belgem.

io

BLOCKCHAIN
FOR EVERYONE
FEBRUARY 2019
BLOCKCHAIN FOR EVERYONE: belgem.io 2 3

INTRODUCTION

Soner Canko, Ph.D. Aslı Derbent Özkan Murat Kansu

CEO of BKM General Manager General Manager
(Interbank Card Center) of VeriPark of Microsoft Turkey

Trying new technologies is inherent in BKM’s The “business” between the “buyer” and Various players, including major banks, will explore
culture. We pilot solutions built on AI, IOT, AR “seller” is conducted through “intermediary the use of the blockchain technology, allowing for
& blockchain, to assess their potential. Since we institutions” and “notary services.” the safe implementation of many activities such as
believe that value of knowledge is appreciated B2B Business model doesn’t rely on a e-commerce, file sharing and communication. We
once it is shared, we document our findings workflow between businesses; it requires expect many organizations will soon cooperate to
and share it with our ecosystem. Blockchain is a the intermediation and surety of many develop a common blockchain infrastructure and
technology we intently focus on learning since it organizations, authorities and companies. take advantage of the opportunities offered by the
is an ecosystem solution at its core. technology.
Blockchain technology offers a game-
We are proud to launch belgem.io, our second changing shift to businesses by removing We foresee over 25 percent of the world’s
blockchain-based product (after introducing BBN the need for an intermediary or a validation largest 2,000 companies investing in blockchain
on the Hyperledger Fabric platform). You can authority. technologies in the next year. In 2019, 25 percent
now safely store your certificates of education of the prosthetic 3D printers will operate on
As in the belgem.io project, blockchain will
on our Ethereum-based cloud platform, belgem. blockchain, providing a secure data-sharing and
make life easier for people in many fields,
io. This report explains the purpose of belgem.io, developing patient-specific solutions. By 2020, 25
including finance, energy, healthcare,
the architectural structure of the platform and percent of the world’s top trading banks, nearly
telecommunication, education and logistics.
other technical details. 30 percent of manufacturers and retailers, and 20
It does this by eliminating trust issues percent of healthcare institutions will utilize the
We were among the pioneering companies that
between individuals. blockchain network when providing their services.
established Blockchain Türkiye in 2018,
At VeriPark, we consider blockchain a By 2021, 20 percent of the data acquired from
and we recognize that creating the right open-source networks will be recorded to a public
breakthrough technology that will change
ecosystem is the key to success when using blockchain network and many applications will be
the future, and prepare our infrastructure
blockchain-based solutions. belgem.io, developed to verify them. By 2022, the data of more
for tomorrow through R&D and concept
another outcome of this vision, is the fruit of than a billion people will be stored on a blockchain
validation.
our consortium’s efforts with VeriPark and network.
Microsoft. Blockchain will continue to make
Striving to help everyone and each organization
headlines in the coming period and we will keep
achieve more, Microsoft considers the belgem.io
sharing our findings from our trial projects with
project a major achievement for Turkey,
you.
one that will unify education and a new
technological milestone: the blockchain. The
platform is one of the world’s first applications
developed with Ethereum Proof-of-Authority
Consortium that runs on Microsoft Azure cloud
computing platform. In cooperation with BKM and
VeriPark, we have taken a major step in education
through the use of this technology, allowing for
safe and fast transactions. We are pleased that our
innovative projects are contributing to the digital
transformation of Turkey.
BLOCKCHAIN FOR EVERYONE: belgem.io 4 5

