Blockchain als Treiber des Internet der Dinge Ideen aus dem Bosch IoT Lab VW AutoUni 26. Oktober 2017 Prof. Dr. Markus Weinberger Hochschule Aalen Studiengang Internet der Dinge Markus.Weinberger@hs-aalen.de Blockchain als Treiber des Internet der Dinge Prof. Dr.-Ing. Markus Weinberger
Agenda Introduction Bosch IoT Lab What is IoT? Blockchain And its Properties Examples Blockchain Applications in IoT 2
Bosch IoT Lab 2012 until 2016 Setting Motivation Support Bosch with an Innovation Lab, Creative Leeway in an Industrial Environment Generate Product Ideas & Business Models in real-world Pilot Projects Establish Bosch Brand and support Image as an Innovator for IoT University of St. Gallen and ETH Zürich Founded Sept. 2012 Management by Bosch Employee and Scientific Lead by Senior Researcher (HSG) Collaboration between Bosch, University of St. Gallen and ETH Zurich 3
Bosch IoT Lab 2012 until 2016 Topics A Smart Living & Working B Smart Mobility C IoT Transformation Smart Living Start-Up Comfy Connected Car Connected Car Sustainable Driving Accident Prevention Connected Car Deep Driver Analytics Car Pass on Blockchain IoT Business Models Blockchain and IoT http://www.iot-lab.ch 4
Target of the Study Program Aalen University As the first curriculum specifically dedicated to Internet of Things in Germany, we aim at educating future engineers to holistically understand IoT applications, including aspects like the user s needs, technology from sensors to cloud backends and apps as well as business implications. 5
Curriculum Internet of Things First Study Programs dedicated to Internet of Things in Germany Bachelor of Engineering Bachelor of Arts Joint Location Schwäbisch Gmünd Joint Lectures Joint Projects and Group Work 6
What is the Internet of Things? 7
Digitalization and Internet of Things Internet of Things Smart Home Smart City Connected Mobility Industry 4.0 E-Commerce E-Banking Music and video streaming Digitalization 8
Connecting Things Commercial Aircraft are Connected since the late 1970s ACARS (Aircraft Communications Addressing and Reporting System) Example Message: https://pixabay.com/de/flugzeug-wasserhahn-fliegen-1214404/ https://de.wikipedia.org/wiki/acars 9
What is Internet of Things? Sensors, Microprocessors, Radio Modules Vision The basic idea of the IoT is that virtually every physical thing in this world can also become a computer that is connected to the Internet (ITU, 2005). E. Fleisch, 2010 10
Smart Products 11
Smart Products 12
Bosch Lab Beispiel - Meep Partnership with TCS ~ 70 service vehicles connected ~ 700 GB of data from ~ 700.000 km collected Analyzed for dangerous events Clustering of events to find danger hot spots Warning App for users 13
IoT as a Network of Autonomously Acting Things 14
And now the Blockchain 15
Bitcoin, Ethereum, etc. 50 bn USD Bitcoin Market Capitalization Jan 09 Jul 17 https://blockchain.info 16
Bitcoin, Ethereum, etc. 100 bn USD Bitcoin Market Capitalization Bitcoin Market Capitalization Jan 09 Sept 17 https://blockchain.info 17
Traditional Payment System Alice Bob Bank Pay 10 EUR to Bob You received 10 EUR Trusted central authority needed Access to the system bank account - needed Transaction fees Transaction 1 From: Alice To: Bob Amount: 10 EUR Message: Hi Bob here s the money. 18
Bitcoin Blockchain Alice How to avoid double spending? Transaction 1 (Tx1) From: Alice To: Bob Amount: 1 BTC Message: Hi Bob here s the money. Condition: Only pay, if Bob shows his key. Network of independent nodes You received 1 BTC Bob Block 357 Tx1, Tx2, Tx3, https://en.bitcoin.it/wiki/hash 19
