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2016Blockchain andInternet of Things
Valerie Lampkin@[email protected]
Sumabala [email protected]
Carole [email protected]
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Blockchain Technology
Blockchain and Internet of Things
The IBM Watson IoT Platform
Thought Leadership & Quick Links
Overview
Demonstration
Watson-IoT Blockchain Logistics use-case and demo
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Blockchain Technology
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The Problem With Business Networks Built on Traditional Databases
TransactionsCan be suppressed: Participants have to trust database ownersCan be deleted: Database admin is all powerfulCannot be modified: Database admin is all powerful
SecurityRisk is concentrated on each database ownerCrash fault tolerant: If you are lucky
VisibilityLocal only - at the individual database level
CostsIntegration Costs - Expensive security and integration costs across many technologies
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How Blockchain Solves This
TransactionsCannot be suppressed: All participants see all transactions and add them to their own copy of the ledgerCannot be deleted: Ledger is append onlyCannot be modified: Ledger is immutable – everybody can check
SecurityDistribution of risk: Byzantine fault tolerant: Resistant to number of malicious participants
VisibilityGlobal - at the fabric level
CostsIntegration Costs – Standardized secure technology and lower integration costs in a single technology
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Blockchain in a nutshell
Records all transactionsEach participants build his own copy
Append onlyImmutable and cannot be changed
THE shared system of record
Smart Contract
Consensus
Privacy and Confidentiality
Shared LedgerLedger is shared, but participants require privacy
Participants need:Transactions to be private Transaction validation &
commitmentDifferent to Bitcoin
Byzantine Fault Tolerant Scalable
“pluggable” consensus for different use cases
Business rules implied by the
contract
Embedded in the Blockchain
Executed with the transaction
Verifiable, signed
Encoded in programming
language
Identity not linked to a transaction
Transactions need to be authenticated
Cryptography central to these processes
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Blockchain – not for all . . .
POSITIVE Indicators
1. Managing contractual relationships2. Complex business logic3. Identity is important4. Transactions need to be private5. Market Approach needed6. More than two parties7. Looking to reduce costs8. Want to improve discoverability
NEGATIVE Indicators
1. Need high performance (millisecond) transactions
2. One organization involved (no business network)
3. Looking for a database replacement
4. Looking for a messaging or general transaction processing
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Hyperledger
A collaborative effort created to advance blockchaintechnology by identifying and addressing important features for a cross-industry open standard for distributed ledgers that can transform the way business transactions are conducted globally.
https://www.hyperledger.org/
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Linux Foundation: Hyperledger Project
DECEMBER 17th 2015
Community + Code
6 Proposed Code contributions
170% Growth in 6 months80 Members
2K+ Slackers
5 HackFests
60+ attendees per Hackathon
100 + Contributors
EthereumEVM?
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Blockchain and Internet of Things (IoT)
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What is an IoT Platform?
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Watson IoT Platform
Sensors & Networks
OtherData Sources
WeatherMap
0101100010001001
Devices Platform Applications
Other IoT platforms
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Why?• Very often, physical objects are used or
maintained by multiple parties
• Multiple parties need to agree on acceptable
usage
• Disputes between parties require some record
of what occurred in order to resolve disputes
• Physical objects of all sorts are used: equipment,
vehicles, buildings, transmission lines (water,
gas, electricity)
• Effects of the environment may also factor into
agreements between parties
• When the objects themselves can report on
their status, this can assist in processing
agreements between parties
Blockchain and IoTWhat?• Enable physical objects (e.g. shipping containers,
manufacturing parts, etc.) to participate in secure blockchain transactions.
How?• Route messages from any Watson IoT Platform
connected device to blockchain transactions.• Devices can send sensor data and the identity of the
object as determined from barcodes, RFIDs, embedded devices, etc.
• Works with existing devices - does not require blockchain code to run on devices.
• Watson IoT Platform maps a device’s data format to that required by the blockchain contract. Blockchain contract does not have to know about the types of devices sending data or understand their data format.