Executive Summary

Blockchain offers decentralized and cryptography-based alternative solutions

for confidential transactions such as identification and authorization. Blockchain
technology:
>> is considered the future backbone of digital transactions because of the way it
secures and regulates digital relationships.
>> Cryptography ensures data confidentiality and eliminates the need for a third-
party control by securing the data transfer.
Launched by BKM (Interbank Card Center), Microsoft and VeriPark, belgem.
io stores the educational certificates on its safe and irrevocable blockchain
infrastructure and allows the user to share them with any organization/individual
they like.
We believe that understanding blockchain is essential, since it facilitates the building
of trust-based business models without intermediaries. Because of this, we conduct
proof of concept projects, and throughout these projects we aim to provide a more
thorough understanding of the technology, measure the maturity level of the related
tools, and share the experience gathered within the ecosystem.
The use case we have implemented for this proof of concept is belgem.io. The
Ethereum blockchain platform gave us an easy way to implement our use case. It
also paved the way for the integration of smart contracts into the blockchain thanks
to its fundamental innovation of Ethereum Virtual Machine (EVM). We tested and
developed our smart contracts using the programming language of Solidity through
Truffle framework on Ethereum platform, which features coding flexibility. Utilizing
the consensus mechanism of Proof of Authority (PoA), belgem.io is among the
world’s first applications developed with Ethereum Proof-of-Authority Consortium
on Microsoft Azure. Thanks to this product, we have created a blockchain and
added the nodes in a short time. The consensus algorithm of Proof-of-Authority,
which does not involve any mining mechanisms, fully met our needs with its
governance portal and block production speed.
belgem.io verified the identity of organizations with the Ethereum wallet of
MetaMask and employed “BKM Express” to validate the user data. We used
asymmetric cryptography to verify digital certificates. We worked with Azure’s Key
Vault for sensitive data management and built a mechanism on blockchain that does
not store any sensitive data.
In this report, you can find the details of our experience developing belgem.io.
The platform will be open to institutions and individuals other than the BKM. We
are excited by the way belgem.io can be utilized to make observations in a live
environment.
We will update this report with post-launch lessons learned.
BLOCKCHAIN FOR EVERYONE: belgem.io 6 7

1. The Technical Infrastructure of belgem.io When choosing between these platforms, the team aimed to meet various
expectations, such as:
>> A closed-circuit system and a governance structure that can only grow or
1.1 What is belgem.io?
shrink by the joint decision of the system peers,
belgem.io is a digital platform
>> A blockchain structure that allows for MetaMask or similar digital wallet
designed to store, view and share applications,
educational certificates on a private
>> Use of a new programming language during the development process of
Ethereum blockchain. Developed in
smart contracts,
cooperation with BKM (Interbank Card
>> A technically competent platform whose support services are able to produce
Center), Microsoft and VeriPark, this
quick solutions to problems.
platform aims to test concepts such as
Ethereum, smart contracts, Proof-of- We have chosen Ethereum, a blockchain-based distributed computing platform that
Authority consensus algorithms and is preferred by many distributed applications. Our decision was also influenced
governance between organizations. by Ethereum’s support of multiple consensus algorithms. When developing the
Thanks to its governance panel, application, we tested both the Proof-of-Work and the Parity-based Proof-of-
each decision is submitted for voting Authority on Azure. We also experienced the Truffle Framework, which provides
with a majority requirement of 51 great convenience through Ethereum transactions and smart contract tests. Our
final choice was the Ethereum Proof-of-Authority Consortium, which, thanks to its
percent. belgem.io uses a private and a
structure, does not require mining, has an efficient governance portal and a block
permissioned blockchain network. The
production rate of two or four seconds. Thanks to our partnership with Microsoft,
platform is positioned on Ethereum Proof-
we created belgem.io through the mutually nurturing combination of Ethereum and
of-Authority Consortium on Azure’s cloud
Proof-of-Authority Consortium.
platform.

1.2 The Blockchain Platform 1.3 Top Level Architecture and Technologies
We primarily used some open-source technologies during the
belgem.io runs on the Ethereum blockchain
implementation stage of the project.
platform.
>> Operating System: Windows
It is one of the world’s first applications developed with Ethereum Proof-of-
Authority Consortium on Microsoft’s Azure cloud computing platform in July >> Application server: Windows Server
2018. The platform uses the Proof-of-Authority consensus algorithm to make >> Database server: MS SQL
joint decisions between the nodes. >> Blockchain platform: Ethereum
>> Blockchain product: Azure Ethereal Proof-of-Authority Consortium
At the beginning of the project, the following alternatives >> Web development platform: ASP.NET MVC
were evaluated: >> Programming languages: C#, Go, Solidity, JavaScript

>> Ethereum Proof-of-Authority Consortium (Azure) The first four organizations to issue certificates on belgem.io are Microsoft
Cloud Society, FinTech Istanbul, BayBayNakit Akademi and the Blockchain
>> Ethereum Proof-of-Work Consortium (Azure) Turkey Platform (BCTR). We assigned the admin role to an account from BKM
>> Parity Ethereum PoA (Azure) and authorized them to become a peer on the blockchain network. This means
that the governance practice involves a voting right. When new organizations
>> R3 Corda are proposed to the system, the decisions will be made in line with the votes of
internal institutions and the manager. Each peer on the blockchain has equal
>> Hyperledger Sawtooth
voting right for the decisions on the governance portal. This structure, formed
>> Customized Bitcoin with smart contacts, imposes a majority requirement of 51 percent.
BLOCKCHAIN FOR EVERYONE: belgem.io 8 9

