This document discusses how combining IoT and blockchain technologies can help solve issues with supply chains, businesses, and data security. It identifies three main challenges: standards, scalability, and security. A solution is proposed to use blockchain for trusted data signing and distributed ledgers, along with additional services like data storage to improve performance and integration with existing systems. This would provide a more efficient, trusted, and decentralized digital backbone for applications and businesses.

1. Bridging Blockchains and the IoT - How to
Build the Operating System for Smarter
Businesses

3. We’re in 2019. Can we do better?
How?

4. IoT + Blockchain = <3
§ Blockchain has the potential to solve all three po
Blockchain
&
IoT

5. Combining IoT + Blockchain Can Fix Supply Chains!
Sensors allow tracking the history, usage or location of stuff.
ORIGIN OF MATERIALS PROCESSING HISTORY DISTRIBUTION & LOCATION CONDITIONS OF STORAGE
SUPPLIERS MANUFACTURERS DISTRIBUTORS RETAILERS CONSUMERS
BLOCKCHAIN

6. Blockchain + Internet of Things Can Fix Broken Businesses!
Trusted sensors to measure
real-world conditions/state
(temperature, location, etc.)
Distributed ledger to record data
for sharing, audit purposes,
trigger smart contracts
+

7. Today – The Main Challenges (3S’s)
Standards Scalability Security

8. IoT is Growing! Fast!

9. S1 – Standards – The Problem
Internet Of Things
ZigBee
Bluetooth
X10
Bacnet
enOcean
"I hate
my life!"
SECURITY
LIGHTS
HEATING &
COOLING

10. S1 – Standards – A Solution: The Web of Things
Internet Of Things
ZigBee
Bluetooth
X10
Bacnet
enOcean
"I hate
my life!"
SECURITY
LIGHTS
HEATING &
COOLING
Web
Web
Web
Web
Web
Web Of Things
"Easy-peasy!"
Building
Control
Center

11. Why "Web” of Things?
1. Leverage Web infrastructure & tooling
• TCP/IP & Web granted, Wi-Fi routers ubiquitous
• HTTP, HTML, JSON, RSS, MIME, caching, authentication, etc.
2. HTTP ideal for large-scale distributed systems
• Flexible, loosely coupled, scalable, lightweight, etc.
3. Integrates with existing WWW
• Blend real-world services and devices with the Web
4. Web stack is easy to learn
• Building Web apps is much cheaper & faster than embedded systems

12. S2 – Blockchains ain’t ready as backbone for a “global” IoT
§ Blockchain limitations
• Storage & TPS are typically low
• Not enough for a global IoT
• Low-level programming
• Bet on the right blockchain
• Variable network fees
• Unpredictable cost of usage
• Complex integration with Web
• No Standard API/model for data
• Services/tooling missing or beta
• Lots of wheel reinvention
BLOCKCHAIN

13. Additional Services Layer is Necessary.
§ Ambrosus builds L2 services with
• Most data stored off-chain
• High-performance at low cost
• Handles private & public data
• High-level Abstractions
• Easy to build/scale/operated (d)apps
• Web of Things API & Standards
• Fixed Network fees
• Easy to predict costs of use
• Various services & tooling
• Identity management
• SDKs & Dapps templates
BLOCKCHAIN
Distributed
Data
Storage
API
Gateways
Decentralised
Services
APIs + Developer SDKs
Sensors
and Tags
Enterprise
IT Systems
Mobile/Desktop Field
and Consumer
Applications
BLOCKCHAIN

14. S3 - End-to-end Trusted Data Signing is a must
IOT
Cloud
SENSORS GATEWAY
IOT
CLOUD
BLOCKCHAIN
IOT
Cloud
IOT
Cloud
Secure Edge
Gateway
Secure
Sensor
Off-the-shelf
Sensor
Off-the-shelf
Sensor
Off-the-shelf
Gateway
Off-the-shelf
Gateway
99% of IOT
Systems today

15. Summary
Combining IoT & Blockchains provides the ideal backbone
for a future digital economy. One where applications, cities,
and businesses can be smarter, more efficient, more trusted,
and - especially - more decentralised.
§ Building IoT + Blockchain (d)apps is hard – good tooling makes it easier
§ “The high-level standard to bind them all” is still needed
§ Blockchain-level security is great, yet rare in IoT space
§ Layer 2 solutions are key to enable a truly global backbone for IoT

16. vlad.trifa@gmail.com tech.ambrosus.com
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