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4.6 Operations Manager
12 Block Chain
Block Chain Service
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4.6.12. Block Chain:
Block Chain technology exists to provide distributed ledgers without any single central authority.
Regardless of where the ledger goes, the integrity of the transactions remain complete and correct.
Digital payments systems like Bitcoin proved block chains are both practical and effective.
Many financial record keeping systems could benefit from using block chain technology that frees ledgers from being owned by any single company or government.
Insurance systems with long complex supply chains would greatly benefit from block chain technology - Eliza.
Export-Import systems with distributed supply chains would greatly benefit from block chain technology - TIES/E2K.
Cyber attacks against block chains may not be possible because so many copies of all block chains exist.

Finance:
Imagine the application service with block chain accounts that cannot be lost, cannot be altered, cannot be fraudulenty changed by criminals and are safe from all malware.   Block chain accounts have that potential and that potential is worth building into all existing financial accounting services.   One day soon, all financial services will be built using block chain integrity - distributed database technology for all payment systems.
Block chain is disruptive technology with focus on risk management, compliance and cost reduction.   Block chain is peer-to-peer without a single point of failure - back office evaporates as it serves no purpose.   "R3" is the consortuim founded by RBS and including Barclays, Goldman Sachs, UBS, JP Morgan, LeXica and many others.   The only job that block chain will do is moving money from one party to another - simple, focused, but so slow and expensive with old ledger systems.

Copy or Move:
Virtually every computer system is good at copying things but not so good at moving things.   When a coin or five pound note is passed from one person to another, the movement of the money is self-evident and fool-proof.   But when a computer tries to move a coin or five pound note from one person to another, the original person still has the original and the other person gets a copy.   Music, films, TV, pictures all suffer the same problem - they are easy to copy but hard to move to the original no longer exists.
Block chain is a mechanism to build ownership into each and every copy.   The block chain keeps detailed records of who had it and who has it now - and this data is replicated thousands or millions of times.

Replicated Data:
One aspect of block chain that is worth further analysis is block data replication.   When data is replicated many thousands of times, the possibility of that data being lost are zero.   The possibility of a criminal attack that could simultaniously change many thousands of copies of the same data is zero.   Replicated data cannot be attacked by a virus or malware - much of the data in a block chain is frozen.
The block chain is compressed and encoded as a kind of encryption that can detect errors, corruption, inserts, updates and deletions.   To add-to a block chain, cooperation from all other block chains or a master block chain is needed.
Policy: all data must be replicated to many distributed secure data centers - just ten copies means the possibility that data can be lost or altered by criminals is negligible.

Document Control:
1. Document Title: Block Chain.
2. Reference: 164612.
3. Keywords: ITIL, Block Chain Technology.
4. Description: Block Chain Technology.
5. Privacy: Public education service as a benefit to humanity.
6. Issued: 5 Dec 2016.
7. Edition: 1.0.



Strategy:
1. In 2004 a strategic change in direction was taken to evolve from Windows-Based software to Web-Based services.
2. In 2017 a strategic change in direction was taken to evolve from Internet services to Block-Chain services.
3. Block-Chain technology is the distributed encrypted ledger that has been proven with bit-coins and is now ready to explode into most market areas.
4. Block-Chain adds the concept of the supply chain of multiple cooperating companies to Internet applications.
5. While each company can buy or rent their own internal Internet application, considerable added benefits come when shared data can safely flow between companies.
6. For example: invoicing is not an internal internet application, but a block-chain application with data securely shared between a buyer as customer and a seller as supplier.
7. Block-Chain does one thing better than all other solutions; it can "move" an asset from one party to another with total integrity.
8. Block-Chain with Bit-Coin "moves" money between parties and the same technology can move licenses, documents, property, assets, freight, vehicles and digital rights between parties.

Benefits:
1. Bit-Coins has proven that Block-Chain security technology can be trusted between parties who do not know one another and may never know one another.
2. Block-Chain includes encryption to a degree that all companies should strive to emulate.
3. Block-Chain includes replicated distributed data so location and national boundaries are of no consequence.
4. When Block-Chain moves a digital asset from one party to another, all parties can see the transaction but no party is too concerned about who the party may be.

