DEVICE DEMOCRACY

Solid 2015

!
!
!

IBM Institute for Business Value

CREDITS
IBM IBV
!

Paul Brody

Veena Pureswaran

Sumbala Nair
Sanjay Pannikar

ADEPT team

!

Speaker
Henning Diedrich
2 2015 IBM Corporation

ADEPT
IoT research project by IBM

3

ADEPT: CES DEMO RECAP

2

washer buying detergent

Con
firm
Ord
e

Retailer

r, P
a

Detergent!
Check

atio
n

ym

ion
tiat
o
eg

ent

aym

washer bartering energy use

3
ice
erv

washer ordering service

4 2015 IBM Corporation

r
nfi
o
C

Service"
Vendor

ent

Not

st
ue
q
e

TV
Price Alert

n
tio
a
m

Service Checklist!
Warranty Check

ifica

tion

ADEPT"
WASHER
Owner

BIG PICTURE IOT

5 2015 IBM Corporation

coming massive computing power of things

failed expectations

market size trailing predictions

IBM IoT Platform on Bluemix

autonomous devices

inter-device commerce

ADEPT: IOT CHALLENGE FOCUS

Hig
h

r i va c y

La

ck

Internet
of Things

of p

Bro
k
m

st
co

6 2015 IBM Corporation

f
e
L a c k o alu
al v
f u n c ti o n

cost

trust

monetisation

interoperability

discoverability

authentication

long term service expectation

scale

s
s
e
n
i
s
u
b
en dels
o

Not

fu t u re

f
o
- p ro

DEVICE OWNERSHIP OPTIONS

manufacturer

provider

owner

device

7 2015 IBM Corporation

DECENTRALIZATION
!

device agency

device democracy

open platform

common market

8 2015 IBM Corporation

ADEPT VISION

ADEPT DESIGN

trust-less peer-to-peer messaging

distributed file sharing

autonomous device coordination

identity

10 2015 IBM Corporation

ADEPT VISION

highly efficient digital marketplaces

real-time resource competition

inter-device agreements

direct payments between devices

service and resource barter between devices

inter-device reputation

= demoed
11 2015 IBM Corporation

ADEPT DEVICE CATEGORIES

ADEPT Device Categories

Peer&Exchange&
P.&Ex.&Marketplaces&

Standard&Peer&

Marketplace&Enablers&

Transac7on&Verica7on&

Transac7on&Verica7on&&

(capabilityIbased)&

Data&Management&&&Analy7cs&

Light&Peer&
Related&Peer&List&
Messaging&

File&Transfer&

Light&Wallet&

Autonomous&Device&
Coordina7on&Framework&
Related&Peer&List&
Messaging&

File&Transfer&

Op7mized&Wallet&

(Full)&

Data&Management&&&Analy7cs&
Autonomous&Device&
Coordina7on&Framework&
Related&Peer&List&
Messaging&

File&Transfer&

Full&Wallet&

Proposed&
Implemented&as&PoC&

12 2015 IBM Corporation

37

ADEPT ARCHITECTURE

Application

UI

Appliance

Business

Asset

Resource
Diagnosti

Messaging

Blockchain

File Sharing

Data

LifeCycle

LifeCycle

LifeCycle

Message

Transaction

File sharing

LifeCycle
Peer
Analytics

Messaging

Optimized
Blockchain

Open source

Open source

Store &

Mining
Data
OS

13 2015 IBM Corporation

Examples
Virtual

File Sharing
(e.g.

