s Blockchain Opportunity Assessment - BOA
- jim mason
- jimm1
Key Points
- survey questionnaire
- current systems assessment questions
- review Next Gen Digital Solutions concepts in assessment
- key blockchain features and impactsuse a pri
- opportunity assessment process
- outcomes - use cases, current performance, opportunity definitions, solution strategies
- easily adapts to business oa > blockchain oa > data oa etc
- FACTUR3DT.io
- What are the current pain points?
- trust is the fuel that runs all relationships
- HOW WELL IS TRUST WORKING NOW? contracts, partners, assets, data, transactions, quality, more ??
- Collaborate with partners and competitors to find opportunities to re-engineer solutions
- more
References
Key Resources
- bc projects defined on slideshare, IBM case studies, Forbes
- swt wiki
- reference pot > poc > pov in ERP successes
- qwt workshop model
Session Overview
The assessment defines an Enterprise Blockchain solution strategy
Many organizations are looking to improve operations through Digital Transformations leveraging key technologies like Enterprise Blockchain, Big Data, Analytics, Automation and more. Defining a valid use case for Enterprise Blockchain, understanding the opportunities and challenges to establish clear requirements and identifying the best solution strategies for the organization can be challenging.
offers a partnership with selected organizations
Software Solutions offers an Enterprise Blockchain Opportunity Assessment to selected organizations as a partnership. The assessment will address the deliverables listed above. During the assessment, a lead architect is assigned supporting the assessment delivery. Other resources are accessed as needed to complete the assessment.
The assessment can provide significant benefits
There are potential savings in risks, resources, time and costs for the organization. The learning curve and implementation risks for the specific solution strategy can be reduced as well. If the assessment defines a valid Enterprise Blockchain solution strategy, it can provide a solid foundation for a productive, successful project.
Key Concepts
what value can DLT provide?
Transactions can be verified automatically by multiple parties using smart contracts
Transactions can be approved and signed automatically by multiple parties
Transactions are recorded in the permanent ledger
Transactions can be public or private to specific parties
The transaction ledger can be automatically shared to multiple authorized parties
Related capabilities for DLT
organizations can operate in multi-tenant, node Kubernetes networks
Authentication for organizations, users, accounts using certificates, membership IDs, SSI IDS ( indirectly )
Entitlement and Authorization for organizations, accounts, users using RBAC and ABAC support
On-ledger and off-ledger data synchronization
Smart Contract languages: Solidity, Java, Node.js, Golang
ZKP
Data privacy
SSI ID support
Wallet services
Token services
Event management collaboration
Observability collaboration
KMS service interfaces
Kubernetes Operators
Client Solution Journey: Discovery > Assessment > Accelerator > Pilot > Production
Value Chain Engineering Solution Process
Key Activities
Assessment
Learning workshops
Define VCE
Current strategies, performance
Business network review
roles - value add
Network challenges
Network opportunities
VCE design
VCE impact forecast
VCE validations
VCE consortium plans
Pilot
Blockchain Business Model
The architecture solution layers & themes
- Architecture Solution Themes - AST
- Architecture Design Patterns
- Stakeholders
- Subsystems & Applications Model
- Capabilities
- Use Case Analysis
- BVA,
- Operations Model
- Information Model
- Security Services Models
- System Processes & Policies - JEPL
- New Solution Definition
- Roadmap: Resources, Milestones, Sprints
- Phases
- Environments
- Requirements
- Features
- Services
- Architecture Models
- Sourcing & Decision Log
- Components
- Templates
- Generators
- Adapters
- Integrations
- Governance Processes
- Project Plan
- Education & Marketing Plan
- Implementation Plan
- Reference related ITSM models
Business Architecture Blueprint
https://cdn.ymaws.com/www.businessarchitectureguild.org/resource/resmgr/bizbok_10/TOC_v10_FINAL.pdf
Simple RFP Process
RFP response solution estimates
client >> context > goals > scope > constraints > requirements > RFP > client survey ( VCRS, FACTUR3DT.IO )
provider >> context > goals > RFP > use cases > requirements > stories, models > design > resources > product plans > build plans > wbs x phase, role > estimates > confirmations
implementation, operations, support plans
Sample simple RFP response
#SDP - Solution Delivery Process | |
|---|---|
| Define Project | Define the mission, goals, opportunity, challenges strategy, resources, roadmap for a candidate solution |
| Discover Current Solutions, Needs | Define the business model, performance, resources, success factors, risks. Automate effectively where feasible. |
| Design New Solution | Design the solution with the stakeholders. Automate effectively where feasible. |
| Plan Solution | Given the project definition, design, plan the solution with the resources needed to implement and operate the solution |
| Deliver Solution | Build and test the solution with the pilot user community. Include appropriate training. Automate effectively where feasible. |
| Implement Solution | Define a success strategy for rollout and adjust as needed to fit business realities, priorities and technical capabilities. Automate effectively where feasible. |
| Operate Solution | Track the operations of the solution using the key operations metrics and summarize the VCRS results. Automate effectively where feasible. |
| Support Solution | Provide the right support to match the severity, priority and value of the problems. Automate effectively where feasible. |
Discovery Steps
CBTP outcomes
- Confidence those Needs are Understood
- Belief those Needs can be met
- Trust that those Needs will be prioritized
- for a Purpose
LSP
- Rapport
- IBR
- Need qualification
- FBR - feature, benefit, response
- TC - Trial Close - does it make sense to ?
