Blockchain for Business IT Principles into Practice

Cover
Half Title
Title Page
Copyright Page
Table of Contents
Preface
Acknowledgments
Part I: Blockchain Basics – The Mechanisms that Make Blockchain Work
	1 A Gentle Introduction to the World of Blockchain
		1.1 What is Blockchain?
		1.2 Money, Trust, and Design Choices
		1.3 Defining Blockchain by Example: Playing Chess with Blockchain
			1.3.1 Defining an Initial State of a Game
			1.3.2 Defining Rules do Determine Valid Moves
			1.3.3 An Immutable Database to Record Moves
			1.3.4 Authenticating the Players
		1.4 Exploring the Potential of Blockchain
		1.5 Overview of this Book
		1.6 How to use this Book
			1.6.1 Zoe (22 yo, Last year Business Undergraduate Student)
			1.6.2 Yang (20 yo, Second year Undergraduate Student in Industrial Engineering)
			1.6.3 Xenia (31 yo, IT Consultant)
			1.6.4 William (23 yo, Master in Business Systems Design)
		1.7 Overview of Blockchain Applications Discussed in this Book
			1.7.1 Part 1
			1.7.2 Part 2
			1.7.3 Part 3
		1.8 Questions and Exercises
	2 Cryptographic Tools for Blockchain
		2.1 Computer-Readable Representation of Digital Messages
			2.1.1 Character Encoding
			2.1.2 Base-2 Number Representation
		2.2 Cryptographic Hashing
			2.2.1 Cryptographic Hash Functions: Definition
			2.2.2 Applications and Implementations
		2.3 Message Encryption: Symmetric and Asymmetric
			2.3.1 Symmetric Encryption: The Caesar Cypher
			2.3.2 Asymmetric Encryption
		2.4 Digital Signatures
		2.5 Case Study: A Brief History of Cryptography
		2.6 Conclusions
		2.7 Questions and Exercises
	3 An Implementation-Agnostic Definition of Blockchain
		3.1 What is Blockchain?
		3.2 Blockchain as a P2P Network
			3.2.1 What is a User of a Blockchain Network?
			3.2.2 Public and Private Blockchain Networks
		3.3 Data Management in a Blockchain Node: Transactions and Immutable Databases
			3.3.1 Implementing Data Immutability by Design
		3.4 Consensus Mechanism
		3.5 A More Precise Specification of BC4C
		3.6 Case Study: The Predecessors of Bitcoin
			3.6.1 Digital (Non-Decentralized) Cash Systems
			3.6.2 Completely Decentralized Digital Cash Systems
		3.7 Conclusions
		3.8 Questions and Exercises
	4 Extending Blockchain with Smart Contracts
		4.1 The Case for Extending Blockchain with Business Logic
		4.2 Properties of Smart Contracts
			4.2.1 What Kind of Business logic can be Implemented by a Smart Contract?
			4.2.2 Which Data can be Handled by a Smart Contract?
			4.2.3 What Specific Requirements are Introduced by Smart Contracts by their need to be Deployed in a Blockchain System?
		4.3 On-chain, Off-Chain Data, and Smart Contract Oracles
		4.4 An Architecture for Blockchain Systems
		4.5 Case Study: The Original Definition of Smart Contract
		4.6 Conclusions
		4.7 Questions and Exercises
Part II: Blockchain Platforms – The Systems that Provide Blockchain Functionality
