Exercise 1: Applying blockchain concepts to the vehicle manufacture lifecycle use case Before you start working on a blockchain solution, you must understand the business use. case and how the blockchain concepts and benefits apply to your business use case. ‘The exercises in this course are based on a fictional vehicle manufacturing example that enables users to go through the lifecycle of a virtual vehicle In this exercise, you apply blockchain concepts to the business use case by identifying basic ‘components, requirements, and capabilities in the example business network. © Copyright IBM Corp. 2018. All rights reserved.1.1 Getting started This section provides an overview of the exercise, the skills that you will gain by performing the exercise, the prerequisites for this exercise, and the results that you can expect after ‘completing this exercise. 1.1.1 What this exercise is about ‘This exercise introduces a simplified business use case: the Vehicle Manufacture lifecycle. After describing the use case, this exercise guides you to identify the basic concepts in a blockchain business network in the context of the Vehicle Manufacture lifecycle use case. This exercise enables you to experience a blockchain solution from the point of view of a set of users, and learn about key blockchain concepts. It is not meant to be a technical introduction to blockchain; instead, the focus is on the properties of the business network and the value that blockchain brings. 1.1.2 What you should be able to do After completing this exercise, you should be able to perform the following tasks: > Describe a business use case as a blockchain business network. Identity participant, assets, transaction, events, business rules, and applications in a use ccase that is represented as a blockchain business network. Provide examples of integration with external systems for a specific use case. Explain how key capabilities of blockchain technology apply to a business use case, 1.1.3 Prerequisites Before you start, you must complete Chapter 1, "Unit 1: Blockchain overview - Part 1” and Chapter 2, “Unit 1: Blockhain overview - Part 2” in Blockchain Developer Presentations Guide, SG24-8428, 1.2 Vehicle Manufacture lifecycle use case overview This use case demonstrates the lifecycle of a new car, from manufacturing and purchasing to delivery and insurance. Then, it follows the vehicle as the owner drives it on the road. Itis a good blockchain use case because there is a defined business network and an identifiable need for sharing data and trust between the participants of the network. This section describes the use case in plain language. Refer to this description to perform the tasks that you must complete in 1.3, “Exercise instructions” on page 7. As you read the use ‘case description, think of the blockchain concepts that you can apply to this scenario, Four fictional characters or personas participate in this use case: » Paul: The buyer and owner of a car. > Mike: An employee for the car manufacturer. The fictional name of the car manufacturer is “Arium’ 2 Blockchain Developer Exercises Guide» Debbie: An administrator for the regulator that is called the Vehicle & Drivers Authority (oA) » Tommen: An insurer from an insurance company. Figure 1-1 shows the characters or personas that are described in this use case. Several ‘other parties can participate in this use case, but they are not included here to keep the use case simple. JBLOCKCHAIN| Figure 1-1 Personas in the vehicle lifecycle use case ‘These characters (or personas) work together on ordering a vehicle, building the vehicle, transferring ownership of a vehicle, insuring the vehicle, checking that the vehicle is correctly taxed, and so on. Parties join the network by invitation only and must be validated by either the network starter or by a set of rules that is put in place by the network starter. Parties may perform transactions and see data based on their role in the network. All parties in the network must be kept updated; they all must trust that the information that they receive is reliable to enable them to work together efficiently Each party has a different view of the vehicle in the network. For example, Debbie must ensure that the regulations are met forall vehicles in the network regardless of who buys or manufactures the vehicle. Tommen issues insurance policies to many types of vehicles regardless of who manufactures them. The different views can be described as follows: > Arium delivers a mobile experience to their customers by providing a vehicle-buying mobile application that they can use to select the car model and features and place the order. Paul uses the vehicle-buying mobile app from his mobile device to order the vehicle. > Mike uses the Arium manufacturer dashboard to track the new orders of vehicles and check them through the manufacturing process all the way to delivery. Chapter 1. Exercise 1: Applying blockchain concepts to the vehicle manufactur lifecycle usecase 3Debbie's view is a regulatory dashboard where she can see information that is relevant to her job about the vehicles that are ordered in the network. ‘Tommen has an insurance dashboard that he uses to see what vehicles and customers were issued insurance policies. Through the insurance dashboard, Tommen can see whether there are alerts that are raised by those vehicles that are on the road, for ‘example, crash events. This data is being fed in by Internet of Things (loT) sensors that are in a black box in the vehicle. Figure 1-2 shows the use case overview. sonnei @ e sane Figure 12 Vehicle Manufacture Mecycle use case overview Let us walk through a scenario to understand how the parties interact and the data that is being generated and shared. Figure 1-3 on page 5 shows a simplified flow depicting some of the interactions between the parties and the blockchain network in this use case. 4 Blockchain Developer Exercises Guide\amz_@ - @ Figure 13 Simplifed use case flow 1, Paul orders a vehicle trom Arium by using the vehicle-buying mobile app. Paul selects the ‘car model, trims (options), color, interior, extended