Welcome!

Cloud Security Authors: Elizabeth White, Ed Featherston, John Katrick, Liz McMillan, Maria C. Horton

Related Topics: @CloudExpo, Java IoT, Linux Containers, Cloud Security, @DXWorldExpo, @ThingsExpo

@CloudExpo: Article

Blockchain and Smart Contracts | @CloudExpo #FinTech #Bitcoin #Blockchain

Should developers start thinking like lawyers?

Blockchain is certainly the rage. No matter the industry, you can't seem to have a technology discussion before the topic is raised. According to Gartner's latest hype cycle for emerging technologies, blockchain is approaching the peak. It is considered by Gartner as one of the ‘Key platform-enabling technologies to track.' Approximately $1.4B has been invested in blockchain just this year, according to PwC executive Seamus Cushley. While there is a lot of ‘hype vs reality' discussions going on, there is no arguing that blockchain is being taken very seriously across industries and cannot be ignored.

In its simplest terms, blockchain is a distributed ledger. However, the reality is much more complex than that. Some of my earlier blogs on blockchain examine some of those complexities (‘Blockchain - It's So Much More than Bitcoin', ‘Blockchain - You want me to trust a trustless system?'). One of those complexities is the concept of Smart Contracts in the blockchain eco-system.

What Is a Smart Contract?
The concept of ‘smart contracts' actually pre-dates the blockchain. The term was originally coined (no pun intended) by computer scientist Nick Szabo back in the mid-'90s. He defined the concept as ‘"a set of promises, specified in digital form, including protocols within which the parties perform on the other promises." A smart contract ultimately is code that defines an agreement between two parties based on certain conditions. When the conditions occur, the smart contract code is executed. The key to the smart contract is that it addresses four basic contract objectives:

  • Observability - Allow both parties to observe the execution of the contract (code)
  • Verifiability - Allow either party to verify if and when the contract (code) has executed
  • Privacy - Guarantee only information necessary for execution of the contract (code) are revealed
  • Enforceability - Self-enforcing of the rules of the contract (code) to eliminate need to police the execution

While the concept has been around for a while, blockchain now provides an ecosystem and framework to be able to address those objectives, and greatly enhances the capabilities and possible use case scenarios for blockchain.

Let's take a simple scenario discussed frequently in this context: purchasing a digital copy of a song.

Let's Buy a Song
When a song is sold, there are agreements in place to give a piece of that sale to various parties - the composer, the performer, the distributor to name a few. In the traditional model, the sale is tracked, information accumulated, and reports generated. These sales reports are used to generate the payment information for each of the individuals. There are lots of layers, and frequently disagreements ensue in the reporting of the sales and the payouts made to various individuals. Part of the reason for the complexity and delays is that each individual sale is a very small amount. The percentages even smaller. The overhead of executing micro-payments in existing systems is prohibitive.

Now imagine executing the sale in a blockchain ecosystem. Blockchain and micro payments are a common scenario. In that ecosystem is a smart contract. It defines the percentages of a sale each individual is to receive and where to send the amount. When a sale occurs, the contract is invoked, and each individual immediately receives their portion of the sale through the blockchain. Additionally, each individual has an indelible ledger of all the sales transactions to review and validate.

Blockchain Does Not Protect Against Bad Coding
As I was writing this blog, I was chatting with my son, who is first year law at University of Michigan. While he was describing what he was studying and his class work, he described something that struck a chord. He talked about how that his class work isn't about coming up with the winning argument. It's about coming up with possible arguments, and, more important, coming up with what the response and attacks on those arguments might be.

It reminded me of something I talk to our junior developers about and include in a training program for new associates. I tell them: when developing an API you will be exposing to others for consumption, it is imperative to practice what I call ‘defensive programming.' You must look at your API and how it could potentially be misused, intentionally or unintentionally. We all know the happy path scenarios in our code, and how we intend it to be used. That's the easy part. The hard part is looking at our code dispassionately for the un-happy paths, and protecting from those scenarios.

Smart contracts in a blockchain environment ultimately are still just code and subject to the same challenge. The high profile issues with the DAO hack this past summer is a great example. The hackers leveraged a smart contract in the DAO Ethereum blockchain and took advantage of a flaw in the code that allowed them to transfer $50M in assets to them. They didn't, as some first thought, ‘hack the blockchain.' They examined the smart contract, saw a flaw, and executed on it, using the contract in a way the developer had not anticipated.