- HO - Clarify and Handle Objections, If I will you
- Summarize and Next Steps
BVA Modeling Steps
---------------
f2p.fms Value Roadmap
Explore
Discover
Learn
Define
Deliver
---------------
Value Journey
columns
title
detail
user goals
user decisions
sybal goals
sybal decisions
notes
BVA - Business Value Analysis Model
Business Value Analysis - Andy Martin
GAPS - quick requirements by role for new solutions
GAPS is a quick way to scope projects using consensus by all key parties on Goals & Scope, Key Assumptions, Problems & Opportunities, Strategies & Steps to Resolve
Inputs to GAPS can be:
- interviews, user journey maps, existing solution information, constraints, prior history, prior designs, resources
Define candidate roles and populations for each role
Prioritize roles on importance, delivery sequence
For each role, run GAPS analysis both functional, then non-functional
- Goals and measures of success and failure including scope for all key stakeholders
- Assumptions for all key stakeholder groups are defined, tracked, measured
- Problems & Opportunities to Address for all stakeholder groups are agreed on and prioritized
- Strategies & Steps for Resolution for all stakeholder groups are agreed on, prioritized and updated in project plans
The GAPS report is a key part of organizing any project
Using GAPS define solution definition based on VCRS
Non-functional and functional solution features should be evaluated with ASCRUM dimensions as well
Focus is VCRS
- Value for all Roles
- Costs for all Roles
- Risks for all Roles - Real Question - What's it take to do it right?
- Success Keys for all Roles - What do you need from me to succeed?
FACTUR3DT.io metrics for all parties
for details on FACTUR3DT.io see
m Consulting Process#FACTUR3DT.io-measurevaluedeliveredbeforeandaftersolution-forecastsnetvalue
- Feelings
- Accuracy
- Costs
- Timing
- Utility or Values
- Risks
- Resources
- Revenues
- Decisions
- Trusts
input - measure all metrics before solution
output - measure all metrics based on proposed solution and actual results
i = input ( the current solution impacts and performance metrics against goals
IF input missing, then define goals and record performance now to validate need, opportunity
o = output ( the expected new solution impacts and performance metrics against goals
IF output missing, then create a POC ( MVP ) for a small test audience to validate the key concepts at least
VCE Review
VCE > Value Chain Economies: micro economies for value-chain communities ( VCC )
OARS - Keeping Project Investments on Track during Agile Delivery
GAPS is done at the start of the project
OARS is done as part of the planning for EACH Sprint. It's an important review step to sync Sprints back to the updated value propositions, investments and risks for solution delivery.
OARS is:
- Objectives - The goals & scope of the project have been turned into measurable objectives with SLAs, KPIs, SLOs, SLIs and the results are evaluated
- Assumptions - The key assumptions of all stakeholder groups are reviewed, updated and re-prioritized based on project, results, priority changes
- Review - the progress on deliverables, investments, risks, problems, opportunities is updated and reprioritized among key stakeholders
- Steps - Stakeholders agree and commit to updated strategies and steps for currency with updates as needed for both problems & opportunities on the project
OARS reports are published as part of EACH Sprint plan
Key Questions for VCE: Value Chain Economies
- what is the network definition, scope?
- who are the roles in the network?
- what are the current pain points for each role now?
- what are the potential benefits, costs, risks for each role operating the network?
- what's the plan to build out the network and ensure value for the roles?
- trust is the fuel that runs all relationships
- HOW WELL IS TRUST WORKING NOW? contracts, partners, assets, data, transactions, quality, more ??
- What if trust could be improved? automated?
- What are the real costs of change? What if change was simple, safe, secure?
- How can we collaborate with partners and competitors to find opportunities to re-engineer solutions
a VCE solution needs to deliver these capabilities at each level
assets
processes
services
standards
events
decisions
security
trusts
economics
governance
regulations
compliance
memberships
connections
Questions to Rethink solutions using DLT
blockchain-vcn-definition-forbes.com-15 Blockchain Questions That Will Make You Look Smart.pdf link
blockchain-vcn-definition-forbes.com-15 Blockchain Questions That Will Make You Look Smart.pdf file
My expanded question list for blockchain solutions
- are we ready to give up control? < partners vs controller
- will all organizations have net economic value in this model?
- what have we learned from our history? past innovation results?
- have we had the right conversations on partnership in our community?
- how will blockchain solve problems or achieve goals?
