1. Accelerating Blockchain application development on Microsoft Azure
5/28/ :06 AM
BRK3206
Accelerating Blockchain application development on Microsoft Azure
Marley Gray
Principal Program Manager
Azure – Blockchain Engineering
Microsoft
© Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

2. Agenda Backgrounder Layered approach Surrounding Capabilities
Optimized Ledger
New compute paradigm
Surrounding Capabilities
Microsoft Roadmap

3. 5/28/ :06 AM
Context
© Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

4. Cryptographically Authentic
Blockchain or Distributed Ledger | 4 Pillars
Shared
Blockchain’s value is directly linked to the number of organizations or companies that participate in them. There is huge value for even the fiercest of competitors to participate with each other in these shared database implementations.
Cryptographically Authentic
Uses tried and true public/ private signature technology. Blockchain applies this technology to create transactions that are impervious to fraud and establishes a shared truth.
Ledger
The database is a read/write-once database so it is an immutable record of every transaction that occurs.
Distributed
There are many replicas of the Blockchain database. In fact, the more replicas there are, the more authentic it becomes.

5. Blockchain network types
Private
Semi-Trusted - *consensus algos
Ethereum
Enterprise Ethereum – Quorum
Hyperledger – Fabric
Chain
R3 Corda
n private blockchain platforms
Public
Trustless – POW/Mining
Bitcoin
Ethereum
n Crypto-currency networks

6. Disruptive to all industries…
Blockchain can flatten ecosystems and supply chains, removing middlemen processes (companies or divisions)
Peer-to-Peer value exchange, dramatically reduce settlement time
Fundamentally changes Audit at the DNA level, regulator output a byproduct
Introduces new distributed or shared economics – a collaborative economy
Shared incentives, costs, risk
Could revolutionize identity…
Fear
Derive revenue by brokering or settling transactions between counterparties – Uber, Paypal, Swift, DTCC, Correspondent Banking (x-boarder payments)…
Derive revenue from existing friction in supply chains
Arbitrage on opacity of markets
Greed
Cut out middleman brokering trust to counterparties
Consume cross industry workloads – improving service and margin – manufacture finance on steroids, hospital network insurance policy

7. From hype to understanding of essence
Its all about trust…
between ourselves or “us”…
to transform how we exchange value following common rules with each other …
establishing a shared truth based on cryptographic proofs…
to revolutionize the execution of contractual agreements between us…
forever.

8. Crypto-Currency But… ¢ 1 ledger transfer ownership transparency
5/28/ :06 AM
But…
Crypto-Currency
1 ledger
transfer ownership
transparency
trustless
© Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

9. Contracts Smart Contracts ¢ to futures 1 ledger transfer ownership
5/28/ :06 AM
Smart Contracts
Contracts
¢ to
futures
1 ledger
transfer ownership
transparency
trustless
Scalability?
External
Sources?
Privacy?
Modularity?
© Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

10. Maddening parade of approaches
5/28/ :06 AM
Maddening parade of approaches
Side Chains
Partitioned Ledgers
State Channels
Blockchain oracles
© Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

11. Layered Approach 5/28/2018 10:06 AM
© Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

12. Shared Resolution of the Truth
Achieving Trust | 2 step tango
Shared Resolution of the Truth
A confidential and, secure environment where we can make contracts between ”ourselves” and execute the logic of these contracts splitting the check when they are complete. Generating cryptographic proofs against contract execution and persisting contract results to our shared ledger.
Shared Ledger - Shared Truth
Authentic, tamper proof, privacy preserving representation of the historic and current truth about the transactions and contracts between “us”.

13. Separation of Concerns
5/28/ :06 AM
Enterprise approach
Separation of Concerns
Scale and Version
Flexible Design
Multiple Trust Models
Work with External Systems
Cross and Multi Chain
Modular Logic
© Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

14. Existing systems Interaction/Integration Our shared execution layer
5/28/ :06 AM
Layers
Existing systems
Enterprise Smart Contracts & Cryptlets
Ethereum, EE (Quorum), Fabric, Corda, Chain…
Interaction/Integration
Our shared execution layer
Our shared ledgers
Interface
Logic
Ledger
© Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

15. Optimize the Ledger 5/28/2018 10:06 AM
© Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

16. Components of a distributed ledger
Application-to-Node
Confidentiality
Governance
Efficient consensus for high throughput
Secure communication
Arbitrary confidentiality models
Consortium membership and policy management
Node-to-Node
Transaction
Processing VM
Consensus
Ledger Persistence
Distributed Ledger Model

17. 5/28/ :06 AM
Ledger Deployment
Our enterprise blockchain efforts began by simply making it easier to stand up labs…which at the time was really hard…
Today – All major platform are automated in multi-node and consortium deployments
Contextually, its ridiculously easy
© Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

18. Confidential Consortium Framework
An infrastructure framework that leverages:
Trusted Execution Environments (TEEs) – HW (e.g. Intel SGX) or SW-based (e.g. VSM enclaves)
Paxos and similar consensus mechanisms
Governance Model
Standard cryptography
High Throughput
Governance
Flexible Confidentiality

19. Consortium Compute 5/28/2018 10:06 AM
© Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

20. Required Shift in thinking…
5/28/ :06 AM
Required Shift in thinking…
Single Party
Compute
Multi-Party
Compute I We
© Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

21. Microsoft DL Layers “Our” Shared Execution Environment Proof Engine
RPC – REST
Standard Messaging Interface
Identity
“Our” Shared Execution Environment
Contract Logic between Party A & B
Attested External data for Party C & D
Contract Logic between Party A & D
External Attested Data for Party E & C
Contract Logic between Party C, D & B
Proof Engine
Key Management
Data Services
Ledger Abstraction Layer
Transaction Router
Ledger Connector

