Chronicle Accelerate Building a Digital Currency Peter Lawrey CEO - - PowerPoint PPT Presentation

Building a Digital Currency Peter Lawrey – CEO

19 Apr 2018

Chronicle Accelerate

Peter Lawrey

Java Developer / Consultant for investment banks and hedge funds. 25 years in IT. CEO for 5 years

Major Banks use Chronicle’s framework to build low latency, high throughput trading systems in Java. We believe we can make a difference by bringing HFT to blockchain

5 years old, self funded Core software is open source Projects have over 1000 stars

Agenda

• Digital currency economics
• Existing solutions
• Architecting for performance
• A Java model for extension

BTC, XBC

• All tokens mined
• Reward decreases

exponentially

• Miners also receive

fees

ETH

• Initial tokens
• New tokens reduce

dramatically over time

• Fees for mines

IOTA, MIOTA

• All preallocated
• 2.7 ^ 15 IOTA
• Usually expressed as MIOTA

(1 million IOTA)

XRP

• All preallocated
• 60% reserved by Ripple
• Might be released over

time?

XCL + Fiat & Digital.

• Multiple stable currencies
• 20% preallocated for early

adopters

• 40% sold in ICO
• 40% reserved for market

volatility reduction

How much throughput do we need?

VisaNet handles an average

• f 150 million* transactions

every day and is capable of handling more than 24,000 transactions per second. * 1,740/s

How much throughput do we get today? 3 – 7 txn/sec 500 – 1500 txn/sec

How does our block chain perform?

Single Server Nodes i7-7820X, 8 core, 32 GB Burst 480,000 trans/sec Sustained 52,000 trans/sec

How does our block chain perform?

Multi-server nodes i7-7820X, 8 core, 32 GB Burst millions trans/sec Sustained 400,000 trans/sec

C-like Java framework, Assembly sign/verify, Optimal use of hardware, Core for speed and gateways for integration.

Why use Java?

Java brings millions of devs, reasonable speed. C or assembly is harder but faster The interesting code is in Java, but most of the CPU work is in assembly and C

Code type CPUs Assembly (Ed25519) 40 Operating System (Mostly TCP) 24 Java 4

Achieving Consensus

Each node runs concurrently as much as possible Periodically they;

• Gossip about what has been replicated
• Vote on what to include in a round
• When the majority vote the same, progress

Blockchain vs distributed ledger

When running trusted nodes, you don’t need the

• verhead of signatures -> distributed ledger (or

database) When running untrusted nodes, you need to ensure they don’t act fraudulently -> blockchain.

Fraud Protection

Each message is signed is a way that only the private key holder can create. This can be verified using the public key. In our case we use Ed25519 which has a highly

• ptimized 256-bit public/private key and a 64-byte

signature.

Optimising for Throughput

A key optimization for throughput is batching in to

• blocks. We use rounds to achieve consensus and

blocks increase the number of transactions in each round.

Optimising for Throughput

Concurrent Serial Sign/verify Consensus Client TCP Transaction processing

Weekly Checkpointing

Replaying from the genesis block doesn’t scale. Ok for 10 trns/sec Not Ok for 100,000 trns/sec We chose to checkpoint weekly NOTE: GDPR requires the ability to be forgotten

Multichain

Localize transaction using ISO-3166 Over 4000 regions / sub-chains.

Smarter Sharding

If you use hash based sharing, you get fairness however you get no benefit from locality of use. Most transactions occur between parties in a small number of regions (possibly one most of the time)

Smarter Sharding

We use ISO 3166 which breaks the world 4000+ regions. The region is at the top of the address when is in base32 e.g. @usny6db2yfdjs – New York, US @auvickjhj4hs3f – Victoria, AUS

Smarter Sharding

We start with a single chain for the whole world. As the number of nodes grows, we can split the chain by the highest bit in 2. Each chain can split in 2 etc until we have 4000+ chains

Multichain

Grow to 10 to 100 nodes. More nodes means more sub-chains. Aggregate volume to over 100 million per second.

