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A Roadmap for
Public Utility Networks
Dimitri De Jonghe
@DimitriDeJonghe
Research, co-founder - Ocean Protocol
Co-founder BigchainDB, IPDB, ascribe, Interledger, Spherity
Communication Economy Community Knowledge
Energy & Materials
optimists
realists
pessimists
enablers
Computing
Intelligence
Public funding
For paradigm shift
Moore’s law
Roadmap for Public Utilities
Our Economy = Trusted Institutions
$ ping www.google.com
< PING 172.217.17.36
Our Economy = Trusted Institutions
$ ping www.google.com
< PING 172.217.17.36
Trust Tax
But… Transparency?
Centralized
Economies
from
Silo-ing
Resources
I’ll only open my
data set if I gain
insights and/or
profit from it!
But… Private Data?
But… Provenance & Attribution
Here’s
your
personal
data
We “forgot” an ownership layer...
The
tragedy of the commons
is an economic theory of a situation
within a shared-resource
system where individual users
acting independently according to
their own self-interest behave
contrary to the common
good of all users by
depleting or spoiling that
resource through their collective
action.
Users Applications B2C Service $$$ Services
Consumer goods
E-commerce
…
ConsequencesAppusage
Datagathering&serviceprovision
Datatrading&selling
▪ Lack of data control
and multiple versions
of “you” on different
databases
▪ No right to be
forgotten
▪ No user share in ad
revenue
Individual
How to farm Digital Me (d-Me)?
Where’s my personal data?
Do you need the middlemen?
Can you take control?
Is there an incentive to collaborate?
2008 - Bitcoin
founder(s) “unknown” - 2017: 107B$ Market Cap, 27TWh, 7 transactions/sec
Public Protocol
“decentralized”
Inter-
mediary
Trusted Intermediaries
“centralized”
Adding a layer of digital Trust
Application Application
Information
Trust by Consensus
Information
Hardware Hardware
Internet of information / web 2.0 Internet of value / blockchain / web3.0
Consensus as a Service
Coins & wallets > transactions > blocks > mining > chain
The longest chain wins… or forks
Do you need the middlemen?
Peer to peer - decentralized
Can you take control?
Self-sovereign identities
Is there an incentive to collaborate?
Mechanism design for tokens
Decentralized
Communities
from
Pooling
Resources
Blockchain Superpower:
Get people to do stuff
By rewarding with tokens
Bitcoin goal: maximize security of network
Token rewards if: run compute to secure network
Economic Incentive for Bitcoin
Objective: Maximize security of network
• Where “security” = compute power
• Therefore, super expensive to roll back changes to the transaction log
E(Ri
) α Hi
* T
E() = expected
value
# tokens (BTC)
dispensed each
block
block
rewards
hash power of actor
= contribution to
“security”
Bitcoin goal: maximize security of network
Token rewards if: run compute to secure network
TerraHashes / sec
Ethereum: The World Computer
“Be your own bank”
“Value store for e-gold”
“Tokenize Networks”
“An ICO launch platform”
& cryptokitties
ETH: Blockchain 2.0BTC: Blockchain 1.0
Filecoin: A Decentralized Storage NetworkFilecoin - a Decentralized File Storage Network
Decentralize the Reward Function (& Tokenize)
Proof
Stake
Reputation
Attention
...
Public Utility Networks => Blockchain 3.0?
Public
Permissionless, rent-free
Token is the reward for good behavior > self-sustaining
Utility
The service delivered is useful work
Proof of X drives down margin cost to produce X
Network
Communities: Horizontal > vertical
Building blocks are co-owned, vision is shared
Proof of ...
Resource /
Service /
Utility
Block/Client
Reward
(aka Token)
Proof / Stake
Token
Hashing Power
Transactions
Business Logic
Compute
Storage
Knowledge
Privacy
AI/ML training/testing
Existence
Identity
Burn
Roaming
Bandwidth
...
PROTOCOL
From Community to Utility Pooling
Prediction/Knowledge High Perf. Compute Data & IoT
From Community to Utility
Prediction Markets Dec. Compute Data & IoT MarketsKnowledge
Pools
Com
pute
Pools
DataPools
Decentralizing
Data?
Decentralized Me (de-Me): Personal & Private Data
?DATA Blockchain
Self-sovereignty
Attribution
Commons
Data + Ownership[Blockchain] = self-sovereignty
But… Provenance & Attribution
Provenance of TITLE (IP) Provenance of COPIES
https://medium.com/ipdb-blog/forever-isnt-free-the-cost-of-storage-on-a-blockchain-database-59003f63e01
centralized application stack
FILE SYSTEM
e.g. S3, HDFS
APPLICATION
PROCESSING
e.g. EC2, Azure
DATABASE
e.g. MySQL, MongoDB
Bitcoin Blockchain?