No Technology Negates the Need for Good Design and Planning
As many of you know, one of my mantras is ‘no technology negates the need for good design and planning.' Blockchain and smart contracts are no different. The combination of smart contracts in the blockchain ecosystem is a very powerful tool in helping to provide solutions to a multitude of business challenges and goals. The magic does not happen by itself. Simply creating a blockchain and a smart contract does not guarantee it cannot be intentionally or unintentionally misused. It is up to us as technologists, to ‘think like a lawyer.' They must not just come up with the contract that will solve the issue, but must look at the potential responses that could negate its value or create unintended consequences. Then we can leverage the new tools in our toolkit to continue to provide value and solutions to the business.

The World's Largest "Cloud Digital Transformation" Event

@CloudExpo / @ThingsExpo 2017 New York 
(June 6-8, 2017, Javits Center, Manhattan)

@CloudExpo / @ThingsExpo 2017 Silicon Valley
(Oct. 31 - Nov. 2, 2017, Santa Clara Convention Center, CA)

Full Conference Registration Gold Pass and Exhibit Hall ▸ Here

Register For @CloudExpo ▸ Here via EventBrite

Register For @ThingsExpo ▸ Here via EventBrite

Register For @DevOpsSummit ▸ Here via EventBrite

Sponsorship Opportunities

Sponsors of Cloud Expo @ThingsExpo will benefit from unmatched branding, profile building and lead generation opportunities through:

  • Featured on-site presentation and ongoing on-demand webcast exposure to a captive audience of industry decision-makers
  • Showcase exhibition during our new extended dedicated expo hours
  • Breakout Session Priority scheduling for Sponsors that have been guaranteed a 35 minute technical session
  • Online targeted advertising in SYS-CON's i-Technology Publications
  • Capitalize on our Comprehensive Marketing efforts leading up to the show with print mailings, e-newsletters and extensive online media coverage
  • Unprecedented Marketing Coverage: Editorial Coverage on ITweetup to over 100,000 plus followers, press releases sent on major wire services to over 500 industry analysts

For more information on sponsorship, exhibit, and keynote opportunities, contact Carmen Gonzalez (@GonzalezCarmen) today by email at events (at) sys-con.com, or by phone 201 802-3021.

Secrets of Sponsors and Exhibitors ▸ Here
Secrets of Cloud Expo Speakers ▸ Here

All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades.

With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo@ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.

Track 1. FinTech
Track 2. Enterprise Cloud | Digital Transformation
Track 3. DevOps, Containers & Microservices 
Track 4. Big Data | Analytics
Track 5. Industrial IoT
Track 6. IoT Dev & Deploy | Mobility
Track 7. APIs | Cloud Security
Track 8. AI | ML | DL | Cognitive Computing

Delegates to Cloud Expo @ThingsExpo will be able to attend 8 simultaneous, information-packed education tracks.

There are over 120 breakout sessions in all, with Keynotes, General Sessions, and Power Panels adding to three days of incredibly rich presentations and content.

Join Cloud Expo @ThingsExpo conference chair Roger Strukhoff (@IoT2040), June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA for three days of intense Enterprise Cloud and 'Digital Transformation' discussion and focus, including Big Data's indispensable role in IoT, Smart Grids and (IIoT) Industrial Internet of Things, Wearables and Consumer IoT, as well as (new) Digital Transformation in Vertical Markets.

Financial Technology - or FinTech - Is Now Part of the @CloudExpo Program!

Accordingly, attendees at the upcoming 20th Cloud Expo @ThingsExpo June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA will find fresh new content in a new track called FinTech, which will incorporate machine learning, artificial intelligence, deep learning, and blockchain into one track.

Financial enterprises in New York City, London, Singapore, and other world financial capitals are embracing a new generation of smart, automated FinTech that eliminates many cumbersome, slow, and expensive intermediate processes from their businesses.

FinTech brings efficiency as well as the ability to deliver new services and a much improved customer experience throughout the global financial services industry. FinTech is a natural fit with cloud computing, as new services are quickly developed, deployed, and scaled on public, private, and hybrid clouds.

More than US$20 billion in venture capital is being invested in FinTech this year. @CloudExpo is pleased to bring you the latest FinTech developments as an integral part of our program, starting at the 20th International Cloud Expo June 6-8, 2017 in New York City and October 31 - November 2, 2017 in Silicon Valley.

@CloudExpo is accepting submissions for this new track, so please visit www.CloudComputingExpo.com for the latest information.

Speaking Opportunities

The upcoming 20th International @CloudExpo@ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA announces that its Call For Papers for speaking opportunities is open.

