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DEVICE DEMOCRACY
Solid 2015	

!
!
!
IBM Institute for BusinessValue
© 2015 IBM Corporation
CREDITS
IBM IBV
!
Paul Brody	

Veena Pureswaran	

Sumbala Nair

Sanjay Pannikar	

ADEPT team	

!
Sp...
ADEPT
IoT research project by IBM	

3
© 2015 IBM Corporation
ADEPT: CES DEMO RECAP
• washer buying detergent	

• washer bartering energy use	

• washer ordering...
© 2015 IBM Corporation
BIG PICTURE IOT
• coming massive computing power of ‘things’	

• failed expectations	

• market siz...
© 2015 IBM Corporation
ADEPT: IOT CHALLENGE FOCUS
√ cost	

□ trust	

√ monetisation 	

√ interoperability 	

√ discoverabi...
© 2015 IBM Corporation
DEVICE OWNERSHIP OPTIONS
• manufacturer	

• provider	

• owner	

• device
7
© 2015 IBM Corporation
DECENTRALIZATION
8
!
device agency	

device democracy 	

open platform	

common market
ADEPTVISION
© 2015 IBM Corporation
ADEPT DESIGN
√ trust-less peer-to-peer messaging	

√ distributed file sharing	

√ autonomous device ...
© 2015 IBM Corporation
ADEPTVISION
□ highly efficient digital marketplaces	

√ real-time resource competition	

√ inter-dev...
© 2015 IBM Corporation
ADEPT DEVICE CATEGORIES
12
ADEPT Device Categories
Light&Wallet&
Messaging& File&Transfer&
Related&...
© 2015 IBM Corporation
ADEPT ARCHITECTURE
(√) protocols, services, applications	

√ TeleHash, BitTorrent, Ethereum 	

□ li...
ADEPT Architecture

Logical View
Devices enabled as decentralized autonomous peers
Device communication private by design
...
© 2015 IBM Corporation
ADEPT DEVICE SECURITY

AND MAINTENANCE
• automatic and secure software updates	

• verification of t...
© 2015 IBM Corporation|
/
Use Case 1: The Autonomous Washer
Autonomous transactions between Washer, 

Retailer, After Sale...
© 2015 IBM Corporation|
Interactions – Detergent reorder
Trigger:

Detergent falls below re-order level

Make payment agai...
© 2015 IBM Corporation|18
Interactions – component in-warranty replacement
If In warranty, raise telehash
Replacement Orde...
BLOCKCHAIN
Why Blockchain?
© 2015 IBM Corporation
WHAT IS A BLOCKCHAIN?
!
• trust-less network	

• signed transactions	

• public consensus	

• trans...
© 2015 IBM Corporation
SMART CONTRACTS
• transaction scripts	

• on- or off-chain	

• transacting value-holding token	

• ...
© 2015 IBM Corporation
BLOCKCHAIN CHALLENGES
privacy	

scaling	

mining	

finality	

volatility	

legality	

stability
22
© 2015 IBM Corporation
• Bitcoin limited smart contracts	

• Ethereum not ready	

• Ripple not decentralized
23
THE CLOUD
as peer
© 2015 IBM Corporation
CLOUD AND ADEPT
• hash key in the chain	

• content in key-value* store like Cloudant	

• scaling p...
© 2015 IBM Corporation
CLOUD AS PEER
Cloud as State-Holder	

• cost efficient	

• unlimited capacity	

• elastic scale
26
C...
ONGOING DEVELOPMENTS
© 2015 IBM Corporation
CURRENT RESEARCH
• Consensus implementations	

• Performance scaling vs centralized solutions	

• E...
© 2015 IBM Corporation
CONSENSUS IMPLEMENTATIONS
• Proof of Work	

• Proof of Stake	

• Traditional Consensus Protocols
29
© 2015 IBM Corporation
PERFORMANCE SCALINGVS
CENTRALIZED SOLUTIONS
Performance for decentralized and
centralized models wi...
© 2015 IBM Corporation
ENERGY COST
31
Power&Consump-on:&PoS&v/s&PoW
•  2"device"types""
•  GPU_dev:""
•  Radeon"R9"290X"
•...
© 2015 IBM Corporation
ENERGY COST
32
•  1000#Raspberry#Pi s##
•  100#miners,#900#non3miners#
•  12s#block38me#
•  Simula8...
© 2015 IBM Corporation
BLOCKCHAIN SIZE
33
Size%of%the%Add,only%Block,chain
0"
200"
400"
600"
800"
1000"
1200"
1" 7" 13" 19...
© 2015 IBM Corporation
OTHERS’ EFFORTS
• Samsung	