PLATFORM
e.g. AWS, Google App Engine, Heroku
CONNECTNETWORKS
e.g.TCP/IP
HARDWARE
Towards a decentralized application stack
FILE SYSTEM
e.g. S3, HDFS
IPFS, SWARM
APPLICATION
PROCESSING
e.g. EC2, Azure, Ethereum, Hyperledger, Tendermint, Lisk, Corda
DATABASE
e.g. MySQL, MongoDB
BigchainDB
PLATFORM
e.g. AWS, Google App Engine, Heroku, Eris/Monax, BlockApps
CONNECTNETWORKS
e.g.TCP/IP,InterledgerILP
e-Cash/e-Gold
Bitcoin, zCash, Ripple,
Blockstream, Multichain
HARDWARE
IoTA, Riddle & Code, Chronicled, Sawtooth Lake
Immutability
Decentralized Control
Native Assets
Scalable
Queryability
Operationalized
Traditional
Databases
Traditional
blockchains
BigchainDB
“Big Data” + “Blockchain”
- a blockchain database
Blockchain Consensus
Database Consensus
IMPLEMENT A 2 PHASE CONSENSUS
FEDERATION
Single Database
or
MongoDB RethinkDB
Database Options
Big Data Substrate + Federated Consensus / BFT
But… Personal & Private Data?
Interledger
Vertical:
Identity
Value proposition:
Sovereign personal data
GDPR, Right to be forgotten, ...
©ITU/L.Berney, (CC BY 2.0)
Users Applications 3th party services
Consumer goods
E-commerce
Automotive
Consequences
▪ Users and devices
control their data and
access can be
provided and revoked
▪ Only one single
version of your data
▪ Users get share of
revenue generated
from their data
Private Data
Access?
Data
…
Requestpermission
Share$$$
Bring YOUR DATA to the Service
Public Claims
Access?
Data /
Permission
@BigchainDB @GETJolocom
Interledger
Interledger
A protocol for connecting
Payment networks
Blockchains
Banks
Mobile money
The unbanked
Interledger
Vertical:
Government
Land Registry/Real Estate
Value proposition:
Low-cost registry
Less risk of corruption
Low-friction capital markets
©ITU/L.Berney, (CC BY
Digital Twin / Twin of Things - Spherity
Blockchain: a trust network for supply chains
Powered by IoT
57
Recordkeeping
paper, sms, email, calls, …
Inefficiency
change records, own versions/formats, disagreements
10
Tag unique
ID to asset
Info
added
to Digital
Twin
Data on Blockchain
Physical
path
of
asset
Path
of
Digital
Twin
Factory Logistics Retail Customer End of life
Info
added
to Digital
Twin
Info
added
to Digital
Twin
Set Digital
Twin
inactive
Traceability across the supply chain with Digital Twin
Decentralized Database
Assets / Permissioning / Provenance
Secured
Block-chai
ned
Objects
Digital
Twin Platform
DecentralApplications
DecentralApplications
Authorised
Access
Write and
Query Data
Authorised
Access
Send and
receive data
Dash-
boards
User
Enterprise
Apps
Read and write
transaction data
Immutable data transaction
history of Digital Twins
1) DSaaS = Decentral Software-as-a-Service
6
How The Digital Twin Works
Decentral App Service
Open Platform
Technology Ecosystem
3
2
1
third party apps
DT driven Apps
DT Apps Community Apps
API
API
infrastructure and protocols creation of unique identity
Car
Pass
Object
Tagging
Supply
Chain
App App App App App …
innogy Apps
VSE
“Design
Netz”
Innogy
renewables
Urban
Concepts
Digital Twin Platform
Others
60
Digital Twin (DT) Platform and decentral App services
Innovation as a Luxury
61
DATABASE
IPDB
CLIENT SIDE APP
BROWSER/JS OR MOBILE APP
A digital twin for Cars
Provenance
+
Fraud detection
Decentralized AI
1 ZB1
16 ZB2
2010
2016
2025
160+ ZB2
1) Source: Apixel
2) Source: Storagenewsletter
Data is growing exponentially
1 ZB1
16 ZB2
2010
2016
2025
160+ ZB2
1) Source: Apixel
2) Source: Storagenewsletter
3) McKinsey
% of data
analyzed3
But only a small amount is analyzed and shared
Market value of data in 2030 GDP of Germany in 2016
Up to 3.8 trn. USD1
3.5 trn. USD2
1) Source: Ocean Protocol analysis
2) Source: Worldbank
Unlocking data will open up Trillions in value
https://en.wikipedia.org/wiki/File:HTM_Hierarchy_example.png
Deep Learning: Neural Networks * Moore’s Law
≈1950s algorithms on 1000x+ more storage & compute
Deep learning
models with >> capacity
Error 5% .. 0.01%
Models with limited
capacity Error 25% .. 5%
Another 1000x more
data
Deep Learning Loves Data
▪ AI needs data
▪ Without data, AI models are not
accurate
▪ 150 fundamental use cases across all
industry sectors identified
▪ AI advances 6x faster, if data is
available
AI is starving for data
Have lotsa data
(enterprises)
Have lotsa AI
(AI startups)$$
Data is siloed. Humans are farmed.
