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Next-Generation Alliance Infrastructure
Utilizing Smart Contract
Yasunori Motani
Blcokchain Project Lead
www.linkedin.com/in/gokybury
1
Are you Centralized
or Decentralized?
The Matrix(1999). The Wachowski Brothers. Warner Bros
2
About 2017 around the
Amazonization…
3
Source:https://gigazine.net/news/20161206-amazon-go/
4
Source:http://attractionsmagazine.com/amazon-restaurants-now-offering-free-food-delivery-to-amazon-prime-members-in-orlando-and-tampa/
5
Source:http://thebridge.jp/2017/05/amazons-echo-look-is-a-voice-assistant-with-a-camera-because-thats-not-creepy
6
Source:http://www.meatpoultry.com/articles/news_home/Business/2017/11/Amazon_Whole_Foods_reduce_pric.aspx?ID={599F3B53-F40C-4940-
93FE-3F48FB147DD4}&cck=1
7
Source:https://www.amazon.com/Introducing-Amazon-Key-In-Home-Kit/dp/B00KCYQGXE
8
Centralized services are ongoing. . .
9
75.3 million units 49.6 million units 39.1 million units
Japanese Telecom Player
10
Connected Car
11(部署名記入欄)
Source:http://s-max.jp/archives/1722603.html
AR
12
Source:http://livedoor.blogimg.jp/smaxjp/imgs/d/2/d2ba4941.jpg
AR
13
Source:http://livedoor.blogimg.jp/smaxjp/imgs/d/2/d2ba4941.jpg
14(部署名記入欄)
Commerce
15
Bank
16
Degital Contents
17
Source:http://buzzap.jp/news/20171121-au-home-au-2017-winter/
Smart Home
18
Touchpoint
 2500 shops
 A yearly
continuous visit of
100 million people
Settlement base
 $10 billion Monthly
communication
charge settlement
Telecom
Smart Home Mobility AR
Commerce Finance
Digital
Contents
+
Alliances and Acquisitions
User base
 49.6 Million Units
19
Telecom Smart Home CommerceFinance
UX
About the direction of the alliance base
21
Centralize?
Decentralize?
or
22
IoT
IoT Platform
(Managed type Cloud)
Greengrass
(Device control)
AI
Rekognition
(Video Recognition)
Polly
(Text Voice Convertion) Lex
(Language Recognition)
AWS Platform
Original Services
Business Collaboration
Centralized Connected Network
23
 The use of services from users of centralized
players increases.
 To be able to control information with a
centralized player.
 Under the constraints of the centralized player,
it monopolizes the channel, data and service
provision method, the service provider weakens
and the reliance on the player increases steadily.
Centralized
Centralized Player
Centralized
Platform
Can not use service of
centralized player f
rom service provider sideUnder the constraints
of the centralized player
order
Service
order
Service
Advantage Disadvantage
24
Business
A
Other
Company
S
Business
B
Other
Company
U
Business
D
Other
Company
Y
Business
C
Other
Company
W
Other
Company
T
Other
Company
Z
Other
Company
V
Other
Company
X
Next Generation Connected Network
with Blockchain as Infrastructure
Automatic
Housekeeping service
with sensors and
smart lock
Personal rental to
automatically adapt
the contract even under
complicated conditions
Personal insurance
linked with IoT
Telecom
bundle service
API
API
API
API
RDB/
KVS
RDB/
KVS
RDB/
KVS
RDB/
KVS
ID
Verification
Telecom
Smart
Home
Real
estate
Finance
Our
Node
Other
Company
Node
Blockchain
Network
25
 there is no restriction on the provision of
channels and services.
 So service providers can maintain business
independence.
 Information including user information and past
history including bad information is recorded
and reflected as the company's evaluation
Decentralized
Various services can be used regardless of which service provider orders
(= Improve motivation for participation by new service providers )
New service provision
Business Participation
Blockchain
order
Service
order
Service
order
Service
Advantage Disadvantage
Our company's POC for decentralized alliances
27
Repair Network Reuse Network
I want to sell my smartphone !