Examples:
1. Financial transactions comply with an Electronic Data Interchange (EDI) message to consolidate the transfer of money and associated financial assets.
2. Block-Chain grossly simplifies the EDI messages that do not need back-office accounting systems that need to be reconciled.
3. Block-Chain enables people to own their own health data in a data wallet that can travel with them and be used when and where needed - centralised NHR records are totally obsolete.
4. When a property is to be sold, the property passport can be loaded into a block-chain and shared with interested parties in all parts of the world - open and transparent bids can be entered and the highest bid wins on a specified date.   The clever part of the block-chain is that the bidders credit worthiness is known before the bid is accepted and the property is instantly transferred when the bid is accepted.
5. Where any data needs to flow between many companies in a supply chain, then Block-Chain will eventually take over that market because it is simple, cheap and can be trusted.   Freight businesses operating as part of a supply chain will experience a dramatic evolution.
6. Insurance is a supply chain of brokers, insurers and re-insurers who must cooperate and share common data about a customer and their insurable assets.   Brokers will not been needed when customers can directly deal with insurers using Block-Chain.
7. Energy provision is a supply chain of brokers between a customer and a distribution energy generator.   Brokers can be cut out when customers can directly deal with energy companies using Block-Chain.
8. The music industry tried for decades to invest a (DRM) digital license system and generally failed because computers find it very easy to replicate data.   Block-Chain solves the music industry problem by moving a music track in return for moving a payment - something DRM never achieved.
9. Vehicles, vessels and similar assets will be defined as a block-chain record that can traded in the same way as a digital bit-coin can be traded.   Forget the purpose of the sales person, the customer will buy what they choose when they choose based on informed opinion formed by Internet research.

Conclusion:
1. Everybody knows about the "Internet" but less than 20 years ago we called it web-based services.
2. The "Internet" will be replaced with "Block Chain" in the next 20 years because the technology is open-source and does not belong to one monopoly.   Block-Chain inherently provides the security that people expected of the Internet, but was lacking.
3. By adding Block Chain to Eliza our Artificial Intelligent Assistant, we have a more advanced solution than all competitors that is cheaper, faster and of a higher quality.   Eliza is starved of data and will learn more as more examples are provided - humans telling her what to do it the growth limiting factor.
Next Step: assemble and deploy lots of little AI applications that internally use Block-Chain to match the security people expected of the Internet.   Teach Eliza to learn faster from more examples and teach Eliza to simply do more without personal intervention.   In a few years time, people will be directed by emails from Eliza to do what needs to be done when it needs to be done - nothing will ever be forgotten.

Mission:
1. OBA: My annual company accounts demand the very highest level of replicated encryption and the very highest level of automation to errors of transcription and ommission are eliminated.
2. EMS: My energy management service must be secure with excessively high ease-of-use.
3. CBS: Subscription invoice services for many different ledgers share a common security requirement with a supply chain of customer and supplier.
4. JILL: Construction time sheet and invoice services for many different projects demand supply chain security with customers, brokers and trades people.
5. EAEM: Event and evidence management services contain sensitive data that must be encrypted so it cannot be stolen and must be replicated so it cannot be lost.

Eliza Tech:
1. Every data object must be stored as a pair of current and history files because history creates trust in what is current.
2. Every data object is stored as an array of records where each record holds an array of fields.   Every field must have a unique field number.   Every current record MUST have a unique current record number that is the same as its history record number.   Every history record MUST have a unique history record number and replicate its original current record number.
4. Field values may be numeric or string and may be of any length. Where practical, strings should be tokenized where tokens look like dates.
5. Every record MUST have a predictable stored evidence trail to include:-
  (c00) History Record Number as 8 digits (primary key).
  (c01) Current Record Number as 8 digits (secondary key).
  (c02) Created Date as YYYYMMDD plus 12438763.
  (c03) Created Time as HHIISS plus 20303827.
  (c04) Created User as Token.
  (c05) Created Week as YYWW plus 4041.
  (c06) Changed Date as YYYYMMDD.
  (c07) Changed Time as HHIISS.
  (c08) Changed User as Token.
  (c09) Changed Count as NNNN plus 1234.
  (c10) Hash CRC on c00 to c09 as 8 digits.
  (c11) Current or Deleted as 1 digit.
6. For any selected current record, history is shown as records with the same current record number, in reverse changed date and time order.   Only field values that differ from the current or last history value are shown.
7. Trust: Certificate of Prevenance: When any field value is changed in a record, its changed date, time, user and count are updated and a new hash CRC stored.   Any criminal activity on a record will be identified - every record with a correct hash-crc can be trusted.   Because all stored data is replicated to many places, incorrect hash-crc files can be ignored and files recreated from other files with a correct hash-crc.
8. List File: All data that can be represented by a drop down list is assigned a unique set name and number - only a value derived from the number is stored in the record, the the set name implied by the field placeholder.   The list array is always loaded in memory and may be added to as and when needed.
9. String File: All data that must be represented by a string is assigned a unique token in the string file - only a value derived from the token is stored in the record.   The string array is always loaded in memory and may be added to as and when needed.
10. Privacy-by-Design is built-into the data architecture so data is inherently safe, private and secure.   Without the benefit of Eliza knowledgebase, it may not be practical to manually decrypt and steal business data.   By design, the matrix of interconnections between arrays is too complex to diagram, too complex to comprehend and too complex to fraudulently alter.