Participating organizations should choose one of the following options to 1.4 Why do we use Blockchain on Azure?
issue a certificate on belgem.io: Blockchain applications on Microsoft Azure support simple setup templates
I. Become a blockchain node for anyone with an entry-level Azure and blockchain infrastructure. The
1. Each partner that chooses this option is entitled to participate in the private blockchain network topology is created within minutes thanks to the simple
network in line with the voting. They are each required to open an account on installation screens of the products provided by the Azure portal. We
Azure and set up the Ethereum Proof-of-Authority Consortium. The installation is focused on developing our application and scenarios, rather than spending
completed with the public key created using MetaMask and the information about hours building and configuring the infrastructure. The Proof-of-Authority
belgem.io blockchain. Consortium was the perfect match for belgem.io app. It met our requirements
1. The BKM admin provides the organizations in the blockchain network with the with its private and permissioned blockchain network, distributed governance
necessary information to login to the belgem.io web application. They are granted feature and its management portal for enterprise blockchain projects. It took
the authorization to send transactions to the blockchain using the web application. only 16 minutes to restore functionality to the entire network after keying in
Through the permissioned transactions, they can create and issue certificates. the platform features of belgem.io on Azure’s portal. The consensus algorithm,
Proof-of-Authority, creates a new block every four seconds, without the need
II. Only execute permissioned transactions
for mining.
>> Organizations chosing this option are permitted to create and issue
certificates. These institutions are not entitled to a voting right for new
participants and are not included in the governance platform since they are not 1.5 Verification on belgem.io
blockchain nodes. One of the main scenarios of the belgem.io app is that users can easily access
Even though belgem.io is a private blockchain network, its structure allows access to the certificates issued in their name and share them in a digital environment.
the contracts through the cloud client information. People with malicious intent may belgem.io contains two main roles: “educational institution” and “user.”
send false transactions to smart contracts. Educational institutions may vote by joining the distributed governance
This can cause the application to lose functionality by collapsing the network or application, and produce and send certificates to user accounts, through their
cause problems on the governance. To prevent this, we developed a Transaction MetaMask account. Users, however, are not associated with any MetaMask
Permissioning smart contract for the governance portal and certificate contracts. This wallet. Users can access their profiles created with their verified credentials
contract aims to ensure that only the addresses authorized by the belgem.io peers can through the BKM Express application, and view and share their certificates.
access the belgem.io contracts and send transactions. For a non-MetaMask user, validated credentials were transferred to the belgem.
io’s database in exchange for a donation transaction via BKM Express. In
Figure 1: Top Level Architecture Diagram respect to GDPR, credentials are considered as sensitive data, they may be
shared with the application/institution/blockchain only if approved by the user.
BKM already utilizes the BKM Express application for user authentication.
Azure Ethereum E-Government authentication, mobile applications of banks and authentication
Blockchain
Internet solutions for operators can serve as an alternative to this function for future
user scenarios.
MetaMask
Application admin When the user first registers for belgem.io, the institution simultaneously
performs the verification process using this information.

Internet Firewall 1.5.1 User Verification through BKM Express on belgem.io

Application server Database server
While registering, a (1TL) charity donation transaction is performed by scanning
the QR code generated on screen through the BKM Express application. This
Participating organization
transaction identifies the authenticated information, including user’s name,
surname and TRIN.
Users complete the registration by filling in their e-mail address and mobile
User BKM Express Mail SMS phone number.
entegrasyon entegrasyon
BLOCKCHAIN FOR EVERYONE: belgem.io 10 11

1.5.2 Organization Verification through MetaMask on belgem.io cryptocurrency, Ether is also used to pay for transaction fees and services by
An institution must be invited by another institution to register the platform. The application developers on the Ethereum network. There is also a second type
new institution’s public key and authorized person information are filled out on the of token called GAS. The performance of each transaction or smart contract
Organization Screen. The authorized person then receives the request and submits execution is measured and paid for by GAS. However, belgem.io uses a PoA
the new institution’s proposal to the consortium through the governance application. consensus algorithm, eliminating the need for these types of fees. This way, PoA
Once the new institution is found to be eligible to participate, belgem.io manager will spares users and educational institutions that join belgem.io the cost of dealing
notify the authorized person to complete the registration process. with crypto-management.