If that will be purchased in high price.
Biometric
Authentication
1
5
2
Other customer
purchase the smartphone
User
Send Information
User Account
Y-Coin
Japanese Yen
Interledger
Protocol
Interledger Protocol
Payment
4 X-Coin
Bank
3
Repaired
Smartphone
Proof of Consept
Combining smartphone repair businesses
and smartphone reuse businesses
Picture of service utilizing Interledger
28
A home's holiday one day story by smart home
( Dad, mother, and 4 year old daughter )
Automatic
Video Calling
Automatic
security
Smart Key
Housekeeping
Smart Key
Home Delivery
Delivery
Servise
Contract
Channel
Data
Collection
Emergency
Management
Services
Automatic
Enforcement
On Blockchain
Communiction
Settlement
29
A home's holiday one day story by smart home
( Dad, mother, and 4 year old daughter )
TIME
A family life cycle
of holiday
Provided service Sensor / IoT device
6:00
am
wake up
10:30
am
A neighbor's family
visits
(Adult + Child: 5
people)
8 people together
with family
•Recognize that many people are visiting
•Automatically search for neighborhood food delivery
service and suggest
•Automatic execution on blockchain
Human Sensor
Video Recognition
11:00
am
The room is a mess •Recognize the situation where the room is a mess.
•Automatic search for cleaners to clean during absence
•Automatic execution on blockchain
Human Sensor
Camera (video) recognition
AR (video) recognition
2:00
pm
Relax in the living
room together as a
family
•Recognize that the whole family is idle
•Recognize that the distant family is in the same state
•Automatically suggest a video call with a family, whose
time is not suitable usually, and start a video call
•"A house and a distant house are connected"
Human Sensor
Camera (video)
Home electronics (power)
recognition
Automatic
Video Calling
Automatic
security
Smart Key
Housekeeping
Smart Key
Home Delivery
Delivery
Servise
Contract
Channel
Data
Collection
Emergency
Management
Services
Automatic
Enforcement
On Blockchain
Communiction
Settlement
30
A home's holiday one day story by smart home
( Dad, mother, and 4 year old daughter )
Time
A family life cycle
of holiday
Provided service Sensor / IoT device
6:00
pm
Go out for dinner •Recognize going out
•Automatically turn on going out security mode
•Automatically close the window
Human Sensor
Camera (video)
Home electronics (power)
recognition
7:00
pm
A home delivery
arrives when you
are away
•Door opening with smart lock only on smartphone of
delivery staff scheduled for delivery
•Recognize that another person opened a key when he
was away, activate the camera, automatic recording
•Automatically send notification to smartphone, start
video streaming
Human Sensor
Camera (video)
Door Sensor
Smart Lock
(Abnormal pattern)
Detect intruder
•Recognize people trying to break into the house
•Automatically contact the security company, the security
company comes
•Automatically send notification to smartphone, start
video streaming
•Camera image is recorded automatically
Human Sensor
Camera (video)
Door Sensor
Smart Lock
Automatic
Video Calling
Automatic
security
Smart Key
Housekeeping
Smart Key
Home Delivery
Delivery
Servise
Contract
Channel
Data
Collection
Emergency
Management
Services
Automatic
Enforcement
On Blockchain
Communiction
Settlement
31
A home's holiday one day story by smart home
( Dad, mother, and 4 year old daughter )
Time
A family life cycle
of holiday
Provided service Sensor / IoT device
8:00
pm
Coming home •Recognize that family arrives home
•Automatically turn off going out security mode
Human Sensor
Camera (video)
Home electronics (power)
recognition
9:00
pm
Going to bed
11:00
pm
The child is
sleepwalking around
the entrance
•Recognize that children are sleepwalking
•Automatically lock the door so that the children can not
open the door
Human Sensor
Camera (video)
Door Sensor
Smart Lock
Automatic
Video Calling
Automatic
security
Smart Key
Housekeeping
Smart Key
Home Delivery
Delivery
Servise
Contract
Channel
Data
Collection
Emergency
Management
Services
Automatic
Enforcement
On Blockchain
Communiction
Settlement
32
The following problems when aiming at real-time service linked with IoT.
