402 Payment Required: micropayment and IoT

PyconAU 2016
Video: http://youtu.be/OvJpWt5gapQ

Transcript

1. 402: Payment Required Micropayments and IoT
2. An Open Protocol For Payment Over IP Would Be Pretty Great
3. HTTP Is great •Fast •Easy to implement •Wide ranging transfer size/type •Open Protocol
4. A Payment Protocol needs a few more things • Fast • Easy to implement • Wide ranging value transfer • Open Protocol • Low transaction cost • Trustless • Anonymous
5. Smart Sprinkler
6. Smart Sprinkler Forecast.io Weather Predictions
7. Smart Sprinkler Data Aggregator Solar Irradiance Forecast.io Weather Predictions
8. Smart Sprinkler Data Aggregator Forecast.io Weather Predictions BOM Solar Irradiance Aggregated Data Weather Data
9. Smart Sprinkler Data Aggregator Forecast.io Weather Predictions BOM Solar Irradiance Aggregated Data Weather Data census.abs.gov.au Ping
10. Smart Sprinkler Data Aggregator Forecast.io $0.0001/call BOM $0.0001/call $0. 1/call $10/call census.abs.gov.au $0.00001/call
11. This chatty, anonymous network treats resources as “too cheap to meter.” It’s a giant grid that transfers data but doesn’t transfer value. DDoS attacks, email spam, and flooded VPNs result. Names and identities are controlled by overlords – ICANN, DNS Servers, Facebook, Twitter, and Certificate “Authorities.” Where’s the protocol layer for exchanging value, not just data? Where’s the distributed, anonymous, permission-less system for chatty machines to allocate their scarce resources? Where is the “virtual money” to create this “virtual economy?” -- https://startupboy.com/2014/04/01/the-fifth-protocol/
12. Smart Sprinkler Forecast.io Data
13. Smart Sprinkler Forecast.io Credentials Data
14. Smart Sprinkler Forecast.io Credentials Data • Payment processing • Stored credentials • Stored payment credentials • Accounting/Settlement • Signup • API Keys • Give payment credentials • Get billed
15. Smart Sprinkler Forecast.io Payment Data
16. Client Server
17. Client Server
18. Client Server
19. Client Server
20. Payment for Data process Request ‘/’ 402 Payment required • <payment_address>
21. Payment for Data process Request ‘/’ 402 Payment required • <payment_address> Pay ‘/< payment_address >’ <receipt>
22. Payment for Data process Request ‘/’ 402 Payment required • <payment_address> Pay ‘/< payment_address >’ <receipt> Request ‘/’ <receipt> Response
23. CLI: curl https://21.co | sh Pip: pip3 install two1 Github: https://github.com/21dotco/two1-python Docs: https://21.co/learn/#reference-21-library two1 python library
24. two1 python modules • bitcoin -> utils for bitcoin data structures (serialization/deserialization) • blockchain -> read/write to a blockchain • crypto -> public keys and signatures using elliptic curves • wallet -> creates and manages wallets (pub/private keys) • channels -> micropayment channels (described above) • bitserv -> flask/django API for OnChain, Channel and BitTransfer • bitrequest -> patches Requests library to support 402 payment protocol • mkt -> publish endpoints that accept micropayments to https://mkt.21.co
25. Lets ping test something
26. Micropayments for storage! http://storage.mitch.fyi/ https://github.com/mitchoneill/micropayment-storage Read: 0.02 Satoshi/byte Write: 0.05 Satoshi/byte 1 Satoshi = ~$0.0000067760
27. Mount Virtual Folder
28. User Background Read Directory
29. User Background Read File Attributes
30. Read File
31. Read File
32. Read File
33. User Background Read File
34. Payment for Data process Request ‘/’ 402 Payment required • <payment_address> Pay ‘/< payment_address >’ <receipt> Request ‘/’ <receipt> Response
35. User Background Write File
36. User Background Write File
37. Write File
38. Fun challenges to make micropayments viable • Need to keep lowering transaction fees, the median bitcoin transaction fee is 8 cents • How to revert a transaction if the server crashes between payment and response? • How to revert a transaction if it’s a low value response
39. Useful Links • Bitcoin Protocol -> https://bitcoin.org/en/developer-reference • Ethereum Protocol -> https://github.com/ethereum/wiki/wiki/Ethereum-Wire- Protocol • Two1 Library -> https://21.co/learn/#reference-21-library • Lightning WhitePaper -> https://lightning.network/lightning-network-paper.pdf • Microstorage -> https://github.com/mitchoneill/micropayment-storage