Blockchain 2.0 technologies promise to be the new layer for federated and accountable networks. At the Global IoT day 2015, I presented the motivation for decentralized but data-based business models and where / where not Ethereum fits into this picture.
Video: https://youtu.be/EGrFZuTrVKg?t=39s
2. Alexander HIrner 1
…arguably good
Status Quo
Quantification ↑
- IoT
- QS / public health
- Finance
- eCommerce
- social media
common practice
- EoS for Intelligence
- Added Value
- Lucrative Business
/ Governance
Models
Asymm.
Information↑ …not so good
Centralization ↑
3. Alexander HIrner 2
Blockchain Technology
Quantification ↑
Tokenincentive
incremental updated
through “transactions”
- DDoS resistant
- Public / Transparent
- Pseudonymous
- Distributed
- No single P of failure
- Persistent *
- Decentralized *
- Synchronized *
* to the extent of the consensus algorithm
Aggregation
4. One Step Further
Alexander HIrner 3
Vitalik Buterin ~ Dec. 2013:
Why not include a Turing complete Programming Language
to update the Blockchain?
Deterministic Computation
on a global public Ledger
apply
VM
code
5. The Paradigm Shift
Alexander HIrner 4
Open
Source
Open Data
Open
Processes
Verified &
Persistent
Open Data
became competitive
Advantage
(selective revealing,
Eclipse SF)
Enabling new Forms of
Organization:
• Voting, (Schelling)
Prediction Markets
• Reputation Systems /
Donation Records
• Algorithmic Auditing
• Autonomous Agents
• “DAOs” (handling $)
BTC Balances
Proof of Exist.
Colored Coins
Namecoin
…
became good habit
Public records
Genome Project
Kaggle
6. The Paradigm Shift
source(s): [2, 3] Alexander HIrner 5
Open
Source
Open Data
Open
Processes
Verified
Open Data
What does this all have to do
with THINGS on the Internet?
7. Alexander HIrner 6
Persistency and Contracts
‘namereg’ for IoT Devices on the blockchain, e.g.
charging station e-mobility (needs prior coordination/
reservation)
Autonomous Devices (no central intelligence, less user
intervention)
Sensor networks Insurance, Prediction Markets
Smart Property /
Shared Property / Billing
IoT … missing Links for sustainable
Business models
- Blockchain
w/ code
8. Alexander HIrner 7
Secure Messaging
Open home’s door for a friend from remote
Share your GPS tracks with whom you authorize
(emergency cases/theft)
Decentralized firmware
saves costs for producers maintenance is out-
and crowd-sourced User Innovation & Open
Hardware/Firmware paradigm promotes quality
and longevity
No one wants Spy-/Bloatware anyway (see
homebrew firmware for mobiles)
IoT … missing Links for sustainable
Business models
- Telehash
- Whisper
- …
- DHT
- BitTorrent
- Swarm
9. Community
Alexander HIrner 8
Vitalik, Thiel Prize and WTN award (before M. Zuckerberg)
~ Mio. 12$ crowd-funded
Community
~ 50 cities
~ hotspots…
Berlin, Amsterdam, Switzerland, …
Incremental Rollout:
blockchain (soon) scalability + Whisper + Swarm
10. Scalability
Alexander HIrner 9
Open
Processes
Verified &
Persistent
Open Data
Fully global Blockchain
Multichains
PoS
Light Clients
Hybrid models (off-
chain Challenge
Response)
locally confined /
permission based
(ERIS)
Incentive
Link with Token
(Permacoin)
Dynamic (IPFS.io, Storj,
Maidsafe)
Ethereum
2.0
12. Concrete Projects
Alexander HIrner 11
Decentralized Crowdfunding
modular, 24/7, low/no barrier of entry
Prediction Market with Reputation and
Delegation System
http://www.meetup.com/Ethereum-Vienna/
Specialized / Relatives: Lazooz, Synereo,
Provenance, Project Groundhog, …
13. Takeaway
Alexander HIrner 12
Privacy concerns, trust in centralized providers and long-
term management liabilities choke IoT business and
innovation
Convergence of Cryptocurrencies + IoT = new plateau of
productivity
Pushing intelligence to the edges of the network requires
extension of IoT Software stack (Ethereum) …
…and Hardware (low powered, cryptography enabled,
hard to crack, trusted) build on hardware wallets
technology, blockchain verification = bottleneck
arguably good: as many QS enthusiasts will tell us, improving yourself. Also credit scoring. Information overload maybe not so, but it’s a transient phenomenon. Also enabling added value services…:
GE IoT Platform (10 million of sensors), Google Maps, facebook, uber, smart city,
http://bits.blogs.nytimes.com/2014/10/09/ge-opens-its-big-data-platform/?_r=1
common practice: EoS of Intelligence, Added Value, Lucrative Business (and Governance) Models
not so good: asymmetric information, misappropriation opportunities rise – large scale – not only for the tinhat community , small scale!
scandals we all know… to the smaller stories (Bart de Witte) … to plain old bookkeeping stuff.
Verified Open Data: Namecoin, Proof of Existence
Open Processes signal the behaviour of certain organizational forms: how is the voting mechanism, how the payout functions, etc..
https://blog.ethereum.org/2015/01/23/superrationality-daos/
https://twitter.com/swardley/status/584835106818367489