Q1: What do you do with reading from multiple devices?
→ How to process at high speed?
Q2: How do you handle large capacity data such as images?
→ What data should I include in my blockchain?
Data processing of on-chain and off-chain?
33
Yasuori Motanicontact info:
The Matrix(1999). The Wachowski Brothers. Warner Bros

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【Blockchain EXE NY】スマートコントラクトを用いた次世代アライアンス基盤のあり方とは  茂谷 保伯|KDDI

  • 1. Next-Generation Alliance Infrastructure Utilizing Smart Contract Yasunori Motani Blcokchain Project Lead www.linkedin.com/in/gokybury
  • 2. 1 Are you Centralized or Decentralized? The Matrix(1999). The Wachowski Brothers. Warner Bros
  • 3. 2 About 2017 around the Amazonization…
  • 10. 9 75.3 million units 49.6 million units 39.1 million units Japanese Telecom Player
  • 19. 18 Touchpoint  2500 shops  A yearly continuous visit of 100 million people Settlement base  $10 billion Monthly communication charge settlement Telecom Smart Home Mobility AR Commerce Finance Digital Contents + Alliances and Acquisitions User base  49.6 Million Units
  • 20. 19 Telecom Smart Home CommerceFinance UX
  • 21. About the direction of the alliance base
  • 23. 22 IoT IoT Platform (Managed type Cloud) Greengrass (Device control) AI Rekognition (Video Recognition) Polly (Text Voice Convertion) Lex (Language Recognition) AWS Platform Original Services Business Collaboration Centralized Connected Network
  • 24. 23  The use of services from users of centralized players increases.  To be able to control information with a centralized player.  Under the constraints of the centralized player, it monopolizes the channel, data and service provision method, the service provider weakens and the reliance on the player increases steadily. Centralized Centralized Player Centralized Platform Can not use service of centralized player f rom service provider sideUnder the constraints of the centralized player order Service order Service Advantage Disadvantage
  • 25. 24 Business A Other Company S Business B Other Company U Business D Other Company Y Business C Other Company W Other Company T Other Company Z Other Company V Other Company X Next Generation Connected Network with Blockchain as Infrastructure Automatic Housekeeping service with sensors and smart lock Personal rental to automatically adapt the contract even under complicated conditions Personal insurance linked with IoT Telecom bundle service API API API API RDB/ KVS RDB/ KVS RDB/ KVS RDB/ KVS ID Verification Telecom Smart Home Real estate Finance Our Node Other Company Node Blockchain Network
  • 26. 25  there is no restriction on the provision of channels and services.  So service providers can maintain business independence.  Information including user information and past history including bad information is recorded and reflected as the company's evaluation Decentralized Various services can be used regardless of which service provider orders (= Improve motivation for participation by new service providers ) New service provision Business Participation Blockchain order Service order Service order Service Advantage Disadvantage
  • 27. Our company's POC for decentralized alliances
  • 28. 27 Repair Network Reuse Network I want to sell my smartphone ! If that will be purchased in high price. Biometric Authentication 1 5 2 Other customer purchase the smartphone User Send Information User Account Y-Coin Japanese Yen Interledger Protocol Interledger Protocol Payment 4 X-Coin Bank 3 Repaired Smartphone Proof of Consept Combining smartphone repair businesses and smartphone reuse businesses Picture of service utilizing Interledger
  • 29. 28 A home's holiday one day story by smart home ( Dad, mother, and 4 year old daughter ) Automatic Video Calling Automatic security Smart Key Housekeeping Smart Key Home Delivery Delivery Servise Contract Channel Data Collection Emergency Management Services Automatic Enforcement On Blockchain Communiction Settlement
