Internet DRAFT - draft-sardon-blockchain-gateways-usecases
draft-sardon-blockchain-gateways-usecases
Internet Engineering Task Force A. Sardon
Internet-Draft Swisscom
Intended status: Informational T. Hardjono
Expires: 22 October 2022 MIT
M. McBride
Futurewei
20 April 2022
Blockchain Gateways: Use-Cases
draft-sardon-blockchain-gateways-usecases-03
Abstract
In the past five years there has been a growing interest in using
blockchains and DLT systems as a means to create a new mechanism to
issue, distribute and manage virtual assets. However, as DLT systems
consisting of peer-to-peer (P2P) network of nodes increase in number,
there is an increasing need to interconnect these networks to permit
virtual assets to flow into and out of them. This document captures
a number of use-cases driving the need for interoperability between
DLT systems.
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Table of Contents
1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . 2
2. Use-Case: CBDC interoperability . . . . . . . . . . . . . . . 2
3. Use-Case: Application and Data Portability . . . . . . . . . 3
4. Use-Case: Interconnection of Supply-Chains . . . . . . . . . 3
4.1. Pharmaceuticals . . . . . . . . . . . . . . . . . . . . . 4
4.2. Farm to store . . . . . . . . . . . . . . . . . . . . . . 4
4.3. Energy . . . . . . . . . . . . . . . . . . . . . . . . . 4
5. Use-Case: Interconnection of Cloud Systems . . . . . . . . . 5
6. References . . . . . . . . . . . . . . . . . . . . . . . . . 5
6.1. Normative References . . . . . . . . . . . . . . . . . . 5
6.2. Informative References . . . . . . . . . . . . . . . . . 5
Authors' Addresses . . . . . . . . . . . . . . . . . . . . . . . 6
1. Introduction
In the past five years there has been a growing interest in using
blockchains and DLT systems as a means to create a new mechanism to
issue, distribute and manage virtual assets.
However, as DLT systems consisting of peer-to-peer (P2P) network of
nodes increase in number, there is an increasing need to interconnect
these networks to permit virtual assets to flow into and out of them.
This document captures a number of use-cases driving the need for
interoperability between DLT systems.
2. Use-Case: CBDC interoperability
A Central Bank Digital Currency (CBDC) is a digital version of the
sovereign currency within a nation. The CBDC is distinct from other
types of digital currencies because (a) its sole issuer is a central
bank, and (b) like paper sovereign currencies the issuance of a CBDC
represents a claim that the holder has upon the central bank.
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Many central banks are considering the use of DLT systems for CBDCs.
For example, the Monetary Authority of Singapore (MAS) and the Bank
of Canada (BOC) have been experimenting with private blockchains and
have been exploring methods used to settle CBDCs (see project Ubin
and Jasper) [MAS19]. Since different central banks might be using
different private DLT systems, interoperability of these systems will
be crucial for facilitating cross-border payments.
The MAS and BOC have carried out a joint pilot project in 2019 to
evaluate how transactions between a Quorum-based and Corda-based
systems can be performed [MAS19]. While their HTLC based proof-of-
concept with direct node-to-node connectivity was conducted
successfully, they point out that such a network model may have poor
resiliency and suggest testing alternative models, in particular
using gateway nodes that would act as service nodes for the network
participants.
3. Use-Case: Application and Data Portability
Portability has been described as a desirable property for
applications on private blockchains and DLT systems [SKS18]. For
example, applications with poor portability may suffer from vendor
lock-in effects, potentially preventing users to benefit from better
middleware platforms.
Moreover, regulations like the GDPR even explicitly require data
portability. For private blockchains, where the network members may
be subject to such regulations, interoperability shall be encouraged
[STOA19]. The use case would be to migrate either the application
(e.g. a token smart contract) and/or the associated state (e.g. token
balances) from one private blockchain to another.
4. Use-Case: Interconnection of Supply-Chains
Blockchains and DLT systems are currently being deployed for
augmenting the supply-chains of good and services [Scot19]. The
notion of a shared ledger has significant appeal among the
participants of a supply-chain network (e.g. suppliers, vendors,
buyers, etc.) because: (i) it permits all participants with equal
visibility into the state of the supply/demand of goods; (ii)
permitting suppliers (e.g. manufacturers) to increase their
efficiency in maintaining the supply of goods in warehouses, leading
to the freeing-up of capital, and (iii) allowing participants to
improve the tracking of deliveries and payments settlements.
