blockchain and internet of things

| GRACE HOPPER CELEBRATION 2016 | #GHC16

PRESENTED BY THE ANITA BORG INSTITUTE AND THE ASSOCIATION FOR COMPUTING

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#GHC16

2016Blockchain andInternet of Things

Valerie Lampkin@[email protected]

Sumabala [email protected]

Carole [email protected]

mailto:[email protected]





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Blockchain Technology

Blockchain and Internet of Things

The IBM Watson IoT Platform

Thought Leadership & Quick Links

Overview

Demonstration

Watson-IoT Blockchain Logistics use-case and demo



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Blockchain Technology

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The Problem With Business Networks Built on Traditional Databases

TransactionsCan be suppressed: Participants have to trust database ownersCan be deleted: Database admin is all powerfulCannot be modified: Database admin is all powerful

SecurityRisk is concentrated on each database ownerCrash fault tolerant: If you are lucky

VisibilityLocal only - at the individual database level

CostsIntegration Costs - Expensive security and integration costs across many technologies

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How Blockchain Solves This

TransactionsCannot be suppressed: All participants see all transactions and add them to their own copy of the ledgerCannot be deleted: Ledger is append onlyCannot be modified: Ledger is immutable – everybody can check

SecurityDistribution of risk: Byzantine fault tolerant: Resistant to number of malicious participants

VisibilityGlobal - at the fabric level

CostsIntegration Costs – Standardized secure technology and lower integration costs in a single technology



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Blockchain in a nutshell

Records all transactionsEach participants build his own copy

Append onlyImmutable and cannot be changed

THE shared system of record

Smart Contract

Consensus

Privacy and Confidentiality

Shared LedgerLedger is shared, but participants require privacy

Participants need:Transactions to be private Transaction validation &

commitmentDifferent to Bitcoin

Byzantine Fault Tolerant Scalable

“pluggable” consensus for different use cases

Business rules implied by the

contract

Embedded in the Blockchain

Executed with the transaction

Verifiable, signed

Encoded in programming

language

Identity not linked to a transaction

Transactions need to be authenticated

Cryptography central to these processes

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Blockchain – not for all . . .

POSITIVE Indicators

1. Managing contractual relationships2. Complex business logic3. Identity is important4. Transactions need to be private5. Market Approach needed6. More than two parties7. Looking to reduce costs8. Want to improve discoverability

NEGATIVE Indicators

1. Need high performance (millisecond) transactions

2. One organization involved (no business network)

3. Looking for a database replacement

4. Looking for a messaging or general transaction processing

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Hyperledger

A collaborative effort created to advance blockchaintechnology by identifying and addressing important features for a cross-industry open standard for distributed ledgers that can transform the way business transactions are conducted globally.

https://www.hyperledger.org/

https://www.hyperledger.org/

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Linux Foundation: Hyperledger Project

DECEMBER 17th 2015

Community + Code

6 Proposed Code contributions

170% Growth in 6 months80 Members

2K+ Slackers

5 HackFests

60+ attendees per Hackathon

100 + Contributors

EthereumEVM?

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Hyperledger Application Architecture



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Blockchain and Internet of Things (IoT)

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What is an IoT Platform?

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Watson IoT Platform

Sensors & Networks

OtherData Sources

WeatherMap

0101100010001001

Devices Platform Applications

Other IoT platforms



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Why?• Very often, physical objects are used or

maintained by multiple parties

• Multiple parties need to agree on acceptable

usage

• Disputes between parties require some record

of what occurred in order to resolve disputes

• Physical objects of all sorts are used: equipment,

vehicles, buildings, transmission lines (water,

gas, electricity)

• Effects of the environment may also factor into

agreements between parties

• When the objects themselves can report on

their status, this can assist in processing

agreements between parties

Blockchain and IoTWhat?• Enable physical objects (e.g. shipping containers,

manufacturing parts, etc.) to participate in secure blockchain transactions.

How?• Route messages from any Watson IoT Platform

connected device to blockchain transactions.• Devices can send sensor data and the identity of the

object as determined from barcodes, RFIDs, embedded devices, etc.

• Works with existing devices - does not require blockchain code to run on devices.

• Watson IoT Platform maps a device’s data format to that required by the blockchain contract. Blockchain contract does not have to know about the types of devices sending data or understand their data format.