- how can a blockchain network improve our reach, our efficiencies and our services to our markets?
- Why is blockchain necessary for this use case? what are the alternatives?
- Why will stakeholders participate? stay engaged? invest more? expand the economy?
- Why should we use a private blockchain?
- “Ask what do you need a private blockchain for that you can’t do with a web server. If all the parties in a network can agree on one entity to run a private blockchain, chances are they could have agreed upon a single third party to run a centralized web server.”
- Why should we use a public blockchain?
- Who operates, governs the public blockchain? what are the risks? is it sustainable?
- How are key trusts supported by parties in the blockchain solution?
- What data should be on-chain? off-chain? Why?
- Does the community agree on standards and quality for procedures, policies, regulations, data, messages, services, events?
- Is the community ready to succeed with blockchain? What changes are needed to ensure success?
- Is this the right time to invest in a blockchain solution? Why or why not?
- What gaps does blockchain have for our solution that are an issue?
- What's the smart way to implement blockchain for this solution given our community?
- Which blockchain technology is right for our solution? why? what are the benefits? challenges?
- How should we operate blockchain services? in-house? 3rd party? consortium?
- Is a standards-based open-source solution or a vendor specific platform solution better to use for this blockchain use case? why?
- what are the operations and security risks to operate this blockchain solution? how are they controlled, mitigated?
- What are the operations, governance, economic impacts and risks of using 3rd party service providers in a blockchain solution?
- Wha's the impact of the blockchain solution on data availability, privacy, quality, control?
- What efficiencies are delivered, frictions reduced using blockchain?
- Does blockchain offer the right features our use case requires? If not, how will those features be implemented?
- How do we simplify and integrate the use of blockchain in our solutions for our developers, users?
- Is our solution leading, trailing or responding to what the industry is offering now?
- What disruption risks exist for our customers, our services, our products from others using blockchain?
- How does blockchain better support our compliance, governance, decisions, trusts?
- Do we have a VCRS operations summary for this blockchain solution now? when?
- What are the net results of the FACTUR3DT.io assessment for this blockchain solution?
- Given our implementation strategy, what are the key resources and skills we need to succeed?
- How should the blockchain project be organized, managed, run?
- Have we defined the right artifacts for each stage of the SDP - Solution Delivery Process?
- Have we defined the authorizations model? the privacy model? the trusts model? the RACI model?
- Are we tracking the epics, stories for the use cases through the SDP? how are we validating?
- How are we making engineering decisions? validating the decisions? approving the decisions? recording in the ECL - engineering change logs?
- What problems have we encountered in delivering the blockchain solution? how should they be corrected, managed, mitigated?
- What problems have we encountered in operating the blockchain solution? how should they be corrected, managed, mitigated?
- Who defines, regulates, controls, operates, validates, approves, is liable for each process, inputs, outputs? what changes are needed? why?
- What should be on-chain? off-chain? why?
- How is the event producer, consumer model implemented in the solution? is it globally consistent?
- What features of our solution design are tactical? which are strategic?
- What is the sustainability, expandability of our economic model for participants? how do we validate this?
VCE opportunities for Value Chain Economy
- Improve Trust for all
- Improve business efficiency
- Identifying new ways of automating business processes among partners
- Better transaction integrity and visibility
- Increased transaction speed
- Better data protection provided by Blockchain’s ability to eliminate points of failure in business networks
- Lower transaction cost and / or fixed costs
- Stronger working relationship with partners
- Enabling new business models (e.g., in contract management, financial transaction management, identity management, etc.)
- Time savings (i.e., reducing time required for settling disputes, finding information, and verifying a transaction, leading to quicker settlement and deliveries, etc.)
- Reduction of risk (i.e., by eliminating the risk of collusion, tampering, and unintentional leakage of information, etc.)
- Improve liquidity management for corporate treasury operations
- Improve compliance and governance
VCE challenges
- Blockchain is still an emerging technology
- Lack of understanding as to what Blockchain can do/is good for
- Identifying applicable use cases that are relevant, cost-effective and practical to implement for our particular business or industry
- Lack of experts skilled in Blockchain technology
- Lack of industry standards
- Lack of capital or funding
- Inability to scale
- Intellectual property concerns
- Audit/compliance concerns
- Regulatory constraints/uncertainty
- Privacy and security considerations
- Control and consent management
- Limited market for available Blockchain solutions
- Integration challenges with Systems of Record
- Network Business Governance Models
- Logical views of blockchain network by segment
- Logical transaction scope and commit boundaries with on-chain, off-chain data
- Transaction finality requirements and optimization strategies ( see MySQL time series for good model )
- Prioritization of response based on data age
- Methods for functional authorization by role
- Methods for data authorization by role and account assignments
- Use of data summaries where needed for reconciliations, performance
- Normal performance strategies ( cache and buffer pool management, shards, partitions, replicas, clusters, channels, prioritizations of work loads )
- Don’t know/Not sure
Sample Interview template
TBD upload
Business Model Design Template
Business Model Transformation Template
Given business domain, model, performance
Then
GAPS > OARS > MVP
VCRS
FACTUR3DT.IO
TVCE = Trusted Value Chain Economy
CBTP = Confidence we understand, Belief we can deliver, Trust we will deliver for a Purpose
Lean Startup Business Model Template
- The Business Model Canvas – to frame hypotheses
- Customer Development – to test those hypotheses in front of customers
- Agile Engineering – to build Minimum Viable Products to maximize learning.