• Filament	

• 21
34
© 2015 IBM Corporation
FILAMENT
35
© 2015 IBM Corporation
FILAMENT
TeleHash	

Bitcoin mainnet	

Blockname DNS	

JOSE off-chain code	

Pennybank microtransact...
SUMMARY & OUTLOOK
© 2015 IBM Corporation
WHAT WE'VE LEARNED
• concept works	

• much left to do	

• blockchain works as advertised	

• smart...
© 2015 IBM Corporation
WHAT WE DON'T KNOWYET
• scaling	

• privacy	

• consensus algorithm
39
© 2015 IBM Corporation
PRODUCTS AS SUBSCRIBED EXPERIENCE
• empowering the sharing economy	

• subscription, not purchase	
...
© 2015 IBM Corporation
BUILDING AN
OPEN DEVICE
ECOSYSTEM
!
Charge to the industry
41
p
Registration
of new
device
Authenti...
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IBM ADEPT

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ADEPT is a research project for IoT using peer-to-peer and blockchain technology.

Published in: Technology

IBM ADEPT

  1. 1. DEVICE DEMOCRACY Solid 2015 ! ! ! IBM Institute for BusinessValue
  2. 2. © 2015 IBM Corporation CREDITS IBM IBV ! Paul Brody Veena Pureswaran Sumbala Nair
 Sanjay Pannikar ADEPT team ! Speaker
 Henning Diedrich 2
  3. 3. ADEPT IoT research project by IBM 3
  4. 4. © 2015 IBM Corporation ADEPT: CES DEMO RECAP • washer buying detergent • washer bartering energy use • washer ordering service 4 Retailer Order, Payment Confirmation Payment Negotiation Detergent! Check TV 
 Price Alert Confirmation Service Request Service" Vendor Service Checklist! Warranty Check Owner ADEPT" WASHER Notification 1 2 3
  5. 5. © 2015 IBM Corporation BIG PICTURE IOT • coming massive computing power of ‘things’ • failed expectations • market size trailing predictions • IBM IoT Platform on Bluemix • autonomous devices • inter-device commerce 5
  6. 6. © 2015 IBM Corporation ADEPT: IOT CHALLENGE FOCUS √ cost □ trust √ monetisation  √ interoperability  √ discoverability  √ authentication √ long term service expectation □ scale 6 Lackof Not future-proof Lackofprivacy Internet of Things Brok en business High cost m odels functionalvalue
  7. 7. © 2015 IBM Corporation DEVICE OWNERSHIP OPTIONS • manufacturer • provider • owner • device 7
  8. 8. © 2015 IBM Corporation DECENTRALIZATION 8 ! device agency device democracy open platform common market
  9. 9. ADEPTVISION
  10. 10. © 2015 IBM Corporation ADEPT DESIGN √ trust-less peer-to-peer messaging √ distributed file sharing √ autonomous device coordination □ identity 10
  11. 11. © 2015 IBM Corporation ADEPTVISION □ highly efficient digital marketplaces √ real-time resource competition √ inter-device agreements √ direct payments between devices √ service and resource barter between devices □ inter-device reputation ! √ = demo’ed 11
  12. 12. © 2015 IBM Corporation ADEPT DEVICE CATEGORIES 12 ADEPT Device Categories Light&Wallet& Messaging& File&Transfer& Related&Peer&List& Op7mized&Wallet& Messaging& File&Transfer& Related&Peer&List& Autonomous&Device& Coordina7on&Framework& Data&Management&&&Analy7cs& Transac7on&Verifica7on& (capabilityIbased)& Full&Wallet& Messaging& File&Transfer& Related&Peer&List& Autonomous&Device& Coordina7on&Framework& Data&Management&&&Analy7cs& Transac7on&Verifica7on&& (Full)& Marketplace&Enablers& P.&Ex.&Marketplaces& Implemented&as&PoC& Proposed& Light&Peer& Standard&Peer& Peer&Exchange& 37
  13. 13. © 2015 IBM Corporation ADEPT ARCHITECTURE (√) protocols, services, applications √ TeleHash, BitTorrent, Ethereum □ light peers, standard peers, hub 13 ADEPT Architecture Logical View Devices enabled as decentralized autonomous peers Device communication private by UI Business Messaging LifeCycle Message Blockchain LifeCycle Transaction File Sharing LifeCycle File sharing Data LifeCycle Peer Analytics Asset
