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Hyperledger Fabric

Oct 19
Love1

we.trade Turns to Hyperledger Fabric for Cross-Industry Digital Trade Finance Platform

By Hyperledger Blog, Finance, Hyperledger Fabric, Member Case Study

Leverages open source blockchain and smart contracts to streamline trade finance process, drive growth for businesses and revenue opportunities for banks

Read the full case study here.

In 2019, the Stockholm-based sustainable shoe company Flattered AB needed to re-examine its trade relationship with its suppliers in Spain. In order for Flattered to secure specialty materials such as chrome-free leather and vegan alternatives that are key to the brand’s eco-friendly mission, the company was required to make upfront payments for all its supplies.

But with long-lead production cycles that stretch over a year, Flattered faced an unsustainable gap between costs and income, which significantly impacted cash flow at the company. 

Small and medium-sized enterprises (SMEs) such as Flattered AB represent 90% of the businesses and 50% of the employment worldwide, according to the World Bank. And yet SMEs traditionally do not have access to bank guarantees, invoice financing, or credit insurance to help maintain and scale their businesses. Instead, SME owners are left to navigate a laborious paper-based process to account for their international transactions with no protections against late invoice payments, fraud, or managing pre-payments.

Now with the growing urgency for seamless, transparent, and traceable transactions amid the global pandemic, improving access to trade finance has proven to be more vital for economic recovery and a more effective public health response around the world.

This is where we.trade steps in. As the world’s first enterprise-grade, blockchain-enabled trade finance platform, we.trade offers a safe and more reliable platform for buyers and sellers to trade globally using distributed ledger technology and smart contracts.

Through a joint venture between seven European banks, we.trade was established as an independent company based in Ireland in 2017. Today the company is owned by 12 banks, technology leader IBM, and global commercial credit and business information provider CRIF with shareholders from institutions such as CaixaBank, Deutsche Bank, Erste Group, HSBC, KBC, Nordea, Rabobank, Santander, Societe Generale, UBS, and UniCredit. In 2019, the company brought we.trade technology to market under a SaaS model and has already onboarded 16 banks across 15 countries onto the platform.

Until the launch of we.trade, the universal solution for open account trading or documentary trading was to use paper. But the slow process led to a lot of replication, with business owners filling out the same documents for different trade partners and leaving themselves more susceptible to forgery and human error.

With we.trade, companies can operate with digitized versions of once manual business processes to ensure signatures, contracts, and trade financing agreements can be virtually linked and effortlessly executed.

The challenge to launching a network like we.trade is convincing competing and disparate stakeholders in the trade finance ecosystem to join the same platform. It is impossible to entrust all transaction data to one party. So we.trade recruited IBM as its engineering partner to build a solution using Hyperledger Fabric, one of the blockchain platforms hosted by the Linux Foundation.

With Hyperledger Fabric’s modular blockchain architecture, we.trade was able to prioritize privacy and customize its platform with selected features such as transaction isolation among selected parties in the blockchain and off-chain data storage. 

Now with we.trade, SMEs can secure and finance their trade transactions without having to be an expert in trade finance or blockchain. But the real revolutionary component of we.trade is the ability to issue event-based payments based on conditions agreed upon in smart contracts on the blockchain.

Through we.trade, companies receive access to risk mitigation and financing services that are not readily available to them while banks create new revenue-generating services. The entire ecosystem is available in a real-time, user-friendly digital platform that leads to shorter trade cycles and improved working capital.

Hyperledger worked up with we.trade on a case study that details the business and tech drivers for this digital platform as well as the role of open source software and governance in its launch, growth and plans for scaling from here. 

Read the full case study here.

Oct 06
Love1

Developer showcase series: Matt Zand, author and HashFlow CEO

By Hyperledger Blog, Developer Showcase, Hyperledger Fabric

Back to our Developer Showcase Series to learn what developers in the real world are doing with Hyperledger technologies. Next up is Matt Zand, CEO of HashFlow and co-author of Hands-On Smart Contract Development with Hyperledger Fabric V2 by O’Reilly Media

Give a bit of background on what you’re working on, and let us know what was it that made you want to get into blockchain?

I started an IT company in Maryland in 2010. Since then I gradually moved from custom web development to mobile app development services. In 2019, I started exploring blockchain technology and mastered all of its concepts and platforms. In 2020, I decided to write a book on Hyperledger Fabric V2, which came out last week. Beside my book, I have designed several blockchain course curricula and course materials for companies like O’Reilly Media as well as done several blockchain projects for our clients at HashFlow. Lastly, I have done several public speaking sessions in the Hyperledger community in North America and Europe. 

What project in Hyperledger are you working on? Any new developments to share? Can you sum up your experience with Hyperledger?

NFT for financial products with Hyperledger Fabric, asset tokenization for digital banks with Hyperledger Fabric and Ethereum, B2B NFT in music industry, a SaaS product for customer loyalty management, healthcare payment system, an ICO product and an internet-connectivity reward system for the telecom industry just to name a few. In addition, my book covers several projects done on Hyperledger Fabric. 

What advice would you offer other technologists or developers interested in getting started working on blockchain?

My advice is to start exploring blockchain concepts and its use cases. Then, try to map a blockchain solution to an existing business problem. In this step, you learn how to design a blockchain system as a solution architect. Finally, pick a platform (e.g., Hyperledger Fabric or Ethereum) and build a demo of your product. After you finish and launch your first blockchain application, you would be able to gradually dig deeper into more advanced blockchain implementations. 

What are the main differences between developing blockchain applications in Hyperledger or Ethereum?

While working as CEO at HashFlow, I advise and architect different blockchain solutions based on client requirements and other considerations such as choice of cloud provider, performance, availability, and interoperability. Thus, the choice of platform comes after we design the project architecture. As a rule of thumb, private enterprise performance-sensitive applications are being built with Hyperledger Fabric, whereas public applications like utility tokens are best suited with Ethereum. 

What do you think is most important for Hyperledger to focus on in the next year?

The most important thing Hyperledger can focus on is increasing the number of transactions per second. It would also be great to have Hyperledger tools and libraries that are currently at incubation stage become active. 

