
• Transfer von wissenschaftlichen Erkenntnissen
in praxistaugliche Lösungen
• Kurze Entwicklungszyklen
• Umfassende und integrative Lösungen
Technologie
Geschäftsmodell
Recht
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basierend auf der Trias aus
Geschäftsmodell, Technologie und Recht:
Geschäftsmodellentwicklung:
• Entwicklung von kunden- und branchen-
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• Potentialanalyse, Einordnung und
Entwicklung von disruptiven Lösungen
Technologieimplementierung:
• Bereitstellung der Entwicklungs-
umgebungen von unterschiedlichen
Blockchain-Systemen (P2P-Netzwerk,
Validierungsserver, etc.)
• Implementierung von Blockchain-
Lösungen
Rechtliche Betrachtung:
• Beratung hinsichtlich zu
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• Evaluation von Blockchain-Systemen und
Geschäftsmodellen unter
Berücksichtigung gültiger regulatorischer
VorschriftenWorkshops &
KeynotesGremienarbeit
Prototyping &
Projekte
Gutachten &
Studien
37© sebis191016 Matthes Smart Contract Platforms
Kontakt: Inés Lüdke, Leiterin Global Transaction Banking Bayern Süd
Telefon: 089/378-30814 ; E-Mail: [email protected] 38
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Frankfurt School Blockchain Center
Wir danken unseren Sponsoren.
Application Pitches
Part 2
Neele Franke
IBM
Wir danken unseren Sponsoren.
Armin BarbalataCDO
Member of the board
43© sebis191016 Matthes Smart Contract Platforms
STEFAN SCHNEIDER STEFANIE STÖHR
Dr. Markus Hablizel
Munich Re
Wir danken unseren Sponsoren.
Nürnberg Blockchain Meetup
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Invest in the Blockchain-Driven Paradigm Shift
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49© sebis191016 Matthes Smart Contract Platforms
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Technische Universität München
Faculty of Informatics
Chair of Software Engineering for Business
Information Systems
Boltzmannstraße 3
85748 Garching bei München
Tel +49.89.289.
Fax +49.89.289.17136
wwwmatthes.in.tum.de
Florian Matthes
Prof. Dr.
17132
Blockchain-based Systems
Characteristics
Focus on the precise, algorithmic descriptions of the rights and obligations of the contracting parties based
on a shared state
Trackability of all transactions
Use of cryptographic methods
Domain-specific languages
Decentralized peer-to-peer execution environment
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Summary
Drawbacks
High execution costs
Increased organizational and legal complexity
Paradigm shifting for the development of new business models
Problems they do not address
Correctness of input information
Enforceability of rights outside the execution platform
Correctness of the code