Submit your speaking proposal today! ▸ Here

Our Top 100 Sponsors and the Leading "Digital Transformation" Companies

(ISC)2, 24Notion (Bronze Sponsor), 910Telecom, Accelertite (Gold Sponsor), Addteq, Adobe (Bronze Sponsor), Aeroybyte, Alert Logic, Anexia, AppNeta, Avere Systems, BMC Software (Silver Sponsor), Bsquare Corporation (Silver Sponsor), BZ Media (Media Sponsor), Catchpoint Systems (Silver Sponsor), CDS Global Cloud, Cemware, Chetu Inc., China Unicom, Cloud Raxak, CloudBerry (Media Sponsor), Cloudbric, Coalfire Systems, CollabNet, Inc. (Silver Sponsor), Column Technologies, Commvault (Bronze Sponsor), Connect2.me, ContentMX (Bronze Sponsor), CrowdReviews (Media Sponsor) CyberTrend (Media Sponsor), DataCenterDynamics (Media Sponsor), Delaplex, DICE (Bronze Sponsor), EastBanc Technologies, eCube Systems, Embotics, Enzu Inc., Ericsson (Gold Sponsor), FalconStor, Formation Data Systems, Fusion, Hanu Software, HGST, Inc. (Bronze Sponsor), Hitrons Solutions, IBM BlueBox, IBM Bluemix, IBM Cloud (Platinum Sponsor), IBM Cloud Data Services/Cloudant (Platinum Sponsor), IBM DevOps (Platinum Sponsor), iDevices, Industrial Internet of Things Consortium (Association Sponsor), Impinger Technologies, Interface Masters, Intel (Keynote Sponsor), Interoute (Bronze Sponsor), IQP Corporation, Isomorphic Software, Japan IoT Consortium, Kintone Corporation (Bronze Sponsor), LeaseWeb USA, LinearHub, MangoApps, MathFreeOn, Men & Mice, MobiDev, New Relic, Inc. (Bronze Sponsor), New York Times, Niagara Networks, Numerex, NVIDIA Corporation (AI Session Sponsor), Object Management Group (Association Sponsor), On The Avenue Marketing, Oracle MySQL, Peak10, Inc., Penta Security, Plasma Corporation, Pulzze Systems, Pythian (Bronze Sponsor), Cosmos, RackN, ReadyTalk (Silver Sponsor), Roma Software, Roundee.io, Secure Channels Inc., SD Times (Media Sponsor), SoftLayer (Platinum Sponsor), SoftNet Solutions, Solinea Inc., SpeedyCloud, SSLGURU LLC, StarNet, Stratoscale, Streamliner, SuperAdmins, TechTarget (Media Sponsor), TelecomReseller (Media Sponsor), Tintri (Welcome Reception Sponsor), TMCnet (Media Sponsor), Transparent Cloud Computing Consortium, Veeam, Venafi, Violin Memory, VAI Software, Zerto

About SYS-CON Media & Events
SYS-CON Media (www.sys-con.com) has since 1994 been connecting technology companies and customers through a comprehensive content stream - featuring over forty focused subject areas, from Cloud Computing to Web Security - interwoven with market-leading full-scale conferences produced by SYS-CON Events. The company's internationally recognized brands include among others Cloud Expo® (@CloudExpo), Big Data Expo® (@BigDataExpo), DevOps Summit (@DevOpsSummit), @ThingsExpo® (@ThingsExpo), Containers Expo (@ContainersExpo) and Microservices Expo (@MicroservicesE).

Cloud Expo®, Big Data Expo® and @ThingsExpo® are registered trademarks of Cloud Expo, Inc., a SYS-CON Events company.