Bitcoin Blockchain Alice How to avoid double spending? Block 355 Block 356 Transaction 1 (Tx1) From: Alice To: Bob Amount: 1 BTC Message: Hi Bob here s the money. Condition: Only pay, if Bob shows his key. Hash of Block 356 0045zuh2.. Block 357 Hash of Block 356 Tx1, Tx2, Tx3, Nonce: r4h Network of independent nodes Hash of Block 357 003f3rx1 Computing Power required You received 1 BTC Bob Cryptographic Hash Function A hash algorithm turns an arbitrarily-large amount of data into a fixed-length hash. The same hash will always result from the same data, but modifying the data by even one bit will completely change the hash. Input Nonce1 Nonce16 Hash 5E5A104BF651C46A580E6D9B067FF4D11 8FFF416B76F28E100FCA42F8C4A5C0E 0C1ED029B0306C19B3B955F92978F5600 6979D62D7CBCE9028A9AA1A4DF67943 https://en.bitcoin.it/wiki/hash 20
Key Features of Blockchain Technology and Related Crypto Currencies (Micro)-Payments Low transaction fees Distributed, Immutable, Public Ledger All Transactions (with Message etc.) stored in Blockchain Programmability Condition can be very flexible Security Infrastructure Bob needs his key Permissionless - Neutrality to Things, Persons, Legal Entities There is no authority for registration 22
Combining IoT and Blockchain 23
IoT Blockchain Example - Filament Filament (2015) provides wireless sensor networks for the (industrial) IoT, e.g. for smart cities or smart agriculture use case. [ ] Filament is one of the first companies that develop a fully decentralized IoT infrastructure, which encompasses three blockchain-related aspects: (1) Each device is registered on the blockchain providing a verifiable and immutable identity. [ ] (2) Each device is governed by a smart contract, which manages agreements of device control/ownership, data access and financial agreements concerning the device. [ ] (3) Furthermore, each device is able to transfer value in form of bitcoins to other devices in order to get access to data or request some service. Wörner, D., Von Bomhard, T., Schreier, Y.P., Bilgeri, D., The Bitcoin Ecosystem: Disruption Beyond Financial Services?, ECIS 2016 24
IoT Blockchain fictitious Example Parking Sensor Potentially Blockchain Enabled Parking Data Repair, Battery http://www.bosch-mobility-solutions.com/en/highlights/connected-mobility/connected-and-automated-parking/ 25
IoT Blockchain Example Anti Odometer Fraud Odometer fraud leads to annual loss of 6 billion in Germany [1] Odometer data is written to the blockchain in regular intervals An immutable history is recorded 1: TÜV Rheinland study (2015), https://www.arvato.com/content/dam/arvato/documents/financial-solutions/pk_tachomanipulation_t%c3%9cv_rheinland.pdf 26
Issues 29
Issues with Blockchain (Bitcoin Numbers) Constant block time Bitcoin ~ 10 Min. Block 357 Hash of Block 356 Tx1, Tx2, Tx3, Nonce: r4h Limited number of transactions per block Bitcoin: max. ~ 2300 30
Scalability No. of Transactions waiting to be confirmed ~ 7 transactions per second ~ 50.000 transactions per second peak https://blockchain.info/de/charts/mempool-count 31
Transaction Cost https://bitinfocharts.com/comparison/bitcoin-transactionfees.html 32
Hope Lightning Network Addition to Bitcoin Additional transactions offchain Much faster, much cheaper LiteCoin Block time: ~ 2,5 Minutes Based on Bitcoin with Lightning Network Much smaller ecosystem than Bitcoin IOTA Different technology: Tangle No blocks, no miners, no fees Hardly applied To some extent intransparent 33
Wrap-up 34
Thank You Prof. Dr. Markus Weinberger Hochschule Aalen Studiengang Internet der Dinge Markus.Weinberger@hs-aalen.de Find the Bosch IoT Lab www.iot-lab.ch Blockchain als Treiber des Internet der Dinge Prof. Dr.-Ing. Markus Weinberger