IBM Systems Magazine, Mainframe - September/October 2016 - 14

IT TODAY popular for business applications, such as supply chain and posttrade settlement-the things that run our economy but also things we haven't even imagined yet. Blockchain could help provide a unique view on business processes between multiple participants that hasn't been attempted before. We appreciate the folks who imagined blockchain and its use in bitcoins. Those folks sit on the shoulders of giants. In computer sciences over the past 20 years, pivotal changes have occurred around distributed computing and topography. That was leveraged to create blockchain under bitcoin, and we too are standing on their shoulders but also drawing upon new insight. ISM: Such as? GC: The notion in bitcoin is an anonymous network, so by design, the folks participating in the bitcoin network are not known. If blockchain is applied to a variety of business applications, the businesses involved will want to have some insight as to who is part of their network, so we've introduced the notion of a permission blockchain versus an anonymous blockchain. It's still a blockchain, but management of participants in the network is different. We use a certificate authority to issue certificates to members coming into the blockchain. Think of it as a members-only club where you're invited to come in; it could be permissioned liberally or selectively. Some users might be able to issue transactions, but only a few might be able to validate them. There might be a global timekeeper to ensure they're stamped properly and agreed upon on in the order of the transaction. Some members will have permission to run the transactions, and many will get the chance to vote on the validity. So, we have a notion of a permission blockchain that starts to change the game and make it more acceptable to a broader business audience, most of which is working in regulated industries. This makes permissions and control important. Privacy, confidentiality, auditability-these aren't in the blockchain implementation under bitcoin. ISM: Is this part of the blockchain software fabric? GC: It is. About a year ago, we kicked the tires of all the major open-source blockchain projects and did proof of concept with customers on the bitcoin blockchain network. We got to understand both the art of blockchain and what we can do to make it more applicable to business, but it was difficult having conversations about many of these blockchain technology projects. As a result, we thought it would really help the conversation to actually create one. About a year ago, a group of IBMers came together and, from the ground up, built a permission blockchain that had privacy, confidentiality and auditability front and center in the design while still holding up the principles of a blockchain, including the distributed ledger. We then went to the Linux* Foundation because we believe the only way a blockchain will be widely adopted is if it's done in the open, given the nature of blockchain and its cryptographic-heavy peer-to-peer interactions. Industry regulators will need full transparency into this technology; an open way is the only way. We found that other like-minded companies had approached the foundation about applying blockchain to a broad set of business scenarios. We met a lot of them and decided to work together with the Linux Foundation to start the Hyperledger Project. We donated to the project about 44,000 lines of code we built over the last few months for blockchain for business as well as the IT rights that went along with it and the patent we filed for it. ISM: Can you give us an example of how this might work in something like a supply chain, especially in terms of the shared ledger? GC: A group of companies that work together in a supply chain would agree to create and govern a blockchain network for managing their parts among one another. So, the first step is forming the business network. The key part is that each member has a place where it keeps its shared ledger, and we're offering a place to run it in the IBM cloud-we call them the blockchain nodes. If the members wanted a node, we would rent it to and run it for them. As I said, the governing body would agree on the rules and hand out permission for members that would allow them to interact. As an example, someone may be moving parts in a container from one country to another. The shipping company might be a member of the supply chain network ensuring the parts are put on the container ship and pass through customs. Maybe the customs agent validates them on the chain, indicating the parts arrived. As part of the Internet of Things, the containers could be scanned for location and to prevent tampering before they arrive at border control, which registers them before the delivery company accepts the package and brings it over to the manufacturer. This way, everyone on the blockchain agrees that things have happened legitimately. All of the conditions were true. All of the members agree. The event is recorded indelibly on the blockchain and is immutable once it's there. ISM: How complex is establishing a blockchain network? GC: Overall, this requires a lot of things to happen. Agencies must get together with members of their supply chain and maybe even regulators; this could take some time. But compliance is a good starting point and doesn't require too many companies to be involved. IBM z Systems Solutions Read about what IBM is doing to ensure security and enhance capabilities while using blockchain on z Systems in "Process Transformation" on page 20. 14 // SEPTEMBER/OCTOBER 2016 ibmsystemsmag.com http://www.ibmsystemsmag.com

Table of Contents for the Digital Edition of IBM Systems Magazine, Mainframe - September/October 2016