As Hyperledger’s incubated projects start maturing and hit 1.0s and beyond, what are the most interesting technologies, apps, or use cases coming out as a result from your perspective?

Hyperledger Transact is a really interesting product. We need methods for quickly creating distributed ledger technology (DLT) applications.

What’s the one issue or problem you hope blockchain can solve?

Blockchain is going to solve many problems. However, I am looking forward to seeing more enterprise blockchain projects moving forward from the PoC stage to production.

Where do you hope to see Hyperledger and/or blockchain in five years?

I hope to see a robust and prevalent acceptance of Hyperledger DLTs among enterprise projects. Also, I like to see more collaboration on projects like Hyperledger Besu where public and private blockchain developers would be able to collaborate. 

What is the best piece of developer advice you’ve ever received?

Spend more time on architecting a solution thoroughly than developing it. 

What technology could you not live without?

The Internet.

Sep 07
Love0

How Thales and DigiCert enhance cybersecurity for Hyperledger Fabric-based networks

By Hyperledger Blog, Hyperledger Fabric, Member Case Study

In 2019, 7.9 billion data records were breached. And, yet, 39% of companies aren’t using robust data security measures because deployment complexity is a barrier. Still, security is not a nice-to-have feature. It’s not an opt-in. It’s a must. No one will buy your solution if they cannot trust it.

So, are DLTs the answer to your cybersecurity concerns?

DLTs promise a lot: immutability, transparency, and auditability. Once the network achieves a consensus and information is put on a ledger, users can trust what they’re seeing is identical to what was approved as “truth.” And, if the data is encrypted, only users who are approved will be able to see it. In these ways, DLTs secure data.

However, as with any storage solution, blockchains are not immune to compromise. They are not, by themselves, 100% secure. Blockchains are only one part of an entire system—what happens before the consensus and what happens after data is retrieved has nothing to do with DLTs.

To be secure, blockchain and DLT solutions must still meet standard cybersecurity practices and requirements. Key management—making sure that keys are kept confidential, their integrity is protected, and they are always readily available—is critical.

Understandably, key management is a constant challenge for companies. They don’t have just one set of keys to secure or a few documents to protect. Enterprises can generate many hundreds of key pairs an hour—and each key contains from 2048 to 3072 bits.

With remote employees and partners, multiple devices accessing networks, and secure email and document exchange, enterprises authenticate identities, encrypt data, and verify the integrity of documents and communications countless times a day.

That’s a lot of information to manage and secure. It requires a robust platform for certificate, key, and identity management; and it requires a way to generate, manage and store the private keys.

And this is where DigiCert and Thales come together with a joint solution for authenticating and managing the identity of blockchain and DLT users and devices. Simply put, DigiCert secures devices with keys and Thales secures those keys. And together they serve to secure solutions built on Hyperledger Fabric.

To start, a client creates an account within DigiCert’s platform, which allows the client to issue publicly and privately trusted certificates. Then they use DigiCert’s API to integrate it with Hyperledger Fabric and replace the native CA (Certificate Authority). From that point, clients can use Thales Luna HSM (Hardware Security Modules) as a strong foundation of digital trust.

Though the integrations are separate now, the companies aim to have a single product with one point of contact for key pairs and certificates.

Hyperledger worked up with Thales and DigiCert on a case study that details how their joint solution incorporates critical levels of security into the blockchain, increasing the integrity of solutions built using Hyperledger Fabric. It also delves into the challenges of identity authentication and management with the increasing deployment of IoT devices and distributed networks and includes details on key management best practices.

Read the full case study here. For more details, tune into the Wednesday, September 15, discussion with Blair Canavan of Thales on increasing cybersecurity for Hyperledger Fabric.

Jul 29
Love1

Enterprises Can No Longer Take Shortcuts with Climate and Social Impact, and Distributed Ledgers Provide Proven Accelerators for Change

By Anthony Day, Blockchain Partner, IBM Blog, Climate, Hyperledger Fabric, Supply Chain

One of the few benefits we have seen emerge from the recent COVID-19 pandemic is an amplification of focus and desire for accountability around corporate and government sustainability, or “ESG” (Environmental, Social and Governance) metrics.

However, sustainability must move beyond commitments and transition into action. Sustainable action. Sustainable from process, technology and commercial standpoints; and helping those in a position of power (who have not traditionally been used to prioritising investments based on ESG metrics) to make difficult choices to drive action.

Furthermore, as we look at “earth system” trends like CO2 emissions, surface temperature, ocean acidification, tropical forest loss and many others we see exponential increases in harm and damage over recent years. In other words, acceleration.

Speaking of action, if we are to make any dent in these exponential trends, we need to aim for a more profound impact than incremental improvements to individual corporate metrics such as a10% reduction in plastic packaging, 15% increase in use of recycled materials or move to hybrid vehicle fleets. Aiming higher and working together across entire value chains is key and so is creating systems that enable collaboration, tracking, reporting and remuneration. The latter is important as businesses must remain commercially sustainable, or we will not see participation and investment amongst small and medium-sized enterprises.. 

Despite what some vendors say , there is no “single app” that addresses the wide spectrum of sustainability requirements as the use cases are varied and more will emerge. 

Many corporations are embarking on internal “data gathering” exercises to assess their Scope 1 emissions (direct emissions from owned or controlled sources) so they can have a fact base from which to then take action in a couple of years. Often they are quietly hoping Scope 3 emissions (other indirect emissions that occur in a company’s value chain) will go away. In my opinion, this approach is far from the immediate and meaningful “action” needed to drive change.

At the core, we need to enable more connected supply chains from which we can develop and co-create applications that share, automate, track and integrate with a multitude of different processes and IT systems. 

Blockchain and distributed ledgers have proven themselves to be appropriate architectures for these multi-party platforms as they bring together identity, standards, automation of activity, aggregation of data, scalability, transparency and, importantly, incentivisation. That’s a lot more than just a “fancy data store.”

We can re-use or take inspiration from existing multi-party systems that are already addressing known climate and social issues, work together as networks of companies to have greater impact. And we can start today, not in two years’ time when we’ve completed our internal data audit.

Here are some examples of where distributed ledgers, and Hyperledger Fabric in particular, are already being used to address ESG issues that are cross-industry, cross-border and can be used as impact accelerators.