  • 30. 29 A home's holiday one day story by smart home ( Dad, mother, and 4 year old daughter ) TIME A family life cycle of holiday Provided service Sensor / IoT device 6:00 am wake up 10:30 am A neighbor's family visits (Adult + Child: 5 people) 8 people together with family •Recognize that many people are visiting •Automatically search for neighborhood food delivery service and suggest •Automatic execution on blockchain Human Sensor Video Recognition 11:00 am The room is a mess •Recognize the situation where the room is a mess. •Automatic search for cleaners to clean during absence •Automatic execution on blockchain Human Sensor Camera (video) recognition AR (video) recognition 2:00 pm Relax in the living room together as a family •Recognize that the whole family is idle •Recognize that the distant family is in the same state •Automatically suggest a video call with a family, whose time is not suitable usually, and start a video call •"A house and a distant house are connected" Human Sensor Camera (video) Home electronics (power) recognition Automatic Video Calling Automatic security Smart Key Housekeeping Smart Key Home Delivery Delivery Servise Contract Channel Data Collection Emergency Management Services Automatic Enforcement On Blockchain Communiction Settlement
  • 31. 30 A home's holiday one day story by smart home ( Dad, mother, and 4 year old daughter ) Time A family life cycle of holiday Provided service Sensor / IoT device 6:00 pm Go out for dinner •Recognize going out •Automatically turn on going out security mode •Automatically close the window Human Sensor Camera (video) Home electronics (power) recognition 7:00 pm A home delivery arrives when you are away •Door opening with smart lock only on smartphone of delivery staff scheduled for delivery •Recognize that another person opened a key when he was away, activate the camera, automatic recording •Automatically send notification to smartphone, start video streaming Human Sensor Camera (video) Door Sensor Smart Lock (Abnormal pattern) Detect intruder •Recognize people trying to break into the house •Automatically contact the security company, the security company comes •Automatically send notification to smartphone, start video streaming •Camera image is recorded automatically Human Sensor Camera (video) Door Sensor Smart Lock Automatic Video Calling Automatic security Smart Key Housekeeping Smart Key Home Delivery Delivery Servise Contract Channel Data Collection Emergency Management Services Automatic Enforcement On Blockchain Communiction Settlement
  • 32. 31 A home's holiday one day story by smart home ( Dad, mother, and 4 year old daughter ) Time A family life cycle of holiday Provided service Sensor / IoT device 8:00 pm Coming home •Recognize that family arrives home •Automatically turn off going out security mode Human Sensor Camera (video) Home electronics (power) recognition 9:00 pm Going to bed 11:00 pm The child is sleepwalking around the entrance •Recognize that children are sleepwalking •Automatically lock the door so that the children can not open the door Human Sensor Camera (video) Door Sensor Smart Lock Automatic Video Calling Automatic security Smart Key Housekeeping Smart Key Home Delivery Delivery Servise Contract Channel Data Collection Emergency Management Services Automatic Enforcement On Blockchain Communiction Settlement
  • 33. 32 The following problems when aiming at real-time service linked with IoT. Q1: What do you do with reading from multiple devices? → How to process at high speed? Q2: How do you handle large capacity data such as images? → What data should I include in my blockchain? Data processing of on-chain and off-chain?
  • 34. 33 Yasuori Motanicontact info: The Matrix(1999). The Wachowski Brothers. Warner Bros

Editor's Notes

  1. My name is Yasunori Motani, Lead Blockchain Project Manager at KDDI. KDDI is Telecom company doing many kinds of businesses from telecom to nontelecom. We are about to start Proof of Concept of multi-platform smart contract centering around enterprise. Today I try to share hints to face Centralized Player like Amazon by decentralized way. I would like to talk about this theme, "Next-Generation Alliance Infrastructure Utilizing Smart Contract". Before we get started, I like to ask one question.