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Example Use Cases



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What?• Provenance of each component part in complex system hard

to track

• Manufacturer, production date, batch and even the manufacturing machine program.

How?• Blockchain holds complete provenance details of each

component part

• Accessible by each manufacturer in the production process, the aircraft owners, maintainers and government regulators.

Benefits• trust increased no authority "owns” provenance

• improvement in system utilization

• recalls "specific" rather than cross fleet

Use Case: Asset Management - Parts Tracking/History



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What?

• Knowing that a vehicle has been maintained according to the required schedule is

difficult today. E.g. maintenance records, work performed, vehicle use, damage

• Many interested and dependent parties, with contrasting/conflicting goals e.g.

Manufacturer/owner/insurer

How?

• Use IoT blockchain as a shared ledger of vehicle history, from usage, maintenance,

warranty work, replacement parts

Benefits

• Greater transparency of true history: Proof of good parts, completed maintenance

and certifications, clean documents.

• Greater confidence and safety because replacement part provenance and all service

is indelibly recorded.

• Safety Certifications and Auditability

• Greater trust since no single authority "owns” the whole story

• New business opportunities for insurers, lenders, warranty services

Use Case: Asset Management - Warranty



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Run Your AppsThe developer can chose any language runtime or bring their own.

DevOps

Development, monitoring, deployment and logging tools allow the developer to run the entire application.

APIs and ServicesBroad catalog of IBM, 3rd party, and open source, APIs and services to compose an application in minutes.

Cloud IntegrationBuild hybrid environments. Connect to on-premises systems of record plus other public and private clouds. Expose your own APIs to your developers.

Built on IBM SoftLayerNo need to worry about provisioning or managing infrastructure.

Composable services development, runtime and operations for your IoT apps

IBM Bluemix environment for IoT development

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IBM Watson IoT Platform - ConnectConnect and manage devices, networks, and gateways

IBM Watson IoT Platform - Information ManagementIntegrating information, structured and unstructured, from devices, people, and the world around us

IBM Watson IoT Platform - AnalyticsGaining insights from information using Realtime, Predictive and Cognitive analytics

IBM Watson IoT Platform - Risk ManagementEnsuring you leverage the right information from the right sources, and the right software runs where you need it

Everything you need to transform with IoT


www.ibm.com/iot



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Bluemix (Hosted)

HyperledgerClient

Watson IoT Blockchain End-to-end flow with Analytics

Watson IoT Platform

Analytics

Blockchain Proxy (Data Mapping)

IBM Blockchain

Hyperledger Peer

Hyperledger Peer

Hyperledger Peer

Smart Contract

Smart Contract

Hyperledger Peer

Smart Contract

Smart Contract

Database Integration

Hyperledger Client

Connect (Messaging & Device Mgmt)

Information Management

Risk Management

Consensus

Database(modeling, reporting)

Retrieve data

and store

analytic

triggered

events

Modeling &

Runtime analysis

Device Connector Bridge

Device

Conditional Off-chain storage with

hash stored in the blockchain.

Optional Device

platform

send commands

Device Data

Analytics Application

PMQ

Use database for

modeling and

runtime analysis

Device

Instructions

Register Device,

Listen to events,



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IBM IoT Blockchain Demo

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Use Case: Trade, Logistics, Shipping

What?

• Currently Freight logistics involve many different parties: manufactures, forwarders, shippers, custom agents, insurers.

• Most of these parties use different systems to track shipments

• Many interested and dependent parties, with contrasting/conflicting goals e.g. Manufacturer/shipper/insurer

How?

• Use IoT enabled blockchain as a shared ledger to record shipping containers as they move through system

• Automatically update the “smart contract” and blockchain through the IoT Foundation.

Benefits

• Greater transparency and of shipment progress improves efficiency

• Greater trust since all transactions are indelibly recorded

• Greater accuracy and lower cost, through IoT participation.

• Ability to optimize and automate business processes through IoT.