  • Waste Reduction – Nearly half of all fruit and vegetables produced globally are wasted each year (source: United Nations): IBM Food Trust originated as a platform for managing food safety, but the data stored on the platform across farmers, transport companies, manufacturers and retailers allows for more granular tracking of freshness, dwell time, conditions in storage and transit, which can be used to optimise distribution, reduce waste, and even extend shelf life.
  • Material Circularity – Production of materials we use every day account for 45% of the CO2 emissions (source: EuroParl): Plastic Bank has created a circular economy platform around collection, processing and sale of “Social Plastic” to large manufacturers, with a focus on empowerment and financial reward for collectors in developing countries. Mitsui and Asahi Kasei have also recently announced development of DLT-based circularity marketplaces to record, track and incentivise their suppliers and customers to increase re-use of plastic and chemical feedstock and provide transparency to regulators where taxation of imported plastics is coming into force.
  • Social Impact – Almost half of consumption-related emissions are generated by just 10% of people globally (source: Project Drawdown): Farmer Connect has its origins in traceability of commodities such as coffee and cocoa and provision of self-sovereign identity applications for farmers. Interestingly, Farmer Connect is using its  “first mile” digitisation expertise to bring customers (and brands) closer to social impact projects in developing countries and enable crowdfunding of local projects.
  • Renewable Energy Consumption – Share of renewables in global electricity generation was 29% in 2020 (source: IEA): Renewables present an opportunity for low-cost, abundant energy but have challenges in scaling, particularly in balancing supply and demand. Equigy is a multi-country “crowd balancing” platform comprising energy companies in the Netherlands, Switzerland and Italy. Equigy uses blockchain technology to access, via aggregators, new sources of electricity from the owners of consumer-based devices and is working towards incorporating use of decentralised storage with private or commercial vehicles and batteries.
  • Carbon Capture – In practice, some sectors will simply not be able to achieve net-zero emissions without carbon capture (source: IEA): Newlight Technologies recently launched a range of “regenerative, carbon-negative” fashion products made from air-captured carbon, and with the origin of the carbon capture and authenticity of individual products stored and traceable on a distributed ledger. While manufacture of sunglasses is not analogous to all sectors, the ability to track, certify and share material properties in increasingly regulated supply chains is becoming a critical core competence and can be a further step towards scaling voluntary carbon markets.

The important factor here is not that blockchain applied to these domains solved a problem but rather that these climate and social issues are multi-party problems that require entities, activities and processes to be supported by technology to drive and sustain change. 

Hopefully, in this article we have demonstrated that the problems are clear, real and addressable; that multi-party collaboration platforms are feasible to implement; and that there are technology accelerators available to enterprises and governments that are proven and scalable. So there should be no further cause for inaction…

Cover image by Tumisu from Pixabay 

Jul 27
Love1

#HyperledgerSupplychain: Spotlighting Hyperledger-powered solutions strengthening supply chains around the world

By Hyperledger Blog, Hyperledger Fabric, Supply Chain

Supply chains are the driving force for industries around the world. And, increasingly, blockchain technologies are at work strengthening supplies around the world as well. In honor of #HyperledgerSupplychain month, we are spotlighting a range of Hyperledger-powered solutions that are in production adding traceability and transparency to vital supply chains and and saving time and money for the companies that rely on them:

Cargo Release

A few months ago, IQAX announced it has been officially commissioned by the Global Shipping Business Network (GSBN) to build and operate the world-class blockchain for real-time data sharing by container carriers and ports/terminal operators using blockchain technology for more transparent end-to-end supply chain visibility. With the first production application for Cargo Release available in China leveraging Hyperledger Fabric blockchain running across Oracle Blockchain Platform and Alibaba Cloud BaaS nodes, it now provides a paperless, highly efficient and transparent solution. Connecting everyone involved at port of import including shipping lines, consignees, their agents and terminals and eliminating the need for paper, simplifies data exchange and shortens operation time among parties with real-time updates, cutting the time for cargo to be document-ready for release from days to a matter of hours. This live deployment builds on an earlier pilot with Tesla. By eliminating manual processes, the use of Cargo Release has seen significant savings in processing times from two to three days to one to two hours, while also reducing the risk of fraud and theft due to counterfeit or stolen documents, which are no longer possible with digital documents generated and authenticated via blockchain.

Circulor

Electric vehicle producers around the world are responding to pressure from their customers to ensure responsible sourcing of the raw and recycled materials used in their batteries. Circulor’s blockchain traceability solution deployed on the Hyperledger Fabric-based Oracle Blockchain Platform is already used at scale for Volvo Cars and Polestar EVs for the traceability of cobalt used in the battery units they get from the world’s largest battery manufacturer CATL, LG Chem, and other vendors. Tracing the sources all the way from the artisanal mines in the DRC and during the journey they take first to various refineries and ultimately to CATL and LG Chem facilities and then, as part of the battery units, to EV manufacturers was only the beginning. Other materials, such as mica insulators, are now being traced as well to ensure ethical sources free of child labor and other abuses. 

With all this refining and global shipping, an electric vehicle supply chain can generate a tremendous amount of CO2 before the car even leaves the assembly line. With the mapped supply chain and Oracle Blockchain Platform to support them, Circulor is now adding CO2 emissions traceability to enable EV manufacturers to pinpoint largest sources of these emissions and focus on reducing them to make EVs truly carbon-neutral.

DL Freight

DL Freight, an invoice management and auto-reconciliation solution from DLT Labs, is operating as the world’s largest full production blockchain solution for any industrial application at Walmart Canada. The remarkably flexible platform was configured and ready to satisfy the demanding needs of Walmart in only 60 days. The Hyperledger Fabric-powered system tracks deliveries, verifies transactions, and automates invoices in real time. Reconciliation between Walmart and its fleet of carriers is no longer necessary because they are all working off the same information and calculations made possible by the smart contract functionality of Hyperledger Fabric.