  2. Are you centralized or decentralized? In today's theme, I would like to tell you that the approach of the alliance will change in the future when providing services.
  3. Speaking of the top companies in centralized service deployment, Amazon would be the first company that most people can think of. The movement of Amazonization around 2017 was so fast,   it “AMAZONIZED” in various fields from internet to real life and fashion to smart home.
  4. Amazon GO, unattended store.
  5. Amazon Restaurants, food delivery service.
  6. Echo Look, Fashion recommendation assistant service.
  7. Acquisition of WHOLE FOODS
  8. Lastly, Amazon Key, In-home delivery smart lock. The Amazon key is an innovative service that personalizes and delivers various services especially from a user's point of view, and KDDI are also paying attention as a company promoting smart homes project. 
  9. I believe that service planners and developers are struggling with how to compete with such a centralized gigantic enterprise.
  10. Of course amazonizion is ongoing rapidly in Japan too. Meanwhile, Japan's telecommunications business has largely been deployed in three companies, and their contract base is like this. And each business is promoting business relationship such as 5G and non-telecommunication business.
  11. In the field of telecommunications business example, there is a connected car. With the experiment using Samsung and the 5G band, we successfully handed over during the vehicle running at a speed of over 190 kilometer per hour, which is the fastest speed in the world.
  12. The next example is AR. In the cafe business I can develop tea with a character of Hatsune Miku for a bit of lonely service.
  13. This is a ceremony in which Hatsune Miku gives the donation money to the mayor by donating a part of the revenue earned by Hatsune Miku's cafe.
  14. Actually, it is only pretending that the mayor has received it. Japan is such a strange but cool country, right?
  15. the TV shopping program which is putting our emphasis on our company is the number one in Japan.
  16. The mobile bank business has been offering for more than 10 years. In the financial business, we are promoting insurance and credit card business even outside banks, and debit card will be around 20 million.
  17. The digital content business of music, books, and films brings significant revenue on the scale of 15 million paid customers.
  18. Finally Smart Home. We are promoting business to introduce IoT to communication customers to provide a more comfortable life.
  19. Like I said, we were able to develop a wide variety of non-communication businesses from the telecommunications business because there were three foundations and an alliance / acquisition strategy. The first is the touchpoint.The second is user base.The third one is the settlement base. We expanded the economic zone using Data and ID and such settlement to collect as set discount with communication fee by alliances and acquisitions to businesses that are engaged in non-communication business.
  20. On the other hand, we added new services, one after another, our whole aspect of our service has been siloed, failed to serve better UX because of it’s different style of services. So now, how to change this situation is a major issue for us.
  21. The next theme is about the direction of the alliance base.
  22. When you are planning and developing services, do you think with a centralized approach? Or is it a decentralized approach? When planning the service, the presence of Amazon can not be ignored, and thinking of these questions gives everyone a headache. How do you fight against them or Do you want to coordinate with them? In centralized companies like Amazon, Platformer controls user contacts and data utilization, whereas in the case of decentralized companies each company is the leading role under the fixed rule, utilizing the data equally, I believe that we can take an approach to autonomously utilize user contacts and services among companies while utilizing user contacts. I would like to describe it in more detail.
  23. Amazon aims to "improve user experience", they are expanding their services by developing their platforms and participating in a number of businesses. Businesses are diverse, including sales, service, IoT devices. In addition, they are preparing platforms related to AI and IoT to support them, and we are deploying Amazon services in a richer way.
  24. The relationship is summarized as follows. Receiving orders and providing services to end users under the brand of Amazon can not fundamentally receive orders and provide services on their own. The advantage of the business side at that time is as follows. The use of services from users of centralized players increases. To be able to control information with a centralized player. On the other hand, the disadvantage is - Under the constraints of the centralized player, it monopolizes the channel, data and service provision method, the service provider weakens and the reliance on the player increases steadily.