FIX protocol for traditional market integration

AI managed exchanges to reduce volatility

Roadmap

Q1 2018 – Working prototype Q2 2018 – increase throughput to 500K/s/sub-chain Test System running. Pre-ICO investment Q3 2018 – ICO Q4 2018 - production

Extending the platform

In active development now. Extension is via sub-chains, main chain rarely changes Programming is in Java to make it more accessible to more developers.

Extending the platform

Key components to supply;

• The Data Transfer Object to hold the
• transactions. Supports YAML or Binary.
• Pre blockchain stage, run on a per client
• basis. Can handle queries which don’t go to

the blockchain.

• Post blockchain stage, run by all nodes in the

cluster, recorded in the distributed legder.

package cash.xcl.helloworld; public interface HelloWorld { void hello(TextMessage textMessage); }

public class TextMessage extends SignedTextMessage { private long toAddress; private String text; public long toAddress() { return toAddress; } public String text() { return text; } public TextMessage toAddress(long toAddress) { this.toAddress = toAddress; return this; } public TextMessage text(String text) { this.text = text; return this; }

public class HelloWorldGateway implements HelloWorld { private final ErrorMessageLogger client; private final HelloWorld blockchain; public HelloWorldGateway(ErrorMessageLogger client, HelloWorld blockchain) { this.client = client; this.blockchain = blockchain; } @Override public void hello(TextMessage textMessage) { if (textMessage.text() == null || textMessage.text().isEmpty()) client.commandFailedEvent( new CommandFailedEvent(textMessage, "text must be set")); else blockchain.hello(textMessage); } }

public class HelloWorldBlockchainProcessor implements HelloWorld { final MessageLookup<HelloWorld> lookup; public HelloWorldBlockchainProcessor( MessageLookup<HelloWorld> lookup) { this.lookup = lookup; } @Override public void hello(TextMessage textMessage) { lookup.to(textMessage.toAddress()) .hello(textMessage); } }

@Test public void testMarshalling() { TextMessage tm = new TextMessage( XCLBase32.decode("my.friend"), "Hello World"); assertEquals( "!TextMessage {\n" + " sourceAddress: .,\n" + " eventTime: 0,\n" + " toAddress: my.friend,\n" + " text: Hello World\n" + "}\n", tm.toString()); TextMessage tm2 = Marshallable.fromString(tm.toString()); assertEquals(tm, tm2); }

@Test public void testHelloWorldGateway() { ErrorMessageLogger logger = createMock(ErrorMessageLogger.class); HelloWorld hello = EasyMock.createMock(HelloWorld.class); MessageLookup<HelloWorld> lookup = to -> { assertEquals(2002, to); return hello; }; HelloWorldBlockchainProcessor proc = new HelloWorldBlockchainProcessor(lookup); HelloWorldGateway gateway = new HelloWorldGateway(logger, proc); hello.hello(new TextMessage(2002, "Hello World")); EasyMock.replay(); gateway.hello(new TextMessage(2002, "Hello World")); EasyMock.verify(); }

Data driven tests

hello: { sourceAddress: my.address, eventTime: 0, toAddress: my.friend, text: !!null "" }

• hello: {

sourceAddress: my.address, eventTime: 0, toAddress: my.friend, text: "Hello, How are you?" }

commandFailedEvent: { sourceAddress: ., eventTime: 0,

• rigSourceAddress: my.address,
• rigEventTime: 0,
• rigProtocol: !!null "",
• rigMessageType: hello,

reason: text must be set }

• hello: {

sourceAddress: my.address, eventTime: 0, toAddress: my.friend, text: "Hello, How are you?" }

Q & A

Blog: http://vanilla-java.github.io/ http://chronicle-accelerate.com enquiries@chronicle-accelerate.com https://github.com/OpenHFT/Chronicle-Accelerate Australia/APAC Contact jerry.shea@chronicle.software