1.5.3 1.5.3 Digital Document Verification on belgem.io 2.1.2 Smart Contracts

Smart contract is just a phrase used to describe a computer code that can
Each certificate produced by belgem.io has a unique link. The app creates this link
facilitate the exchange of money, content, property, shares, or anything of value.
by using the ViewToken in the MetaMask transaction. Users can use the verification
When running on the blockchain, a smart contract becomes like a self-operating
link on the belgem.io certifiate to authenticate the certificate they received from the
computer program that automatically executes when specific conditions are met.
platform and add it to their CV.
While all blockchain platforms have the ability to process code, most are severely
The scenario behind the design of the verification link is:
limited. Ethereum allows developers to create whatever operations they want
>> The belgem.io produces certificates from the member organizations in the name
thanks to its coding flexibility.
of the user. These documents are included in the user’s CV.
Smart contracts contain the following components:
>> The user applies for a job.
>> State variables
>> The HR department of the relevant organization may request authentication of
>> Functions
the digital documents in the CV.
>> Events
>> The encrypted ViewToken information in the certificate link is decrypted with the
Smart Contract Creation
public key of the institution.
Smart Contracts are compiled and converted into bytecodes. These bytecodes are
>> The relevant users are notified of the result and deemed “verified” or “not
deployed to the Ethereum Virtual Machine (EVM). Below is the visual representation
verified.”
of how smart contracts are created:

Transaction for New

2. Lessons Learned User Smart Contract
Contract Creation.
Transaction: Hash
From: Deploying Node
Input: Bytecode
2.1 Ethereum
2.1.1 Ethereum Blockchain
Simply put, Ethereum is an open software platform based on blockchain
technology that enables developers to build and deploy decentralized
Miner bradcast New Block: Transaction
applications.
New Block and Mining
Like Bitcoin, Ethereum is a public blockchain. Although there are some significant Contract Address
technical differences between the two, the most important distinction to note is
that Bitcoin and Ethereum differ substantially in purpose and functionality. Bitcoin
offers one particular application of blockchain technology: a peer-to-peer electronic
cash system that enables online Bitcoin payments. While the Bitcoin blockchain
is used to track ownership of digital currency (bitcoins), the Ethereum blockchain
Peer nodes validate,
focuses on running the programming code of any decentralized application. A smart contract
verify and execute
account instance
Instead of mining for bitcoin, miners in the Ethereum blockchain work to earn locally

Ether, a type of crypto token that fuels the network. Beyond being a useful
BLOCKCHAIN FOR EVERYONE: belgem.io 12 13

>> The process of deploying the smart contract is triggered by a transaction. The Ethereum Virtual Machine makes the process of creating blockchain
>> The transaction must take effect. applications significantly easier and more efficient. Instead of having to build an
entirely original blockchain for each new application,
>> Peer nodes perform the mining “competitively.”
>> The new block generated after a successful mining operation includes a 2.1.4 In Which Fields Can We Utilize the Ethereum Network?
transaction and contract address. Ethereum enables developers to build and deploy decentralized applications.
>> The new block created by the miner will be broadcasted to the peer nodes. A decentralized application, or dApp, serves a particular purpose to its users.
Bitcoin, for example, is a dApp that provides users with a peer-to-peer electronic
>> The new block will be validated by the peer nodes to become an official block in
cash system and facilitates online Bitcoin payments. Because decentralized
the local blockchain.
applications are made up of code that runs on a blockchain network, they are not
>> The new instance of the Smart Contract contains a unique address. This address
controlled by any individual or central entity.
must be recorded for the next contract deployment.
Ethereum can also be used to build Decentralized Autonomous Organizations
Smart Contract Execution
(DAO). A DAO is a fully autonomous, decentralized organization with no single
Functions included in smart contracts can be run by an external account or a leader. DAOs are run by programming code on a collection of smart contracts
distributed application (dApp).uygulama tarafından çalıştırılabilirler. written on the Ethereum blockchain. The code is designed to replace the rules
and structure of a traditional organization, eliminating the need for people and
Transaction for Execution
centralized control. Anyone who purchases a token will be considered the owner
Smart contract Function:
External account Transaction: Hash of a DAO. However, these tokens do not equate to equity shares and ownership;
account Instance
From: Mining Node rather they serve as contributions to grant voting rights. Inspired by DAO,
Input: Function parameters
belgem.io’s governance structure is autonomized by smart contracts.
2.1.5 What are the drawbacks of Ethereum implementation?
Despite their numerous benefits, decentralized applications are not perfect.
As smart contract code is written by humans, smart contracts are only as good
Peer nodes verify Miner bradcast as the people who write them. Code bugs or oversights can create unintended
and confirm the new New Block Mining
block locally Status changes issues.
Mistakes or errors in the smart contract code can leave it vulnerable to attacks.
This can cause security breaches, such as the unauthorized access of the network
>> To execute a function defined in the smart contract, the address of the smart consensus, and a rewriting of the underlying code. This goes against the essence
of the blockchain, which is meant to be immutable. To fortify belgem.io, we have
contract is taken.
developed and rigorously tested highly advanced protective smart contracts.
>> Each function that changes the state calls a transaction.
2.1.6 Private and Permissioned Ethereum Blockchain Structure
>> The transaction must be mined to be approved.
Blockchain networks are divided into different categories according to the
>> The new block generated after a successful mining operation includes a
right to read and write data. These categories are often called “private” and
transaction.
“public,” though it would be more accurate to call them “permissioned” and
>> The new block created by the miner will be broadcasted to the peer nodes. “permissionless.” Public and private classifications can be made under these
>> The new block will be validated by the peer nodes to become an official block in categories as follows.
the local blockchain.
Table 2: Blockchain Structures
2.1.3 Ethereum Virtual Machine (EVM) Permissioned Permissionless
Ethereum’s core innovation, the Ethereum Virtual Machine (EVM), is a “Turing
complete software” that runs on the Ethereum network. It enables anyone to Private Public Private Public
run any program regardless of the programming language, time and memory.
BLOCKCHAIN FOR EVERYONE: belgem.io 14 15

