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


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IBM Systems Magazine, Mainframe - September/October 2016

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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