Blockchain for IoT
2 likes421 views
The document discusses using blockchain technology with IoT. It describes how blockchain can be used to securely timestamp and verify IoT sensor data. It also discusses how IoT actuators could react to events on the blockchain, and how machine-to-machine micropayments could work, though regular blockchains face scalability issues for frequent small payments. The document proposes using off-chain transaction layers with blockchain as a settlement layer to enable numerous fast, low-cost micropayments. In conclusions, it finds that blending blockchain and IoT can make sense for certain applications like data verification and machine economy applications when technical challenges are addressed.
Blockchain for IoT
- 1. Blockchain for IoT Federico Tenga COO at Chainside [email protected] Challenges and opportunities
- 2. Does it really make sense to mix IoT and blockchain?
- 3. Does it really make sense to mix IoT and blockchain? Or we are just merging to buzzwords?
- 4. Blockchain e IoT โข Security of data produced by IoT sensors โข IoT actuators reacting to an event on the blockchain โข Machine-to-machine micro-payments
- 5. Security of data produced by IoT sensors
- 6. IoT data blockchain notarization Block n Block n+1 Block n+2 Block n+3 IoT sensors Gateway Calendar server Blockchain Temperproof IoT sensors collect data about the temperature and digitally sign them Collects data from the sensors and broadcasts them to the server The collected data are processed cleaning statistical anomalies. Metadata are then extracted and aggregated The metadata are sent to the blockchain creating a secure timestamping verifiable by any third party BLOCKCHAINHARDWAREIoT
- 7. Merkle trees Hash 0.0.0 H(L1) Hash 0.0.1 H(L2) Hash 0.1.0 H(L3) Hash 0.1.1 H(L4) Hash 1.0.0 H(L5) Hash 1.0.1 H(L6) Hash 1.1.0 H(L7) Hash 1.1.1 H8L8) Hash 0.0 H(0.0.0+0.0.1) Hash 0 H(0.0+0.1) L1 L2 L3 L4 L5 L6 L7 L8 Hash 0.1 H(0.1.0+0.1.1) Hash 1.0 H(1.0.0+1.0.1) Hash 1.1 H(1.1.0+1.1.1) Hash 1 H(1.0+1.1) Top Hash H(0+1)
- 8. Merkle trees Hash 0.0.0 H(L1) Hash 0.0.1 H(L2) Hash 0.1.0 H(L3) Hash 0.1.1 H(L4) Hash 1.0.0 H(L5) Hash 1.0.1 H(L6) Hash 1.1.0 H(L7) Hash 1.1.1 H8L8) Hash 0.0 H(0.0.0+0.0.1) Hash 0 H(0.0+0.1) L1 L2 L3 L4 L5 L6 L7 L8 Hash 0.1 H(0.1.0+0.1.1) Hash 1.0 H(1.0.0+1.0.1) Hash 1.1 H(1.1.0+1.1.1) Hash 1 H(1.0+1.1) Top Hash H(0+1)
- 9. Merkle trees Hash 0.0.0 H(L1) Hash 0.0.1 H(L2) Hash 0.1.0 H(L3) Hash 0.1.1 H(L4) Hash 1.0.0 H(L5) Hash 1.0.1 H(L6) Hash 1.1.0 H(L7) Hash 1.1.1 H8L8) Hash 0.0 H(0.0.0+0.0.1) Hash 0 H(0.0+0.1) L1 L2 L3 L4 L5 L6 L7 L8 Hash 0.1 H(0.1.0+0.1.1) Hash 1.0 H(1.0.0+1.0.1) Hash 1.1 H(1.1.0+1.1.1) Hash 1 H(1.0+1.1) Top Hash H(0+1)
- 10. Merkle trees Hash 0.0.0 H(L1) Hash 0.0.1 H(L2) Hash 0.1.0 H(L3) Hash 0.1.1 H(L4) Hash 1.0.0 H(L5) Hash 1.0.1 H(L6) Hash 1.1.0 H(L7) Hash 1.1.1 H8L8) Hash 0.0 H(0.0.0+0.0.1) Hash 0 H(0.0+0.1) L1 L2 L3 L4 L5 L6 L7 L8 Hash 0.1 H(0.1.0+0.1.1) Hash 1.0 H(1.0.0+1.0.1) Hash 1.1 H(1.1.0+1.1.1) Hash 1 H(1.0+1.1) Top Hash H(0+1)
- 11. Merkle trees Hash 0.0.0 H(L1) Hash 0.0.1 H(L2) Hash 0.1.0 H(L3) Hash 0.1.1 H(L4) Hash 1.0.0 H(L5) Hash 1.0.1 H(L6) Hash 1.1.0 H(L7) Hash 1.1.1 H8L8) Hash 0.0 H(0.0.0+0.0.1) Hash 0 H(0.0+0.1) L1 L2 L3 L4 L5 L6 L7 L8 Hash 0.1 H(0.1.0+0.1.1) Hash 1.0 H(1.0.0+1.0.1) Hash 1.1 H(1.1.0+1.1.1) Hash 1 H(1.0+1.1) Top Hash H(0+1)
- 13. IoT actuator reacting to a blockchain event Block n Block n+1 Block n+2 Block n+3 Block n+4 Block n+5 Block n+6 Block n+7 Block n+8 Block n+9 Block n+10 Block n+11 Block n+12 Block n+13 Blo n+
- 15. Problems with blockchain micro-payments โข In a blockchain the whole transaction history has to be share among all participants, so the usage has to be limited
- 16. Problems with blockchain micro-payments โข In a blockchain the whole transaction history has to be share among all participants, so the usage has to be limited โข If the usage is limited to few tx/s, the competition to get a transaction included in a block increases driving up the transaction cost