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Example Use Cases
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What?• Provenance of each component part in complex system hard
to track
• Manufacturer, production date, batch and even the manufacturing machine program.
How?• Blockchain holds complete provenance details of each
component part
• Accessible by each manufacturer in the production process, the aircraft owners, maintainers and government regulators.
Benefits• trust increased no authority "owns” provenance
• improvement in system utilization
• recalls "specific" rather than cross fleet
Use Case: Asset Management - Parts Tracking/History
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What?
• Knowing that a vehicle has been maintained according to the required schedule is
difficult today. E.g. maintenance records, work performed, vehicle use, damage
• Many interested and dependent parties, with contrasting/conflicting goals e.g.
Manufacturer/owner/insurer
How?
• Use IoT blockchain as a shared ledger of vehicle history, from usage, maintenance,
warranty work, replacement parts
Benefits
• Greater transparency of true history: Proof of good parts, completed maintenance
and certifications, clean documents.
• Greater confidence and safety because replacement part provenance and all service
is indelibly recorded.
• Safety Certifications and Auditability
• Greater trust since no single authority "owns” the whole story
• New business opportunities for insurers, lenders, warranty services
Use Case: Asset Management - Warranty
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The IBM Watson IoT Platform
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Run Your AppsThe developer can chose any language runtime or bring their own.
DevOps
Development, monitoring, deployment and logging tools allow the developer to run the entire application.
APIs and ServicesBroad catalog of IBM, 3rd party, and open source, APIs and services to compose an application in minutes.
Cloud IntegrationBuild hybrid environments. Connect to on-premises systems of record plus other public and private clouds. Expose your own APIs to your developers.
Built on IBM SoftLayerNo need to worry about provisioning or managing infrastructure.
Composable services development, runtime and operations for your IoT apps
IBM Bluemix environment for IoT development
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IBM Watson IoT Platform - ConnectConnect and manage devices, networks, and gateways
IBM Watson IoT Platform - Information ManagementIntegrating information, structured and unstructured, from devices, people, and the world around us
IBM Watson IoT Platform - AnalyticsGaining insights from information using Realtime, Predictive and Cognitive analytics
IBM Watson IoT Platform - Risk ManagementEnsuring you leverage the right information from the right sources, and the right software runs where you need it
Everything you need to transform with IoT
The IBM Watson IoT Platform
www.ibm.com/iot
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Bluemix (Hosted)
HyperledgerClient
Watson IoT Blockchain End-to-end flow with Analytics
Watson IoT Platform
Analytics
Blockchain Proxy (Data Mapping)
IBM Blockchain
Hyperledger Peer
Hyperledger Peer
Hyperledger Peer
Smart Contract
Smart Contract
Hyperledger Peer
Smart Contract
Smart Contract
Database Integration
Hyperledger Client
Connect (Messaging & Device Mgmt)
Information Management
Risk Management
Consensus
Database(modeling, reporting)
Retrieve data
and store
analytic
triggered
events
Modeling &
Runtime analysis
Device Connector Bridge
Device
Conditional Off-chain storage with
hash stored in the blockchain.
Optional Device
platform
send commands
Device Data
Analytics Application
PMQ
Use database for
modeling and
runtime analysis
Device
Instructions
Register Device,
Listen to events,
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IBM IoT Blockchain Demo
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Use Case: Trade, Logistics, Shipping
What?
• Currently Freight logistics involve many different parties: manufactures, forwarders, shippers, custom agents, insurers.
• Most of these parties use different systems to track shipments
• Many interested and dependent parties, with contrasting/conflicting goals e.g. Manufacturer/shipper/insurer
How?
• Use IoT enabled blockchain as a shared ledger to record shipping containers as they move through system
• Automatically update the “smart contract” and blockchain through the IoT Foundation.
Benefits
• Greater transparency and of shipment progress improves efficiency
• Greater trust since all transactions are indelibly recorded
• Greater accuracy and lower cost, through IoT participation.
• Ability to optimize and automate business processes through IoT.