Define the parties, the roles for parties in the TVCE and the model canvas for each party
This multi- stake holder model will indicate areas that need governance, trust and rules
OpenTelemetry - metrics for process design
OpenTelemetry, also known as OTel for short, is a vendor-neutral open-source Observability framework for instrumenting, generating, collecting, and exporting telemetry data such as traces, metrics, logs. As an industry-standard it is natively supported by a number of vendors.
https://opentelemetry.io/docs/
OpenTelemetry, also known as OTel for short, is a vendor-neutral open-source Observability framework for instrumenting, generating, collecting, and exporting telemetry data such as traces, metrics, logs. As an industry-standard, it is natively supported by a number of vendors.
https://opentelemetry.io/docs/reference/specification/metrics/semantic_conventions/
The following semantic conventions surrounding metrics are defined:
- HTTP: For HTTP client and server metrics.
- Database: For SQL and NoSQL client metrics.
- System: For standard system metrics.
- Process: For standard process metrics.
- Runtime Environment: For runtime environment metrics.
- FaaS: For Function as a Service metrics.
Apart from semantic conventions for metrics and traces, OpenTelemetry also defines the concept of overarching Resources with their own Resource Semantic Conventions.
The following semantic conventions for spans are defined:
- General: General semantic attributes that may be used in describing different kinds of operations.
- HTTP: For HTTP client and server spans.
- Database: For SQL and NoSQL client call spans.
- RPC/RMI: For remote procedure call (e.g., gRPC) spans.
- Messaging: For messaging systems (queues, publish/subscribe, etc.) spans.
- FaaS: For Function as a Service (e.g., AWS Lambda) spans.
- Exceptions: For recording exceptions associated with a span.
- Compatibility: For spans generated by compatibility components, e.g. OpenTracing Shim layer.
The following library-specific semantic conventions are defined:
- AWS Lambda: For AWS Lambda spans.
- AWS SDK: For AWS SDK spans.
- GraphQL: For GraphQL spans.
Apart from semantic conventions for traces and metrics, OpenTelemetry also defines the concept of overarching Resources with their own Resource Semantic Conventions.
Difference between OpenTelemetry and Prometheus
OpenTelemetry helps companies generate telemetry data by instrumenting their code. Prometheus, on the other hand, monitors metrics. There are client libraries for both Prometheus and OpenTelemetry, but OTEL provides an all-in-one solution for logging, metrics, and tracing your code. Prometheus only generates metrics.
Languages and environments supporting OpenTelemetry - instrumentation of services
https://opentelemetry.io/docs/instrumentation/
OpenTelemetry code instrumentation is supported for the languages listed below. Depending on the language, topics covered will include some or all of the following:
- Automatic instrumentation
- Manual instrumentation
- Exporting data
If you are using Kubernetes, you can use the OpenTelemetry Operator for Kubernetes to inject auto-instrumentation libraries for Java, Node.js and Python into your application.
The current status of the major functional components for OpenTelemetry is as follows:
| Language | Traces | Metrics | Logs |
|---|---|---|---|
| C++ | Stable | Stable | Experimental |
| C#/.NET | Stable | Stable | Mixed* |
| Erlang/Elixir | Stable | Experimental | Experimental |
| Go | Stable | Mixed (beta sdk & stable api) | Not yet implemented |
| Java | Stable | Stable | Stable |
| JavaScript | Stable | Stable | Development |
| PHP | Beta | Beta | Alpha |
| Python | Stable | Stable | Experimental |
| Ruby | Stable | Not yet implemented | Not yet implemented |
| Rust | Beta | Alpha | Not yet implemented |
| Swift | Stable | Experimental | In development |
Digital Economies are integrated with blockchain
What's missing ? economic, governance, decision and trust models
For all parties in the economy, understanding is key:
- roles and goals
- economics
- governance
- decisions
- trusts
From Andy Martin, IBM
https://www.linkedin.com/pulse/my-first-week-vblogs-blockchain-andy-martin/
Different Value Chain Models have different Growth Rates - 2023 - Arkwright
supply-chain-2023-new-VAS-value-added-services-models-arkwright.pdf
supply-chain-2023-new-VAS-value-added-services-models-arkwright.pdf file
Merchant acquiring is now, and continues to become, a complex universe with a significant variety of business models and related value propositions, which have been evolving over time and at increasing speed in order to closely address merchant needs. At present, the industry is subject to intense rivalry, including the growing challenge of large merchants taking direct control of their own payment environments and developing payment solutions on their own.
