The document discusses key topics related to smart cities and the Internet of Things, including incentives, identities, smart contracts, and automated provisioning. It describes a vision for ubiquitous access to sensors and data while protecting privacy. Open standards like IoT Harmonization are presented as a way to define ownership, authorize access, and establish an economic model where users share costs. Legal identities, smart contracts, and a proposed electronic currency called eDaler are discussed as elements of this framework. A series of lectures and labs are also announced on topics like building smart city infrastructure, encryption, and earning through data sharing.

1. © Waher Data AB, 2018.
Smart City Lecture 6
Earning by Sharing
in the Smart City

2. © Waher Data AB, 2018.
1. Recapture

3. © Waher Data AB, 2018.
Smart City / Society
 Automation
 Open Data
 Transport
 Traffic (C-ITS)
 Parking
 Utilities
 Health Care
 Law enforcement
 Schools
 Libraries
 Waste management
 Citizens?
 …
Smart for whom?

4. © Waher Data AB, 2018.
Topics discussed
 Smart City
 Privacy
 Openness
 Security
 Harmonization
 Cryptography

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Vision of a Smart City
 Ubiquitous access to interoperable
sensors and things.
 Ubiquitous access to data and
information from society’s authorities.
 Access to smart services in all niches of
society.
 Definition of ownership of information.
 Protection of Privacy, by design and by
default.
 Market for access to things and data.

6. © Waher Data AB, 2018.
IoT Harmonization (IEEE 1451-99)
 Sensor Data
 Control Operations
 Localization (M2M, M2H)
 Tokens for distributed transactions
 Decision Support (for devices)
 Provisioning (for owners)
 Peer-to-Peer communication
 End-to-end encryption
 Concentrator/Bridge (“Thing of things”)
 Discovery
 Ownership
 Clock Synchronization
 Secure Account Creation
 Legal Identities
 Contracts
 Automated provisioning
 Economic feedback
https://gitlab.com/IEEE-SA/XMPPI/IoT

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2. Incentives

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Dilemma
Would you publish your things on the Internet?
 You would add risk to your solution
 You would degrade the performance
 Competitors could do what you do
 But cheaper
(they don’t have to buy equipment)
A crucial element is missing.

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Protectionism
Companies want to protect:
 Access to customers
 Existing business model
 Domain of influence
Closed proprietary solutions familiar,
instinctively help companies feel safe &
protect Status Quo.

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Risks of not opening up
Which would you choose?
 Open solution
 Closed/Proprietary solution
if otherwise equivalent

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Operator Self-Interest
Are interests aligned between?
 Manufacturer
 Publisher
 (Big Data/Cloud/Telco) Operator
 Service Provider
Incentives have to benefit all

12. © Waher Data AB, 2018.
Proprietary API’s vs. Open Standards
vs

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IoT Harmonization
 Helps secure infrastructure
 Defines and protects ownership
 Owner defines rules for access
 Consent-based authorization
 Public Registries
 Discovery
 ROI based on access & usage

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Economic Feedback = Smart
 Incentive to publish devices
 Users share costs
 Better use of resources/money
 Allows for more devices & services
 Promotes interoperability
 Fosters constructive cooperation
 New type of competition
 Lowers prices
 Increases quality

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Horizontal Markets
New open markets permit:
 New roles
 Horizontal markets
 Cross-domain fertilization

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Incentives for opening up
 New markets
 Broader markets
 Do more with same resources
 Cost ⇒ Investment (& ROI)
 Cross-domain fertilization
 Localization
 Simplifies Integration
 Reduces development times

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3. Legal Identities

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Identities
Identities affect your security:
 Anonymity
 Strong identities
Pseudonyms
Legal Identities

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Anonymity
 Protects
Whistle blower
Dissident
(Criminal)
(Terrorist)
 Security decisions difficult
 Facilitates leaking personal data
How do you protect sensitive information, if you don’t know
who’s on the other end?

20. © Waher Data AB, 2018.
Strong Identities
 Protects information owners
 Allows selective responses
 Can be used to track
individuals
Logging for security purposes is legitimate. How can you
make sure logging is only used for security purposes?
(One answer: Use of standardized, open software that are
agnostic to the purposes of processing, such as brokers and
End-to-End encryption of payloads.)