• Future vision allows for ‘freight autonomy’
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ibm.biz/iot_bc_demo
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Thought Leadership & Quick Links
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Thought Leadership
2016 2015 2015 2014
ibm.biz/businessofthings ibm.biz/economyofthings ibm.biz/empoweringtheedge ibm.biz/devicedemocracy
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Explore & Experiment! Learn more about IoT and Blockchain
https://discover-iot-blockchain.eu-gb.mybluemix.net/
Learn more about IBM Blockchain http://www.ibm.com/blockchain/ https://console.ng.bluemix.net/catalog/services/blockchain/
• t an overview of what IBM Blockchain is, how it relates to the general blockch• IBM Blockchain DOCS - All necessary instructions to get up and running. There is no need to
deploy IBM Blockchain separately from those instructions.
• IBM Blockchain API - Get an understanding of the IBM Blockchain API
• IBM Blockchain for Developers - Get an overview of how blockchain fits into your development environment, and get started with some walk-throughs, all of which feature live demos and code that is deployable to run on IBM Bluemix.
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See us Today at IBM Booth #1607
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Business Networks benefit from connectivity
• Connected customers, suppliers, banks, partners
• Cross geography & regulatory boundary
Wealth is generated by the flow of goods & services across business networks
Transactions are the basic unit of interaction
Contracts are the constructs that regulate transactions
• When they are valid
• How they are reconciled
Business Networks and Markets
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Business / MRO Networks benefit from connectivity
• Connected Manufacturers, Assemblers, Maintainers, OEMs, Operators, and Regulators
• Cross geography & regulatory boundaries
Trust is generated by the transparent and auditable flow of information
Collaboration is central to this process:
• Public transactions, visible to all
• Private transactions between individual parties
IoT View: Operations and Maintenance Networks
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Dramatically reducing business transaction
costs
BlockchainNow that we have a secure and reliable view of
the world captured in a blockchain
Smart ContractsWe can automate smart contracts on top
Search and information costs reduced
Policing and enforcement costs reduced
Bargaining costs reduced
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Blockchain will impact many business ecosystems
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• It lowers the cost of business transactions through the automation of smart contracts built on top of an append only distributed ledger
• Visibility at any point in time -> Supply chain provenance, Regulated part
life cycle, Industry 4.0, Service Level Agreements, Facility management,
Auditable machine decisions, Certificate transparency, IoT Membership,
Independent and distributed decision making ,
• Asset management -> Identity management, Resources, Registries,
Currency, Goods, Rights
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What?
• Knowing that a piece of equipment (e.g. engine, measuring system, instrument) has been used per the specifications or in accordance with regulations for the equipment. e.g. work performed, amount of use, type of use, mis-handling events, etc.
• Many interested and dependent parties, with contrasting/conflicting goals e.g.Manufacturer/owner/regulator/inspector/insurer
• Processes, such as the manufacturing or transport of drugs, have regulatory requirements for tracking history and maintainingthose records for years and providing to regulatory agencies as well.
How?
• Use IoT blockchain as a shared ledger of equipment/process history, from usage, maintenance, warranty work, replacement parts, out-of-tolerance or regulation situations.
Benefits
• Greater transparency of true history: indelible log of equipment sensor readings, or situations logged by the device and reported, process events and history
• Safety Certifications and Auditability
• Greater trust since no single authority "owns” the whole story – or said another way – many parties all keep the same record of events/data
• New business opportunities for insurers, regulators, etc.
Use Case: Regulatory Compliance
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Blockchain and IoT
Watson IoT Platform
Connect
IoTP Device
Client
(MQTT client)
Query &
DevOps
REST
APIs
IBM Blockchain (Bluemix Service)
Pee
r
Pee
r
Blockchain
ContractBlockchain
Contract
Client
Blockchain
Application
Blockchain Proxy
MQTT
Client
Data
Mapping
Device Data
Mapped to
Blockchain Contract
format
Risk
Management
Information
ManagementAnalytics
Device Data
(identity + state)