SmartArgiHub

Oracle and Trace Labs are driving safety and payments in an EU milk supply chain using Oracle Blockchain Platform (OBP) and OriginTrail Decentralized Network (ODN). Milk producers selling their products through a cooperative depend on complex agreements and lab test results for calculations of the price they get for their product. Now in an EU-sponsored SmartAgriHub innovation project, the Hyperledger Fabric smart contract deployed on OBP transparently and in real-time determines and triggers the payments that the cooperative makes to each farmer based on the trusted milk analysis data stored on the ODN and the contractual terms managed on the Hyperledger Fabric ledger in OBP.

TrustFlow

Trustflow from IDS is an enterprise supply chain management application that helps multiple stakeholders in a supply chain consortium network view and access business data and provide controls and privacy. Powered by Hyperledger Fabric, Trustflow integrates with ERP systems to provide one decentralized application with seamless cross-organizational workflow optimization and order management and end-to-end visibility of goods at the pallet, batch and saleable unit level. Initial deployments include pilots in the pharmaceutical industry, where it has enabled firms to cut costs and improve operational efficiency in terms of cross-organizational interactions. 

Chime in on social with your own examples of Hyperledger in action in the supply chain space here using #HyperledgerSupplychain.

Supply chain updates from Hyperledger Global Forum

At Hyperledger Global Forum, there was a range of business, technical and demo sessions focused on supply chain developments and deployments, including:

UAE Trade Connect – UAE’s First and Largest Blockchain based Trade Finance Platform – Waqas Mirza, Avanza Innovations

Blockchain Interoperability Demo with Cactus – Peter Somogyvari, Accenture

Oceans Plastics Recycling Solution using Hybrid Blockchain – Hitarshi Buch, Wipro Technologies

Supply Chain Security – Tackling Compliance, Fraud and Counterfeiting – Mohan Venkatamaran & Isaac Kunkel, Chainyard

A Blockchain-enabled Solution to Drive Material Traceability Along the Pharmaceutical Supply Chain in Asia – Daniel Laverick & Zhang Haisheng, Zuellig Pharma

We also have an active community for those interested in participating and contributing to supply chain solutions. The Hyperledger Supply Chain Special Interest Group (SIG) is a global collaborative of logistics and supply chain professionals united in advancing the state of the supply chain industry through the implementation of enterprise-grade technology solutions utilizing the Hyperledger greenhouse of business blockchain frameworks and tools.

Cover image: www.epictop10.com at Flick, CC BY 2.0.

Jul 26
Love1

How innovative supply chain solutions can increase blockchain adoption

By Naresh Jain, Co-founder/COO, Snapper Future Tech Blog, Hyperledger Fabric, Supply Chain

Challenges in Supply Chain

Supply chain processes are complex and involve many players, heavy documentation and large data sets. Businesses across supply chains work in silos and communication between them is largely through email or phone calls causing issues related to efficiency and costs, data availability and redundancy, transparency and  reconciliation, and fraud and trust.

Diagram

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Blockchain Use Cases in Supply Chain

With the advent of blockchain technology, CEOs and CIOs have paid increasing attention to mitigating industry challenges through technology adoption. Supply chain focus area are  

  • Track and trace of assets through supply chain
  • Provenance to find origin or authenticity of products
  • Circular economy to reduce carbon footprint by secondary use or recycling products
  • Customer engagement through loyalty programs using tokenization
  • Financial transactions through crypto tokens and smart contracts
  • Automation by capturing and recording data of physical movements using IoT or from different sources. 

Blockchain Success Stories in Supply Chain

There are various case studies and success stories that have proved the potential impact of blockchain technology across a number  of supply chain use cases:

  1. Mumbai Transport implemented TradeLens to boost efficiency and cut costs
  • ~50% improved communication efficiency of documents like commercial invoices, bills of lading
  • Lower transport and logistics costs
  • Shorter lead time and less frequent delays
  1. Walmart brought transparency to food supply chain
  • Time needed to trace their provenance went from 7 days to… 2.2 seconds!
  1. Chainyard and IBM reduced new vendor risk and drastically cut onboarding
  • Vendor onboarding cycle time cut from 60 days to 3 days
  • For buyers: 50% less cost to verify and maintain a supplier’s information
  • For sellers: much faster time to first sale
  1. Honeywell Aerospace built an online parts marketplace
  • $4 million in sales in less than a year
  • Purchase time reduced from days to minutes
  • Future boost to anti-counterfeit measures
  1.  DLTLabs and Walmart eliminated the root problems that caused invoice disputes
  • Reduction of invoice disputes from 70% to 1.5%
  • The error threshold for each transaction went from $10 per invoice to $0 per invoice. 
  • Timeline to approve carrier invoices from 6-8 weeks, but often extended over many months, went to less than one week.  
  1. Mindtree reinvented its loyalty platforms and merchant onboarding
  • Merchant onboarding time reduction from more than 20 days to one day
  • Higher visibility to all parties in the transactions
  • Eases merchant renewal processes
  • Standardized AML & KYC processes
  • Increased cost savings due to automation
  1. Siam Cement Gp saw procure to pay process time cut by 50% and cost reduced to 70%

Blockchain Frameworks in Supply Chain

Most of the supply chain projects are implemented using Hyperledger frameworks, especially Hyperledger Fabric. Hyperledger Fabric is a blockchain framework implementation hosted by Hyperledger, which is part of the Linux Foundation. Hyperledger Fabric is a secure and scalable open-source distributed ledger platform developed with permissions and privacy as its core tenets. Unlike permissionless, distributed blockchains, Hyperledger Fabric leverages a modular architecture that provides enterprises plug-and-play solutions for private transactions and confidential contracts within a network of multiple vendors. This allows an organization to bring together all the stakeholders within its multi-partner ecosystem under one architecture to automate and implement universal workflows across the network. 

Hyperledger Fabric is a mature framework that is well suited to deliver low latency, high throughput, and fast send rates along with privacy controls needed for supply chain solutions.

Current State of Blockchain Adoption in Supply Chain

Blockchain benefits are quite visible in the above mentioned success stories. That is why there are many initiatives going on for supply chain-related implementations of blockchain across industries. But it is taking time for these projects to go into production. According to Gartner, “80% of Supply Chain Blockchain Initiatives Will Remain at a Pilot Stage Through 2022.” 

