Architecting enterprise blockchain solutions

387 Pages·2020·12.861 MB·English

by  Holbrook, Joseph

Architecting
Enterprise
Blockchain
Solutions
Architecting
Enterprise
Blockchain
Solutions
Joseph Holbrook
Copyright © 2020 by John Wiley & Sons, Inc., Indianapolis, Indiana
Published simultaneously in Canada
ISBN: 978-1-119-55769-2
ISBN: 978-1-119-55768-5 (ebk)
ISBN: 978-1-119-55773-9 (ebk)
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This book is dedicated to my soulmate and wife,
Frida, my daughter Destiny, and my stepson Lenin
for their full support. The effort required for the
writing and completion of this book, of course, took
hours away from them.
About the Author
Joe Holbrook has been in the IT field since 1993, when he was exposed to several HPUX systems
onboard USS John F. Kennedy (CV-67). He migrated from the UNIX networking world to
storage area networking (SAN) and then on to enterprise cloud/virtualization and blockchain
architectures. He has worked for numerous companies such as HDS, 3PAR Data, Brocade,
Dimension Data, EMC, Northrup Grumman, ViON, Ibasis.net, Chematch.com, SAIC, and
Siemens Nixdorf.
Joe has also been a contract technical trainer for HPE (3PAR), Hitachi Data Systems, Training
Associates, ITPrenuers, and Global Knowledge. Joe is a widely published course author on
outlets such as LinkedIn Learning, Pearson Safari, INE.com, and Udemy.com. He has been a
subject-matter expert for the CompTIA Cloud Essentials and Cloud Plus exams and a 2018
CompTIA Partner Conference trainer for the Cloud Plus TTT. Currently Joe is the owner of a new
upstart learning platform called MyBlockChainExperts and is based in Jacksonville, Florida.
Joe is also a Certified Bitcoin Professional (CBP), Certified Blockchain Solutions Architect, and
avid blockchain and cryptocurrency geek. He holds industry-leading certifications from Amazon
Web Services, Google Cloud, Brocade, Hitachi Data Systems, EMC, VMware, CompTIA, HP
3PAR ASE, Cloud Credential Council, Palo Alto Networks, and numerous other organizations.
While in the Navy and attending Central Texas University, Joe received an AA degree.
He received a certificate in total quality management from the United States International
University (USIU) in San Diego. He received several certificates in information systems, project
management, intranet development, and a BSIS from the University of Massachusetts – Lowell.
In 2007, Joe was given the AFCEA NOVA SuperNOVA award for outstanding event leader-
ship and was awarded the Brocade Excellence Award in 2008 for his Brocade Services Partner
Training Program implementation.
About the Technical Editor
Greg Phillips is an On-prem Datacenter and Cloud Native Infrastructure Architect with over 25
years of experience in distributed systems and high-volume, multi-platform environments.
Environments worked in have spanned DOD, commercial satellite communications, federal
government, financial, manufacturing, transportation, service provider and other commercial
sector Fortune 500 firms. He became interested in and got involved with BTC and Blockchain
technology in 2013 and is currently researching Blockchain/DLT use cases for cable MSOs and
content providers in the media/entertainment sector. Greg is also the founder of Think IT Data
Solutions, which, in addition to providing managed IT services, provides technology-led
business transformation solutions enabling fully autonomous closed-loop operations for enter-
prise clients.
About the Technical Proofreader
Kunal Mittal is an Entrepreneur and serves on the Board of Advisors for multiple technology
startups. Advisory roles and CTO positions is what he aspires to continue to do at early stage
startups.”?
viii | About the Author
He is a Technologist with over 20 years of experience working at all size companies, from
early stage startups to large Enterprises. His strengths are product strategy, technology strategy,
and execution. He enjoys building high performing teams to create a capacity to Innovate.
Having lead small teams to large teams of more than 400 people, he has spearheaded all technol-
ogy functions — Product Management, UX, Development, Quality Assurance, Architecture, Data
Science, Cyber Security, Infrastructure, and Corporate IT.
Kunal’s main experience lies in B2B SaaS, B2C, and building platforms that foster growth by
creating a network effect between the business and customer.
Along with his wife, Neeta, he started a winery in Paso Robles (Central California)
named LXV Wine, which won an award for being the 7th best Tasting Experience in the U.S. by
USA Today.
He is also an instrument rated private pilot with 500+ hours of flying time under my belt.
Acknowledgments
Thank you to Greg Phillips, Chief Technical Office (CTO) of ThinkIt Data Solutions for his advice
and significant level of technical review of the subject matter. Greg has been my partner on
numerous projects since our time together in the U.S. Navy.
Thank you to George Levy, Chief Learning Officer (CLO) at Blockchain Institute of
Technology for his advice in making this book as focused as possible. George is a true blockchain
visionary and is one of the top voices in the marketplace.
Thank you to Kenyon Brown, Pete Gaughan, John Sleeva, Athiyappan Lalith Kumar and
Evelyn Wellborn.
Contents at a Glance
Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .xxi
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xxiii
Chapter 1 • Introduction to Blockchain Technologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Chapter 2 • Enterprise Blockchains: Hyperledger, R3 Corda, Quorum,
and Ethereum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Chapter 3 • Architecting Your Enterprise Blockchain . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Chapter 4 • Understanding Enterprise Blockchain Consensus . . . . . . . . . . . . . . . . . . 117
Chapter 5 • Enterprise Blockchain Sales and Solutions Engineering . . . . . . . . . . . . . .137
Chapter 6 • Enterprise Blockchain Economics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163
Chapter 7 • Deploying Your Blockchain on BaaS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .183
Chapter 8 • Enterprise Blockchain Use Cases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .241
Chapter 9 • Blockchain Governance, Risk, and Compliance (GRC),
Privacy, and Legal Concerns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 257
Chapter 10 • Blockchain Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 279
Chapter 11 • Blockchain Security and Threat Landscape . . . . . . . . . . . . . . . . . . . . . . .323
Chapter 12 • Blockchain Marketplace Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .349
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .359
Contents
Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .xxi
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xxiii
Chapter 1 • Introduction to Blockchain Technologies . . . . . . . . . . . . . . . . . . . 1
What Is a Blockchain? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
My Approach to the Definition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
Technical Audience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
Business Audience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Legal Audience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Three Definitions of Blockchain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
History of Blockchains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
Blockchain vs . Traditional Database . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Distribution of Trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10
Consensus and Trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10
Summary of Differences Between Ledgers and Traditional Databases . . . . . . . . . . .10
Cap Theorem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12
Common Properties of Permissionless Blockchains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
Why the Blockchain Is Considered Revolutionary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Blockchain Principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15
Trust or Trustless . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
Transparency and Blockchain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Blockchain Transaction Basics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20
Consensus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Blocks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Types of Blockchains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21
Public, Private, and Hybrid Blockchains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27
Chapter 2 • Enterprise Blockchains: Hyperledger, R3 Corda,
Quorum, and Ethereum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Comparing Enterprise Blockchains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29
Introducing the Hyperledger Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31
Hyperledger Frameworks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Introducing Hyperledger Fabric . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35
Hyperledger Fabric Ledger . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37
Hyperledger Fabric Consensus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38
Hyperledger Fabric Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Hyperledger Fabric Nodes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Hyperledger Fabric Business Networks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Hyperledger Fabric Chaincode (Smart Contracts) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41