Blockchain success starts here
Now in its 3rd edition, IBM’s Blockchain for Dummies has introduced blockchain to more than 68,000 readers.
What’s inside:
- Grasping blockchain fundamentals
- How blockchain works
- Blockchain in action: use cases
- Hyperledger, hosted by the Linux Foundation
- Ten steps to your first blockchain application
Blockchain overview
Blockchain defined: Blockchain is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network. An asset can be tangible (a house, car, cash, land) or intangible (intellectual property, patents, copyrights, branding). Virtually anything of value can be tracked and traded on a blockchain network, reducing risk and cutting costs for all involved.
Why blockchain is important: Business runs on information. The faster it’s received and the more accurate it is, the better. Blockchain is ideal for delivering that information because it provides immediate, shared, and completely transparent information stored on an immutable ledger that can be accessed only by permissioned network members. A blockchain network can track orders, payments, accounts, production, and much more. And because members share a single view of the truth, you can see all details of a transaction end-to-end, giving you greater confidence, as well as new efficiencies and opportunities.
Key elements of a blockchain
Distributed ledger technology
All network participants have access to the distributed ledger and its immutable record of transactions. With this shared ledger, transactions are recorded only once, eliminating the duplication of effort that’s typical of traditional business networks.
Records are immutable
No participant can change or tamper with a transaction after it’s been recorded to the shared ledger. If a transaction record includes an error, a new transaction must be added to reverse the error, and both transactions are then visible.
Smart contracts
To speed transactions, a set of rules – called a smart contract – is stored on the blockchain and executed automatically. A smart contract can define conditions for corporate bond transfers, include terms for travel insurance to be paid and much more.
Benefits of blockchain
What needs to change: Operations often waste effort on duplicate record keeping and third-party validations. Record keeping systems can be vulnerable to fraud and cyberattacks. Limited transparency can slow data verification. And with the arrival of IoT, transaction volumes have exploded. All of this slows business, drains the bottom line – and means we need a better way. Enter blockchain.
Greater trust
With blockchain, as the member of a members-only network, you can rest assured that you are receiving accurate and timely data, and that your confidential blockchain records will be shared only with network members to whom you have specifically granted access.
Greater security
Consensus on data accuracy is required from all network members, and all validated transactions are immutable: permanently recorded. No one, not even a system administrator, can delete a transaction.
More efficiencies
With a distributed ledger that is shared among members of a network, time-wasting record reconciliations are eliminated. And to speed transactions, a set of rules – called a smart contract – can be stored on the blockchain and executed automatically.
How blockchain works
As each transaction occurs, it is recorded as a “block” of data
Those transactions show the movement of an asset that can be tangible (a product) or intangible (intellectual). The data block can record the information of your choice: who, what, when, where, how much, and even the condition – such as the temperature of a food shipment.
Each block is connected to the ones before and after it
These blocks form a chain of data, as the asset moves from place-to-place or ownership changes hands. The blocks confirm the exact time and sequence of transactions, and the blocks link securely together to prevent any block from being altered or a block being inserted between two existing blocks.
Transactions are blocked together in an irreversible chain: a blockchain
Each additional block strengthens the verification of the previous block and hence the entire blockchain. This renders the blockchain tamper-evident, delivering the key strength of immutability. This removes the possibility of tampering by a malicious actor – and builds a ledger of transactions you and other network members can trust.
Blockchain 101 in five minutes
Understanding the basics of blockchain technology can be challenging. But our friends at IBM Food Trust™ – the blockchain network that’s building a safer, smarter food supply – make it easier with these short videos.
ㅤㅤ ㅤㅤㅤㅤ ㅤㅤ ㅤㅤ ㅤㅤ ㅤㅤ ㅤㅤ
What is Blockchain?
Step inside the basics of blockchain technology: how blocks contain data representing anything of value, how they’re chronologically connected in an immutable chain, and the differences between blockchain and cryptocurrencies like Bitcoin.
Blockchain Expanded
Learn how the decentralized nature of blockchain sets it apart from traditional record-keeping, the value of a permissioned blockchain for business transactions, and how blockchain promotes new levels of trust and transparency.
A Traceable Supply Chain
The food industry is just one of many being transformed through blockchain technology. Learn how it can trace when, where and how food has been grown, picked, shipped and processed – all while protecting network-participant data.
Blockchain Builds Trust
Blockchain creates trust because it represents a shared record of the truth. Data that everyone can believe in will help power other new technologies that dramatically increase efficiency, transparency and confidence.
Types of blockchain networks
There are several ways to build a blockchain network. They can be public, private, permissioned, or built by a consortium.
Public blockchain networks
A public blockchain is one that anyone can join and participate in, such as Bitcoin. Drawbacks might include substantial computational power required, little or no privacy for transactions, and weak security. These are important considerations for enterprise use cases of blockchain.
Private blockchain networks
A private blockchain network, similar to a public blockchain network, is a decentralized peer-to-peer network, with the significant difference that one organization governs the network. That organization controls who is allowed to participate in the network, execute a consensus protocol and maintain the shared ledger. Depending on the use case, this can significantly boost trust and confidence between participants. A private blockchain can be run behind a corporate firewall and even be hosted on-premises.
Permissioned blockchain networks
Businesses who set up a private blockchain, will generally set up a permissioned blockchain network. It is important to note that public blockchain networks can also be a permissioned. This places restrictions on who is allowed to participate in the network, and only in certain transactions. Participants need to obtain an invitation or permission to join.