Snapper has been working with customers across industries for supply chain solutions.  We follow a robust process-of-implementation approach to blockchain, and use a design thinking process to identify the right use cases and the benefits the customer would get. We realized that the customers are very enthusiastic about the use of technology as part of their digital transformation. However, the understanding level of the technology is very limited for most of the customers before engaging with us. Through our design thinking process, customers get to have a good understanding of how blockchain works, what are the benefits and the implementation challenges. One of the major challenges supply chain leaders realize is that  building an ecosystem/consortium of stakeholders is a requirement for a blockchain network. As developing an ecosystem is a difficult task and involves high risk, customers are cautious about investing in such  solutions and thus delay the decision to  implement blockchain solutions. They are in a dilemma whether to take a lead in creating the network or be part of the existing network. Also there are only limited options available for an organization to join an existing blockchain network for their industry. Customers want to see more and more success stories to validate their decisions.

What is Needed For Faster Adoption of Blockchain Technology

Implementation of blockchain technology not only helps organizations achieve digitalization goals but also creates opportunities for new business models. An organization has to decide whether it  wants to grab this opportunity of taking the lead in creating a new consortium, driving new business models and increasing efficiency by adopting blockchain now, or wait for the technology to mature and be a follower.

Only large-scale enterprises can influence implementation of complex supply chain solutions. It is very difficult for medium and small-scale enterprises to create a blockchain-enabled supply chain network.  

Faster adoption of blockchain can be achieved through the network effect by inclusion of all sizes of enterprises, faster implementations, cost-effective solutions, more and more success stories and maturity of the technology. 

Snapper Future Tech is working on an innovative supply chain traceability solution designed  to help the community achieve faster adoption. Snapper’s supply chain solution, SnapChain, is designed to empower an enterprise to create its own network without any major investment or risk. Business networks can be  small or big, and can be led by any organization throughout the supply chain.  Onboarding a business partner on the network is easy and flexible. This is being achieved by creating a metamodel architecture with configurable modules, transactions types and transaction screens

SnapChain Architecture

Diagram

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SnapChain architecture gives an organization the flexibility to  host a node and have its own network of partners with a dedicated ledger using a private channel to maintain data privacy. Each organization has one endorsing, one committing peer and one ordering node. Each transaction is endorsed by Snapper peers and organization peers. Smaller organizations can be part of a common organization maintained by Snapper.

Cover Image Copyright Thai Subsea Services Ltd.

Jun 30
Love1

Avoid Ransomware Using BIoT – A Lightweight Zero Trust Architecture using Hyperledger Fabric

By Owen Wang, BDATA, and Nima Afraz, School of Computer Science at University College Dublin Blog, Hyperledger Fabric

Let’s talk about cyberattacks

Before the pandemic hit, the world was already experiencing an increase in cybercriminal activities. The pandemic is merely a catalyst that made the cybersecurity problem even worse. From the start of the pandemic to the economic shutdown, companies worldwide have been forced to let their employees work from home at short notice. Many companies are not prepared for their employees to access intranets from their homes with various levels of security. For example, some employees do not have updated computers and many have  computers already infected with viruses, malware, and trojan software. Such unsecured connections and the blurred usage between work and personal computers have increased IT/OT infrastructure vulnerabilities and expose companies to cyberattacks. 

In the past six months, there have already been several major attacks on infrastructures and critical industries:

The Irish Health Service Executive cyberattack: On May 14, 2021, the HSE reported a major ransomware cyberattack that caused all of its IT systems nationwide to be shut down to prevent further damage. The HSE ransomware attack that has crippled the Irish healthcare system since mid-May started when a single computer stopped working, and the HSE worker reached out for help by clicking on a disguised link that led to a drive-by download of ransomware.

Colonial pipeline ransomware: On May 7, 2021, Colonial Pipeline suffered ransomware attacks that resulted in the company paying five million dollars to the hackers to unlock the system. While the company did not release any information on how the ransomware infected the company’s computers, some insiders familiar with the matter said the VMware was compromised through an open port. 

Oldsmar, Florida, water treatment plan hack: On February 8, 2021, the Oldsmar water treatment plant was hacked. The hacker was able to gain access to a control computer and attempted to increase the sodium hydroxide level in the drinking water. Luckily, the attempt was stopped in time by the operator.

Advantech’s ransomware attack: On November 20, 2020, the global industrial computer manufacturing company Advantech was hit by a ransomware attack, and the people behind the attack demanded a ransom of 750 Bitcoins ($13.8 million).

Unsecured connectivities, infested home devices, and password-driven technologies could be the reason why cyberattacks, cyberwarfare, and ransomware are hitting daily news headlines at an unprecedented rate. Meanwhile, hackers leverage the scale of impact as their bargaining chip to force governments or corporations into compliance.

The ransomware business model

The business model of ransomware is simple: the attackers infect the victim’s computer with ransomware through a phishing email, drive-by download of trojan software or through stolen password, infest the key computers in the network, open a port for attack and data transmission, then lock the important data away, generate a cryptographic key and hide it until the victim pays up the ransom. 

Attackers can choose to go after smaller victims for smaller ransom amounts or risk attacking larger victims, or go big game hunting. Although the prize for big game hunting is considerably more tempting, the risks are higher. For instance, attacking a bigger target (e.g., a government organization, healthcare system, or energy infrastructure) puts the attackers  on the radar of law enforcement. These larger targets are also less likely to pay the ransom to avoid funding future attacks by these cybercriminal gangs.

Targeting smaller but numerous victims requires more workforce as the attackers have to penetrate the victims’ networks and negotiate and convince every one of them to pay the ransom. In addition to being costly, more humans involved means more space for error and eventually jeopardizing the entire operation. However, smaller targets are more likely to choose the easy way out and pay the ransom to avoid scandal, panicking customers, and plummeting stock prices. Perhaps all of these pros and cons have made the cybercriminal gangs go back and forth with small and big targets and try their luck.

The current cybersecurity solution

The most common approach companies take to secure their network is through layering and isolation. In the simplest term, layering architecture helps companies to ‘limit’ access from different levels of users. For example, a public user can only visit the public section of a website while the employees with special privileges can access the backend of the site. This approach is simple and easy to create. However, the biggest challenge is that if the authentication of a superuser is compromised or malware secretly opens a port to the attacker, the layering system will not be able to stop the attacker because systems using layering architecture always trust local connections and requests. In the view of the attackers, once they pass the gate, it is a free buffet. It is especially true that conventional tunneling technologies such as Virtual Private Network, VPN, could help mitigate some cybersecurity threats by strengthening the external connection. However, VPN is still a password-driven technology, and as long as there is a single weak point in the VPN network, the entire network’s safety is jeopardized. 