More Stories By Ed Featherston

Ed Featherston is VP, Principal Architect at Cloud Technology Partners. He brings 35 years of technology experience in designing, building, and implementing large complex solutions. He has significant expertise in systems integration, Internet/intranet, and cloud technologies. He has delivered projects in various industries, including financial services, pharmacy, government and retail.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@ThingsExpo Stories
Everything run by electricity will eventually be connected to the Internet. Get ahead of the Internet of Things revolution. In his session at @ThingsExpo, Akvelon expert and IoT industry leader Sergey Grebnov provided an educational dive into the world of managing your home, workplace and all the devices they contain with the power of machine-based AI and intelligent Bot services for a completely streamlined experience.
It is of utmost importance for the future success of WebRTC to ensure that interoperability is operational between web browsers and any WebRTC-compliant client. To be guaranteed as operational and effective, interoperability must be tested extensively by establishing WebRTC data and media connections between different web browsers running on different devices and operating systems. In his session at WebRTC Summit at @ThingsExpo, Dr. Alex Gouaillard, CEO and Founder of CoSMo Software, presented ...
DXWorldEXPO LLC, the producer of the world's most influential technology conferences and trade shows has announced the 22nd International CloudEXPO | DXWorldEXPO "Early Bird Registration" is now open. Register for Full Conference "Gold Pass" ▸ Here (Expo Hall ▸ Here)
Amazon started as an online bookseller 20 years ago. Since then, it has evolved into a technology juggernaut that has disrupted multiple markets and industries and touches many aspects of our lives. It is a relentless technology and business model innovator driving disruption throughout numerous ecosystems. Amazon’s AWS revenues alone are approaching $16B a year making it one of the largest IT companies in the world. With dominant offerings in Cloud, IoT, eCommerce, Big Data, AI, Digital Assista...
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, discussed how they built...
As ridesharing competitors and enhanced services increase, notable changes are occurring in the transportation model. Despite the cost-effective means and flexibility of ridesharing, both drivers and users will need to be aware of the connected environment and how it will impact the ridesharing experience. In his session at @ThingsExpo, Timothy Evavold, Executive Director Automotive at Covisint, discussed key challenges and solutions to powering a ride sharing and/or multimodal model in the age ...
When shopping for a new data processing platform for IoT solutions, many development teams want to be able to test-drive options before making a choice. Yet when evaluating an IoT solution, it’s simply not feasible to do so at scale with physical devices. Building a sensor simulator is the next best choice; however, generating a realistic simulation at very high TPS with ease of configurability is a formidable challenge. When dealing with multiple application or transport protocols, you would be...
Detecting internal user threats in the Big Data eco-system is challenging and cumbersome. Many organizations monitor internal usage of the Big Data eco-system using a set of alerts. This is not a scalable process given the increase in the number of alerts with the accelerating growth in data volume and user base. Organizations are increasingly leveraging machine learning to monitor only those data elements that are sensitive and critical, autonomously establish monitoring policies, and to detect...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, discussed the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
In his session at @ThingsExpo, Dr. Robert Cohen, an economist and senior fellow at the Economic Strategy Institute, presented the findings of a series of six detailed case studies of how large corporations are implementing IoT. The session explored how IoT has improved their economic performance, had major impacts on business models and resulted in impressive ROIs. The companies covered span manufacturing and services firms. He also explored servicification, how manufacturing firms shift from se...
IoT solutions exploit operational data generated by Internet-connected smart “things” for the purpose of gaining operational insight and producing “better outcomes” (for example, create new business models, eliminate unscheduled maintenance, etc.). The explosive proliferation of IoT solutions will result in an exponential growth in the volume of IoT data, precipitating significant Information Governance issues: who owns the IoT data, what are the rights/duties of IoT solutions adopters towards t...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settl...
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, examined the regulations and provided insight on how it affects technology, challenges the established rules and will usher in new levels of diligence arou...
Organizations planning enterprise data center consolidation and modernization projects are faced with a challenging, costly reality. Requirements to deploy modern, cloud-native applications simultaneously with traditional client/server applications are almost impossible to achieve with hardware-centric enterprise infrastructure. Compute and network infrastructure are fast moving down a software-defined path, but storage has been a laggard. Until now.
Digital Transformation is much more than a buzzword. The radical shift to digital mechanisms for almost every process is evident across all industries and verticals. This is often especially true in financial services, where the legacy environment is many times unable to keep up with the rapidly shifting demands of the consumer. The constant pressure to provide complete, omnichannel delivery of customer-facing solutions to meet both regulatory and customer demands is putting enormous pressure on...
Dion Hinchcliffe is an internationally recognized digital expert, bestselling book author, frequent keynote speaker, analyst, futurist, and transformation expert based in Washington, DC. He is currently Chief Strategy Officer at the industry-leading digital strategy and online community solutions firm, 7Summits.
IoT is at the core or many Digital Transformation initiatives with the goal of re-inventing a company's business model. We all agree that collecting relevant IoT data will result in massive amounts of data needing to be stored. However, with the rapid development of IoT devices and ongoing business model transformation, we are not able to predict the volume and growth of IoT data. And with the lack of IoT history, traditional methods of IT and infrastructure planning based on the past do not app...
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smart...
IoT is rapidly becoming mainstream as more and more investments are made into the platforms and technology. As this movement continues to expand and gain momentum it creates a massive wall of noise that can be difficult to sift through. Unfortunately, this inevitably makes IoT less approachable for people to get started with and can hamper efforts to integrate this key technology into your own portfolio. There are so many connected products already in place today with many hundreds more on the h...