List File:
1. Every drop-down list value is tokenized with a number and implied list set name or field placeholder.
2. Placeholder is a fixed length field knowledge that includes:-
  Record code as one upper case letter.
  Field number as two digits - leading zero is ignored in any array.
  Edit code as one upper case letter.
  Maximum size as two digits - 99 means 2000 characters.

String File:
1. String field values (of any size) may be tokenized with a number that can imply the primary key to a record in this array.

Person File:
1. Every approved person must be represented by a record in a pair of person files.
2. c00 to c11 is the fixed evidence trail with the following business data:-
  (c12) First-Name token plus offset to string file.
  (c13) Family-Name token plus offset to string file.
  (c14) Email-Prefix token plus offset to string file.
  (c15) Email-Domain number in list file.
  (c16) Phone record number in telephone file.
  (c17) Role number in list file.
  (c18) Function number in list file.
  (c19) Job-Title token plus offset to string file.
  (c20) Address record number in address file.
  (c21) Company record number in company file.
  (c22) Bank record number in bank file.
  (c23) End Date when person is no longer approved.
  (c24) Last Signed-In Date with expiry.
  (c25) Expiry days number in list file.
  (c26) Days-in-Week number in list file.
  (c27) Hours-in-Day number in list file.
  (c28) IP-Address-List number in list file.
  (c29) Browser token plus offset to string file.
  (c30) Screen width and height as integer.
  (c31) Window width and height as integer.
  (c32) Unique Taxpayer Reference (UTR).
  (c33) Contractors Employment Reference (CIS).

Telephone File:
1. Every telephone number is tokenized so a telephone number search can be deployed.   Telephone area code identification is no longer of any benefit. No symbols are permitted in a telephone number.   A telephone number token may look like 20170304, but will be stored in a record with an offset added so nothing is a direct match.

Web Site File:
1. Every web-site address is tokenized so web-site domain management with links can be enabled.   This is very similar to the string file.

Address File:
1. Every address is tokenized so an address search can be deployed.   Eight optional variable length string fields are used to represent an address.   An address token may look like 20170304, but will be stored in a record with an offset added so nothing is a direct match.

Company File:
1. Every company is tokenized so a company search can be deployed with the following optional fields:-
  (c12) Company-Name.
  (c13) Trading-Name.
  (c14) Site-Number.
  (c15) Company-Registration country code and number.
  (c16) VAT-Registration (EORI) country code and number.
  (c17) Web-Site record number in web site file.
  (c18) Registration Address record number in address file.
  (c19) Phone record number in telephone file.
  (c20) Primary-Contact-Person record number in person file.
  (c21) Bank record number in bank file.
  (c22) Authentication detail.

Bank File:
1. Every bank account is tokenized so a bank lookup can be deployed with the following optional field:-
  (c12) Account-Name.
  (c13) Account-Number.
  (c14) Bank-Name.
  (c15) Bank-Sort-Code-Number (NN-NN-NN).
  (c16) BIC as 11 characters.
  (c17) IBAN as 22 characters plue 5 spaces.
  (c18) Payment-Terms as number in list file.
  (c19) Invoice-Cycle as number in list file.
  (c20) Currency as number in list file.
  (c21) Amount net in base currency.
  (c22) Paid-By-Company record number in company file.
  (c23) Branch Address record number in address file.

Record Code List:
A is Address array.
B is Bank array.
C is Company array.
L is List array.
P is Person array.
S is String array.
T is Telephone array.
W is Web-site array.

Edit Code List:
A is Address token field.
B is Bank token field.
C is Company token field.
L is List token field.
P is Person token field.
S is String token field.
T is Telephone token field.
W is Web-site token field.
X is text field.
D is Decimal amount (two decimal places).
R is Rate (four decimal places).
N is Numeric as integer.