Blockchain and Zero-Trust netwworks

Blockchain technology offers several advantages when used for data encryption and communication. In a blockchain, data is structured into blocks, and each block contains a ledger to keep a bundle of transactions in a decentralized structure. What makes blockchain secure is that all transactions must be approved and validated by all the nodes in the chain through a consensus mechanism. Blockchain technology’s immutable and decentralized nature makes the data impossible to tamper with and the network nearly impossible to hack. 

Blockchain can greatly enhance the zero-trust network. In a zero-trust network, any transaction needs to be authenticated. The network controller does not ‘trust’ any request or command sender until that sender can be verified for each action. Blockchain can enhance the network by:

a.    Detection of suspicious activity in any transaction
b.    Isolation of connection
c.    Access limits for certain users until cybersecurity officers have a closer look
d.    Immutable policies due to the immutable nature of blockchain

Despite blockchain technology’s advantages in cybersecurity, the application of blockchain technology is limited largely to supply chain, fintech, and digital currency at the moment. 

Several roadblocks are hindering the implementation of the blockchain in network security. First, the latency caused by updating all nodes can pose operational problems. Second, the size of the ledgers may be an issue for IoT devices and smaller devices to use blockchain. Third, it drives up the energy consumption for the network.

BDATA and BIoT technology

BDATA (www.Bdata.ca), a Toronto-based company, has taken a stab at the roadblocks for using blockchain in cybersecurity. BDATA has developed BIoT (Blockchain Internet of Things) technology, which is a lightweight and low latency blockchain. 

BIoT uses the multichain architecture based on Hyperledger Fabric, which creates complex on-device security. BIoT technology is also energy friendly since it requires low processing power and low RAM to run on edge devices. BIoT technology has also avoided the problem with high latency and large file issues associated with blockchain technology. BIoT is a lightweight (<50MB) and low latency (<10ms on 5G and <40 ms on 4G LTE) protocol that can be deployed on any device. 

BIoT technology is also cost effective when compared with the practice most companies are doing. The majority of the companies are using MQTT for data streaming, VPN for handshake connectivity, intrusion detection systems (IDS) for device monitoring, and device management (DM) for endpoint management, and each application costs significant resources to deploy and maintain. BIoT is an all-in-one solution as the technology contains functionalities such as authentication, intrusion detection, data streaming, endpoint management, and KPIs ensuring IT/OT infrastructure security.

The following are the steps to deploy BIoT technology:

  • Register organization and deploy BIoT endorsing peers
  • Extract devices board identity (e.g, for Mac, Hardware UUID)
  • Register device using board identity
  • Deploy BIoT peer on the device using the curl command:
    o    BIoT peer will read the device board ID to enroll the device with the BIoT chain
    o    BIoT peer will stream the data fully encrypted using a cryptographic chain of TLS 1.3 certificates.
    o    BIoT peer will provide complete device log analytics, intrusion detection, endpoint management, MITRE, device compliance with cybersecurity standards and many other useful features. 

Upon successful consensus among the organization endorsing peers, the device will be authenticated and received a trusted status to stream data from the device to pre-authenticated designated servers on the organization’s BIoT zero-trust network. Time-stamped hashes are created for every data point streamed from the trusted device. Every hash is stored in the query-able ledger to ensure the immutability of the data, and the streamed data gets decrypted for analytics and other uses. 

BIoT technology works on ARM, Intel, and AMD architectures and all the major operating systems such as Android, Mac, Windows, and Linux-based operating systems. Devices with the BIoT technology can be implemented rapidly for a consortium of organizations or an individual organization without duplicating data. Early adopters of the technology include Advantech, Supermicro, Intel, Arrow, and ASUS IoT edge devices.

BIoT features include:

  1. Multichain Architecture – BIoT has four chains:
    i.    Device Authentication 
    ii.    Data Streaming 
    iii.    Endpoint Management 
    iv.    Intrusion Detection System
  2. Cryptographic chain of TLS certificates
  3. DevOps & serverless technologies to auto manage the data load and peer deployments

Differences between BIoT and VPN

BIoT technology has several advantages when compared with VPN technology:

1.    First, the machine-to-machine trust is automatically established in the BIoT network. This helps the machine to communicate with other machines on the trusted network of machines without password-driven authentication. The network trust is handled entirely by the blockchain, based on the device’s unique board identity.

2.    Second, any data transaction is traceable and is always ready for auditing. The blockchain ledgers store the hashes of each data transaction, which ensures data immutability, and the hashes are always ready for the read operation. Currently, companies do backups to store the data, but data trust is always a big question during the backup. BIoT’s data immutability ensures data backup without compromising data quality and authenticity.

3.    BIoT runs on a zero-trust network. Every operation is recorded on the ledger, and all the nodes in the chain authenticate every block. If any anomaly happens, the BIoT intrusion detection mechanism will be triggered, and the operators will be alerted in real-time.

A brighter future of remote working and IoT using BIoT

As manufacturing automation and edge device implementation are growing exponentially, the need to protect remote assets and keep the network safe from cyberattacks is also increasing exponentially. Data privacy and integrity are also paramount in many verticals of our society, such as medical, defense, and smart city infrastructure. Likewise, with a continued increased number of remote access and IoT deployments, cyber criminal activities will be on the rise. BIoT can be a great resource for companies to add an immutable layer of security to fight against advanced and diverse cyberattacks.

About the contributors

Owen Wang is the co-founder of BDATA solution. He is a professional engineer by trade and graduated from Queen’s University with an Electrical and Computer Engineering bachelor’s degree. Owen joined SIEMENS Canada after university and led a team of R&D software developers before finishing his MBA degree from Schulich School of Business. Now, Owen and Syed Bari are working together on the BDATA startup venture and working together to change the world of cybersecurity with blockchain technology.