Own and
Light Peer
protocol

Data Management (e.g. MySQL & Distributed DB)

E.g. Android, Linux compatibility

ADEPT Installer

() protocols, services, applications

TeleHash, BitTorrent, Ethereum

light peers, standard peers, hub

Devices enabled as decentralized

autonomous peers
Device communication private by

Autonomous
Device

ADEPT Architecture

Logical View

Devices enabled as decentralized autonomous peers

Device communication private by design
Capability to achieve distributed consensus

Application
Layer

UI

Appliance
Self-service

Business Logic

Asset
sharing

Examples
Virtual Credit
Management

Resource
Bartering
Diagnostics

Blockchain
Service

File Sharing
Service

Data Management Service

LifeCycle

LifeCycle

LifeCycle

LifeCycle

Message
Handler

Transaction
Handler

File sharing
Handler

Peer Management

Messaging
(e.g. Telehash)

Optimized
Blockchain
(e.g. Ethereum)

Open source
Services

Analytics

Open source Protocols

Store &
Forward

File Sharing
(e.g. BitTorrent & OBEX)

Mining
Data
Layer
OS
Interface

Data Management (e.g. MySQL & Distributed DB)

E.g. Android, Linux compatibility

Own and
Light Peer
protocol
handler

ADEPT Installer

Messaging
Service

Autonomous
Device Cordination
Framework

ADEPT Architecture

Logical View

ADEPT DEVICE SECURITY

AND MAINTENANCE
automatic and secure software updates

verification of trustworthiness of peers

self-maintaining, self-servicing units

15 2015 IBM Corporation

Use Case 1: The Autonomous Washer

Autonomous transactions between Washer,

Retailer, After Sales Service and other appliances.

Use Case Scenarios:

1
Con
firm
Retailer

Ord
e

3
Se

Service"
Vendor

16 |

r, P
a

R
e
c
rvi

Detergent!
Check
atio
n

ym

ent

n
o
i
t
tia
o
eg
y
a
P

st
e
u
eq

rm
i
f
n
Co

n
o
i
at

Service Checklist!
Warranty Check

2015 IBM Corporation

ADEPT"
WASHER

nt
e
m

TV
Price Alert

Not
ifica
tion

Owner

Consumables Marketplace

Service Marketplace

Energy Marketplace

Interactions Detergent reorder

Trigger:

Detergent falls below re-order level

Make payment against existing contract.

!
Features demonstrated

Consumables analytics

Policy to invoke payment contract

Secure point to point messaging

Notify owner()

Ethereum Payment()

2
Authorized

Retailer

Telehash

Create order()

4
3
Notify owner()

17 |

2015 IBM Corporation

Telehash

Dispatch confirmation ()

Authorized

Retailer

Interactions component in-warranty replacement

Trigger:

!
Internet discovery

In device analytics

Block chain verification

Secure point to point messaging

Washer detects potential air filter failure.

Find authorized service center.

1
2
Check warranty status()
If In warranty, raise telehash
Replacement Order()

4
Verify warranty
status()

Notify owner()

3
5

18 |

2015 IBM Corporation

Notify owner()

If in warranty, Telehash
Service order confirm ()

BLOCKCHAIN
Why Blockchain?

WHAT IS A BLOCKCHAIN?
!

trust-less network

signed transactions

public consensus

transaction code

20 2015 IBM Corporation

SMART CONTRACTS

transaction scripts

on- or off-chain

transacting value-holding token

micro-fee capability

21 2015 IBM Corporation

BLOCKCHAIN CHALLENGES
privacy

scaling

mining

finality

volatility

legality

stability
22 2015 IBM Corporation

Bitcoin
Ethereum
Ripple

23 2015 IBM Corporation

limited smart contracts

not ready

not decentralized

THE CLOUD
as peer

CLOUD AND ADEPT

hash key in the chain

content in key-value* store like Cloudant

scaling platform like Softlayer

25 2015 IBM Corporation

CLOUD AS PEER
Cloud as State-Holder

Cloud as Code-Repository

cost efficient

light protocol

unlimited capacity

fast execution

elastic scale

out-of-band validation

26 2015 IBM Corporation

ONGOING DEVELOPMENTS

CURRENT RESEARCH

Consensus implementations

Performance scaling vs centralized solutions

Energy cost of proof of stake vs. proof of work

28 2015 IBM Corporation

CONSENSUS IMPLEMENTATIONS

Proof of Work

Proof of Stake

Traditional Consensus Protocols

29 2015 IBM Corporation

PERFORMANCE SCALING VS
CENTRALIZED SOLUTIONS
Performance for decentralized and
centralized models with increasing
network size for downloading a 100
MB file, with Kademlia messages
generated between any random pair
of nodes at an interval of 30 ms.