 Appliance 
 Examples Resource Virtual Diagnosti Data Management (e.g. MySQL & Distributed DB) E.g. Android, Linux compatibility Messaging Store & 
 Optimized
 Blockchain Mining File Sharing
 (e.g. Own and Light Peer protocol Autonomous Device ADEPTInstaller Application Open source Open source Data OS
  14. 14. ADEPT Architecture Logical View Devices enabled as decentralized autonomous peers Device communication private by design Capability to achieve distributed consensus UI Business Logic Messaging Service LifeCycle Message Handler Blockchain Service LifeCycle Transaction Handler File Sharing Service LifeCycle File sharing Handler Data Management Service LifeCycle Peer Management Analytics Asset
 sharing Appliance 
 Self-service Examples Resource Bartering Virtual Credit
 Management Diagnostics Data Management (e.g. MySQL & Distributed DB) E.g. Android, Linux compatibility Messaging (e.g. Telehash) Store & 
 Forward Optimized
 Blockchain (e.g. Ethereum) Mining File Sharing
 (e.g. BitTorrent & OBEX) Own and Light Peer protocol handler Autonomous DeviceCordination Framework ADEPTInstaller Application Layer Open source Services Open source Protocols Data Layer OS Interface
  15. 15. © 2015 IBM Corporation ADEPT DEVICE SECURITY
 AND MAINTENANCE • automatic and secure software updates • verification of trustworthiness of peers • self-maintaining, self-servicing units 15
  16. 16. © 2015 IBM Corporation| / Use Case 1: The Autonomous Washer Autonomous transactions between Washer, Retailer, After Sales Service and other appliances. 16 Retailer Order, Payment Confirmation Payment Negotiation Detergent! Check TV 
 Price Alert ConfirmationService Request Service" Vendor Service Checklist! Warranty Check Owner ADEPT" WASHER Notification 1 2 3 Consumables Marketplace1 2 3 Service Marketplace Energy Marketplace Use Case Scenarios:
  17. 17. © 2015 IBM Corporation| Interactions – Detergent reorder Trigger: Detergent falls below re-order level Make payment against existing contract. ! Features demonstrated Consumables analytics Policy to invoke payment contract Secure point to point messaging Ethereum Payment() Telehash Create order() Telehash Dispatch confirmation () Notify owner() Notify owner() 1 2 2 3 4 4 17 Authorized Retailer Authorized Retailer
  18. 18. © 2015 IBM Corporation|18 Interactions – component in-warranty replacement If In warranty, raise telehash Replacement Order() If in warranty, Telehash Service order confirm () Notify owner() Notify owner() Verify warranty status() 1 5 4 2 3 3 5 Trigger: Washer detects potential air filter failure. Find authorized service center. ! Internet discovery In device analytics Block chain verification Secure point to point messaging Check warranty status()
  19. 19. BLOCKCHAIN Why Blockchain?
  20. 20. © 2015 IBM Corporation WHAT IS A BLOCKCHAIN? ! • trust-less network • signed transactions • public consensus • transaction code 20
  21. 21. © 2015 IBM Corporation SMART CONTRACTS • transaction scripts • on- or off-chain • transacting value-holding token • micro-fee capability 21
  22. 22. © 2015 IBM Corporation BLOCKCHAIN CHALLENGES privacy scaling mining finality volatility legality stability 22
  23. 23. © 2015 IBM Corporation • Bitcoin limited smart contracts • Ethereum not ready • Ripple not decentralized 23
  24. 24. THE CLOUD as peer
  25. 25. © 2015 IBM Corporation CLOUD AND ADEPT • hash key in the chain • content in key-value* store like Cloudant • scaling platform like Softlayer 25
  26. 26. © 2015 IBM Corporation CLOUD AS PEER Cloud as State-Holder • cost efficient • unlimited capacity • elastic scale 26 Cloud as Code-Repository • light protocol • fast execution • out-of-band validation