Nima Afraz is an Assistant Professor in the School of Computer Science at University College Dublin. He is affiliated with the CONNECT Research Centre, and his research focuses on blockchain applications in telecoms, the economics of networks, and network virtualisation. Nima is a recipient of the government of Ireland postdoctoral fellowship and worked as a postdoctoral fellow at Trinity College Dublin to address the challenges in the adoption of blockchain technology in telecommunications. Nima is the vice-chair of the Linux Foundation’s Hyperledger telecom special interest group. He received his PhD in computer science from Trinity College Dublin, Ireland, in 2020. 

Jun 29
Love1

Hyperledger Technologies at Work: Production Solutions in Telecom

By Hyperledger Blog, Hyperledger Fabric, Telecom

It’s #HyperledgerTelecom month so we are spotlighting some of the exciting ways Hyperledger technologies are at work across the industry. Below are some noteworthy production solutions in the telecom market that are built on Hyperledger platforms.

GSMA eBusiness Network

GSMA eBusiness Network, a blockchain solution developed by GSMA, aims to automate the complex business processes for wholesale roaming, ensuring readiness in the 5G and IoT era. The new private-permissioned industry-wide blockchain network. The GSMA eBusiness Network, built on Hyperledger Fabric, has the potential to support secure and transparent inter-operator settlements through decentralised applications and facilitate the digital transformation of wholesale roaming by improving operational efficiency, cutting costs, and mitigating errors and disputes. It was announced as a commercial offering just this week. 

Tech Mahindra’s plug-n-play solution to curb spam calls

By 2018, the spam call situation had grown grim in India, a country with more than 1 billion active mobile subscribers, causing bad customer experience and propagating of fake news and financial scams. The Telecom Regulatory Authority of India (TRAI) acknowledged UCC (Unsolicited Commercial Communication) or spam calls were a major nuisance to telecom subscribers across the country and a growing menace that needed to be tackled with immediate effect. Though TRAI had established a “Do Not Disturb” (DND) list with more than 230 million subscribers on it, unregistered telemarketers continue to spam customers, obtaining their consent through fraudulent and questionable tactics. Through various internal and external assessments, DLT was selected as the underlying technology to curb the menace. 

Tech Mahindra developed a plug-n-play solution, built on Hyperledger Fabric, to mitigate the problem. With the solution successfully deployed across three major telcos in India, Tech Mahindra has access to >50% market. This solution has potential to have a global impact. Tech Mahindra has already reached out to the Federal Communications Commission (FCC) in the U.S. market and is exploring opportunities to socialize it with U.S.-based telcos to address the pain points of robo-calling and caller ID spoofing are key pain areas that can be addressed by our solution.

Trust Your Supplier

Trust Your Supplier (TYS) is an innovative solution developed in a partnership between IBM and Chainyard to address the inefficiencies and risks associated with supplier information management. Built on a Hyperledger Fabric framework, it works with a network of enterprise buyer organizations, including three of the leading telecom companies: BT, Nokia and Vodafone.

These companies are working on TYS together to bring digital transformation to the telecom industry. As an integral part of their strategy, the TYS blockchain platform is bringing transparency and supplier visibility at every touchpoint, which supports compliance activities such as diversity, sustainability, cyber security, and anti-corruption.

Chime in on social with your own examples of Hyperledger in action in the telecom space here using #HyperledgerTelecom.

Telecom updates from Hyperledger Global Forum

At Hyperledger Global Forum, there was a range of telecom sessions led by experts from carriers, technology leaders and academia, including: 

Dispute Management using Blockchain – Rangesh Sripathi & Ahmed Khan, Verizon

Building Transformative Platforms to Scale 5G Ecosystems using Hyperledger – Utpal Mangla & Mathews Thomas, IBM

Access for the Next Billion – Decentralizing Authentication and Handover in 4G LTE/5G – Sudheesh Singanamalla, University of Washington

We also have an active community for those interested in participating and contributing to telecom solutions. The Hyperledger Telecom Interest Group (SIG) is focused on technical and business-level conversations about appropriate use cases for blockchain technology in the telecom industry. All are welcome. 

Cover image by Pete Linforth from Pixabay.

May 26
Love0

#HyperledgerInterop: A Sampling of Production Cross-Platform Solutions and Deployments Built with Hyperledger Technologies

By Hyperledger Blog, Hyperledger Besu, Hyperledger Fabric, Hyperledger Sawtooth

The rapid pace of innovation in the development and deployment of blockchain technologies is creating more points of intersection for cross chain and cross application data and transaction flow. Fortunately, there is also a robust effort underway to deliver new approaches to ensuring that solutions work across platforms and protocols. Case in point: at the upcoming Hyperledger Global Forum, there will be 20 talks covering various aspects of blockchain interoperability and integration. 

Below, we take a look at a sampling of use cases where Hyperledger technologies are at play in solutions that are operating in or enabling cross-platform production deployments: 

Daml
Daml, a multi-party application platform created by Digital Asset, is widely used in distributed applications that deliver portability across a number of blockchain platforms, including Hyperledger frameworks: Besu, Fabric and Sawtooth. Recently, using Hyperledger Fabric, Ethereum and a traditional Postgres database, Digital Asset demonstrated platform interoperability and open sourced the code to help CBDCs (and other applications that need to integrate with CBDCs) interoperate, making the digital currencies compatible regardless of the underlying technology. The code for this CBDC use case is available on Git Hub. Read more and watch the demo here.

Hala System’s Sentry 

Hala Systems is using Hyperledger Fabric alongside Hedera as part of its Sentry early warning system, which helps protect 2M+ people in Syria. Hala Systems uses both Hyperledger Fabric and Hedera to manage the metadata of created media and user input produced in conflict. The hashed metadata is simultaneously written to a private blockchain built on an IBM Blockchain Platform powered by Hyperledger Fabric and to Hedera Consensus Service. Hala Systems uses the IBM Blockchain Platform to act as its internal repository, preserving additional metadata to augment the auditable hash data sent to Hedera Consensus Service. With these two sets of records, any third party can verify the information on the public ledger to match the image and, if necessary, its accompanying data stored on the private ledger.