In permissioned blockchains only designated peers with specific rights can 2.2 Our Software Development Tools
contribute to block formations and consensus. However, in permissionless
2.2.1 Truffle
blockchains all peers can contribute to block formation and consensus. Private
Truffle is a development framework that allows developers to easily develop
blockchain structures determine who information is shared with. In private
applications on Ethereum. Here are the top features of Truffle that we utilize
blockchains, the network and blockchain data is restricted to those who have
throughout the project:
specific permission. In public blockchains, the network is open to all peers.
>> Smart contract compilation, linking and testing
belgem.io usecase aims to house the governance structure on a private chain and offer
free transactions. belgem.io is a blockchain solution that falls within the permissioned >> Automated testing for quick development
and private blockchain category. With its improved data security and confidentiality, >> Easy switch and transfer between structures
this structure is typically preferred in enterprise blockchain solutions.. >> Private and public network management
What advantages does a private chain offer over a public chain? >> Package management with EthPM and NPM
Below are the top advantages that a private chain can offer institutions and >> Interactive console for direct contract interaction
organizations.
2.2.2 Ganache
>> Transactions are cheaper or free of charge.
Ganache, formerly called TestRPC, offers a personalized blockchain structure
>> You are less likely to experience delays. where you can test your distributed applications. Ganache is available for
>> You have more authority and control over the chain. Windows, Mac and Linux, allowing you to easily test your application on your
own computer‘s blockchain.
2.1.7 Azure Ethereum Proof-of-Authority Consortium
The Ethereum Proof-of-Work Consortium is a governance platform designed to 2.2.3 Parity
make it easier and quicker to authorize, configure and manage a multi-member Miners, service providers and exchanges need fast synchronization and
consortium Ethereum network with minimal Azure and Ethereum knowledge. With maximum up-time. Parity Ethereum provides the core infrastructure required
a single-click deployment through the Azure portal, each member can update the for fast and reliable services. Developed using the programming language Rust,
organization name, and add new organizations or remove existing organizations Parity aims to be the fastest and the most secure Ethereum client.
from the consortium. Highlights of Parity:
Although belgem.io is a private blockchain network, users could potentially connect >> Modular codebase for easy customization
to the network through the belgem.io client (RPC) information. This means they >> Advanced CLI-based client
could send transactions to the governance app and certificate authentication
>> Minimum memory and storage requirements
contracts.
>> Synchronize in hours Warp Sync
To prevent fraudulent transactions, we wrote an additional contract, which
>> Modular for integration into your service or product
includes Transaction Permissioning. This ensures that only authorized accounts
can perform transactions. The “admin” organization, which is the first participant 2.2.4 Azure CLI 2.0
on the private network, adds a new participant in the governance application by Azure CLI 2.0 is a cross-platform command-line tool for managing Azure
authorizing accounts that join the system through this contract. resources. It makes it easier to manage your resources with scripts. We
have taken advantage of the forums and documentations of Azure CLI. This
2.1.8 Performance
has enabled us to save time when installing the blockchain with the desired
The block creation statistics of the belgem.io application is displayed on Azure
features. You can use it in your browser with Azure Cloud Shell, or install it on
Monitor.
macOS, Linux or Windows and run it on the command line.
You can perform the following actions through Azure Monitor:
2.2.5 Solidity
>> Detection of infrastructure and network interruptions
Solidity is a contract-oriented programming language for writing smart
>> Monitoring network statistics of each node
contracts. It is used for implementing smart contracts on Ethereum and various
>> Customized transaction tracking blockchain platforms. It was influenced by C++, Python and JavaScript and
>> Creating performance output is designed to run on Ethereum Virtual Machine (EVM). It was developed
BLOCKCHAIN FOR EVERYONE: belgem.io 16 17

