Blockchain & IoT An appealing combination
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1 What the internet did for communications, blockchain will do for trusted transactions. Blockchain & IoT An appealing combination breaking-out at 14:00 for an IoT-spin around the block(chain) Watson IoT comes to you Amsterdam Rick Reesen - Blockchain Lead for BeNeLux 1
2 Problem Participant A s records Participant B s records Bank records Insurer records Regulator records Auditor records inefficient, expensive, vulnerable 2
3 A shared replicated, permissioned ledger Participant A s records Participant B s records Bank records Blockchain Insurer records Regulator records Auditor records with consensus, provenance, immutability and finality 3
4 Blockchain underpins Bitcoin is: An unregulated shadow-currency The first blockchain application Resource intensive Blockchain for business differs in key areas: Identity over anonymity Selective endorsement over proof of work Assets over cryptocurrency Page 4 4
5 Transferring assets, building value Anything that is capable of being owned or controlled to produce value, is an asset Two fundamental types of asset Tangible, e.g. a house Intangible, e.g. a mortgage Intangible assets subdivide Financial, e.g. bond Intellectual, e.g. patents Digital, e.g. music Cash is also an asset Has property of anonymity 5
6 Requirements of blockchain for business Append-only distributed system of record shared across business network Shared ledger Smart contract Business terms embedded in transaction database & executed with transactions Ensuring appropriate visibility; transactions are secure, authenticated & verifiable Privacy Trust Transactions are endorsed by relevant participants 6
7 Blockchain benefits Saves time Removes cost Reduces risk Increases trust Transaction time from days to near instantaneous Overheads and cost intermediaries Tampering, fraud & cyber crime Through shared processes and recordkeeping 7
8 Potential use cases Few examples by (selected) industry Financial Public Sector Retail Insurance Manufacturing Trade Finance Cross currency payments Mortgages Asset Registration Citizen Identity Medical records Medicine supply chain Supply chain Loyalty programs Information sharing (supplier retailer) Claims processing Risk provenance Asset usage history Claims file Supply chain Product parts Maintenance tracking 8
9 BikeBlockChain PoC how networks can evolve (inc. IoT) Bicycle manufacturer -Registers bike -Transfers ownership Bicycle shop - Registers bike identification - Registers lock with bike - Transfers ownership LoRa Lock - Registers open/ close status and location Owner - Reports lost - Transfer ownership - Request insurance claim - Check status claim Owner -Deregisters bike (wreck, disposed) Municipality - Receives anonymized parkng locations As registered by LoRa lock) for urban planning Insurer - Validates stolen claim (smart contact: owner report lost + police report) - Update claim status Police - Register notice of owner of Lost / stolen bike -Registers bikes that are found -Registers bike scrapped (smart contract: after 3 months registers as found and owner did not claim) 2016 IBM Corporation 9
10 IBM Blockchain Blockchain and Supply chains 10
11 Blockchain and IoT for Supply Chain & Trade Finance Carriers Transportation management. Supply Chain Actors Customs Dashboard GTD Platform Supply Chain Visibility systems Shippers (Blockchain) Logistic actors internal systems Supply Chain Management Trade Associations Port community systems Terminals Authorities
12 IBM Blockchain The orientation and sandbox-phase is behind us Blockchain for supply chains and retail (food safety) and more to come soon... Business networks are emerging fast and start to form a network of networks 12
13 IBM Blockchain IoT and Blockchain for food supply chains and retail 13
14 IoT and Blockchain for pay per use - example Business Model considerations Sells Elevator as a Service Needs transparent SLAs Needs engineering feedback Re-sells/bundles EaaS Needs performance data Verify maintenance SLA Manufactorer Building owners Verify maintenance records Requires transparency Likes predictability Proof and Bill service hours Review maintenance actions Could be liable for accidents Safety inspection Maintenance firm Customers (i.e. tennants) Requires transparency Wants to pays for up-time hours only
15 Technical overview an integrated platform for making it real Manufactorer Building owners Node.js IoT Platform Blockchain Cloudant NoSQL DB Safety inspection Maintenance firm Customers (i.e. tennants)
16 Developers view Node.js Dashboard extention Cloudant NoSQL DB Device data transmitted on MQ-tt Lift generates data All data IoT Platform Blockchain extention Device mapping REST API MaintenanceStop Chain code Blockchain
17 IBM Blockchain IBM Strategy: Transforming Industries with Blockchain IBM Blockchain Ecosystem Support Education, support and partner services to create a thriving ecosystem for Blockchain Blockchain Solutions Build Operate Invest Provide Solutions to transform business processes and industries by creating and operating Blockchain Business Networks with enterprise participants IBM Blockchain Platform Provide Secure Blockchain Platform on the Cloud with developer services and production grade capabilities to enable the creation and management of Blockchain business networks Project Invest With The Linux Foundation community to ensure the best possible foundation for Blockchain in a commitment to open standards, open source and open governance *Hyperledger Fabric is a blockchain framework implementation and Hyperledger Composer is a tooling environment for blockchain and two of the projects hosted by The Linux Foundation. 17
18 IBM Blockchain August Leverage existing IBM Cloud solutions IoT Platform And make your blockchain smart contracts smarter with business rules Taking blockchain smart contracts to the next level with ODM ain-smart-contracts-with-odm/ See also this excellent explanatory video and demo: 18
19 What the internet did for communications, blockchain will do for trusted (IoT) transactions. Thank you! for an IoT-spin around the block(chain) developer.ibm.com/blockchain 19
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