Meinhard Benn has founded SatoshiPay. He is an experimenting businessman, a miner, a trader and a fan of cryptocurrency, who promotes Bitcoin ecosystem globally.

1. M2M Payments
@meinharrd | @SatoshiPay

2. Machine to machine?

5. 1971: Caller ID for landlines

6. First machine to machine communication

8. 1982: Carnegie Mellon University Coke machine

9. First IoT device

10. 1995: Siemens M1 GSM module

11. Stripped down Siemens S6

12. IoT going mobile

13. Industrial applications:
monitoring, tracking, telematics

14. Point of sale terminals

15. After 2000: More features, faster, smaller

16. Payments

17. Proprietary solutions by
KORE, Gemalto, FTS

18. Revolving around vending machines and POS

19. Future use cases

21. Road tolls

23. Public charging stations

25. Selling sensor data

27. Drones charging for delivery

29. Decentralised computing

30. M2M payment benefits

31. No cognitive load

32. Instant

33. Cost-effective

34. Deep integration in business logic / contracts

35. Permissions

36. Anonymity

37. Challenges

38. Transaction fees:

39. Cryptocurrencies potential solution

40. Security:

41. Storing payment data on devices

42. Legal:

43. “The current revision of the European Payment
Services Directive is not fit for M2M payments.”
Prof. Dr. Rolf H. Weber (Zürich)

44. Cryptocurrencies

45. Also known as blockchain

46. No coin, no chain

49. Open

50. Programmable money

51. Standardised

52. Identity

54. 21 Inc

55. Pre-installed payment infrastructure

56. + ?
2
(2013)(2014)

57. Cryptocurrency shortcomings

58. Not instant

59. Blockchain bloat

60. Relatively high fees

61. Solution: Smart Contracts

62. Bitcoin Payment Channel

63. Contract between sender and receiver

64. Funds parked on multi-signature escrow address

65. Transaction drafts exchanged “off-chain”

66. Contract can be executed by both parties
at any given time

67. Sender Recipient

68. Tx
Sender Recipient

69. Tx
Sender Recipient

70. Escrow
Sender Recipient

71. Funding Tx
Escrow
Sender Recipient

72. Funding Tx
Refund Tx
Escrow
Sender Recipient

73. Funding Tx
Refund Tx
Payout Tx
Negotiation
Escrow
Sender Recipient

74. Funding Tx
Refund Tx
Signature
Payout Tx
Signature
Negotiation
Escrow
Sender Recipient

75. Funding Tx
Refund Tx
Payout Tx
Signature
Payout Tx
Signature
Negotiation
Escrow
Sender Recipient

76. Funding Tx
Refund Tx
Payout Tx
Signature
Payout Tx
Bitcoin Network
Signature
Negotiation
Escrow
Sender Recipient

77. Funding Tx
Refund Tx
Payout Tx
Signature
Payout Tx
Bitcoin Network
Signature
Negotiation
Payment Channel
Escrow
Sender Recipient

78. Funding Tx
Refund Tx
Payout Tx
Signature
Payout Tx
Bitcoin Network
Signature
Negotiation
Payment Channel
Escrow
Sender Recipient

79. No fees apart from 2 transactions

80. Instant

81. No blockchain bloat

82. Nanopayments

83. Lightning Network

84. Bidirectional payment channels

85. Iota

86. Cryptocurrency designed for M2M payments

87. Some crazy shit: tangle, trinary, lazy tips

88. Whitepaper: iotatoken.com

89. HTTP 402 (Payment Required)

90. Added to HTTP/1.1 in 1996

91. “This code is reserved for future use.”

92. HTTP 402 response with additional headers

93. No standard for payment headers

94. 21 Inc or ZeroClick

95. Example client request:
GET /paid-content.html

96. Server response:
HTTP 402
X-Price: 2500
X-Bitcoin-Address: 1F1tAaz5x1HUXrCNLbtMDqcw6o5GNn4xqX

97. Client payment:
GET /paid-content.html
X-Signed-Bitcoin-Transaction: bd770796a9e790...493bb7d449485cf3

98. Server ships content:
HTTP 200
<h1>Here is your content, have fun with it!</h1>

99. docs.satoshipay.io/api

100. Thanks!
@
m
einharrd
@
SatoshiPay
slideshare.net/m
einhard