Given the continued growth of electronic payments adoption and usage, this is a high-stakes competitive context where successful players are proving to be those able to adapt their focus and business models to respond to merchant needs at speed while retaining ownership and intimacy and evolving value propositions across established delineations.
This is a challenging competitive context, highly dynamic but, at the same time, presenting opportunities to incumbents and new entrants alike. For all of them, the potential upside is that of a growing industry, of the opportunities deriving from an evolving retail industry whose needs will require new business models for these to be addressed.
Success will be subject to the ability to respond to merchant needs, adapting business models to fit three key priorities:
1. Monitoring and evaluating alternative business opportunities with the ability to act fast. This is a fast-moving industry and the ability to think strategically beyond the own business model, to evolve, and to diversify, is key to retain any competitive defendable position.
2. Retaining merchant ownership and intimacy. In an industry where most of the other capabilities tend to be pushed to a commodity status in an environment where services can be sourced, re-combined and rewrapped with relative ease, this is a true lasting asset.
3. Developing value propositions beyond industry borders. Payments are enablers in a transaction with other steps and complexities around it. Identifying complementary opportunities, the right partnerships and suppliers, and aiming, as a coalition of partners, to address a merchant need are key to relationship building and to value creation and capture
What's the economic model for the network?
based on the parties, roles, goals, processes for the use cases in scope,
what is the economic model for the parties?
What's the governance model for the network?
Governance Concepts
Drop focus on technologies and focus on business models and governance for network operation, growth
Governance questions include:
- what are the membership roles, responsibilities for firms ?
- wha are the operations policies and metrics for the solution?
- what authorities do they have ?
- what policies are set at the member level by role?
- what policies are set at the network level?
- how are disputes tracked, managed, resolved?
- how do the governing rules and regulations get set?
- who manages the governance of the network?
- who manages the operations of the network?
- who manages the support of the clients?
- who provides services to the clients?
- how are they chosen, trained, staffed?
On-chain governance questions
the on-chain governance question list here target the WHOLE DLT operation, not just the maintenance system for the DLT itself ( smart contract, policy updates etc )
- is the DLT permissioned or permissionless? why?
- Who are the organizations that define, govern, manage and operate the DLT network? how are they regulated?
- how are organizations, accounts and users on-boarded? related to each other? processes? regulations? support models?
- what master data models are supported for organization hierarchies, authorizations, delegations?
- is transaction consensus controlled by user defined policies?
- can transaction consensus policy vary by transaction type?
- what is the transaction consensus method for the DLT? POW? POS? POA? other? why?
- how are transactions added to the ledger ( leader election, other or ? )?
- can transactions be finalized before all ledger updates are complete based on policies?
- are transactions re-playable?
- are transactions fully recoverable ( RTO, RPO ) in production now?
- is smart contract maintenance governed the same way transaction consensus is?
- does transaction signing require direct use of a private key always?
- can multi-signature transaction types be defined?
- can validation, approval of transactions be delegated to third parties that are registered on the platform?
- how are notaries / witnesses supported on the platform?
- what is the model to optimize performance for oracle services in transactions?
- are tokens used for payments backed by assets? how backed? how audited? independent attestations?
- are payment tokens regulated by a central bank or other government institution now? how? who? when?
- what jurisdictions are the payment tokens accepted in today as legal payment?
- what regulations can the DLT platform support? MICA? new US regs? Wyoming? others?
- what identity verification features can be used on the platform business services? KYC? AML? OFAC? more ?
- are the payment tokens directly redeemable in fiat currency at any moment? and locking restrictions?
- is conversion between different payment tokens supported in the DLT system or outside ( FX )?
- are liquidity pools used to manage payment token transactions? how are they funded? audited?
- are liquidity providers subject to locking restrictions?
- does the DLT provide a logical view for access by members based on their roles?
- does the DLT provide a multi-tenant capability for nodes so members can connect without hosting nodes and have private ledger transactions?
- is the DLT logical business service layer cleanly segregated and independent of the DLT operation layer for all member types?
- does the DLT support integration with other IAM ( Identity Access Management ) solutions? OAUTH2, OICD, LDAP, CHAPI?
- does the DLT provide a membership management capability by node?
- does the DLT provide a CA ( Certificate Authority ) capability by node?
- does the DLT provide access to both world ( current ) state and the historical ledger easily?
- does the DLT support transaction ordering by node as an option?
- does the DLT allow transaction finalization before ordering is complete?
- does the DLT provide notification events to publish to clients?
- does the DLT support some form of oracle access directly or indirectly via message or state changes?
- does the DLT include API, RPC or data capability for integration?
- can the DLT interoperate with other DLTs? how? chain level? API level? interoperability standards and architectures supported? current usage results?
- for cross-chain atomic swaps in PvP or DvP is the equivalent of an HTLC pattern used? how? advantages? disadvantages now?
- what is the DLT network protocol between nodes? within a node?
