MTN - Speaker Deck

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© 2015 IBM Corporation | 4 Speaker IBM Systems Senior programmer Blockchain Group ! ! ! ! [email protected] twitter @hdiedrich Distributed Databases High Velocity Scalability ! Insurance Payment Games Henning Diedrich

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© 2015 IBM Corporation | We are at the threshold of a massive explosion in the history of computing. 2020 30 billion 2003 500 million 2009 2,5 billion 1975 10,000 2050 > 100 billion 2014 10 billion 6 1950 5000

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© 2015 IBM Corporation | 7 The first wave of the IoT is already here. It’s the Internet of billions of things. Proportion of Smart TVs being used for Internet Viewing Continuous Monitoring of Jet Engines Automated Smart Meters Proportion of Heavy Industrial Equipment Networked 30% But demand has been slow to take off in many other areas We have seen visible successes in high value applications 10%

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© 2015 IBM Corporation | 8 As more and more devices around us become connected and intelligent, many physical products as we know them will be transformed into digital experiences.     Many machines-‐human interactions will be replaced by machine-‐machine (peer-‐to-‐peer interactions). MTN Motivation

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© 2015 IBM Corporation | 9 Power in the IoT will shift from the center to the edge. ! As devices compete and trade autonomously in real-time, they  will create liquid markets out of  the digital marketplaces. ! Connectivity and intelligence will be a means to better products and experiences, not an end. A Device Democracy is emerging.

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© 2015 IBM Corporation | p As devices become empowered to autonomously manage their roles and behavior, a democracy of devices will emerge. The blockchain, a universal digital ledger, facilitates transaction processing between devices. 10 Registration of new device Authentication of remote users Contract to barter power with other appliances Checklist for automobile safety

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© 2015 IBM Corporation | IoT solutions that work for billions of devices won’t necessarily scale to hundreds of billions of devices. 11 Lack of Not future-proof Lack of privacy Internet of Things Brok en business High cost m odels functional value

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© 2015 IBM Corporation | Connecting hundreds of billions of devices is going to be expensive. 12 Cost of centralized infrastructure and server farms. Cost of supporting and maintaining hundreds of billions of devices. Mismatch between cost and revenues. Lack of Not future-proof Lack of privacy Internet of Things Brok en business High cost m odels functional value

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© 2015 IBM Corporation | The Internet is not a place of trust. 13 No trusted partners   on the internet. Centralized authorities become single points of failure. Trust can be very hard to engineer, impossible to guarantee. Lack of Not future-proof Lack of privacy Internet of Things Brok en business High cost m odels functional value

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© 2015 IBM Corporation | Smart devices need to be managed for the long haul. 14 Average life of IoT devices will be decades. Average life of smart device manufacturers   5-10 years. Cost of maintaining smart devices can outlast product and manufacturer obsolescence. Lack of Not future-proof Lack of privacy Internet of Things Brok en business High cost m odels functional value

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© 2015 IBM Corporation | Simply enabling connectivity doesn’t necessarily make a product better. 15 Value proposition of many smart products is low. Many smart features are not worth the extra cost and complexity to users. Successes in the market have improved the core functionality and user experience. Lack of Not future-proof Lack of privacy Internet of Things Brok en business High cost m odels functional value

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© 2015 IBM Corporation | p Profits remain elusive  as companies continue to apply broken business models. 16 Unrealistic expectations from revenue from software updates and apps. ! Unrealistic expectations of data and analytics. ! Unrealistic expectations of ecosystem opportunities and energy eﬃciency gains. Lack of Not future-proof Lack of privacy Internet of Things Brok en business High cost m odels functional value

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© 2015 IBM Corporation | Motivation Open access IoT networks, distributed cloud 17 • It is our view that IoT is quickly moving to a data and machine learning driven future where simple convenience (IoT today) will be replaced with a transformative experience where IoT is better integrated with all devices and our lives. • IoT devices should be able to communicate and coordinate in a fully autonomous manner while being constrained by policy, policy that is user defined and tuned by machine learning. • Smart Contracts for Device Coordination • Firmware Updates • Pub/Sub Models

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© 2015 IBM Corporation | Consumers buy solutions rather than networks or business models. 18 Make it better Networking and remote usage   will become secondary features. ! Tomorrow’s smart appliances will create value by applying intelligence and network connectivity to improve the CORE value proposition of the device. Better cooking Increased safety Improved reliability Greater fitness Less mess

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© 2015 IBM Corporation | To be secure and scalable the IoT will evolve to be more open and decentralized  Design for Peer-to-Peer systems Design for Trustless communication Design for Decentralized Autonomy Open access IoT networks, distributed cloud Design principles of ADEPT architecture (Autonomous Decentralized Peer-to-Peer Telemetry) 19 Before 2005  Today  2025 and beyond  Closed and centralized IoT networks Open access IoT networks, centralized cloud Open access IoT networks, distributed cloud

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© 2015 IBM Corporation | A truly decentralized IoT will require 4 foundational functions Open access IoT networks, distributed cloud 20 • Trustless peer-to-peer messaging • Distributed file-sharing • Autonomous device coordination • Identity

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© 2015 IBM Corporation | 22 MTN Mission: Analytics at the Edge The Edge is where the data is generated, however    ‘Analytics at the Edge’ is really ‘as close to the Edge as possible including the Edge’.