	5 Bitcoin and Public Blockchain
		5.1 The Bitcoin Network
		5.2 Bitcoin Transactions
			5.2.1 Transactions and Node Balances in Bitcoin
			5.2.2 Digital Signature of Bitcoin Transactions
		5.3 Bitcoin Blockchain as a Data Structure: The Bitcoin Ledger
		5.4 Bitcoin Consensus Mechanism
			5.4.1 The life Cycle of Bitcoin Transactions
			5.4.2 Creating a New Block
			5.4.3 Calculating a Correct Nonce for a Candidate new Block
		5.5 Case Study: Bitcoin in the Real World
		5.6 Conclusions
		5.7 Questions and Exercises
	6 Ethereum and Smart Contract-Enabled Blockchain
		6.1 Ethereum Network
		6.2 Ethereum Transactions
			6.2.1 Transactions Transferring Ethereum Tokens Between EOAs
			6.2.2 Smart Contract-Related Transactions
		6.3 Ethereum Ledger and Consensus Mechanism: The Ethereum Virtual Machine
		6.4 Ethereum Consensus Mechanism
		6.5 Ethereum Smart Contracts and Tokens
			6.5.1 Smart Contracts
			6.5.2 Ethereum Tokens
		6.6 Ethereum Distributed Applications (DApps)
		6.7 Case Study – Everledger: Secure Provenance in Supply Chains over Ethereum
		6.8 Conclusions
		6.9 Questions and Exercises
	7 Private Blockchain
		7.1 Characterizing the Private Blockchain
		7.2 Ethereum as a Private Blockchain
		7.3 Corda: Private Blockchain based on a Need-to-Know Ledger
			7.3.1 Corda Data Structure
			7.3.2 Corda Network and Consensus Mechanism
		7.4 Hyperledger Fabric: Smart Contract-Enabled Private Blockchain
			7.4.1 Hyperledger Fabric Data Structures
			7.4.2 Hyperledger Fabric Network and Consensus Mechanism
		7.5 Case Study: Real World Applications that use Corda and Hyperledger Fabric
			7.5.1 Spunta Banca
		7.6 Conclusions
		7.7 Questions and Exercises
	8 Blockchain and the Internet of Things
		8.1 What is the IoT?
		8.2 Foundations of the IoT
			8.2.1 Radio Frequency Identification (RFID)
			8.2.2 Wireless Sensor and Actuator Network (WSAN)
		8.3 Applications for the IoT
			8.3.1 Logistics
			8.3.2 Healthcare
			8.3.3 Manufacturing
			8.3.4 Smart Cities
			8.3.5 Sustainable Energy
		8.4 Combining the IoT with Blockchain
		8.5 Challenges in Blockchain-Based IoT Platforms
			8.5.1 Latency
			8.5.2 Volume
			8.5.3 Computing Power
			8.5.4 Storage Requirements
		8.6 IOTA: A DLT for the IoT
			8.6.1 IOTA 2.0
			8.6.2 IOTA Streams
			8.6.3 IOTA Applications in the IoT
		8.7 Implementing IoT Applications with Existing Blockchains
			8.7.1 Bitcoin
			8.7.2 Ethereum
			8.7.3 Hyperledger Fabric
		8.8 Case Study: Secure Artifact-Driven Process Monitoring
			8.8.1 Artifact-Driven Process Monitoring
		8.9 Conclusions
		8.10 Questions and Exercises
Part III: Blockchain in Business – The Ways to Use Blockchain in Practice
	9 Suitability of Business Scenarios for Blockchain
		9.1 Structuring the Decision of Adopting Blockchain
		9.2 Business Suitability of Blockchain
			9.2.1 Multi-Party
			9.2.2 Trusted Authority
			9.2.3 Centralized Operation
			9.2.4 Immutability
		9.3 Technical Suitability of Blockchain
			9.3.1 Data Size
			9.3.2 Performance
			9.3.3 Cost
			9.3.4 Transparency
		9.4 Applying the Decision-Making Tools
			9.4.1 Safe Disposal of Industrial Waste
			9.4.2 Management of Electronic Health Records
			9.4.3 Self-Sovereign Identity Management
		9.5 Conclusions
		9.6 Questions and Exercises
	10 Blockchain and Business Models
		10.1 What is a Business Model?
			10.1.1 The Business Model Concept
			10.1.2 Specifying Business Models Inside-Out
			10.1.3 Specifying Business Models Outside-In
		10.2 Business Models in the Digital Age
			10.2.1 Digitally Supported Business Models
			10.2.2 Digitally Enabled Business Models
			10.2.3 Types of e-business Models and Blockchain
		10.3 Blockchain as an Efficiency Booster
			10.3.1 The Need for Efficiency
			10.3.2 Traditional Certified Spare-Parts Markets
			10.3.3 Blockchain-Boosted Certified Spare-Parts Markets
		10.4 Blockchain as a Business Trust Enabler
			10.4.1 The Role of Trust in (Electronic) Business
			10.4.2 Traditional Multi-Modal Logistic Markets
			10.4.3 Blockchain-Based, Multi-Modal Logistics Markets
		10.5 Blockchain as a Disintermediator
			10.5.1 The Concept of Disintermediation
			10.5.2 The Real Estate Business Domain Case
		10.6 Designing Blockchain-Enabled Business Models
			10.6.1 Technology-Push Business Model Design
			10.6.1 Using Functional Characteristics of Blockchain Technology
			10.6.2 Using Non-Functional Characteristics of Blockchain Technology
			10.6.3 Requirements-Pull Business Model Design
		10.7 Conclusions
		10.8 Questions and Exercises
	11 Blockchain in Outcome Management
		11.1 The Outcome Economy Concept
		11.2 A Noutcome Economy Control Model
			11.2.1 Organization-Level Business Control Model
			11.2.2 Chain-Level Business Outcome Control Level
		11.3 Trust Management in Outcome-Based Business
			11.3.1 The Need for Trust
			11.3.2 Trust Management with Blockchain
		11.4 Data Processing in Outcome Management
			11.4.1 Outcome Data Processing
			11.4.2 Types of Sensors
			11.4.3 Types of Regulators
			11.4.4 Federated Data Processing
		11.5 A Case Study in Sea Container Transport
			11.5.1 Case Outline
			11.5.2 Conceptual Model with One Customer
			11.5.3 Technical Model with One Customer
			11.5.4 Extending the Model to Multiple Customers
			11.5.5 Placing the Technology in the Reference Architecture
		11.6 Business Model Design for Outcome Management
			11.6.1 Choosing a Business Model Specification Technique
			11.6.2 An Example Business Model for the sea Container Case
		11.7 Conclusions
		11.8 Questions and Exercises
References
Index