warranty, and tinted windows. After Paul configures the vehicle that he wants and is happy with his choices, Paul clicks Purchase and Build in the mobile app and a car order is submitted. ‘The other parties in the business network must agree that the order that Paul submitted is valid and follows the business rules that apply to this business network. Alter the order is accepted (order received state), Paul can monitor the progress from his mobile device by Using the vehicle-buying mobile app. 2. Mike's manufacturer dashboard instantly shows the new order that is recorded in the blockchain network. He sees that it was received and he can check that the order is val land he has enough cars of the requested model to build it. Mike can check that the configuration that Paul selected is valid and he can trigger the manufacturing process. ‘Some of the information that is recorded in the network can be used by Arium's enterprise resource planning (ERP) applications. Debbie the regulator has instant insight into the fact that Paul ordered a new vehicle. Because they are all sharing data on the same blockchain network, al of these participants have instant insight into new orders. 3, The manufacturing process starts. The vehicle starts moving through the factory floor: The chassis is bull, the vehicle identification number (VIN) Is stamped into the chassis, the car goes through the paint shop, and the owner is assigned. These updates to the order are submitted to the network and recorded. Chapter 1. Exercise 1: Applying blockchain concepts to the vehicle manufactur lifecycle usecase 5Figure 1-4 shows an example of blockchain transactions submitted that record status at key milestones of the production process. Figure 1-4 Key milestones in the manufacturing process that are represented on the blockchain Paul can instantly see those updates in the mobile app. Debbie the regulator gets instant insight into the lifecycle of the vehicle before it has even left the factory floor. Finally, the order reaches the following states: 4, Order compiete. 5. Order delivered. 6. Paul's mobile app shows that he received the new vehicle, 7, ‘The next step is for Paul to order insurance. He needs an insurance policy to be able to drive his vehicle on the road. He clicks the Insure me button in the mobile app. The request to issue an insurance policy is submitted to the network. 8, Tommen's insurance dashboard receives a notification informing Tommen that Paul requested an insurance policy for his new vehicle. It includes the details of the vehicle that Paul ordered. 9. Tommen may use this information to decide whether he should insure this vehicle, for ‘example, the engine size and horse power in the engine. Tommen can also see some information about Paul, for example, gender, age, and where he lives, and he can use this information along with analytics to determine whether Paul is a good candidate for insurance policies. Finally, Tommen approves the request for the new insurance policy and ‘a new insurance policy is created, Paulin his mobile app can see that the insurance policy was created, and he has the ID of the insurance policy so that he can start driving the vehicle. 10.Paul starts driving his car. As time goes by, certain incidents might take place. For ‘example, maybe the vehicle starts overheating because there is a fault with the engine or not enough cooling to the engine, which causes the engine's temperature to rise above the ‘manufacturers limits. Arlum installed loT devices in a black box in the vehicle, and the information from the loT devices is fed back into the network for everyone to see it 11.Tommen's insurance dashboard receives an alert reporting that Paul's vehicle has ‘overheated. This information is also available to all the other participants in the network. 12. Debbie the vehicle regulator receives information in the regulatory dashboard reporting that the vehicle has overheated. The regulator starts monitoring the situation to understand whether this is an isolated occurrence or a symptom of a general problem with this type of vehicle. 13.The manufacturer dashboard also receives the information about the incident (vehicle overheating), which can automatically start an investigative process to determine whether this isa common failure or an isolated incident. Biockchain Developer Exercises GuidePaul continues driving the car. Unfortunately, somebody pulls out of a garage unexpectedly, and to avoid this car Paul ends up driving into another vehicle. An loT device in Paul's car feeds that information back into the network. The insurance dashboard receives the crash notification. The insurance process handles the crash and the claims that Paul might raise. Also, Tommen calls Paul to make sure that he is OK. Debbie the regulator gets insights into the crash occurrence. She can determine whether the car should be marked as offload or can be fixed, and whether Paul will be able to safely continue driving this vehicle. This use case shows how to track the litecycle of a vehicle in a blockchain network all the way from the vehicle being ordered, through the manufacturer process, delivery, and insuring the vehicle. It also shows that the different parties in the network can receive real-time insights into the vehicle from loT devices. e instructions In this exercise, you will perform the following tasks: Identify participants. Identity assets. Identity applications, Identify transactions. Identity events. Identify external systems integration. Identity requirements and benefits 1.3.1 Identifying participants Participants represent actors that interact with the blockchain network through applications proposing and approving transactions. Participants have a role in the business network. Identify the participants in the blockchain network that is described in 1.2, “Vehicle Manufacture lifecycle use case overview" on page 2 by performing the following steps: 1. List the participants in the use case business network and describe their roles. 2. Provide examples of the type of data that each participant should be able to see and transactions they should be able to submit based on the needs of their roles. 