- what recognized architecture and operations standards does the DLT support now?
- how decentralized are all the DLT services now? why? advantages? disadvantages? risks?
- what's the governance architecture to ensure bad actors can't post or change invalid transactions? PBFT? Other?
- what is the realistic Layer 1 performance for our type of transaction? latency? throughput?
- what is the realistic Layer 2 performance for our type of transaction? latency? throughput?
- what is handled off-chain in the Layer 2 process? how?
- where does the DLT run now in production? who operates it? who are the client references?
- how is recovery designed? tested? results?
- how is network capacity defined for production, DR ( 300% of expected hourly peak loads ? )?
- do new nodes have custom policies on how they become current on the ledger?
- does purge and archive support exist for the ledger?
- is the ledger sharded for performance?
- what are the steps in the transaction life cycle for issuance, transfer, redeem?
- what wallet types are compatible with the DLT?
- is there Enterprise Wallet support for whole ledger? for each node?
- what token types are supported on the DLT?
- what IAM methods and systems can be used to authenticate, authorize access?
- is communications on the network secure with TLS authentication for both server and client on connections?
- is the ledger and the world state database encrypted in storage?
- Is DLT processing done in containers?
- does DLT processing use enclaves for security?
- what is done to protect digital keys, other assets? HSM, MPC, other? what's been the loss and recovery rate in production on these assets?
- how is ownership and control of wallets, accounts and digital assets protected in storage and in operation?
- in the event of loss of ownership, control or access, what's the process to recover and restore ownership, control or access? does it work? how verified?
- How are custody services provided or integrated into the platform? Secured? Controlled? Centralized or decentralized? why?
- what data privacy policies can be created, registered, run to protect private data at the business services, the DLT and the platform levels?
- what regulations can be supported with the data privacy policies? GDPR? CCPA? NYPA?
- is the DLT platform available as an open-source solution that is functionally equivalent to the licensed Enterprise version? what are the functional differences and limitations?
- are development versions, licenses and test nets free to access? what fees are involved for non-production environments?
- For a specific use case of the DLT, what trusts are required at the business service and DLT levels for the parties, processes and why?
- For a specific use case of the DLT, is proof of governance required at the business service and DLT levels on-chain and off-chain? for who? why? how? is it automated? is it independent?
On-chain governance for changes to the blockchain
- On-chain governance is a system for managing and implementing changes to cryptocurrency blockchains.
- On-chain governance includes rules for instituting changes that are encoded into the blockchain protocol.
- Developers propose changes through code updates and each node or participant votes on whether to accept or reject the proposed change.
The blockchain protocol enforces the rules for transaction governance using policies
better blockchains support customer policies to manage transaction governance ( eg Fabric )
for most blockchains, a transaction life cycle includes:
- submission
- validation of the transaction
- execution
- ordering
- commitment
- finalization response and notification events
Off-chain solution governance
Like on-chain governance, off-chain governance for a solution can also be done with automated business rules and policies
A sample bank policy for governance on account withdrawals
- withdrawals over $1000 can only be done once every 24 hours
The enforcement of the policy can be done on-chain or off-chain depending on the solution design
Proof of Governance AAS
Given governance policies on-chain and off-chain proof of governance can be done by an independent service to show that policies are properly enforced on-chain and off-chain.
Proof of Governance can analyze related data to show whether a policy is effective in meeting the policy goals
Alerts can be set to identify policy violations on individual transactions or the aggregate impact compared to a given objective
What permissioned DLT offers for regulated digital assets, money and business processes
- members have identities, accounts and are legally verified
- near real-time shared ledger of all transaction history that is tamper-resistant reducing data silos, redundancy, data quality issues
- smart contracts can automate enforcement of regulations, business rules, policies over a business network
- cryptographic proofs help build trusts on identity, transaction creation, approvals
- provides transaction finality events to integrate other on-chain and off-chain activities
- useful for business systems where counter parties need to trust each other
- can provide immediate transaction observability for regulator nodes on the shared ledger
- useful when physical or digital assets, services and access rights are tokenized and traded on the DLT or connected networks
- members have roles in using the business services hosted by the DLT solution. In addition, some members may operate nodes that manage the DLT network
- a foundation to create a viable economic business model for a community. Sustainable communities require sustainable economic models
- a foundation to create a flexible, smart, automated, adaptive, sustainable governance system for the solution and the platform that operates both on-chain and off-chain
- requires strong agreement among members on the rules, standards and governance to operate the DLT network effectively
- not all business communities are ready for DLT so the BOA can help determine if DLT is useful now
- Governance covers: data, transactions, business rules, operations, membership, security, vendor management, infrastructure, platform, finance and legal
GOVERNING DLT NETWORKS Whitepaper - 2019 - Accenture
DLT is a powerful platform that may one day modernize corporate and enterprise operations and provide the benefits of transactional security and privacy, as well as verifiable and auditable integrity. It has significant potential to simplify our complex world of opaque siloes of information, including the ability to encode policies, rules, and business logic within the software and mathematical rules of the platform.