by former Ethereum core contributors, such as Gavin Wood, Christian lifespan. Because of this, we send the transactions performed within the belgem.
Reitwiessner, Alex Beregszaszi, Liana Husikyan, and Yoichi Hirai. io to the public keys generated by Microsoft Azure Key Vault (Cloud HSM) and
2.2.6 Contract ABI (Application Binary Interface) did not write any critical data to the blockchain. We created a public key for each

Smart contracts are compiled to bytecodes under a specific contract address and user who registered to belgem.io on Key Vault with a FIPS 140-2 Level 2 HSM and
stored in the blockchain. An ABI is necessary to access the contract bytecode, sent the certificates to these public keys.
specify which function in the contract to invoke, and guarantee that the function You can see the transaction set and the distribution of the data in the table
will return data in the expected format. below.
2.2.7 Web3.js
The web3.js library is a collection of modules that allows you to interact with a
local or remote Ethereum node using an HTTP or IPC connection. Web Application Server Database Blockchain

This official javascript API enables interaction with smart contracts. User Login User Email and Password Verification and -
Authorization Transactions
2.2.8 Nethereum
User Registration Authentication with User Information Public key created
Nethereum is the .Net integration library for Ethereum. It simplifies the access to BKM Express on behalf of the user
(TRIN number, name, surname,
and interaction with smart contracts both for public and permissioned Ethereum email and mobile number)
nodes like Geth, Parity or Quorum.
Organization Registration Starting the Process Information about the Organization’s public key
institution and the
2.2.9 List of Ethereum Clients authorized person

We prefer to use Parity for belgem.io, as it is one of the Ethereum protocol’s Certificate Request Information about the Certificate requesting -
requested certificate institution, requester and
seven clients. It uses the Azure Ethereum Proof-of-Authority’s consortium certificate information
product, and Parity’s Aura consensus engine.
Certificate Registration Information about the Certificate issuer, Certificate issuer,
The other Ethereum clients include: requested certificate certificate holder, name certificate holder, name
and date on the certificate and date on the certificate

Client Language Developer

go-ethereum Go Ethereum Foundation

cpp-ethereum C++ Ethereum Foundation

3. Conclusion
Pyethapp Python Ethereum Foundation
3.1 Summary
Ethereum(J) Java <ether.camp>
The top features of the current platforms include privacy, performance (number of
Ruby-ethereum Ruby Jan Xie transactions per second) and durability. In blockchain projects choosing the most
Parity Rust Ethcore suitable structure to your usecase is more important than focusing on the superior
capabilities of each platform.
ethereumH Haskell BlockApps
belgem.io application
>> utilizes the open-source Ethereum platform, as it creates smart contracts for
2.3 Sensitive Data Management certificate authentication and inter-institutional governance structure.
2.3.1 Azure KeyVault >> utilizes Proof-of-Authority consensus algorithm to create a democratic structure
We see many blockchain implementations that end up storing its data, in an between the nodes.
encrypted format, on its network. >> provided an average of four seconds of block production speed, although high
However, advancements in quantum computing put blockchain security as well performance is dispensable for this specific usecase.
as encrypted data stored on the network at risk. Each encryption algorithm has a >> utilizes cloud HSMs on Azure Key Vault for securing users’ data.
BLOCKCHAIN FOR EVERYONE: belgem.io 18 19