- 17. Problems with blockchain micro-payments โข In a blockchain the whole transaction history has to be share among all participants, so the usage has to be limited โข If the usage is limited to few tx/s, the competition to get a transaction included in a block increases driving up the transaction cost โข If the transaction cost is high the blockchain is not suitable for micro- transactions
- 18. Solution โข Changing the architecture of the base blockchain layer is not a solution (e.g. exotic altcoins), you still have to deal with the same trade-offs
- 19. Solution โข Changing the architecture of the base blockchain layer is not a solution (e.g. exotic altcoins), you still have to deal with the same trade-offs โข Building a second transaction layer let you do secure transaction off- chain using the blockchain only as a settlement layer
- 20. Off-Chain transactions block n Tx 1 From: Alice To: Bob
- 21. Off-Chain transactions block n Tx 1 From: Alice To: Bob Tx 2 From: Bob To: Chuck OFF-CHAIN
- 22. Off-Chain transactions block n block n+1 Tx 1 From: Alice To: Bob Tx 2 From: Bob To: Chuck Tx 3 From: Chuck To: Dave OFF-CHAIN
- 23. Off-Chain transactions block n block n+1 block n+2 Tx 1 From: Alice To: Bob Tx 2 From: Bob To: Chuck Tx 3 From: Chuck To: Dave Tx 4 From: Dave To: Ted OFF-CHAIN
- 24. Off-Chain transactions block n block n+1 block n+2 Tx 1 From: Alice To: Bob Tx 2 From: Bob To: Chuck Tx 3 From: Chuck To: Dave Tx (โฆ) From: (โฆ) To: (โฆ) OFF-CHAIN Tx 4 From: Dave To: Ted
- 25. Off-Chain transactions block n block n+1 block n+2 Tx 1 From: Alice To: Bob Tx 2 From: Bob To: Chuck Tx 3 From: Chuck To: Dave Tx 20 From: Ken To: Eve Tx (โฆ) From: (โฆ) To: (โฆ) block n+2 Tx 4 From: Dave To: Ted OFF-CHAIN
- 26. Off-Chain transactions block n block n+1 block n+2 Tx 1 From: Alice To: Bob Tx 2 From: Bob To: Chuck Tx 3 From: Chuck To: Dave Tx 20 From: Ken To: Eve Tx 21 From: Eve To: Bob Tx (โฆ) From: (โฆ) To: (โฆ) block n+2 Tx 4 From: Dave To: Ted OFF-CHAIN
- 27. Off-Chain transactions block n block n+1 block n+2 block n+3 Tx 1 From: Alice To: Bob Tx 2 From: Bob To: Chuck Tx 3 From: Chuck To: Dave Tx 20 From: Ken To: Eve Tx 21 From: Eve To: Bob Tx 22 From: Bob To: Ted Tx (โฆ) From: (โฆ) To: (โฆ) block n+2 Tx 4 From: Dave To: Ted OFF-CHAIN
- 28. Micro payment applications The energy provider sends electricity to the buyer through the secure meter The energy buyer puts money on a secure meter allowing it to make transactions The secure meter measures the energy transfer, and release small quantity of bitcoins every few seconds Thanks to the lightning network and to payment channels, transactions are instant, costless and secure
- 29. Conclusions โข Mixing IoT and blockchain can actually make sense and there are some scenarios where these two technologies work well together
- 30. Conclusions โข Mixing IoT and blockchain can actually make sense and there are some scenarios where these two technologies work well together โข Data notarization from IoT sensor protects from some manipulation attempts (no all!) and is a very scalable application
- 31. Conclusions โข Mixing IoT and blockchain can actually make sense and there are some scenarios where these two technologies work well together โข Data notarization from IoT sensor protects from some manipulation attempts (no all!) and is a very scalable application โข Using the blockchain is it possible to have true machine-to-machine payments without the interference of humans
- 32. Conclusions โข Mixing IoT and blockchain can actually make sense and there are some scenarios where these two technologies work well together โข Data notarization from IoT sensor protects from some manipulation attempts (no all!) and is a very scalable application โข Using the blockchain is it possible to have true machine-to-machine payments without the interference of humans โข You can add complex smart contracts and build all sort of things
- 33. Federico Tenga COO at Chainside [email protected] www.chainside.net