( DLT ) that the long-term potential hinges on effective governance to guide the growth of DLT, to meet the highest requirements of the regulated industries, and to bring a risk management perspective to migrating critical processes onto the technology as it becomes ready.
transparent policies and rules, along with accountable and responsible governance are a prerequisite ( for a strong regulated financial system )
( DTCC ) to play a leading role in introducing governance principles and uniform standards.
( Governance ) will address approaches to managing the activity, connectivity, software changes, contractual agreements and transaction finality for every participant across the entire network.
( Operations Accountability ) Building a viable DLT network for a community of cooperating but competitive corporations depends upon the realization of a common set of standards and practices
DLT is a multi-party workflow platform that validates and stores transactions using a consistent, shared data model and contract language.
However, this can only work if strong, accountable and transparent governance is in place to implement and manage the rules, practices and processes for any community of competitive parties.
opportunity to build security and resilience into the base platform, to encode business logic and regulatory requirements directly into trade contracts and to offer visibility to the regulators through their own “distributed ledger node” to enable them to have immediate and real-time access to the state of ledger transactions that they oversee
DLT solutions require transparent operations, support and maintenance processes with automated quality and verification checks
DLT solutions need a governing organization in addition to the network operator and members
a DLTGM - Governance Model covers >>>
data, transactions & consensus, business rules, operations, membership, vendor management, infrastructure, platform, finance, IP and legal
DTCC helped deliver Hyperledger Explorer to provide easy access to the details of the shared ledger transactions, blocks, approvals etc
Other Governance references
Cryptocurrency Laws and Regulations by State
https://pro.bloomberglaw.com/brief/cryptocurrency-laws-and-regulations-by-state/
Crypto Regulation in the U.S. – What’s New in 2023?
GDPR
PRIMER: Markets in Crypto-Assets Regulation (MICA)
https://www.iflr.com/article/2a647jipe3beilngwqlmo/primer-markets-in-crypto-assets-regulation-mica
on-chain vs off-chain governance
Integrating On-chain and Off-chain Governance for Supply Chain Transparency and Integrity
https://arxiv.org/pdf/2111.08455.pdf
On-Chain Governance: Definition, Types, Vs. Off-Chain
A Complete Introduction To On-Chain Governance Pt.1
https://medium.com/nearweek/a-complete-introduction-to-on-chain-governance-pt-1-9cc787f5fdbe
Basically an older DeFi concept that compares Traditional Financial Governance to DAO concepts ( Decentralized Autonomous Organizations )
should be comparing DAO with unregulated assets to the more dynamic governance model available in a VCE ( Value Chain Economy ) for regulated assets.
Unregulated digital money and DAO models will likely always have a very limited market as we have seen so far
RLN - Regulated Liability Network & RSN
U.S. Banking Community Launch Proof of Concept For A Regulated Digital Asset Settlement Platform
https://www.citigroup.com/citi/news/2022/221115a.htm
Facilitating Wholesale Digital Asset Settlement
https://www.newyorkfed.org/aboutthefed/nyic/facilitating-wholesale-digital-asset-settlement
proof of concept application for instant chat, created using RLN
https://github.com/b-d1/rln-anonymous-chat-app
https://blog.digitalasset.com/blog/regulated-liability-network
What's the decision model for the network?
based on the parties, roles, goals, processes for the use cases in scope,
what are the decisions parties need to make?
What's the trust model for the network?
based on the parties, roles, goals, processes for the use cases in scope,
what are the trusts parties need to grant?