Consortium blockchains
Multiple organizations can share the responsibilities of maintaining a blockchain. These pre-selected organizations determine who may submit transactions or access the data. A consortium blockchain is ideal for business when all participants need to be permissioned and have a shared responsibility for the blockchain.
Blockchain explained through art
We asked five artists – all new to blockchain – to create art about its key benefits. See what they made, then learn more from IBM clients and business partners in Blockparty, our new webinar series.
See how these industries are using blockchain
Food: Tracing fresh seafood from the moment it’s caught
IBM Food Trust is helping Raw Seafoods increase trust across the food supply chain by tracing every catch right from the water — all the way to supermarkets and restaurants.
Financial services: Improving cryptocurrency security
INBLOCK issues Metacoin cryptocurrency, which is based on Hyperledger fabric, to help make digital asset transactions faster, more convenient and safer.
Healthcare: Transform outcomes with blockchain
The IBM Blockchain Platform can change the way your ecosystem ensures trust, data provenance and efficiency to improve patient care and profitability.
Supply chain: Fresh thinking in blockchain, AI and IoT
Learn how Golden State Foods is using the immutability of blockchain to trace goods through their supply chain and help ensure food quality.
IBM Blockchain solutions
IBM Blockchain Platform
Technical innovators turn to the IBM Blockchain Platform, the leading Hyperledger Fabric platform, to build, operate, govern and grow blockchain solutions across any computing environment through Red Hat® OpenShift®.
Blockchain for food
IBM Food Trust helps growers, distributors and retailers build trust and make our food safer, by enhancing visibility and accountability in every step of the food supply. Customize with a suite of solutions that can help contribute directly to your bottom line.
Blockchain consulting
As the top-ranked blockchain services provider, IBM Blockchain Services has the expertise to help you build powerful solutions, based on the best technology. More than 1,600 blockchain experts use insights from 100+ live networks to help you build and grow.
All IBM Blockchain solutions
Embracing an IBM Blockchain solution is the fastest way to blockchain success. IBM has convened networks that make onboarding easy as you join others in transforming the food supply, supply chains, trade finance, financial services, insurance, and media and advertising.
Blockchain resources
Webinars
Blockchain becomes much easier to understand when you learn about it from the experts. This is mandatory viewing for anyone who wants to understand how blockchain is changing the way the world works.
Newsletter
Our monthly newsletter is packed with blockchain news you can use — and could become a regular “must read” among the hundreds of news sources you have at your fingertips.
Blog
There’s no shortage of blockchain content online. But for more than 1 million readers, the IBM Blockchain Pulse Blog is one of the most trusted sources for blockchain thought leadership and insights.
Podcasts
Grab your earbuds and fill your head with knowledge from blockchain innovators. Hear how blockchain is helping individuals take back control of identity, fight global poverty and pollution, and much more.
Use cases
Be inspired by how innovators are transforming their businesses using the IBM Blockchain Platform. You can join an existing blockchain network or work with us to create your own.
Go even deeper with IBM insights
The IBM Institute for Business Value produces some of the world’s most-read blockchain thought leadership reports. Continue your blockchain education with their latest perspectives.
Blockchain FAQ
What’s the difference between blockchain and bitcoin?
Bitcoin is an unregulated, digital currency. Bitcoin uses blockchain technology as its transaction ledger.
This video illustrates the distinction between the two.
How are the IBM Blockchain Platform and Hyperledger related?
The IBM Blockchain Platform is powered by Hyperledger technology.
This blockchain solution can help turn any developer into a blockchain developer.
Visit the Hyperledger web site for details.
What are smart contracts?
Smart contracts are an integral part of blockchain technology. They automatically execute transactions and record information onto the ledger without human intervention.
Conditions of smart contracts are mutually agreed on by network members. They’re a key component for establishing trust and efficiency between parties.
Smart contracts eliminate essentially all the paperwork, streamlining the entire process and saving time and money.
To help you learn more about smart contracts, Nigel Gopie, PhD, the IBM Food Trust Global Marketing Leader - IBM Blockchain, has written a blog post that explains smart contracts in more detail.
How can blockchain impact an entire industry?
Blockchain enables businesses to rethink the way they work.
In the diamond industry, for example, each party can access:
- High-resolution photos
- Immutable payment records
- Certificates of authenticity and more.
Can I deploy on any cloud I want?
IBM Blockchain Platform software is optimized to deploy on Red Hat® OpenShift®, Red Hat’s state-of-the-art enterprise Kubernetes platform.
This means you have more flexibility when choosing where to deploy your blockchain network components, whether on-premises, in public clouds, or in hybrid cloud architectures.
I need more detailed information. Where is it?
For a more detailed look at how a blockchain network operates and how you can use it, read the Introduction to distributed ledgers.
→ Learn more from the blockchain tutorial on developerWorks.
Explore the capabilities of the IBM Blockchain Platform - the only fully integrated enterprise-ready blockchain platform designed to help you accelerate the development, governance and operation of a multi-institution business network.
→ Register to download the IBM Blockchain Platform white paper.
Get the details on Hyperledger Fabric and discover what’s unique about it, why it matters to business networks, and how to start using it.
→ Visit the Hyperledger page on developerWorks.
The quick-start guide for developers explains how to build a kick-starter blockchain network and start coding with the IBM Blockchain Platform Starter Plan.
What can we solve together?
Discover how clients around the world are using IBM Blockchain to transform business now.