• Future vision allows for ‘freight autonomy’



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ibm.biz/iot_bc_demo

http://discover-iot-blockchain.eu-gb.mybluemix.net/



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Thought Leadership & Quick Links



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Thought Leadership

2016 2015 2015 2014

ibm.biz/businessofthings ibm.biz/economyofthings ibm.biz/empoweringtheedge ibm.biz/devicedemocracy

ibm.biz/businessofthings

ibm.biz/economyofthings

ibm.biz/empoweringtheedge

ibm.biz/devicedemocracy

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Explore & Experiment! Learn more about IoT and Blockchain

https://discover-iot-blockchain.eu-gb.mybluemix.net/

Learn more about IBM Blockchain http://www.ibm.com/blockchain/ https://console.ng.bluemix.net/catalog/services/blockchain/

• t an overview of what IBM Blockchain is, how it relates to the general blockch• IBM Blockchain DOCS - All necessary instructions to get up and running. There is no need to

deploy IBM Blockchain separately from those instructions.

• IBM Blockchain API - Get an understanding of the IBM Blockchain API

• IBM Blockchain for Developers - Get an overview of how blockchain fits into your development environment, and get started with some walk-throughs, all of which feature live demos and code that is deployable to run on IBM Bluemix.

https://discover-iot-blockchain.eu-gb.mybluemix.net/

http://www.ibm.com/blockchain/

https://console.ng.bluemix.net/catalog/services/blockchain/

https://console.ng.bluemix.net/docs/services/blockchain/index.html

https://ibmblockchainapi.mybluemix.net/swagger/ui.html?scheme=http&host=127.0.0.1:3000&basepath=/

http://www.ibm.com/blockchain/for_developers.html



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See us Today at IBM Booth #1607



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Backup



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Business Networks benefit from connectivity

• Connected customers, suppliers, banks, partners

• Cross geography & regulatory boundary

Wealth is generated by the flow of goods & services across business networks

Transactions are the basic unit of interaction

Contracts are the constructs that regulate transactions

• When they are valid

• How they are reconciled

Business Networks and Markets



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Business / MRO Networks benefit from connectivity

• Connected Manufacturers, Assemblers, Maintainers, OEMs, Operators, and Regulators

• Cross geography & regulatory boundaries

Trust is generated by the transparent and auditable flow of information

Collaboration is central to this process:

• Public transactions, visible to all

• Private transactions between individual parties

IoT View: Operations and Maintenance Networks

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Dramatically reducing business transaction

costs

BlockchainNow that we have a secure and reliable view of

the world captured in a blockchain

Smart ContractsWe can automate smart contracts on top

Search and information costs reduced

Policing and enforcement costs reduced

Bargaining costs reduced

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Blockchain will impact many business ecosystems

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• It lowers the cost of business transactions through the automation of smart contracts built on top of an append only distributed ledger

• Visibility at any point in time -> Supply chain provenance, Regulated part

life cycle, Industry 4.0, Service Level Agreements, Facility management,

Auditable machine decisions, Certificate transparency, IoT Membership,

Independent and distributed decision making ,

• Asset management -> Identity management, Resources, Registries,

Currency, Goods, Rights

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Hyperledger Next / Hyperledger 1.0 Proposed

Architecture

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Hyperledger-Fabric Proposed Roadmap &

Releases



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What?

• Knowing that a piece of equipment (e.g. engine, measuring system, instrument) has been used per the specifications or in accordance with regulations for the equipment. e.g. work performed, amount of use, type of use, mis-handling events, etc.

• Many interested and dependent parties, with contrasting/conflicting goals e.g.Manufacturer/owner/regulator/inspector/insurer

• Processes, such as the manufacturing or transport of drugs, have regulatory requirements for tracking history and maintainingthose records for years and providing to regulatory agencies as well.

How?

• Use IoT blockchain as a shared ledger of equipment/process history, from usage, maintenance, warranty work, replacement parts, out-of-tolerance or regulation situations.

Benefits

• Greater transparency of true history: indelible log of equipment sensor readings, or situations logged by the device and reported, process events and history

• Safety Certifications and Auditability

• Greater trust since no single authority "owns” the whole story – or said another way – many parties all keep the same record of events/data

• New business opportunities for insurers, regulators, etc.

Use Case: Regulatory Compliance



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Blockchain and IoT

Watson IoT Platform

Connect

IoTP Device

Client

(MQTT client)

Query &

DevOps

REST

APIs

IBM Blockchain (Bluemix Service)

Pee

r

Pee

r

Blockchain

ContractBlockchain

Contract

Client

Blockchain

Application

Blockchain Proxy

MQTT

Client

Data

Mapping

Device Data

Mapped to

Blockchain Contract

format

Risk

Management

Information

ManagementAnalytics

Device Data

(identity + state)