Potential Enterprise Blockchain benefits
| Features | Impacts |
| A different type of distributed ledger | Shared real-time data across organizations |
| Users have digital identities to access | Trusted, secured identity for users |
| Transactions are signed by users | Proof who created a transaction |
| Endorsed transactions | Proof transactions are approved |
| Transactions hashed in sequence | Proof transactions occurred at a set time |
| Transactions are “write-only” | Proof that transactions are not changed |
| Smart contracts create transactions | Authorized access only, no direct data access |
| Can integrate with payments, tokens | Enables payments, incentives for users |
| Public or private access | Who can read a blockchain |
| Permissioned or permissionless | Who can write to a blockchain |
| Options for private data | Who can read shared, private transactions |
| Event support | Automated workflows with transaction finality |
| Identity and security options | Easy support for compliance, regs ( GDPR ) |
| Java, Javascript, GO languages, tools | Shorter learning curve for developers |
| Interoperability with other blockchains | Hyperledger Cactus with Besu, Corda and more |
Potential Identity Blockchain benefits
Features
Verifiable digital identities
Verifiable digital credentials ( licenses )
Verifiable digital signatures for data provenance on transactions
Verifiable consent management
User managed identities implement Self-Sovereign Identity and privacy standards
Better identity protection with selective disclosure proofs, non-correlated data
Automated digital trust using smart wallets (implement Trust Over IP standards)
Improved compliance at lower costs
Significant fraud reductions possible
Better data quality for analytics, reporting
Improved data security for identities, credentials
Authentication support to some legacy systems leveraging OIDC ( Open ID Connect ) and related interfaces
Legal compliance with current and many future regulations ( GDPR, CCPA etc )
Safety of of Personal Identity Information ( PII )from theft, fraud
Business Case Definitions
Interview Questions for Blockchain Solutions
- what the reasons were for blockchain investment
- who sponsored the investments and why
- how the technologies were selected and why
- what processes were created, dropped or re-engineered because of blockchain
- what are the net KPI impacts of the process changes for the organization, it's clients
- what the expected vs actual impacts observed are for the blockchain solutions
- how do measure trust by the parties in the processes
- what were the key integrations needed
- what changes were needed in data sources
- what changes were needed in security
- what changes were needed in infrastructure
- did you need to build a consortium for the roll out
- was there a natural network to add blockchain services to
- how do you measure value delivered for the users in different roles
- who were the key partners that enabled the solution and what roles did they play
- what were the main risks to manage during the blockchain solution
- what were the primary mitigation strategies that were successful
- what worked and what would you do differently
- what regulations impact or apply to your blockchain solutions
- what is the governance model
- how well is the governance working
- what are your expectations going forward for blockchain solutions in your company? in the industry?
ebc business case
Exec summary
Process
Opportuntity
Background
Roles
FACTUR3DT.io kpis
GAPS
RAID
Ops forecast
Fin forecast
Success Keys, Commitments
Business Case templates
Business Case Journey Maps - before and after
for each journey:
id the principal user or organization
id the key steps - inputs > process > outputs
id the FACTUR3DT.io kpis
Requirements Definitions - Epics, Stories, Design docs
_swt_architecture_processes-proposal_v2.pptx
Stories are normally defined as acceptance test cases in JIRA
Define an actor and the test case in Gherkin format normally
BDD ( Behavior-Driven Design ) test methods have lower semantic gaps
Common Gherkin keywords:
As X, Given, When, Then, So
What are the verifications needed in each step of the story?
Title >> Shipper ensures payment received prior to shipment
As a shipper
Given I have an open order for a customer and available product to complete the order
When payment has been received in full
Then I schedule the order delivery with the carrier
So the order is shipped
and customer can receive the goods they paid for
Potential Value Opportunities
Technology Trends - 2023 - WEF
- trends-Top 10 Emerging Technologies of 2023-WEF. link. url
- trends-Top 10 Emerging Technologies of 2023-WEF.pdf. file
1 Flexible batteries 2 Generative artificial intelligence 3 Sustainable aviation fuel 4 Designer phages 5 Metaverse for mental health 6 Wearable plant sensors 7 Spatial omics 8 Flexible neural electronics 9 Sustainable computing 10 AI-facilitated healthcare
Common Blockchain Application Use Cases
https://www.upgrad.com/blog/infographic-blockchain-applications-use-cases/
blockchain-applications-use-cases.pdf
Chainyard-Blockchain-Is-Reinventing-the-Way-Business-Works
https://drive.google.com/file/d/18miJ2cHhWhTL2HbGjBhie5uebxN3cXqk/view?usp=sharing
Potential Blockchain Solution Impacts
trusted identities
trusted claims
trusted chain of custody for assets
provenance for sourcing
real-time data validations
near real-time data access
data privacy
data confidentiality
transparency with signed transactions
faster settlements
automated governance of smart contracts
Blockchain solutions compared to EDI solutions
EDI helped standardize semantic data models and speed transactions between companies with data transfers vs paper documents.
Enterprise Blockchain and related technologies ( AI, IoT integration ) offer more opportunities for improvement in supply chains: trust, transparency, data privacy, data visibility, automation of contracts on a network, approvals, security, optimized decisions, better risk management, incentivized efficiencies, end-to-end automation for lower operation costs and more.
There are costs to implement new solutions. Let me know how you have made your business case.
Blockchain Business Case Examples
Potential Challenges
m Blockchain Use Cases More#BlockchainProjectFailures
Candidate Solutions
GBA Blockchain Maturity Model Assessment
The Blockchain Maturity Model (BMM) is an assessment tool and development roadmap established by the GBA
- Governance
- Identity Management
- Immutability
- Node Ubiquity
- Performance
- Privacy
- Resilience
- Security
- Reliability
- Sustainability
Each of these areas includes expectations at five levels of maturity. They include:
- Level 1: Feasible: Suitable to assess readiness for research funding
- Level 2: Functional: Suitable to assess functional readiness for proof of concept deployment
- Level 3: Operational: Suitable to assess if a solution is ready for operational deployment
- Level 4: Scalable: Suitable to assess scalability for enterprise-level deployment
- Level 5: Sustainable: Suitable to assess sustainability for global-level deployment.
Step-by-step guide for Example
sample code block