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© 2015 IBM Corporation | 23 Massive Untapped Edge Data Need Analysis  Data at the Edge 90% Volume of data created at the edge of IoT that is never captured, analyzed or acted upon. 60% Amount of that data that loses its value within milliseconds of being generated.

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© 2015 IBM Corporation | 24 • Real-‐time processing at the Edge • Open, multiparty, autonomous IoT ecosystems • The behavior of decentralized systems • What technical, scalability, stability, security, privacy, economic, and social problems and opportunities can be identified? • Containers in a hostile environment • Better quality of Experience? Exploration

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© 2015 IBM Corporation | 25 Analysing Data at the Edge ! • Software Defined Radio (SDR) • 50 megabits/second of data at the edge • volume of data cannot be sent to the cloud  or real-time analysis => • policy or algorithm-based analysis and/or filtering  has to be done at the edge. MTN Proof of Concept

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© 2015 IBM Corporation | 30 SDR Water and Power Meter Output {Time:2015-09-11T21:07:18.225 SCM:{ID:30969548 Type: 7 Tamper:{Phy:02 Enc:01} Consumption: 8605529 CRC:0xBA97}}! {Time:2015-09-11T21:07:23.657 SCM:{ID:26353424 Type:13 Tamper:{Phy:00 Enc:02} Consumption: 2270 CRC:0x5DAF}}! {Time:2015-09-11T21:07:35.782 SCM:{ID:30971260 Type: 7 Tamper:{Phy:01 Enc:00} Consumption: 1300037 CRC:0x2526}}! {Time:2015-09-11T21:07:37.678 SCM:{ID:30971322 Type: 7 Tamper:{Phy:02 Enc:00} Consumption: 821676 CRC:0xBE72}}! {Time:2015-09-11T21:07:40.177 SCM:{ID:56438625 Type: 7 Tamper:{Phy:02 Enc:02} Consumption: 5542565 CRC:0xD334}}! {Time:2015-09-11T21:07:41.595 SCM:{ID:56443013 Type: 7 Tamper:{Phy:02 Enc:01} Consumption: 781466 CRC:0x811B}}! {Time:2015-09-11T21:07:42.354 SCM:{ID:26353424 Type:13 Tamper:{Phy:00 Enc:02} Consumption: 2270 CRC:0x5DAF}}! {Time:2015-09-11T21:07:42.979 SCM:{ID:30975357 Type: 7 Tamper:{Phy:02 Enc:01} Consumption: 3769334 CRC:0x1886}}! {Time:2015-09-11T21:07:45.688 SCM:{ID:31032332 Type:13 Tamper:{Phy:00 Enc:01} Consumption: 216 CRC:0xD4DF}}" {Time:2015-09-11T21:07:49.125 SCM:{ID:26353424 Type:13 Tamper:{Phy:00 Enc:02} Consumption: 2270 CRC:0x5DAF}}! {Time:2015-09-11T21:07:52.853 SCM:{ID:31032332 Type:13 Tamper:{Phy:00 Enc:01} Consumption: 216 CRC:0xD4DF}}" {Time:2015-09-11T21:07:58.369 SCM:{ID:26353424 Type:13 Tamper:{Phy:00 Enc:02} Consumption: 2270 CRC:0x5DAF}}

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© 2015 IBM Corporation | 33 • Device – a Raspberry Pi capable of running a docker container • Device Contract – an ethereum smart contract that represents the device in the blockchain • Token Bank Contract – a smart contact that holds token balances for ecosystem participants • Device Registry – a smart contract that knows about all device contracts and characteristics of the devices represented by those contracts • Glensung – a producer of docker containers and a consumer of docker capable devices for sale Personas

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© 2015 IBM Corporation | 40 Initialisation – Bootstrapping Token Bank (contract) Device Registry (contract) RPi Device (contract) Ethereum Glensung Install device contract(ethereum account) Register device(contract address, device characteristics) contract address Mint some tokens Device is available to run containers RPi Device Associate Token Bank Check my token balance token balance write read

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© 2015 IBM Corporation | 41 Running Containers Create escrow proposal(tokens) Find a device Make a proposal to run a container(container pointer, number of tokens for payment) Token Bank (contract) Device Registry (contract) RPi Device (contract) Ethereum Glensung RPi Device Poll for proposal Proposal contract address Download container Vote to accept proposal Poll for acceptance Accepted by device Vote to accept proposal Poll for acceptance Proposer accepted Proposal complete Tokens transfer to device owner Device ready Execute container Phone home Execution complete write read

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© 2015 IBM Corporation | Risks & Opportunities Open access IoT networks, distributed cloud 42 • Spot market • Control access to sensors • 3rd party access to raw sensors • How do vendors want to access, processes, analyze, filter, sensor and how do they want to stream • Arbitrary code

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© 2015 IBM Corporation | MTN: Next Steps Open access IoT networks, distributed cloud 43 • Thin Client for Embedded Systems • Exchange/Directory • Internal Socialization Work • Get 20,000 volunteers to help test scalability • http://tremor.hovitos.engineering

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© 2015 IBM Corporation | Thank You! Open access IoT networks, distributed cloud 45 Take part in the MTN experiment: http://tremor.hovitos.engineering ! This talk live: https://www.youtube.com/watch?v=_kTajbcAd9E