Blockchain. Rogers D. Stephens Technical FedEx I.T. April 2018
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1 Blockchain Rogers D. Stephens Technical FedEx I.T. April 2018
2 Blockchain: An Emerging Technology What is it? Why is it significant? Gartner Hype Cycle
3 Where did Blockchain come from? Ghost writer Satoshi Nakamoto (2008) Originally part of Bitcoin (2009) 3
4 Traditional Data Integration Across Parties via EDI Each party has own database Data can be changed Complex audit 4
5 Blockchain is like EDI 2.0 Each party has own database Data can be changed Complex audit One database shared by all Once written, data is permanent Automated audit 5
6 Blockchain Scenario 1 Shipper initiates 2 FedEx confirms receipt 3 4 Changes in custody are recorded 5 FedEx confirms delivery 7 6 Recipient confirms receipt 7 Smart Contract automates any disputes
7 Why is Blockchain Significant to FedEx? 1 Shipper initiates FedEx confirms receipt Changes in custody are recorded Each party must write directly to the blockchain yields tight collaboration Automate / shorten dispute resolution. 5 FedEx confirms delivery Holds promise of automatic payment 6 Recipient confirms receipt Streamline legal proceedings? 7 Smart Contract automates any disputes 7
8 Where should we use Blockchain? Yes; it s a fit! No; don t use it! Multiple parties record transactions One party records transactions Contract relationships Need high performance (millisec) Need to reduce costs Need scalable storage/processing Ex: Dispute resolution, audit, etc. Need a database replacement Need to store a transaction log Blockchain will augment and supplement exis5ng database capabili5es. 8
9 Some Key Considerations Work is in progress Performance and Scalability CPU demand (impact of validation algorithms) Replication consistency across parties Security and privacy Vendors: IBM / HyperLedger, Microsoft / Ethereum Customers may push different flavors of Blockchain 9
10 Potential FedEx Architecture Needs outside of what blockchain provides today ENABLE RICHER QUERY Index of blockchain context INTEROPERABILITY and/or BLOCKCHAIN DATA STORE INTEGRATION across blockchains When custodial control changes occur, record them on the blockchain Each customer may have own their own blockchain OFF CHAIN STORAGE Shipment details stored externally due to data volume or sensitivity (e.g. shipment scans, GPS level detail) There are multiple blockchain implementations Public Cloud Cross-Party Standards and Governance (assistance from BiTA and BRI) 10
11 Some have stated. Blockchain could have a similar impact on global trade as the Internet did. 11
12 Appendix 12
13 How does it work? A party requests Transactions to record a Request is broadcast Transaction is form a block transaction to all nodes validated (all parties) Transaction complete. Block is added to end of the chain. It is permanent and unalterable. 13
14 How is it permanent and unalterable? BLOCK 1 A fingerprint is generated unique to the data in the block called a hash. Block 1 s hash 0x222 A cryptographically secure Block 1 transactions SHA256 algorithm is used to generate the hash. 14
15 How is it permanent and unalterable? BLOCK 1 BLOCK 2 BLOCK 3 Hash of previous block 0x111 Block 1 s hash 0x222 Hash of previous block 0x222 Block 2 s hash 0x888 Hash of previous block 0x888 Block 3 s hash 0x999 Block 1 transactions Block 2 transactions Block 3 transactions The hash from Block 1 is carried forward into Block 2. This chaining makes it prohibitive to alter the blockchain once written. 15
16 FedEx Blockchain White Paper captures detail on FedEx use cases, technology concerns, and plan. 16
17 Key Benefits Shared and visible to all Common language for all parties Each party contributes Streamline and automate existing processes such as Dispute resolution Permanent - cannot be changed Product recalls Automate processes such as dispute resolution 17
18 Key Work in Progress Pushes the Ball Forward Key POC work involves Custodial Control and Dispute resolution scenarios FedEx Freight is taking the lead Technical evaluation Enterprise Technical Architecture is taking the lead Key Blockchain implementations and cloud vendors IBM Hyperledger Fabric Microsoft Ethereum 18
19 What is Blockchain? Decentralized data store Accessed by multiple parties Blocks are written by each party Blocks are like line items in a record book. Data is permanent 19
20 Work is in progress POC Operatonal Scenarios FedEx Freight and Walmart dispute resolution xxx? Primary killer use case: secured custodial control Key Blockchain Vendors Permissioned Blockchain IBM - Hyperledger Fabric Microsoft - Ethereum 20
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