A key challenge for of a supply-chain network based on DLT systems is
its ability to interoperate with another supply-chain network.
Interoperability across blockchains and DLT systems allows a
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participant (e.g. manufacturer, buyer) to participate at a single
end-point in the network, while giving them access to all other
blockchains that are connected. Without interoperability, the
participant would need to join each and every supply-chain DLT,
something that is cumbersome, costly and does not scale.
4.1. Pharmaceuticals
The prescription, and vaccination, supply chain involves many
partners and includes recording the change of ownership of these
medicinal assets. This supply chain also involves tracking data such
as the shipping container temperature since some medicines
(vaccinations) require specific, and sometimes extreme, low
temperatures. As the medicines are in route from manufacturer to end
user, the change in ownership, along with the container temperature,
may be stored in a DLT. It will then be vital to provide
interoperability between the DLT, or non-DLT, systems along this
supply chain in order to provide consistency, transferrability and
accountability. If it's determined, by looking at DLT data, that the
required temperature was not maintained at a certain point of time
then the pharmaceutical asset can be identified, removed and
insurance can be claimed.
4.2. Farm to store
DLT interoperability will provide much needed food traceability along
the farm to store supply chain. The change of asset ownership is
tracked as the shipping partners send the transportation data to a
DLT or general distributed database. The data tracked includes
temperature, humidity, time, capacity and any other variables used to
help with any insurance claims for spoiled produce. Tracking this
data, across DLTs, will also help prevent counterfeit goods from
being shipped.
4.3. Energy
Interoperability between energy producers will help secure energy
trading and delivery. The energy industry must be able to function
with increasingly complex transactions between big and small
producers, which now includes home, and corporate, consumers becoming
energy producers. Increased volumes of decentralized energy are
being produced. Home owners, companies and tradition energy
utilities will want to have accurate and secure accounting of their
energy assets by inputting the data onto a DLT. The new energy
partnering will become increasingly complex and it will be imperative
for the energy assets to be properly tracked and traded along an
interoperable ecosystem.
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5. Use-Case: Interconnection of Cloud Systems
There will be an increasing need for cloud interoperability
particularly with the need to transfer payment from one cloud
platform to another. If a blockchain exists in AWS, for instance,
and an asset needs to be transferred to a blockchain located in an
Azure environment, an interoperability gateway will need to exist.
This is true also for the growing metaverse where decentralized asset
transfer solutions using blockchain exist. As various metaverse
cloud ecosystems continue to be created there will need to be a way
to transfer currency (and other assets) from one ecosystem to
another. If you are playing a game in Meta's metaverse and need to
pay for an asset to be transferred to another (or same) game in
Microsofts metaverse, there will need to be a solution for blockchain
interoperability.
6. References
6.1. Normative References
[RFC2119] Bradner, S., "Key words for use in RFCs to Indicate
Requirement Levels", BCP 14, RFC 2119,
DOI 10.17487/RFC2119, March 1997,
<https://www.rfc-editor.org/info/rfc2119>.
6.2. Informative References
[MAS19] MAS, "Jasper-Ubin Design Paper, Enabling Cross-Border High
Value Transfer Using Distributed Ledger Technologies,
Monetary Authority of Singapore.", May 2019,
<https://www.mas.gov.sg/-/media/MAS/ProjectUbin/Jasper-
Ubin-Design-Paper.pdf>.
[Scot19] Scott, T., "TradeLens: How IBM and Maersk Are Sharing
Blockchain to Build a Global Trade Platform. IBM Report",
27 November 2018,
<https://www.ibm.com/blogs/think/2018/11/tradelens-how-
ibm-and-maersk-are-sharing-blockchain-to-build-a-global-
trade-platform/>.
[SKS18] Shudo, K., Kanda, R., and R. Saito, "Towards Application
Portability on Blockchains, Proc. IEEE HotICN 2018",
August 2018, <https://arxiv.org/pdf/1801.01421.pdf>.
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[STOA19] STOA, "EU STOA, Blockchain and the GDPR: Can distributed
ledgers be squared with European data protection law?, EU
European Parliamentary Research Service, STOA, PE
634.445.", July 2019,
<https://www.europarl.europa.eu/RegData/etudes/
STUD/2019/634445/EPRS_STU(2019)634445_EN.pdf>.
Authors' Addresses
Aetienne Sardon
Swisscom
Email: Aetienne.Sardon@swisscom.com
Thomas Hardjono
MIT
Email: hardjono@mit.edu
Mike McBride
Futurewei
Email: mmcbride@futurewei.com
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