Blockchain and Internet of Things: Why a Perfect Match. Fabio Antonelli - Head of FBK - CREATE-NET Research Center

Transcription

1 Blockchain and Internet of Things: Why a Perfect Match Fabio Antonelli - fantonelli@fbk.eu Head of OpenIoT@ FBK - CREATE-NET Research Center

2 About me Fabio Antonelli Head of OpenIoT Research Unit in FBK CREATE-NET Trento, Italy Applied Research and Experimentation on Open Platforms and Enabling Technologies for the Internet of Things

3 Agenda Brief history Blockchain: what is and how it works Blockchain for IoT Main application patterns and cases IoT Challenges and Blockchain Main Benefits A market perspective Open challenges

4 Origins of Blockchain 2008, Satoshi Nakamoto Core component of the digital currency The problem: How to perform digital currency transactions between users directly, without an intermediary Bank PayPal CC Circuit

5 Blockchain and Disintermediation 10 Only 1 person owns some money at a certain moment Cash can t be spent twice Disintermediation: No central authority or 3 rd trusted parties

6 Blockchain: How it works Structure of the ledger Chained Transaction logs A B: 10 b B C: 10 b. Blocks. Decentralized network of the ledger (decentralized transactions database).

7 What is Blockchain Services. bitcoin Asset tracking. Contracts ( rules of the game ) Technological infrastructure supporting transactional services Decentralized network of nodes and ledger Peer to Peer secure communication Decentralized Consensus mechanism Trustless playground

8 Blockchain: From BitCoin & FinTech Applications towards IoT Device Democracy Devices are entitled to autonomously execute transactions Economy of Things Devices become part of the value exchange in the IoT ecosystem

9 IoT Device Empowerment: Examples Trustfully recognized Autonomous Behaviour Autonomous Device Interaction Smart Locks Automatic e-car recharging and payment

10 IoT Device Empowerment: Examples The ADEPT Project by IBM and Samsung Proof of concept platform Decentralized marketplaces open to IoT devices

11 Immutable Asset tracking and Transactions Recording At the basis of economic, legal and political systems: Contracts Transactions Definition of rules and agreements Tracking Verification Proof of value Records Many application domains: Insurance Logistics Manufacturing (supply chain)

12 Immutable Asset tracking and Transactions Recording: Examples Insurance Contracts: simplified, automated processes, increased standardisation and automatic, electronic execution Micro-Insurance: Sharing economy scenarios Fraud Detection: Validate authenticity Verifiable and trusted logging of events Sensor-based insurance

13 IoT Challenges and Blockchain Centralized Control Plethora of Device Identity solutions Need for certification authorities Communication from edge to cloud Exposure of data flows in the network Centralized Data Management & need for trusted parties

14 Main Benefits Costs reduction Simpler, more direct processes New business models Simpler transactional model Disintermediation Transactions acceleration Wider use of automatic transactions Device Autonomy No need for human in the loop

15 Blockchain Ecosystem and IoT The Blockchain market size: Estimated grow: M$ (2016) 2,312.5 M$ (2021) CAGR of 61.5% (MarketsAndMarkets, 2017) Blockchain for IoT: In an exploraroty phase

16 A Market perspective Stage: Innovation/Exploratory Big Players: investing Startups: limited numbers, but growing Opportunities: Power grids HealthCare IoT platforms Shared Economy Insurance Supply Chain Industrial IoT

17 Challenges Legal & regulations Technology Fragmented market No established standards transaction processing time decentralized storage Limited blockchain platforms offering Lack of skills

18 Perspectives Blockchain and Intelligent Things named by Gartner as strategic technology trends for 2017

19 Conclusions

20 My Contacts Fabio Antonelli