  25. What about decentralized alliance base? Each business will be linked to related alliances and will be provided in combination. For example, Those Telecom, Smart Home, Real estate, and Finance are connected with blockchain inside specific business and outside it. By then, We can collaborate many kinds of partners. In the latest Planning PoC, We will verify three issues. First is “Interconnection of blockchain between businesses” Second is “Automatic enforcement of Contract between multiple businesses” Third is “Utilizing data on the blockchain by AI or API connection” Throgh those blockchain network, We aim at maximizing our ecosystem.
  26. The relationship is summarized as follows. A service provider can offer it in an autonomous manner through its own channel in combination with the service of a business chain connected by a blockchain. If new businesses which are trying to provide services also join the blockchain consortium, they can immediately provide new services using consortium data and other businesses as their own services. This will improve the willingness of new service providers to participate and increase the possibility of network expansion. The good part of this method on the business side is that there is no restriction on the provision of channels and services. So service providers can maintain business independence. On the user side, it is possible to use various services from the channels familiar to us on a daily basis, and it has the merit that services can be deployed with existing users. Also, there is no difference in data utilization accumulated in blockchains even in later generations, and it will be a great merit to be able to deploy services.
  27. Finally I would like to introduce our company's POC for decentralized alliances.
  28. The Proof of Consept, currently developing in our case is combining a smartphone repair business and a smartphone reuse business replacing a traditional centralized database to a blockchain in order to each smart contract is connected and automated. We build the interledger between Enterprise Ethereum Quorum and Hyperledger fabric to realize multiplatform business for many kinds of alliances. Actually we assume our repair customer make deal with Delivery company and repair company and so on in Quorum while our Reuse customer make deal with many kinds of franchise store partners.
  29. Next, I would like to introduce the possibilities of smart home use cases using blockchains. This is picture for decentralized connected Smart Home network. For Example, Dad, mother and 4year old daughter case.
  30. at 6:00am,wake up. at 10:30am A neighbor's family visits 8 people together with family. Recognize that many people are visiting Automatically search for neighborhood food delivery service and suggest Automatic execution on blockchain at 11:00am,The room is a mess Recognize the situation where the room is a mess. Automatic search for cleaners to clean during absence Automatic execution on blockchain at 2:00pm,Relax in the living room together as a family Recognize that the whole family is idle Recognize that the distant family is in the same state Automatically suggest a video call with a family, whose time is not suitable usually, and start a video call "A house and a distant house are connected"
  31. at 6:00pm,Relax in the living room together as a family Recognize that the whole family is idle Recognize that the distant family is in the same state Automatically suggest a video call with a family, whose time is not suitable usually, and start a video call."A house and a distant house are connected" at 7:00pm,A courier arrives when you are away Door opening with smart lock only on smartphone of delivery staff scheduled for delivery Recognize that another person opened a key when he was away, activate the camera, automatic recording Automatically send notification to smartphone, start video streaming at 7:00pm Abnormal pattern,Detect intruder Recognize people trying to break into the house Automatically contact the security company, the security company comes Automatically send notification to smartphone, start video streaming Camera image is recorded automatically
  32. at 8:00pm, Coming home Recognize that family arrives home Automatically turn off going out security mode at 9:00pm, Going to bed finally at 11:00pm, The child is sleepwalking around the entrance Recognize that children are about to go outside Automatically lock the door so that the children can not open the door
  33. I think that these are the following problems when aiming at real-time service linked with IoT. Q1: What do you do with reading from multiple devices? → How to process at high speed? Q2: How do you handle large capacity data such as images? → What data should I include in my blockchain? Data processing of on-chain and off-chain?
  34. Even though there are many issues as such, I would like to continue promoting a new business as a “decentralized guy” from now on. Thank you for listening!