Blockchain technology is increasingly being considered for applications in business contexts due to its key properties. It is also very much hyped for its potential to transform existing industries and business models. In Part 1, we will introduce the key properties of blockchain, its limitations, the field and the relevance for SAP and enterprises in general. In Part 2, we will focus on one of the prominent suites available today and provide an demonstration of the POC we’ve developed.

1. Blockchain for the
Enterprise
Iemke Kooijman
Martijn Hulshof
25-11-2017

4. Experis Ciber and emerging technologies
Blockchain
Research questions:
• What is blockchain: capabilities, strengths and limitations
• What does the blockchain field look like (public/private blockchain): Key players
• What scenarios legitimate blockchain technology?
How:
• Tech first approach, application driven
• Multidisciplinary teams
• Agile development
Aim:
• Build knowledge and share expertise
• Identify valuable use cases for business

5. Goals & Agenda
Session goal:
Introduce core capabilities of blockchain technology and application in an enterprise context
Agenda:
Part 1:
• What is blockchain?
• SAP & Blockchain
• Use case
Part 2:
• Hyperledger Fabric overview
• Sample transaction flow
• POC demonstration

6. What is Blockchain
The purpose of blockchain is to enable secure value transfers across a distributed network without a need for
trusted third parties.
Key properties:
• Decentralized (P2P)
• Consensus
• Cryptography for authentication & immutability
• Programmable
Blockchain is NOT:
• Bitcoin
• Internet 2.0

7. Gartner Hype Cycle - 2017

8. What is blockchain – Public deployment
1200+ Cryptocurrencies, $250.000.000.000 Market cap

9. What is Blockchain – Private deployment
The quest for enterprise grade ‘blockchains’
• Reuse/modification of proven technologies
• Focus on business networks (B2B)
• Scaling benefits for transaction processing
• Registration/enrollment procedures: Security and authorization
concepts
• Large open source communities driven by software vendors
• Blockchain-as-a-Service PaaS offerings

10. SAP & Blockchain
Q1 2017: SAP Ariba partners with Everledger to include
‘blockchain capabilities’ in Ariba’s cloud products;
- ‘[…] to align with SAP corporate strategy on blockchain’
TrueRec: Record verifiable proof of Open SAP certificates on
‘public’ Ethereum blockchain using CF app
Part of SAP Cloud Platform Leonardo Innovation portfolio:
• Blockchain as a Service (alpha) – Co-innovation program
for early access through SAP Jam
• Integration services for IoT, ML and S/4 HANA.
Proof of concept with Ripple DLT for SAP Payment Engine
via SCP CF to efficiently process cross-border payments.
Platinum member Hyperledger consortium and founding
member of Blockchain Research Institute

12. Typical use case: Supply Chain Management

13. Typical use case: Supply Chain Management

14. Conclusion - Part 1
Making the case for blockchain
• Blockchain is bleeding edge technology, still high on the ‘hype cycle’
• There is an increasing business interest into the capabilities of blockchain for driving
standardization and process integration in business networks
• Blockchain fits to the digital transformation paradigm; technological means to
redesign business models and processes

15. Part 2 – Hyperledger Fabric
Introduction
• Fabric initially developed in-house by IBM
• Code base contributed to Hyperledger foundation, which is hosted by The Linux Foundation
since January 2016. Mission statement (excerpt):
‘Create an enterprise grade, open source distributed ledger framework and code base, upon
which users can build and run robust, industry-specific applications, platforms and hardware
systems to support business transactions.’
‘Create an open source, technical community to benefit the ecosystem of HLP solution providers
and users, focused on blockchain and shared ledger use cases that will work across a variety of
industry solutions’
• Next to Fabric, Hyperledger also hosts other blockchain projects like Sawtooth and Burrow

16. Hyperledger Fabric - Basic Architecture

18. Hyperledger Fabric – Sample transaction flow
• Scenario:
- 2 organizations: Org A, Org B
- 2 Peer nodes
- A user from Org A wants to submit a
Purchase Order transaction
• Client A submits a proposal to write to the
ledger via a signed ‘propose message’ to
Endorsing Peers A and B.
Source: http://hyperledger-
fabric.readthedocs.io/en/latest/txflow.html

19. Hyperledger Fabric – Sample transaction flow
• The Endorsing Peers (Peer A, Peer B) verify
- If transaction proposal is well formed
- If transaction has not been submitted before
- If the signature is valid
- Client authorization (write operation)
Inputs are ‘processed’ against current state and a signed
response value (read/write set) is send back as a
‘response message’.
• The client inspects and compares the results

20. Hyperledger Fabric – Sample transaction flow
• The client assembles endorsements into a
transaction payload via ‘transaction message’.
• Transaction send to Ordering Service Nodes
(OSN)
• OSN deliver blocks to Peer Nodes, which verify:
- Endorsement policy conditions
- No intermediate state changes for variable set
If okay; Tx = validated, if not Tx = invalid

21. Hyperledger Fabric – Sample transaction flow
• Peer nodes append block with tx’s to their chain.
- Immutable via hash chain
• Valid transactions update (write) the current state
database
• Peer emits event to client after commit;
- ‘Transaction is added’ and
- Is ‘validated’ or ‘invalidated’
• Org A now purchased the radices and the
transaction is immutably stored in the ledger

22. Hyperledger Fabric – POC
Perishables SCM
• Objectives:
- Accurately track perishable products accross globalized end-to-end supply chain
- Use smart contract to process payments depending on contractually agreed shipping
conditions
• Participants: Grower, Quality official, Customs office, Shipper, Importer, Supermarket, Consumer
• Notes:
- IBM Bluemix (Cloud) BaaS trial used: including a CA, 1 peer node, 1 ordering node, client
- Hyperledger composer - Playground

23. Hyperledger Fabric – POC
Demo