Blockchain-Enabled Document Flow System

Project overview

  • Duration

    700+ hours, 4 months

  • Methodology

    Agile

  • Technologies

    • Blockchain: Hyperledger Fabric
    • Backend: Java
    • Frontend: NodeJS, HTML, CSS, JavaScript
    • Database: CouchDB

  • Project Team

    • 1 BA
    • 1 PM
    • 1 Blockchain/Backend developer
    • 1 Frontend developer

Objective

To re-engineer and re-code from scratch an existing document flow system where petroleum market participants create, sign and terminate sales contracts in Blockchain, and to develop an algorithm for a loyalty bonus system with custom tokens.

The system should be built on corporate blockchain platform Hyperledger.

Business tasks

  • Enable simple, fast and legitimate process of creating, signing and termination of contracts on petroleum products’ resale, etc.;
  • Create Blockchain algorithms for an existing loyalty system for the platform’s clients;
  • Develop a legally significant algorithm of contract signing.

Technical tasks

  • Create a private custom blockchain based on Hyperledger Fabric framework and integrate it with the client’s existing business processes;
  • The blockchain network must be scalable;
  • The blockchain system should work stably even in case of shutdown of part of the nodes;
  • Enable creation, signing, and termination of legally significant sales documents via smart-contracts;
  • The system access rights should be strictly differentiated.

Solution

The client has already had a system made on 1C software and a previously made by other team unsuccessful Blockchain solution, however they had a clear idea that Blockchain could be a perfect choice for such a responsible information system as document flow in hydrocarbons resale industry. The client was very initiative and eager to learn and thus we also had to spend additional time on training and a detailed explanation of the project’s technical features.

We have started with a Proof of Concept stage, which included investigations on the business processes of contract creation, signing and termination in terms of testing the feasibility of implementing the business logic on Blockchain. PoC also included building a network’s architecture and offering several network deployment options. Within PoC we ended up choosing to deploy the network via Docker-containers launching manually several nodes on different hosts.

We carefully transferred every aspect of the business processes step-by-step to Hyperledger platform and provided integration with smart-contracts, differentiated access rights and created a custom loyalty bonus system from scratch.

Challenges

  • Remote cooperation

    The client had two teams working on the project, and thus it was quite a challenge to synchronize all the development processes, separate the duties and the rights clearly and adapt to each team’s business processes.

  • Legal responsibility cooperation

    Since the system is dealing with such important documents as large contracts, we had to make sure everything is secure and tamper-proof. Was essential to create a balance between the law and the core business processes.

    And moreover, one of the main business tasks was to create a system, that will be legit and legally significant, since contracts serve as one of the main means of demonstrating someone’s rights and obligations in court issues.

The app involves the following features

  • Administration

    • Ability to view a list of document templates and edit the templates;
    • Users creation and the ability to edit their account information;
    • The ability to view a list of all the system’s users.

  • Contracting

    • Authorization via e-mail and password;
    • The ability to look through the list of all the created, signed and terminated contracts and other documents;
    • Contract creation via templates;
    • Contract signing - the contract is considered signed by the Blockchain network only when it receives signatures of all the parties involved;
    • Contract termination - the contract is considered terminated by the Blockchain network only when it receives signatures of all the parties involved;

  • Loyalty Program

    • The ability to accrue loyalty bonuses to users;
    • The ability to burn (use) loyalty bonuses when working with new contracts.

Results of the work done

Smartym Pro is in the process of creating the first MVP version of the Hyperledger-based system within the PoC stage. The system corresponds to the customer’s needs and expectations. The system we presented is transparent, scalable and easy-to-use.

At the moment we are working on the next development stages of the project. We are planning a deeper business processes’ integration with Hyperledger. Also, we are working on creating a legislative value to the contracts that participate in the document flow. And moreover, we are analyzing the opportunities and different options in order to implement a better network deployment technique: we are to write a script that will automate the process of installing the required software on the devices of the users that would like to deploy their own network node.

This solution will lead to a significant reduction in material and labor costs and will enable the clients of the system to deploy nodes without any special programming skills.

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