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Legal Identities
 Pseudonyms sufficient for
protecting existing information
 Legal identities required for
exacting accountability
Promises on future events
Smart Contracts

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IoT Harmonization
 User applies, with:
 Cryptographic keys (ECC)
 Network identity (JID)
 Legal Identity
 Trust Provider
 Authentication Out-of-band, ex:
Ocular
Bank ID
 Broker operator
Federated trust
 Separate Legal Identity
Attests signatures and states

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Access
Access given to:
 Parts in signed contracts
 Through identifier
 No network identity
 Trust Provider
 Broker operator
 Access to network identity

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4. Smart Contracts

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IoT Harmonization
 Container format
 Repository of contracts
 Users upload
 Legal identities sign
 Parts have access
 Content machine readable
 Delegation of legal responsibility
 By Trust Provider
 Terms and Conditions

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Container Format
 Contract Identity
 Legal Content
 Timestamps
 Options
 Visibility
 Signatures
 Legal Identity-identity
 Cryptographic Signatures
 Timestamp
 Trust Provider (Notary)
 Attests validity

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Signatures
 Public Key Cryptography (ECC)
 Parts
 Approved legal identity
 Attests Contents
 Trust Provider
 Notary
 Attests
Contents
Signatures
States
Validity

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Contents defined in XML
 XML
 Machine readable
 Transportable (XMPP)
 Namespace defines scope
 Flexible
 Extensible
Federated on domain name
 Well-defined
 XML Schema
 Assures
Completion
Well-formedness

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Summary
 Federated Trust
Trust Provider =
Broker Operator
Attests (Notary)
Distribution of risk (resilience)
 Access
To parts
To operator (notary)
Protects Privacy
 Cryptographic signatures
(ECC)

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5. Automated
Provisioning

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Zero-configuration networking
1. Finding Owner
Offloads manufacturing
2. Discovery
Offloads configuration
3. Decision Support
Offloads operator
4. Automation with Smart
Contracts
Offloads owner

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1. Ownership

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2. Discovery

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3. Decision Support

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4. Smart Contracts

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6. Economic Feedback

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Economic Feedback Model
 Smart Contract defines:
 Data fields
 Operations
 Frequency
 Fees & Tariffs
 Access
 Readout
 Control
 Thing reports usage
 Broker
 Accumulates usage & claims
 Reports payment instructions
 Out-of-band

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eDaler
 New type of electronic currency
 Ties into IoT Harmonization
 Federated Trust
 Backed by real value
 New features
 Online & Offline transactions
 Protected against theft
 Environment friendly
 Application agnostic
 Prevents criminal use
 Protects privacy

39. © Waher Data AB, 2018.
7. Events

40. © Waher Data AB, 2018.
Smart City Lectures*
1. How to build a Smart City (Oct 4th)
2. Privacy in the Smart City (Oct 18th)
3. An Open and/or Secure Smart City (Oct 25th)
4. Harmonizing the Internet of Things (Nov 8th)
5. Introduction to Encryption (Nov 15th)
6. Earning by Sharing in the Smart City (Nov 22th)
7. eDaler (Tentative Dec 12)
8. …
(*) Funded by Swedish Internet Fund.

41. © Waher Data AB, 2018.
Smart City Labs*
1. Sensors and actuators (Oct 10th)
2. Connect and chat with your device (Oct 17th)
3. Publishing data from your sensor (Oct 24th)
4. Publishing and discovering devices (Nov 7th)
5. Controlling actuators (Nov 14th)
6. Decision Support for your devices (Nov 21th)
7. Smart Contracts
8. …
(*) Funded by Swedish Internet Fund.

42. © Waher Data AB, 2018.
 Raspberry Pi & Arduino
 Sensors, Actuators, Controllers,
Concentrators, Bridges
 Protocols:
MQTT, HTTP, CoAP, LWM2M, XMPP
 Interoperability
 Social Interaction
 Decision Support
 Product Lifecycle
 IoT Service Platforms
 IoT Harmonization
 Security
 Privacy
Amazon
Packt
Microsoft Store
Contact: https://waher.se/, https://littlesister.se/
Mastering Internet of Things

43. © Waher Data AB, 2018.
8. Open Discussion
Ownership?
Privacy?
Security?
Surveillance?
Interoperability?
Cool stuff?
Qué?
eDaler?
Who pays?
What could go wrong?
Little Sister?
Harmonization?