AI monopolies threaten our future.
Let’s change the rules of the game with incentives.
Democratize access to Data & AI!
Self-sovereignty, attribution & privacy is core
Dimitri De Jonghe
@DimitriDeJonghe
Vision & Mission
Have lotsa AI
(AI startups)
Have lotsa data
(enterprises)
Have lotsa AI
(AI startups)
Have lotsa data
(enterprises)
Market Market Market Market
Market Market Market Market
Ocean Protocol
A new data economy
Blockchain-Based Machine Learning Marketplaces
https://medium.com/@FEhrsam/blockchain-based-machine-learning-marketplaces-cb2d4dae2c17
Open markets + incentives + attribution
impacts the intelligence supply chain at
large scale
Data providers: Data pooling
AI/ML experts: Model Competition
Infrastructure: Ad hoc/Flexible
Model users: Commons, Enterprise, Personal
PRIVACY...
Decentralized AI: Companies can deploy models to be trained or used in the field without risking
their intelligence being stolen.
Protected Consumer Privacy: the previous application opens up the possibility that consumers
could simply hold onto their data, and "opt in" to different models being trained on their lives,
instead of sending their data somewhere else. Companies have less of an excuse if their IP isn't at
risk via decentralization. Data is power and it needs to go back to the people.
Controlled Superintelligence: The network can become as smart as it wants, but unless it has the
secret key, all it can do is predict jibberish.
Privacy-preserving Decentralized AI
http://iamtrask.github.io/2017/03/17/safe-ai/
Client
contracts
metadata
block N-3
proofs
accounts
Client Service
API
Keepers
Node
N2
N4
VerifierService
API
Service
API
Proof
ask
bid
access
authorize
verify
access
challenge
1. Contract setup 2. Access Control 3. Verification
verify
proof
CONTRACT 0x12345...
Lock: Consumer.fee
Execute: Proof.valid
Abort: Timeout
response
contracts
metadata
block N-2
proofs
accounts
contracts
metadata
block N-1
proofs
accounts
contracts
metadata
block N
proofs
accounts
CONTRACT 0x12345...
Lock: Consumer.fee
Execute: Proof.valid
Abort: Timeout
Data Source:
● Tokenized access control
● Curated
Decentralized Model
● Community owned
● Benefits for the commons
Service
(Data + Proof)
Reward
(Token)
CONTRACT
Lock
Execute
Abort
CONTRACT
Lock
Execute
Abort
Data Service:
● Royalty Attribution
● Contract-driven supply chain
● Algorithms, labels,
visualizations, ...
% Royalty Reward
(Token)
Reward
(Token)
CONTRACT
Lock
Execute
Abort
CONTRACT
Lock
Execute
Abort
CONTRACT
Lock
Execute
Abort
CONTRACT
Lock
Execute
Abort
CONTRACT
Lock
Execute
Abort
CONTRACT
Lock
Execute
Abort
CONTRACT
Lock
Execute
Abort
CONTRACT
Lock
Execute
Abort
CONTRACT
Lock
Execute
Abort
CONTRACT
Lock
Execute
Abort
Autonomous Machines
Personalized Recommenders
Global Monitor
PRIVACY
Federated Learning + Privacy
https://research.googleblog.com/2017/04/federated-learning-collaborative.html
https://github.com/OpenMined/Docs
http://iamtrask.github.io/2017/03/17/safe-ai/
OpenMined Partial
Homomorphic
Encryption
Service Integrity: Crypto-Proofs of Service
Verifiable Computation & Execution
procedure circuit
procedure circuit
transcript
computation + setup
input
execution
output
query transcript
response
verify response
more query - response
verifier prover
Or Secure enclaves:
- SGX
- ARM Trustzone
Protocol realizes Function
Multi-party Computation
Proxy re-encryption
Secure infrastucture: [virtual] HSMs
Public storage & compute
Network glue for scale
Public data & intelligence marketplaces
Decentralized Intelligence Ecosystem
Community Governance
“Make opinion scarce”
Crypto-economic Primitives
Token-curated registries, curation markets, stake machines
https://medium.com/@DimitriDeJonghe/curated-governance-with-stake-machines-8ae290a709b4
What unlocking AI
data & services
unlocks
Self-driving cars: fewer accidents, more mobility
>100x more data for health
care research
Personalized Care, Medicine,
Prevention and Coaching
Universal Recommender: Push => Pull Marketing
Dimitri De Jonghe
@DimitriDeJonghe
Decentralized Markets for Data and Artificial Intelligence

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