Leveraging Azure Confidential Ledger

In an increasingly digital and interconnected world, data security has become a paramount concern for businesses and organizations of all sizes. The advent of cloud computing has revolutionized the way data is stored and processed, but it has also introduced new challenges in protecting sensitive information from unauthorized access and tampering. To address these concerns, Microsoft Azure, a leading cloud services platform, has developed Azure Confidential Ledger (ACL), a groundbreaking solution that sets new standards for data privacy, security, and integrity.

In this chapter, we’ll dive into the following main topics:

• An introduction to ACL
• The features and benefits of ACL
• Using ACL for blockchain solutions
• Integrating ACL with other Azure services
• Best practices for implementing blockchain solutions with ACL

Technical requirements

To run ACL, we need to meet certain technical requirements to ensure a secure and optimal environment for data protection.

The following are the key technical requirements:

• Azure subscription: First of all, we certainly need an active Azure subscription to access and utilize ACL services. From the Azure portal, we will then be able to create a new instance of ACL by browsing Azure Marketplace. The following screenshot shows the Confidential Ledger component in the Azure portal:

Figure 9.1 – The Confidential Ledger component in the Azure portal

• Azure Entra ID: Azure Entra ID is required for managing access and permissions to Confidential Ledger resources. It provides identity and access management capabilities, ensuring that only authorized users and applications can interact with the ledger. The following screenshot shows the Security settings of ACL in the Azure portal, where you can select whether you...

An introduction to ACL

ACL represents a significant step forward in the realm of confidential computing. Unlike traditional cloud data storage, where data may be accessible to cloud service providers and their infrastructure, Confidential Ledger takes data protection to a higher level. This innovative service allows organizations to secure their most critical and sensitive data while maintaining the benefits of cloud scalability, availability, and cost-effectiveness.

The core principle of ACL lies in the concept of confidential computing. It leverages Trusted Execution Environments (TEEs) to protect data and code from unauthorized access, even from the cloud provider itself. This ensures that data remains encrypted and is only processed in secure enclaves, thus shielding it from any potential breaches or attacks that may occur in the cloud environment.

One of the key features that sets ACL apart is its tamper-resistant nature. Data stored within the ledger is immutable, meaning...

The features and benefits of ACL

ACL comes with a range of features and benefits that elevate data security and confidentiality in the cloud.

Figure 9.4 – The key features of ACL

Let’s explore the key features summarized in the preceding diagram:

• Secure enclaves: ACL leverages Intel Software Guard Extensions (SGX) to create a TEE. This secure enclave ensures that sensitive data and code are protected from unauthorized access, even from cloud service providers and infrastructure.
• Immutable and tamper-resistant: Data stored in ACL is immutable, meaning that once it is recorded, it cannot be altered or deleted. This ensures data integrity and creates an auditable, tamper-resistant record of all transactions, providing a reliable and transparent data history.
• Client-side encryption: Confidential Ledger enables client-side encryption of data, providing an additional layer of protection before data is transmitted to the ledger....

Using ACL for blockchain solutions

Let’s get started with ACL! Ensure you have an active Azure subscription, and then access the Azure portal at https://portal.azure.com/. Then, follow these steps to create a new instance of ACL:

1. In the Azure portal, navigate to Create a resource and search for Confidential Ledger in Azure Marketplace.
2. Select the Confidential Ledger service from the search results, as already shown in Figure 9.1, and click the Create button.
3. Configure the Basics settings:
   1. Select the subscription and resource group where you want to deploy the service.
   2. Provide a unique name for your Confidential Ledger instance.
   3. Choose the Azure region where you want to host your Confidential Ledger (consider your data residency requirements).
4. Configure the Security settings. Define access policies and roles for users and applications to interact with the Confidential Ledger instance. This may involve integrating with Azure Active Directory for identity management...

Integrating ACL with other Azure services

Yes, we can integrate ACL with other Azure services to enhance the security and functionality of our applications. Azure provides various mechanisms and APIs to enable seamless integration between different services. Here are some examples of how we can integrate ACL with other Azure services:

• Azure Key Vault is a cloud service used to securely store and manage cryptographic keys, secrets, and certificates. You can use Azure Key Vault to manage encryption keys used by ACL to protect sensitive data. This ensures that encryption keys are securely stored and never exposed directly to an application.
• Azure Entra ID provides identity and access management services. By integrating ACL with Entra ID, we can control access to the ledger resources based on user identities, groups, or roles. This helps ensure that only authorized users and applications can interact with the confidential data stored in the ledger.
• Azure Monitor and Log...

Best practices for implementing blockchain solutions with ACL

Implementing blockchain solutions with ACL requires careful consideration of security, privacy, and performance aspects. The following diagram shows some of the best practices to keep in mind:

Figure 9.5 – The best practices for implementing blockchain solutions with ACL

Let’s expand on each best practice:

• Data classification: Clearly identify and classify the data that requires confidentiality and protection. Use ACL only for storing sensitive and confidential data, while non-sensitive data can be stored in other components of the blockchain network. For example, when developing a blockchain solution, data may be written on chain – that is, on the blockchain itself – or off chain. In this case, ACL is a good storage option.
• Access control: Implement strict access control policies to regulate who can read, write, and modify data in ACL. Leverage Azure...

Summary

ACL is a groundbreaking solution by Microsoft Azure that sets new standards for data privacy, security, and integrity in the cloud. It falls under the umbrella of confidential computing and leverages TEEs to protect data and code from unauthorized access, even from cloud service providers themselves.

Overall, ACL provides a powerful solution for organizations seeking to secure sensitive data, maintain data integrity, and comply with strict data protection regulations in various industries. Its confidentiality capabilities complement existing blockchain solutions and enable developers to build secure and privacy-preserving applications in the cloud.

This chapter completes Part 3 of the book, in which we have looked at three key blockchain-related services in the Azure cloud – Corda running on AKS, the ledger features of Azure SQL Database, and Confidential Ledger.

In the next chapter, we’re starting Part 4 of the book, which focuses on the blockchain services...

Further reading

• For more information about ACL, the product page on Microsoft’s website can be found at https://azure.microsoft.com/products/azure-confidential-ledger
• More specifically, ACL offers a fully REST API, documented at https://learn.microsoft.com/rest/api/confidentialledger/, as well as an SDK for Python, documented at https://learn.microsoft.com/python/api/overview/azure/confidentialledger-readme?view=azure-python