Project Starling

Project Starling was developed to help empower organizations to securely capture, store, and verify human history. Starling represents a ground-breaking methodology in the fight against the spread of misinformation and the looming threat of deep fakes by providing open-source tools. Starling uses the latest cryptographic methods and decentralized web protocols to meet the challenges of establishing trust in our most sensitive digital records.  

Jointly developed by teams at USC and Stanford, the Starling framework leverages multiple decentralized technologies including IPFS, GUN, Hyperledger Fabric, and Hedera Hashgraph throughout its process. For each piece of media captured, the framework is designed to store images on IPFS, using Filecoin, these image’s associated metadata is then stored in a permissioned Hyperledger Fabric network, securely protecting any sensitive information. For each media file, a hash of the information stored in Hyperledger Fabric is taken and recorded on the public Hedera network. By doing so, third parties are able to more readily trust the application owner and be assured no bad actor has falsified or modified results after the fact. 

Join the conversation this month about developments and deployments using Hyperledger technologies to drive interoperability with #HyperledgerInterop on social channels. 

Cover image by Clker-Free-Vector-Images from Pixabay.

May 13
Love0

The Power of Collaboration in a Vendor-Neutral Environment: An Interoperability Story

By Kevin Otto, Senior Director, Community Engagement, GS1 US Blog, Hyperledger Fabric

With the vast amount of data being shared today, and even more potential for data to be shared widely through distributed ledger technologies, the value of collaboration is becoming an imperative. As the saying goes, none of us is as smart as all of us.   

Collaboration in the supply chain is accomplished in many ways, but where the exchange of data is concerned, it happens more efficiently within a standards-based framework. There are dozens of companies currently leveraging Hyperledger platforms in combination with GS1 Standards as a foundation for data consistency and accuracy. Together, innovative use cases come alive, including potentially life-saving advances in food and pharmaceutical supply chain safety, as well as applications of technology that make supply chains more visible to support product provenance and information transparency.   

Collaboration in a vendor-neutral environment starts with having an organizational culture that first recognizes the value of having access to outside insights. Like the Hyperledger projects, collaboration often means joining together with peers, or even competitors, to better understand how to apply standards and technology to solve a collective problem. When industry leaders come together for a GS1 US initiative meeting, workgroup, discussion group, or virtual event, for example, they are making a commitment to problem-solving on pre-competitive issues and operating with the understanding that all participants are there to learn, contribute, and holistically support their respective industries.  

To better understand the power of collaboration in a neutral environment, let’s examine a recent example—a pilot program convened by GS1 US to explore interoperable seafood traceability solutions. 

Facilitating Innovation 

GS1 US facilitates innovation in a few ways, often through a discussion group or to conduct a pilot that investigates a specific challenge or technology. First, the organization has a dedicated team of innovators who regularly explore the impact of emerging technology, such as DLT, artificial intelligence, robotics, emerging data carriers and more, on the supply chain. This is a proactive operation designed to stay ahead of what could be influencing the business landscape in the next few years.   

Another way is as a response to an industry “ask.” Highly engaged industry executives leverage the organization’s neutrality to evaluate a technology that has industry communities buzzing and interested. In either case, GS1 US serves as a bridge between the technologists and those who can use their solutions to solve problems. 

The seafood traceability pilot was born through industry’s request. Several stakeholders expressed concern for the lack of interoperability between solutions and a growing need to address visibility gaps in the seafood supply chain that leave it open to fraud and other food safety hazards. They foresaw a potentially inefficient future where end users would be forced to join multiple ecosystems, and the costs of each would create a burden to work with their many trading partners. GS1 US hypothesized that GS1 Standards could play a role to preserve solution choice while enabling multiple systems to interoperate. 

Assembling the Participants 

Building on our evolving and well-rounded understanding of the supply chain and the industries using GS1 Standards, GS1 US recruited participants of diverse sizes. 

In early 2020 as part of the first phase of the pilot, the team selected traceability solutions from FoodLogiQ, IBM Food Trust (which leverages Hyperledger Fabric), ripe.io, and SAP to be evaluated. Simply put, the phase would create a prototype for how GS1 Standards can help each solution interoperate to transmit and exchange information about a product’s journey throughout the supply chain. The pilot’s focus was on the use case first, not necessarily the technology—hence the inclusion of FoodLogiQ, which does not have a DLT solution. Blockchain was considered a technology choice—each platform was required to have the ability to extract data to exchange with another platform.

Just recently, GS1 US completed the second phase of this pilot, adding end user participants (well-known seafood industry stakeholders and solution providers) and real-world traceability data, building on the simulated data of the first phase. For this part of the study, GS1 US enlisted the help of the Global Dialogue on Seafood Traceability (GDST), a seafood industry forum dedicated to forming global application standards for seafood traceability. In this phase, the group tested the flow of existing standardized product data using the established prototype and the GDST application standards for the seafood supply chain. 

Key Findings and Their Significance 

In both phases of the pilot, GS1 US determined that interoperability between solutions was possible when leveraging the GS1 System of Standards for the unique identification of products and locations, as well as GS1 Electronic Product Code Information Services (EPCIS), as a standardized data model for physical event data. EPCIS provided a consistent format and exchange protocol for sharing event data and transmitting key information from production to sale by uniformly facilitating the transmission of critical tracking events, such as whether a product had been shipped, received, packed, or transformed.

The interoperability of these systems supports the movement toward more widespread supply chain digitization and future requirements of the U.S. Food and Drug Administration (FDA) proposed Food Safety and Modernization Act (FSMA) section 204 food traceability rule. 

Using real-world data, the pilot demonstrated how EPCIS effectively connected two or more traceability systems and provided a way for systems to “speak” to each other using standards. Equally important, industry collaboration was critical to define the systems’ “conversation.” With both key elements in place, participants were confident that they had moved a step closer to industry-wide traceability and transparency for seafood.  

Ongoing Efforts 

Moving forward, the GS1 US team will continue to work with industry to understand traceability data requirements, evaluate the need for new technical standards or protocols required for interoperability, and explore more advanced use cases. 

Ultimately, the pilot story is just one story where the power of standards to bring unlikely collaborators together, united in a common goal. When industry leaders join together, advancement for all can be accomplished. 

Cover image by Volker Glätsch from Pixabay

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