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

1. Alexander Hirner (@cybertreiber)

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
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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
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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
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 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

11. Community: Ethereum Vienna
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4 pics
Slovenia 3rd meetup
own projectsBerlin Dev HQ

12. Concrete Projects
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 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
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 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

14. Sources
 http://bits.blogs.nytimes.com/2014/10/09/ge-opens-its-big-data-platform/?_r=1
 Blockchain explained: https://www.youtube.com/watch?v=YIVAluSL9SU
 https://twitter.com/swardley/status/584835106818367489
 https://github.com/ethereum/wiki/wiki/White-Paper
 http://www.gartner.com/newsroom/id/2819918
 http://public.dhe.ibm.com/common/ssi/ecm/en/gbe03620usen/GBE03620USEN.PDF
 https://gigaom.com/2014/09/09/check-out-ibms-proposal-for-an-internet-of-things-
architecture-using-bitcoins-block-chain-tech/
 http://www.openmote.com/iot-tutorial-by-matthias-kovatsch/
 DTLS: https://datatracker.ietf.org/doc/draft-ietf-dice-profile/
source(s): [ ] Alexander HIrner 13