3.2 Glossary >> Elliptic Curve Digital Signature Algorithm (ECDSA): ECDSA is a cryptographic
>> Address: Cryptocurrency addresses are used to send or receive transactions on algorithm used by Bitcoin to ensure that funds can only be spent by their rightful
the network. An address is a string of alphanumeric characters that can also be owners.
represented as a scannable QR code. >> Encryption: Encryption is the process of turning a clear-text message (plaintext)
>> Asymmetric Cryptography: Asymmetric cryptography is also known as public into a data stream (cipher-text), which resembles a meaningless and random
key cryptography. It uses public and private keys to encrypt and decrypt data. The sequence of bits.
keys are simply large numbers that have been paired together but are not identical >> Ether: Ether is the native token of the Ethereum blockchain and is used to pay for
(asymmetric). A public key may be shared with everyone, while the private key in the transaction fees, miner rewards and other services on the network.
Parity is kept secret. Protocols such as SSH, S/MIME rely on asymmetric cryptography >> Ethereum: Ethereum is an open software platform based on blockchain technology.
for encryption and digital signature functions. It enables developers to build and deploy smart contracts and decentralized
>> BBN: A company loyalty platform that enables the acquisition and consumption of applications.
gifts to engage company employees. Named “Bye Bye, Cash” after the slogan for BKM’s >> Ethereum Test Network: To mitigate the risk of bugs in your smart contract on the
communications projects with the vision of cashless payments, BBN intends to test main net, it is important to test it before deploying to the Main Network. Ethereum
concepts such as digital identity, distributed ledger, smart contracts and consensus. has multiple test networks that can be configured as an acceptance environment.
>> BKM Express: A payment system that makes online shopping fast, easy and Ethereum provides several test networks, such as Rinkeby, Ropsten, and Kovan.
joyful, developed with BKM, banks and leading companies of e-commerce area. Card >> EVM – Ethereum Virtual Machine: EVM is the Ethereum smart contracts bytecode
owners can shop without sharing any card information online by saving their cards on execution environment. Each node in the network runs EVM. All the nodes execute all
BKM Express. The places of business that accept card on e-commerce websites can the transactions that point to smart contracts using EVM. This means that every node
approach more customers as a Member Place of Business of BKM Express. performs the same calculations and stores the same values.
>> Blockchain: A digital distributed ledger, comprised of unchangeable, digitally >> EVM Bytecode: This is the programming language in which accounts on the
recorded data in packages called blocks. Each block is then “chained” to the next block Ethereum blockchain can contain code. The EVM code associated with an account
using a cryptographic signature. This allows blockchains to be used like a ledger, which is executed every time a message is sent to that account, and has the ability to read/
can be shared and accessed by anyone with the appropriate permissions. write storage and send messages.
>> Confirmation: This means the blockchain operation has been verified by the >> GAS: The usage of blockchain costs money. This money is used to reward miners
network. This occurs through a process called mining, in a proof-of-work system (e.g. who validate your transactions and append them to the blockchain. All transactions
Bitcoin). Once a transaction is confirmed, it cannot be reversed or double spent. on the blockchain have an associated fee called GAS. GAS is a unit of complexity that
>> Consensus Algorithm: A consensus algorithm ensures that the next block in a is used to set the price of code execution. GAS complexity does not depend on the
blockchain is the one and only version of the truth. It also keeps powerful adversaries current value of ether.
from derailing the system and successfully forking the chain. The most common >> Geth Console (Go Ethereum): Geth is the command line interface for running a
consensus algorithms are Proof-of-Work, Proof-of-Stake and Proof-of-Authority. full Ethereum node implemented in Go. Installing and running Geth allows you to
>> Cryptography: Cryptography is the encryption and decryption of data. There are take part in the Ethereum frontier live network, mine real ether, and transfer funds
two main cryptographic concepts used in blockchain: hashing and digital signatures. between addresses. It also allows you to create contracts and send transactions,
In general, there are three widely used forms of encryption: symmetric cryptography, explore block history, and much more.
asymmetric cryptography, and hashing. >> Hash Functions: The hash function transforms the digital signature before sending
>> dApp (Distributed Application): A decentralized application (dApp) is an application it and the hash value to the receiver. The receiver uses the same hash function to
that is open source and operates autonomously with no entity controlling the majority generate the hash value and then compares it to what they received with the message.
of its tokens. If the hash values are the same, it is likely that the message was transmitted without
>> Digital Signature: A digital signature proves that a message originated from a errors.
specific person and no one else. When you visit a website, you are using SSL. This uses >> Immutability: Immutability means a block cannot be modified after it is created.
a digital signature to establish trust between you and the service. In blockchain, blocks are chained together so that you can’t go back and change
>> Distributed Ledger: A type of database that is spread across multiple sites, countries their contents without having to change every subsequent block. Depending on
or institutions. Distributed ledger data can be either “permissioned” or “permissionless” the consensus protocol, you can’t change blocks without the express agreement of
to control who can view it. everyone involved. This is sometimes referred to as “mutable by consensus.”
BLOCKCHAIN FOR EVERYONE: belgem.io 20 21

Keccak-256: A type of cryptographic hashing function. Ethereum uses Keccak-256.