  27. 27. ONGOING DEVELOPMENTS
  28. 28. © 2015 IBM Corporation CURRENT RESEARCH • Consensus implementations • Performance scaling vs centralized solutions • Energy cost of proof of stake vs. proof of work 28
  29. 29. © 2015 IBM Corporation CONSENSUS IMPLEMENTATIONS • Proof of Work • Proof of Stake • Traditional Consensus Protocols 29
  30. 30. © 2015 IBM Corporation PERFORMANCE SCALINGVS CENTRALIZED SOLUTIONS Performance for decentralized and centralized models with increasing network size for downloading a 100 MB file, with Kademlia messages generated between any random pair of nodes at an interval of 30 ms. 30
  31. 31. © 2015 IBM Corporation ENERGY COST 31 Power&Consump-on:&PoS&v/s&PoW •  2"device"types"" •  GPU_dev:"" •  Radeon"R9"290X" •  Idle"power:"20W" •  Stressed"power:"308W" •  Intel"BaseAT"NIC" •  Idle"power:"21.2W" •  AcHve"power:"21.4W" •  CPU_dev:"" •  Intel"PenHum"4"540"processor"" •  Idle"power:"150W" •  Stressed"power:"223W" •  Intel"BaseAT"NIC" •  Idle"power:"21.2W" •  AcHve"power:"21.4W" " •  1000"devices" •  100"miners,"900"nonAminers" •  1"blockchain,"12s"blockAHme" •  Nature"of"traffic" •  SimulaHon"run"for"12,000"seconds"(1000"block"Hmes)" •  On"average,"an"event"happens"every"0.25s" •  Event"is"either"publish_contract,"call_contract,"or" send_money."Each"happens"with"equal"probability." •  Up"to"41%"less"power"consumed"by"PoS"than" PoW."This"is"in"the"all"GPU"case." 0" 20" 40" 60" 80" 100" 120" 140" 160" 180" 200" 0" 0.25" 0.5" 0.75" 1" Avg."Power"Consumed" FracHon"of"GPU"devices" Total"PoS" Total"PoW"
  32. 32. © 2015 IBM Corporation ENERGY COST 32 •  1000#Raspberry#Pi s## •  100#miners,#900#non3miners# •  12s#block38me# •  Simula8on#run#for#12,000s# •  Choice#of#consensus#mechanism#ma>ers#–# but#not#so#much#for#low#power#devices# •  PoW#consumes#less#than#6%#more#energy# than#PoS# •  Energy#consumed#by#PoS#consensus# mechanism#is#close#to#devices#opera8ng#in# idle#mode#
  33. 33. © 2015 IBM Corporation BLOCKCHAIN SIZE 33 Size%of%the%Add,only%Block,chain 0" 200" 400" 600" 800" 1000" 1200" 1" 7" 13" 19" 25" 31" 37" 43" 49" 55" 61" 67" 73" 79" 85" 91" 97"103"109"115"121"127"133"139"145"151"157"163"169"175"181"187"193"199"205"211"217"223"229"235"241"247"253"259"265"271"277"283"289" Size"of"Blockchain"(MB)" Time"(Hours)" 100"tps" 50"tps" 25"tps" 10"tps" •  This"chart"emphasizes"the"need"for"block"chain"pruning." •  A"device"with"1GB"memory"would"run"out"of"memory"fairly"quickly.""" Time"of"crash" Time"of"crash" Time"of"crash" Time"of"crash"
  34. 34. © 2015 IBM Corporation OTHERS’ EFFORTS • Samsung • Filament • 21 34
  35. 35. © 2015 IBM Corporation FILAMENT 35
  36. 36. © 2015 IBM Corporation FILAMENT TeleHash Bitcoin mainnet Blockname DNS JOSE off-chain code Pennybank microtransactions 36
  37. 37. SUMMARY & OUTLOOK
  38. 38. © 2015 IBM Corporation WHAT WE'VE LEARNED • concept works • much left to do • blockchain works as advertised • smart contracts are a powerful new paradigm • machine-to-machine commerce works 38
  39. 39. © 2015 IBM Corporation WHAT WE DON'T KNOWYET • scaling • privacy • consensus algorithm 39
  40. 40. © 2015 IBM Corporation PRODUCTS AS SUBSCRIBED EXPERIENCE • empowering the sharing economy • subscription, not purchase • full life time full service 40 Instrumented Intelligent Invisible Interactive Interconnected
  41. 41. © 2015 IBM Corporation BUILDING AN OPEN DEVICE ECOSYSTEM ! Charge to the industry 41 p Registration of new device Authentication of remote users Contract to barter power with other appliances Checklist for automobile safety

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