The document outlines a demonstration of a blockchain micropayment system using the μraiden framework for efficient billing and transactions on the Ethereum network. It details the mechanics of establishing micropayment channels between clients and service providers, bypassing slow confirmation times and high transaction fees associated with traditional blockchains. Additionally, it discusses practical applications of blockchain for mobile banking, data management, and real-time billing systems.

1. New York USA
London UK
Munich Germany
Zug Switzerland
New York USA
London UK
Munich Germany
Zug Switzerland
TAD Summit 2017
Blockchain Micropayments Demo

2. •Blockchain (few slides…)

3. Blockchain
When do we need it?
• Blockchain (distributed ledger) is a network that records ownership through a shared registry
• It eliminates the need for central authorities to authenticate and clear transaction
• Can be open, verifying anonymous transactions,
or closed and requiring actors to be authenticated
CENTRAL
DATABASE
CENTRALIZED LEDGER
DISTRIBUTED LEDGER

4. Blockchain
How it works

5. • Mobile banking and micropayments, including MI and IoT use cases
• Device identity & authentication, data time-stamping and
asset management
• Contract-as-a-Service for enterprise-facing telcos
• Manage SLAs for CSPs' own network services
• An efficient billing system that accurately tracks usage of services and instantaneously
charge their subscribers
• NFV monetization, fraud prevention, wholesale reconciliation and data-integrity protection
Blockchain
Suggested Use Cases

6. Blockchain
Technologies

7. •Blockchain Micro-Payments – Idea

8. • Create simple and efficient billing system that can accurately track subscribers' use of the
services and instantaneously charge their subscribers
• Streamline operational and business processes by adopting hybrid blockchain networks
• Overwhelm blockchain scalability limitations
• Building blocks: Telestax Restcomm,
Speech Recognition AI,
µRaiden
Blockchain Demo
Idea

9. • An open source payment channel framework for fast & free off-chain ERC20 token
transfers between two parties
• Complementary to the Ethereum blockchain
• Business models involving frequent payments between the client
and the service provider are not efficiently possible on current
blockchains due to slow confirmation times and high transaction fees.
• Using µRaiden, service providers can comfortably cover Pay-per-Use
scenarios (APIs, digital content and utilities) via micropayments in
Ethereum based tokens
µRaiden
read: Micro Raiden

10. •Demo

11. • Restcomm App requests for speech
recognition services
• Restcomm Media Server pays tokens for
each word recognized by external
Speech Recognition Service
• µRaiden implements the ERC20-based
authentication and micropayments
• Everything works in the Kovan or
Ropsten Revival testnets
Blockchain Demo
Architecture
SIP
MGCP
RTP/UDP
Speech API
(wrapper)
Restcomm
RCML
Media Server
Ethereum Blockchain

12. • Part of the network of unidirectional payment channels
• Managed by dedicated smart contract that works as an escrow*
• No need to transact every micro-payment on the blockchain, so do not cost any gas
• Transfers are secured and trustless, backed by an on-chain deposits
• Few parameters: GAS Price, Channel Lifetime in Blocks, Deposit in Tokens
• Can be closed by sender and receiver at any point in time
*third party that holds and regulates payment required for two parties involved in a given transaction
Blockchain Demo
µRaiden Micropayment Channel

13. 1. Client ("sender") opens a micropayment Channel with the provider ("receiver") using Ethereum Wallets
2. Sender funds the channel and creates Deposit with a certain number of Tokens
3. Consuming the service, Sender sends signed Cheque (balance proof) to Receiver
4. Receiver verifies signature on the Cheque and
decides on the further provisioning of service
(Steps 3 and 4 can be repeated)
5. Receiver may decide to claim the collected Tokens
from the channel and cashes the Cheque
6. Receiver closes the Channel
Blockchain Demo
Process
BlockchainSender Receiver
Channel
Deposit Cheque
53
4
2
1

14. Three main parts: Driver, Billing Service, VR Service.
• Driver – VR Service: binary format for communication through Java NIO
Netty server
• Driver – Billing Service: REST
Spring Boot with embedded Tomcat
• Billing Service – VR Service: REST, JSON format
Spring Boot with embedded Tomcat
• WebSocket is used for push notifications from Backend to UI in Billing Service (when
a new Cheque generated) and in VR Service (when the new Cheque received)
• UI for both applications implemented on Angular 2
Blockchain Demo
Implementation

15. 1. Started with 1810,
2. Opened Channe#1 and deposit 50
balance is 1760
3. Spent 2 and 4 (one and two words
are recognized)
4. Opened Channel#2 and deposit 50
balance is 1710
5. Creating new channel
Sender informs Receiver that he may cashe the cheque
6. Closed the Channel#1, signed cheque and got back deposit minus 6, balance is 1754
Blockchain Demo
Recording…

16. 1. Started with 1810,
2. Opened Channe#1 and put 50 as deposit,
balance is 1760
3. Spent 2 and 4 from Channel#1 deposit,
4. Opened Channel#2 and put 50 as deposit,
balance is 1710
5. Creating new channel Sender informs Receiver that he may cashe the cheque
6. Closed the Channel#1, signed cheque and got back deposit minus 6, balance is 1754
Blockchain Demo
An Explanation…
Channel 1
50 TKN, -2 TKN, -4 TKN
Channel 2
50 TKN
1810 171050 2 4 50 441760 1754

17. •Thank You!

18. • https://raiden.network/micro.html
• https://hackernoon.com/%C2%B5raiden-micropayments-for-ethereum-
f0756cd400b3
• https://raiden.network/101.html
• https://medium.com/databrokerdao/enabling-micro-transactions-in-
the-ethereum-erc20-based-databrokerdao-iot-marketplace-with-the-
3020d729b10e
Blockchain Demo
Useful links