Business Processing Execution on Blockchain Platforms

Business Processing Execution on Blockchain Platforms

I. Short Answer Questions

What is blockchain? How is it different from traditional banking and payment systems?

Explain the concept of a "transaction" in blockchain platforms.

What is the difference between smart contracts on Bitcoin and Ethereum platforms?

Explain the difference between "processing instances", "scripts", and "script templates".

What role does a translator play in blockchain business processing execution?

Describe the function of a trigger/interface and how it connects blockchain processing with the outside world.

Explain the factors to consider when determining whether a task is executed on or off the blockchain.

Distinguish the role of monitors and mediators as common patterns in blockchain business processing.

Explain why encryption and key distribution are important in blockchain business processing.

Briefly describe the role of ABI in the deployment and execution of smart contracts.

II. Short Answer Questions

Blockchain is a public shared ledger maintained by all nodes in a peer-to-peer network. Unlike traditional banking and payment systems that rely on a central trusted authority, trust in blockchain is achieved through interactions between nodes within the network.

In blockchain platforms, a "transaction" is an identifiable data packet that transfers a certain amount of digital assets from one party's address to another party's address. Addresses are similar to bank accounts, and transactions are recorded on the blockchain, ensuring transparency and security.

Smart contracts in Bitcoin are implemented as scripts to verify transactions and are not Turing complete. Ethereum smart contracts exist independently of transactions, are Turing complete, and prevent DOS attacks through the gas fee mechanism.

A "processing instance" refers to the execution of a smart contract on the blockchain and the services it provides. A "script" is the smart contract code that can be executed as a processing instance. A "script template" contains logic but requires parameters to be added to become an executable script.

The translator is responsible for translating existing processing specifications (such as BPMN or BPEL) into script templates for deployment and execution on the blockchain platform. It determines which tasks are executed on-chain and which are executed off-chain, and generates the corresponding code.

The trigger/interface is the bridge between blockchain processing and the outside world. It can poll the processing status on the blockchain, call external API functions, and update the processing status on the blockchain based on external events.

Determining whether a task is executed on the blockchain or off-chain requires considering factors such as the level of trust between the transaction parties, the type of task (such as physical, data storage, state, computation), and the data requirements of the task.

Monitors passively listen to transactions and act as relays, recording the execution status of processing and providing an audit trail for all parties. Mediators are more proactive and can automatically check conditions, transfer digital assets, and call off-chain operations when necessary according to established rules.

Encryption can protect the privacy of sensitive data on the blockchain, while the key distribution mechanism ensures that only authorized parties can access and decrypt information, thereby enhancing the security of transactions.

ABI (Application Binary Interface) defines how to interact with smart contracts, including how to call its functions, pass parameters, and process return values. It is a bridge between smart contract code and external applications.

III. Essay Questions

Discuss in detail the advantages and challenges of performing business processing on a blockchain platform.

Choose a specific business scenario, such as supply chain management or digital identity verification, and explain how blockchain technology can be used to improve existing processes.

Compare and contrast the advantages and disadvantages of using the monitor mode and the mediator mode on the blockchain.

Discuss how to achieve data privacy and security in blockchain business processing.

Analyze the potential and challenges of blockchain technology in future business process automation.

IV. Key Terms

Blockchain: A public shared ledger maintained by all nodes in a peer-to-peer network that records all transaction histories and ensures security and immutability through cryptography.

Smart Contract: A piece of code stored on the blockchain that is automatically executed when preset conditions are met and is used to implement the logic and rules of decentralized applications.

Digital Asset: Digital assets issued and traded on the blockchain, such as cryptocurrencies, tokens, etc., which can be programmed and managed through smart contracts.

Process Instance: The execution of a smart contract on the blockchain and the services provided by it represent a specific business process instance.

Script: Smart contract code that can be executed as a process instance, containing logic and instructions for performing specific tasks.

Script Template: A script framework containing general logic that requires specific parameters to be added to become an executable script.

Translator: A software program that translates existing business processing specifications into script templates for deployment and execution on the blockchain platform.

Trigger: A program that listens to blockchain events and triggers corresponding actions, such as calling smart contract functions, sending notifications, or updating external systems.

Interface: A bridge that connects blockchain processing to the outside world, such as an API (application programming interface) or gateway, allowing external systems to interact with the blockchain.

Generic Pattern: A reusable solution to common problems or scenarios, such as the monitor pattern or the mediator pattern, that can simplify the development of blockchain applications.

Monitor: A smart contract that passively listens to blockchain transactions and records relevant information, providing audit trails and visualization tools for all parties.

Mediator: A smart contract that automatically performs tasks, manages digital assets, and coordinates interactions between parties based on preset rules and conditions, such as acting as a trusted third party in a transaction.

ABI (Application Binary Interface): An interface specification that defines how to interact with a smart contract, including how to call its functions, pass parameters, and handle return values.