30 2015 IBM Corporation

Avg."Power"Consumed"

ENERGY
COST
Power&Consump-on:&PoS&v/s&PoW
200"
180"
160"
140"
120"
100"
80"
60"
40"
20"
0"
0"

0.25"

0.5"

FracHon"of"GPU"devices"
Total"PoS"

0.75"

1"

2"device"types""
GPU_dev:""
Radeon"R9"290X"
Idle"power:"20W"
Stressed"power:"308W"
Intel"BaseAT"NIC"
Idle"power:"21.2W"
AcHve"power:"21.4W"
CPU_dev:""

Total"PoW"

1000"devices"
100"miners,"900"nonAminers"
1"blockchain,"12s"blockAHme"
Nature"of"trac"
SimulaHon"run"for"12,000"seconds"(1000"block"Hmes)"
On"average,"an"event"happens"every"0.25s"
Event"is"either"publish_contract,"call_contract,"or"
send_money."Each"happens"with"equal"probability."

31 2015 IBM Corporation

Intel"PenHum"4"540"processor""
Idle"power:"150W"
Stressed"power:"223W"
Intel"BaseAT"NIC"
Idle"power:"21.2W"
AcHve"power:"21.4W"
"

Up"to"41%"less"power"consumed"by"PoS"than"
PoW."This"is"in"the"all"GPU"case."

ENERGY COST
1000#Raspberry#Pi s##
100#miners,#900#non3miners#
12s#block38me#
Simula8on#run#for#12,000s#
Choice#of#consensus#mechanism#ma>ers##
but#not#so#much#for#low#power#devices#
PoW#consumes#less#than#6%#more#energy#
than#PoS#
Energy#consumed#by#PoS#consensus#
mechanism#is#close#to#devices#opera8ng#in#
idle#mode#

32 2015 IBM Corporation

Size%of%the%Add,only%Block,chain
BLOCKCHAIN SIZE
1200"

200"

Time"of"crash"

400"

Time"of"crash"

600"

Time"of"crash"

800"

Time"of"crash"

Size"of"Blockchain"(MB)"

1000"

0"
1" 7" 13" 19" 25" 31" 37" 43" 49" 55" 61" 67" 73" 79" 85" 91" 97"103"109"115"121"127"133"139"145"151"157"163"169"175"181"187"193"199"205"211"217"223"229"235"241"247"253"259"265"271"277"283"289"

Time"(Hours)"
100"tps"

50"tps"

25"tps"

10"tps"

This"chart"emphasizes"the"need"for"block"chain"pruning."
A"device"with"1GB"memory"would"run"out"of"memory"fairly"quickly."""
33 2015 IBM Corporation

OTHERS EFFORTS

Samsung

Filament

21

34 2015 IBM Corporation

FILAMENT

35 2015 IBM Corporation

FILAMENT
TeleHash

Bitcoin mainnet

Blockname DNS

JOSE off-chain code

Pennybank microtransactions

36 2015 IBM Corporation

SUMMARY & OUTLOOK

WHAT WE'VE LEARNED

38 2015 IBM Corporation

concept works

much left to do

blockchain works as advertised

smart contracts are a powerful new paradigm

machine-to-machine commerce works

WHAT WE DON'T KNOW YET

scaling

privacy

consensus algorithm

39 2015 IBM Corporation

PRODUCTS AS SUBSCRIBED EXPERIENCE

empowering the sharing economy

Instrumented
Invisible

Interconnected

subscription, not purchase

Interactive
Intelligent

full life time full service

40

2015 IBM Corporation

Charge to the industry

41

BUILDING AN
OPEN DEVICE
ECOSYSTEM
2015 IBM Corporation

Registration
of new
device

Authentication
of remote
users

Contract to barter
power with other
appliances

Checklist for
automobile
safety