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Internet Engineering Task Force                                A. Sardon
Internet-Draft                                                  Swisscom
Intended status: Informational                               T. Hardjono
Expires: August 6, 2021                                              MIT
                                                              M. McBride
                                                               Futurewei
                                                        February 2, 2021


                     Blockchain Gateways: Use-Cases
              draft-sardon-blockchain-gateways-usecases-01

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.

Status of This Memo

   This Internet-Draft is submitted in full conformance with the
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   Internet-Drafts are working documents of the Internet Engineering
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   This Internet-Draft will expire on August 6, 2021.

Copyright Notice

   Copyright (c) 2021 IETF Trust and the persons identified as the
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   This document is subject to BCP 78 and the IETF Trust's Legal
   Provisions Relating to IETF Documents
   (https://trustee.ietf.org/license-info) in effect on the date of



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   publication of this document.  Please review these documents
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   described in the Simplified BSD License.

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.  References  . . . . . . . . . . . . . . . . . . . . . . . . .   4
     5.1.  Normative References  . . . . . . . . . . . . . . . . . .   5
     5.2.  Informative References  . . . . . . . . . . . . . . . . .   5
   Authors' Addresses  . . . . . . . . . . . . . . . . . . . . . . .   5

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.

   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




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   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
   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.



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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.

5.  References








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5.1.  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>.

5.2.  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",
              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>.

   [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







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   Mike McBride
   Futurewei

   Email: mmcbride@futurewei.com















































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