>> Ledger: A ledger is only a record store, where records are immutable and may hold
more general information than financial records.
DEVELOPER TEAM OF
>> Master Node: A master node is a cryptocurrency full node or wallet that stores
a full copy of the blockchain in real time. It is always running. Master nodes differ
to normal nodes because they increase the privacy of transactions, provide instant THE INTERBANK CARD CENTER
transactions, participate in governance and voting, and enable budgeting and treasury
systems in cryptos.
>> MetaMask: A MetaMask is a bridge that allows you to visit the distributed web
in your browser. It allows you to run Ethereum dApps right in your browser without
running a full Ethereum node. MetaMask includes a secure identity vault, providing
a user interface to manage your identities on different sites and sign blockchain
transactions.
Celal Cündoğlu Özge Çelik Okan Yıldız Enes Türk
>> Mining: The process by which transactions are verified and added to a blockchain.
Executive Vice Senior Vice Business Engineer
This process of solving cryptographic problems using computing hardware also President President Development
triggers the release of cryptocurrencies. Business Vice President
Development
>> Node: A node is essentially a computer connected to blockchain network.
>> Open source: Software for which the original source code is made freely available
and may be improved and modified by anyone. MICROSOFT
>> Solidity: Solidity is a contract-oriented programming language for writing smart
contracts. It is used for implementing smart contracts on various blockchain
platforms.
>> TestRPC: TestRPC is a Node.js-based Ethereum client used for testing and
development. It uses ethereumjs to simulate full client behavior and improves
the efficiency of Ethereum application development. It also includes all popular
RPC functions and features (like events) and can be run deterministically to make
development a breeze. Cavit Yantaç Behice Funda Emre Kenci Seda Akdemir
Software Business Program Senior Software Technology
>> Token: A digital identity for something that can be owned. Engineering Manager Engineer Strategist
Manager at
>> Transaction Block: A transaction block is a collection of transactions on the bitcoin
DPE Microsoft EMEA
network. It is gathered into a block, which can then be hashed and added to the
Lead
blockchain.
>> Truffle: Truffle is a development environment, testing framework and asset pipeline
for Ethereum that aims to make life as an Ethereum developer easier. VERIPARK
>> Turing complete: A computer is Turing complete if it can solve any problem that a
Turing machine can when given an appropriate algorithm and the necessary time and
memory. When applied to a programming language, it means that a Turing complete
computer can fully exploit its capabilities.
>> Wallet: Wallets are used to store private keys.
>> Web3.js: Web3.js is a collection of libraries that allow you to interact with a local or
remote Ethereum node using a HTTP or IPC connection. It communicates under the
Tahir Özmen Gencay Sazak Volkan Kavadarlı Görkem Gökçe
hood to a local node through RPC calls. Web3.js works with any Ethereum node that Project Manager Senior Software Software Senior Customer
exposes an RPC layer. Developer Developer Manager
 22 23
1
BLOCKCHAIN FOR EVERYONE: belgem.io

CONTENTS
Introduction 2
Executive Summary 5
1 The Technical Infrastructure of belgem.io 6
1.1 What is belgem.io? 6
1.2 The Blockchain Platform 6
1.3 Top Level Architecture and Technologies 7
1.4 Why do we use Blockchain on Azure? 9
1.5 Verification on belgem.io 9
1.5.1 User Verification through BKM Express on belgem.io 9
1.5.2 Organization Verification through MetaMask on belgem.io 10
1.5.3 Digital Document Verification on belgem.io 10
2 Lessons Learned 10
2.1 Ethereum 10
2.1.1 Ethereum Blockchain 10
2.1.2 Smart Contracts 11
2.1.3 Ethereum Virtual Machine (EVM) 12
2.1.4 In Which Fields Can We Utilize the Ethereum Network? 13
2.1.5 What are the drawbacks of Ethereum implementation? 13
2.1.6 Private and Permissioned Ethereum Blockchain Structure 13
2.1.7 Azure Ethereum Proof-of-Authority Consortium 14
2.1.8 Performance 14
2.2 Our Software Development Tools 15
2.2.1 Truffle 15
2.2.2 Ganache 15
2.2.3 Parity 15
2.2.4 Azure CLI 2.0 15
2.2.5 Solidity 15
2.2.6 Contract ABI (Application Binary Interface) 16
2.2.7 Web3.js 16
2.2.8 Nethereum 16
2.2.9 List of Ethereum Clients 16
2.3 Sensitive Data Management 17
2.3.1 Azure KeyVault 17
3 Conclusion 17
3.1 Conclusion 17
3.2 Glossary 18