Table of Contents
Editor's Desk: Mitigating money matters
IBM Perspective: Linux on z Systems provides financial industry a foundation for blockchain
Partner PoV: Virtualization helps improve time to market and data center operations
IT Today: Blockchain's potential extends beyond the financial industry
Case Study: The Right Tools: Educational Testing Service streamlines application calls and improves PCI compliance
Cover Story: Process Transformation: Blockchain brings speed, security and transparency to business
Feature: A Modern System: IBM midtier solutions exploit API and microservices to drive innovation
Special Report: Mainframe Security Survey: Unauthorized users and external hackers are top concerns cited in survey
Tech Corner: Create a DevOps pipeline for Java applications in CICS
Solutions: zVT Control Center, dbDefender DAM Agent for DB2
Stop Run: IBM software engineer balances his day job with acting
Reference Point - Global Events, Education, Resources for Mainframe
IBM Systems Magazine, Mainframe - September/October 2016 - Intro
IBM Systems Magazine, Mainframe - September/October 2016 - Cover1
IBM Systems Magazine, Mainframe - September/October 2016 - Cover2
IBM Systems Magazine, Mainframe - September/October 2016 - 1
IBM Systems Magazine, Mainframe - September/October 2016 - Table of Contents
IBM Systems Magazine, Mainframe - September/October 2016 - 3
IBM Systems Magazine, Mainframe - September/October 2016 - 4
IBM Systems Magazine, Mainframe - September/October 2016 - 5
IBM Systems Magazine, Mainframe - September/October 2016 - Editor's Desk: Mitigating money matters
IBM Systems Magazine, Mainframe - September/October 2016 - 7
IBM Systems Magazine, Mainframe - September/October 2016 - IBM Perspective: Linux on z Systems provides financial industry a foundation for blockchain
IBM Systems Magazine, Mainframe - September/October 2016 - 9
IBM Systems Magazine, Mainframe - September/October 2016 - Partner PoV: Virtualization helps improve time to market and data center operations
IBM Systems Magazine, Mainframe - September/October 2016 - 11
IBM Systems Magazine, Mainframe - September/October 2016 - 12
IBM Systems Magazine, Mainframe - September/October 2016 - IT Today: Blockchain's potential extends beyond the financial industry
IBM Systems Magazine, Mainframe - September/October 2016 - 14
IBM Systems Magazine, Mainframe - September/October 2016 - 15
IBM Systems Magazine, Mainframe - September/October 2016 - Case Study: The Right Tools: Educational Testing Service streamlines application calls and improves PCI compliance
IBM Systems Magazine, Mainframe - September/October 2016 - 17
IBM Systems Magazine, Mainframe - September/October 2016 - 18
IBM Systems Magazine, Mainframe - September/October 2016 - 19
IBM Systems Magazine, Mainframe - September/October 2016 - Cover Story: Process Transformation: Blockchain brings speed, security and transparency to business
IBM Systems Magazine, Mainframe - September/October 2016 - 21
IBM Systems Magazine, Mainframe - September/October 2016 - 22
IBM Systems Magazine, Mainframe - September/October 2016 - 23
IBM Systems Magazine, Mainframe - September/October 2016 - 24
IBM Systems Magazine, Mainframe - September/October 2016 - 25
IBM Systems Magazine, Mainframe - September/October 2016 - Feature: A Modern System: IBM midtier solutions exploit API and microservices to drive innovation
IBM Systems Magazine, Mainframe - September/October 2016 - 27
IBM Systems Magazine, Mainframe - September/October 2016 - 28
IBM Systems Magazine, Mainframe - September/October 2016 - 29
IBM Systems Magazine, Mainframe - September/October 2016 - 30
IBM Systems Magazine, Mainframe - September/October 2016 - Special Report: Mainframe Security Survey: Unauthorized users and external hackers are top concerns cited in survey
IBM Systems Magazine, Mainframe - September/October 2016 - 32
IBM Systems Magazine, Mainframe - September/October 2016 - 33
IBM Systems Magazine, Mainframe - September/October 2016 - 34
IBM Systems Magazine, Mainframe - September/October 2016 - 35
IBM Systems Magazine, Mainframe - September/October 2016 - 36
IBM Systems Magazine, Mainframe - September/October 2016 - 37
IBM Systems Magazine, Mainframe - September/October 2016 - 38
IBM Systems Magazine, Mainframe - September/October 2016 - 39
IBM Systems Magazine, Mainframe - September/October 2016 - 40
IBM Systems Magazine, Mainframe - September/October 2016 - 41
IBM Systems Magazine, Mainframe - September/October 2016 - Tech Corner: Create a DevOps pipeline for Java applications in CICS
IBM Systems Magazine, Mainframe - September/October 2016 - 43
IBM Systems Magazine, Mainframe - September/October 2016 - 44
IBM Systems Magazine, Mainframe - September/October 2016 - 45
IBM Systems Magazine, Mainframe - September/October 2016 - Solutions: zVT Control Center, dbDefender DAM Agent for DB2
IBM Systems Magazine, Mainframe - September/October 2016 - 47
IBM Systems Magazine, Mainframe - September/October 2016 - Stop Run: IBM software engineer balances his day job with acting
IBM Systems Magazine, Mainframe - September/October 2016 - Cover3
IBM Systems Magazine, Mainframe - September/October 2016 - Cover4
IBM Systems Magazine, Mainframe - September/October 2016 - Reference Point - Global Events, Education, Resources for Mainframe
IBM Systems Magazine, Mainframe - September/October 2016 - SE1
IBM Systems Magazine, Mainframe - September/October 2016 - SE2
IBM Systems Magazine, Mainframe - September/October 2016 - SE3
IBM Systems Magazine, Mainframe - September/October 2016 - SE4
IBM Systems Magazine, Mainframe - September/October 2016 - SE5
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