Amazon Managed Blockchain is a fully managed blockchain service that makes it easy for customers to create and manage scalable blockchain-based transaction networks (blockchain networks) using the popular open source blockchain frameworks Hyperledger Fabric and Ethereum. Blockchain technologies enable groups of organizations, oftentimes in financial services and manufacturing, to securely transact, run application code, and share data without a trusted central authority. We will explore the components of blockchain technology, discuss use cases, and do a deep dive into capabilities, performance, and key innovations in Amazon Managed Blockchain. Speaker: Bill Baldwin - Database Technical Evangelist, AWS

1. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved
Pop-up Loft
Deep Dive on Amazon Managed Blockchain
Karan Desai Bill Baldwin
Solutions Architect Database Technical Evangelist

2. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved
Agenda
• What is blockchain?
• Introducing Amazon Managed Blockchain
• Hyperledger Fabric – a deeper look

3. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved
What is Blockchain?

4. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved
Amazon Quantum Ledger Database (QLDB)
• Fully managed ledger database
• Track and verify history of all changes made to your application’s data
Immutable
Maintains a sequenced record
of all changes to your data,
which cannot be deleted or
modified; you have the ability
to query and analyze the full
history
Cryptographically
verifiable
Uses cryptography to
generate a secure
output file of your
data’s history
Easy to use
Easy to use, letting you
use familiar database
capabilities like SQL APIs
for querying the data
Highly scalable
Executes 2–3X as many
transactions as ledgers
in common blockchain
frameworks

5. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved
Customer problems with complex business networks
Many existing business networks rely on central authorities,
which can be inefficient, expensive, and requires
time-consuming auditing

6. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved
Customer problems with complex business networks
• Many existing business networks rely on central authorities, which can be inefficient,
expensive, and requires time-consuming auditing
• A consortium could achieve better outcomes by sharing information, but cannot agree on how
data can be securely and fairly shared
• Multiple organizations need to independently verify transaction history and need a single, up to
date, accurate view of data
• Business logic among multiple organizations could be simplified through automation
• Asset transfers require an expensive and inefficient escrow
• A public network needs to maintain a tamper-proof history of transactions and global state

7. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved
Blockchain builds trust in a network
• Eliminates the need for central authority in business networks
• Three main components:
• distributed ledger
• consensus mechanism
• “smart contract” execution environment

8. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved
Blockchain components: ledger database
The journal records an immutable log of all transactions
and is maintained by nodes in the blockchain network
Block 59
Transaction
Previous Block Hash:
0000d68b2f0a3b
Timestamp
Block 60
Transaction
Previous Block Hash:
000057ec2fda71
Block Hash:
000087ea2ffe94
Timestamp
Transaction
Block 61
Previous Block Hash:
000087ea2ffe94
Block Hash:
000044bf2efe32
Timestamp
Transaction
Transaction
Transaction
Block Hash:
000057ec2fda71

9. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved
Blockchain components: ledger database
C | H
J Journal
C | H Current | History
Current | History
Journal
Ledger comprises
J
L
Ledger databaseL
Journal determines Current | History

10. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved
Blockchain components: consensus mechanism
Some important attributes:
• Byzantine fault tolerance
• Transaction rate
• Energy consumption
• Hardware requirements
• Security

11. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved
Blockchain components: “smart contracts”
• Rules embedded in dApp
• Verified execution of code
• Conditional operators
• Application writes to ledger
• Contract can interact with components
outside of the blockchain network (off-
chain)

12. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved
Public and permissioned networks
• Public networks allow anyone to
participate in the network.
• Members are incentivized to maintain
the network.
• Permissioned networks limit the
members to known entities.

13. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved
Customers are experimenting in many industries
Proof of Ownership
Digital Security Trading
Documents/Contracts
Enterprise Platforms
Financial
Insurance
Mortgage Loans
Voting Mechanisms
Patient Records
Corporate Governance
HCLS
Real Estate
Legal
Agriculture
Gaming
M & E
Transportation
Digital Advertising
Power/Utilities
Retail
Capital Markets
Cloud
OWNERSHIPPRIVATE MARKETS
DERIVATIVES
WAGERS
GLOBAL PAYMENTS
REMITTANCE
NOTARISATION
EQUITY
MICROFINANCE
INTELLECTUAL PROPERTY
TITLE RECORD
ESCROW
DIGITAL RIGHTS
E-COMMERCE
DEBT
CROWDFUNDING
P2P LENDING
HEALTHCARE
VOTING
TRUSTEES
SMART
CONTRACTS
DIGITAL
CURRENCY
SECURITIES
RECORD
KEEPING
BLOCKCHAIN
TECHNOLOGY

14. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved
Blockchain in supply chain
• Each organization has a
trusted copy of the supply
chain data
• Payments can be automated
through smart contracts
• Identity of components are
immutably tracked as they
move through the supply
chain
• Quality of products can be
monitored and immediately
acted on

15. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved
Blockchain in financial services

16. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved
Difficult to create blockchain networks
• Provisioning hardware
• Complex to configure software and networking
• Need to secure certificates and access control
• Monitoring and management of complex systems
• Adding and removing members
• Governing the network
• Scaling performance as the transaction rate grows

17. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved
Introducing
Amazon Managed Blockchain

18. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved
What is Amazon Managed Blockchain?
Amazon Managed Blockchain is a fully managed service that
makes it easy to create and manage scalable blockchain networks
using popular open source frameworks:
Hyperledger Fabric and Ethereum

19. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved
Amazon Managed Blockchain features
Low cost
Only pay for resources used
Open-source variety
Support for two frameworks
Integrated
Send data to Amazon QLDB
for secure analytics
Fully managed
Create a blockchain network in minutes
Reliable & scalable
Backed with Amazon QLDB technology
Decentralized
Democratically govern the network

20. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved
Hyperledger Fabric
• Create permissioned networks with channels to
limit the transactions on the ledger each member
can see
• Chaincode (smart contracts) written in Go, and
executed in Docker containers
• Validation policy for executing chaincode is
configurable
• Does not require a native cryptocurrency for
chaincode execution

21. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved
Ethereum
• Create smart contracts using the Solidity language
that run across nodes in the network
• Very scalable
• Create permissioned networks or use public
Ethereum network
• Configured to use Proof-of-Work consensus
algorithm for public network and Proof-of-Authority
for private networks
• Anyone who can access the network can see all
data on the ledger

22. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved
Create a network

23. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved
Network 1 – Managed Blockchain
VPC endpoint
VPC endpoint
Account A
Account B

24. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved
Who ”owns” the network?
• Networks are decentralized and can remain active even after the initial creator leaves
• Inviting members to join
• Preview: network creator can invite
• GA: members vote on who to invite and remove
• Network-wide settings
• GA: members can vote on network-wide settings and configure the actual
voting rules (e.g. majority rules or one member decides)
• Each member pays for their resources
• Amazon Managed Blockchain manages shared components like the ordering service and
networking settings

25. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved
Pricing dimensions
• Pay-as-you-go with no upfront costs
• Hourly rates billed per-second
• Each member pays for their own
resources and the data it writes to the
network
• VPC endpoints created to access
resource endpoints are billed separately
• Standard data transfer rates

26. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved
Starter Edition and Standard Edition
Starter Edition
- Test and small production networks
- Up to 5 members/network
- Up to 2 peer nodes/member
- bc.t3.small and bc.t3.medium
- 1 TiB maximum/peer node
- Ordering service provisioned has lower
transaction throughput and availability than
that in a Standard Edition network
Membership pricing rate is different for each edition
Standard Edition
- Production networks
- Up to 30 members/network
- Up to 10 peer nodes/member
- bc.t3, bc.m5, and bc.c5 instance families
- 15 TiB maximum/peer node
- Ordering service provisioned has higher
transaction throughput and availability
than that in a Starter Edition network

27. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved
Hyperledger Fabric – a deeper look

28. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved
Transaction flow with Hyperledger Fabric

29. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved
Augmented Hyperledger Fabric
• Ordering service
• Core component of a Fabric network to guarantee delivery and order of transactions
• Production grade networks using open-source use Apache Kafka for this component
• Managed Blockchain uses Amazon QLDB technology, increasing durability and reliability
• Certificate authority (CA)
• Open source uses a “soft” HSM
• Managed Blockchain uses AWS Key Management Service (KMS) to secure the CA service

30. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved
Chaincode basics
• Code executed on the network, and can query and update ledger
• Fabric supports chaincode in three languages:
• Chaincode executes within a Docker container on peer nodes
• Chaincode has two operations in its interface:
• Init() – Initializes the chaincode with parameters
• Invoke() – Invokes the chaincode with parameters
Go

31. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved
Peer nodes
• Stores a copy of the ledger database
• Executes chaincode and endorses transactions
• Validates transactions before the final commit to ledger

32. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved
Channels for access control
Member 1 Member 2 Member 3
Channel 2
Ledger
Channel 1
Ledger
Hyperledger Fabric Ordering Service
Channel 2Channel 1
Member 2
Peer
Member 3
Peer
Member 1
Peer
• Channels allow
isolation of transactions
among specific
members in the
network
• Create or update a
channel with
configuration
transaction (configtx)

33. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved
Endorsement policies
• Allow chaincode to specify which
members (or how many) need to
validate a transaction before
submitting
• Endorsed transactions then get
submitted to the ordering
service and assembled into
blocks
Member 1
client
Member 1
Peer
Member 2
Peer
Hyperledger Fabric Ordering Service
1 1
2
33
Ledger Ledger

34. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved
Managed Blockchain preview information
• Hyperledger Fabric available now, Ethereum coming soon.
• Resource limits
- 1 network per account with up to 6 channels per network
- 5 members per network (any given account can own 3)
- 1 peer per member, with bc.t3.small instance type available
- 30 GiB maximum storage peer node storage
• Adding members
- Network creator can add accounts
• Additional features will be added during the preview.
• Please check the preview notes for known issues and updates.
• Amazon Managed Blockchain is not billing during preview.

35. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved
Amazon Managed Blockchain resources
• Preview signup:
https://pages.awscloud.com/AmazonManagedBlockchain-preview.html
• Managed Blockchain Homepage:
https://aws.amazon.com/managed-blockchain/
• FAQs:
https://aws.amazon.com/managed-blockchain/faqs
• Documentation:
https://docs.aws.amazon.com/managed-blockchain
• Pricing:
https://aws.amazon.com/managed-blockchain/pricing
• Getting Started tutorial:
https://docs.aws.amazon.com/managed-blockchain/latest/managementguide/managed-blockchain-
get-started-tutorial.html
• Hyperledger Fabric documentation:
https://hyperledger-fabric.readthedocs.io/en/release-1.2/

36. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved
Join our preview

37. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved
Pop-up Loft
aws.amazon.com/activate
Everything and Anything Startups
Need to Get Started on AWS