3. Describe the characteristics and type of blockchain network that is used in this use case, that is, a private and permissioned blockchain network. 4, Provide examples of contractual agreements between participants. Provide examples of other participants that are not listed in Vehicle Manufacture lifecycle Use case overview that might potentially be interested in joining this business network. Chapter 1. Exercise 1: Applying blockchain concepts to the vehicle manufactur lifecycle use case 71.3.2 Identifying assets Assets often represent something of value for the participants. Assets can be tangible and physical, such as cars, homes, or strawberries, or intangible and virtual, such as deeds, patents, and stock certificates. Identify the assets in the blockchain network that is described in 1.2, “Vehicle Manufacture lifecycle use case overview” on page 2 by performing the following steps: 1. List the assets in the use case business network. 2. Provide examples of attributes and characteristics for each asset, 3. Provide examples showing assets being updated through the use case and exchanged between participants. 4, Explain how asset ownership and asset transfer are maintained in systems that do not use blockchain technology. 5. Explain how asset ownership and asset transfer are maintained in blockchain solutions. 1.3.3 Identifying applications Participants interact with the blockchain business network through applications. Applications ‘submit or propose transactions that must be approved (endorsed) by the participants before they are recorded in the ledger. Identify the applications in the blockchain network that is described in 1.2, “Vehicle Manufacture lifecycle use case overview’ on page 2 by performing the following steps: 1. List the applications that the participants in the Vehicle Manufacture lifecycle network use to interact with the blockchain network. 2. Describe the blockchain component (which defines the business rules) that applications Use to create proposed transactions. 1.3.4 Identifying transactions ‘Transactions represent the actual transactions that are registered on the blockchain ledger, which is initiated by a participant, and that are related to one or more assets. Transactions are recorded in the ledger and cannot be updated. Identify transactions in the blockchain network that is described in 1.2, “Vehicle Manufacture lifecycle use case overview" on page 2 by performing the following steps: 1. Provide examples of transactions in the Vehicle Manufacture lifecycle use case. 2. Describe the blockchain component where transactions are recorded 3. Describe the process by which the participants in the network approve a transaction. Biockchain Developer Exercises Guide1.3.5 Identifying events Events are notifications of significance. Blockchain applications can publish and subscribe to events in the blockchain network. This approach can be used to trigger business processes automatically. Identity examples of events in the blockchain network that is described in 1.2, “Vehicle Manufacture lifecycle use case overview’ on page 2 by performing the following steps: 1, List atleast two examples of events in the Vehicle Manufacture lifecycle network. 2. Provide examples of business processes that can be triggered by those events, 1.3.6 Identifying external systems integration Blockchain components might need to interact with external systems by importing information from them into the blockchain network or exporting information from the blockchain to the external systems. Blockchain networks provide a publish and subscribe service that is based ‘on events to enable integration with external systems. Identify examples of integration with external systems in the blockchain network that is described in 1.2, “Vehicle Manufacture lifecycle use case overview” on page 2 by performing the following steps: 1, Provide an example of integration with external systems in the Vehicle Manufacture lifecycle network where data flows from the external system to the blockchain business network. 2. Provide an example of integration with external systems in the Vehicle Manufacture lifecycle network where data flows from the blockchain business network to the external system. 1.3.7 Identifying requirements and benefits Identify requirements that the participants in the Vehicle Manufacture lifecycle network might have, explain how blockchain addresses those requirements, and describe the associated benefits. Requirement: In the context of this use case, a requirement is a capability or condition that must be met to ensure that a solution meets the needs of the participants. Perform the following steps: 1. Provide examples of requirements that Paul the car buyer, Mike the vehicle manufacturer, Debbie the regulator, and Tommen the insurer might have. 2. Explain how blockchain addresses the participants’ requirements. 3. Provide examples of the benefits of using blockchain technology. Chapter 1. Exercise 1: Applying blockchain concepts to the vehicle manufacture lifecycle usecase 91.4 Exercise review and wrap-up This exercise described the Vehicle Manufacture lifecycle use case in plain language. Ater reviewing the use case story, you can identify key blockchain components and capabilities in the story by applying the concepts that you learned in Chapter 1, “Unit 1: Blockchain overview - Part 1” in Blockchain Developer Presentations Guide, SG24-8428. ‘To explore other use cases and learn the practical applications of blockchain technology, see the following website: https: //wnw.ibm.con/blockchain/use-cases/ In the exercises that follow this exercise, you will use the Vehicle Manufacture lifecycle use ‘case to model assets, participants, and transactions, and create and deploy a blockchain network and real blockchain applications. ‘The appendix Appendix A, “Applying blockchain concepts to the vehicle manufacture lifecycle Use case: Sample answers” on page 285 includes sample answers for the tasks that you Performed in this exercise. 10 Blockchain Developer Exercises Guide