22. Enterprise Smart Contracts & Cryptlets
RPC – REST
Azure Active Directory
Azure Service Bus Amqp – Strongly typed messages
Cryptlets Fabric
Azure Key Vault or on Prem HSM
Cryptlet Party C, D & B
Cryptlet Party A & B
Cryptlet Party A & D
Cryptlet Party E & C
Cryptlet Party C & D
Azure Data Lake, AI, BI, Analytics
Cryptlet “oracle"
Cryptlet “oracle"
Proof Engine
Azure Event Hub – IoT, propagation
Ledger Abstraction Layer
Data Aggregator
Transaction Router
Contract Proxy
Contract Proxy
Contract Proxy
Contract Proxy
Contract Proxy

23. Cryptlets (.NET, Core, JVM, Native)
Utility Cryptlets
Often referred to as blockchain “oracles” these cryptlets:
Provide attested interaction with the outside world
Injection of market prices, external system data
Watch for events on the blockchain to do something off chain
React to events off the chain to trigger logic
Almost anything that you could normally do with middleware: queries, etc.
Utility Cryptlets are reusable or horizontal and do not perform contract specific logic
Contract Cryptlets
Contain the business logic for a contract:
Provide a secure and attested execution model for contract specific logic with privacy and confidentiality
Use cryptography and enclaves to perform logic that counterparties can trust
Use Utility Cryptlets to get attested data
Provide a strong versioning model for business logic
Separation of concerns of data and logic allowing each to be scaled and versioned differently
Advanced crypto features like ring, threshold and homomorphic functionality
Vertical scale and co-location capable
Advanced async transactions for multi-step, multi- ledger appends.

24. 5/28/ :06 AM
Demo
© Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

25. Surrounding Capabilities
5/28/ :06 AM
Surrounding Capabilities
© Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

26. IoT Bots Serverless Mixed Reality Containers DevOps Bio-Wearables
Location-based Authentication
Monitoring
Event driven
Orchestrators
Serverless
Compute
Mixed Reality
Machine Learning
Compliance
Haptics
Edge
GPU
Containers
DevOps
Bio-Wearables
NoSQL
Quorum
Microservices
Log telemetry
Quantum computing
Digital Twin
Blockchain
Data privacy
IoT
Big data
Bots
Beacons
Hybrid cloud
Threat Intelligence
Artificial Intelligence
Ambient UX
© 2016 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

27. Customer Oscar Naim, PhD. | Lead Software Architecture Specialist
5/28/ :06 AM
Customer
Oscar Naim, PhD. | Lead Software Architecture Specialist
Marc Mercuri | Director Microsoft Digital
© Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

28. Real World Problem: Counterfeit Pharmaceuticals
10%-30% of drugs sold in developing countries are counterfeits. 80% of the counterfeit drugs consumed in the US come from overseas. Prescription drugs market is estimated at $900 billion worldwide. The global market for counterfeit drugs is $200 billion dollars. The global market for counterfeit products is $460 billion dollars. More than 30% of counterfeit drugs do not contain any active ingredients.

29. Our Solution: Two-Layer QR Code Label …
Before
After
Top (red) layer
Bottom (yellow)
layer
Side View
Top View
© M CONFIDENTIAL

30. End-to-end Scenario Transactions sent to blockchain network Shipper
Carrier
Recipient

31. Demo – Leaving the Factory
Oscar Naim, PhD. | Lead Software Architecture Specialist
Marc Mercuri | Director Microsoft Digital

32. VIDEO

33. Demo – Final Delivery
Oscar Naim, PhD. | Lead Software Architecture Specialist
Marc Mercuri | Director Microsoft Digital

34. Microsoft Enterprise Blockchain Stack
5/28/ :06 AM
Microsoft Enterprise Blockchain Stack
Application Accelerator
Authentication
Roles UI
Workflow
Analytics & Reporting
Accelerate – Azure Blockchain App Builder
Operations and Management
Standard Messaging Interface
Blockchain Transactions and Router (abstraction)
Enterprise Smart Contracts
Key Management
Identity
Data Services
Contract
Market
Data
IoT
Control
Reference
Development Platform – Enterprise Smart Contracts, multi-party shared environment with identity, key management and external integration. Cross blockchain transactions, enterprise programming languages
CoCo - Confidential Consortium
Innovation – improving blockchain performance, privacy and governance
Open Cloud – All Major Platforms Available in the Marketplace
© Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

35. Distributed Ledgers* With Microsoft
Blockchain on your terms,
The most open cloud for blockchain
The most regions in any public cloud
True hybrid
Product and services offerings
Deep partner bench
integrated with your business,
Identity through AAD and key management through KeyVault, or bring your own
Cryptlets for secure off-chain integration
Azure middleware support
IaaS, PaaS & SaaS roadmap
with enterprise assurance.
Research in security, confidentiality, performance
Compliance certifications planned
Regulatory and standards engagement
*a.k.a. blockchains

36. Learn more
Come by our booth to check out the Azure Blockchain App Builder
Visit our Azure Blockchain Solutions Page
Visit the Azure Blockchain Blog
Connect with the Microsoft Tech Community
Join the conversation on Azure Advisors

37. Please evaluate this session
Tech Ready 15
5/28/2018
Please evaluate this session
From your
Please expand notes window at bottom of slide and read. Then Delete this text box.
PC or tablet: visit MyIgnite
Phone: download and use the Microsoft Ignite mobile app
Your input is important!
© 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

38. 5/28/ :06 AM
© Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.