blockchain and iot: Opportunities and Challanges

blockchain and iot: Opportunities and Challanges

• 1.
  Blockchain in IOT, Opportunities& Challenges Workshop on IOT MSRIT S Chetan Kumar ([email protected])
• 2.
  What is • Briefly:Bitcon is a distribution database of records OR public ledger • Each transactions in the ledger is verified by consensus of majority of participants in the system DISTRIBUTED CONCENSUS • Once entered, the entry in the ledger can never be erased
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  An Example: • Itis a crypto currency, the ownership of this currency and transactions are governed by block chain • Each transaction is protected through a digital signature • Each transaction is broadcast to every node in the Bitcoin network and is then recorded in a public ledger after verification • Verifying node needs to ensure two things before recording any transaction: • Spender owns the cryptocurrency—digital signature verification on the transaction. • Spender has sufficient cryptocurrency in his/her account: c
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  History of BitCoin •In year 2008, anonymous author with the name of Satoshi Nakamoto published a paper entitled “Bitcoin: A Peer-To-Peer Electronic Cash System” • 2008 • August 18 Domain name "bitcoin.org" registered • October 31 Bitcoin design paper published • November 09 ​Bitcoin project registered at SourceForge.net • 2009 • January 3 Genesis block established at 18:15:05 GMT • January 9 Bitcoin v0.1 released and announced on the cryptography mailing list • January 12 First Bitcoin transaction, in block 170 from Satoshi to Hal Finney
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  The Transaction • Eachowner transfer the coin to next by signing the previous transactions • The payee can verify the chain of ownership • How do stop double spending ? • The owner can send two transaction to two different receiver • Who would be new owner
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  A distributed timeserver • The double spending can be stopped, if there a time stamp • The new owner is one who received the money first • Can be easily implemented if there is a universal time stamp server • Which is not possible !! We need a distributed time server
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  Chaining the blocks •To implement distributed time server, agree on a certain task, completing the task is “Proof of Work” • A task can be to find a random number, when added gives a specific Hash value • Nodes that preform the work are called ‘miners’ • Miners gets rewarded for the task completed
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  Adding it together •New transactions are broadcast to all nodes. • Each node collects new transactions into a block. • Each node works on finding a difficult proof-of-work for its block. • When a node finds a proof-of-work, it broadcasts the block to all nodes. • Nodes accept the block only if all transactions in it are valid and not already spent. • Nodes express their acceptance of the block by working on creating the next block in the chain, using the hash of the accepted block as the previous hash.
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  Summary • Distributed: Nocentralized controller, completely peer to peer and distributed record • The ledger is broadcasted to all, can be verified using public key cryptography • Immutable record: Once a block is added, it can not be changed, if changed, need to re-do the entire block, to satisfy the “Proof of work”
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  Application of blockchain •Crypto currency • Smart contracts • Decentralized Notary • Digital assets • Supply Chain • Digital Rights management • Stock trading • Identity management • Document storage
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  What is IOT? • Connecting “Things” that can operate independently • Things (sensors) are connected to other things (actuators) • Has computing power to perform certain coordinated tasks • Creates a smart world: smart homes, smart street, smart city
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  What is happeningtoday • IOT in mainstream consumer applications • Smart homes, google home, amazon eco, smart watches etc. • IOT in mainstream Industrial applications • Solar power production monitoring • Industrial safety monitoring systems • IOT in mainstream personal/medical applications • Fitbits, diabetic monitoring, BP/heart rate monitoring • IOT in mainstream community applications • Pollution monitoring, environment/locality monitoring
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  IOT and BlockChain • IOT is distributed system, but • Today most of these works with support from centralized infrastructure • The sensors & actuators can talk to each other, but can not execute coordinated tasks, without trust • A de-centralized system like Block Chain can help • A smart contracts can be established and executed across peer group of devices, with trust ! • Can form a low cost and low maintenance trusted eco system
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  Opportunity: New paradigmin manufacturing
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  Just in Timemanufacturing • Just in time manufacturing • All manufacturing done using 3D printer • No inventory!! • Consider: You see a car and want to purchase • Take photo and upload to just time manufacturing portal
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  Just in Timemanufacturing • The request received at fullfillment center, job created • Automated 3D modelling and design by designing software • The job transferred to 3D printer and laser cutting machine • Required tasks performed • The job and material transferred to other unit/organization using an drone OR driverless vehicle • The more designs and tasks performed in other unit, and transferred again • Final product shipped back to user, in a drone/diverless vehicle
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  How does thiswork Smart ContractsOrder Placed Smart Contracts Smart Contracts Smart Contracts USER Move job to Other unit Design Center Final Shipment
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  How ? • Requiredistributed trust system • Each unit (a group of devices) must operate autonomously • Each unit must perform the task, complete the contracts • Must link the whole system via a common goal (for eg. Manufacturing a car)
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  Smart Contracts • Smartcontracts are computer protocols that facilitate, verify, or enforce the negotiation or performance of a contract, or that make a contractual clause unnecessary.
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  Opportunity: Security
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  A Distributed SecuritySystem • To onboard devices in a secure way • Centralized system do now work well.. IOT is distributed !! • A secure system to exchange peer-to-peer data • A secure system to accept and act on commands
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  Block chain forsecurity • Identify management Block chain based PKI • Eliminates need for centralized system for key management • Integrity management • A keyless signature structure using block chain • Reduce attacks, using block chain based network services
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  Challenges • New technology •While well adopted, still not many understand the core technical details • Not well exposed in other areas, barring crypto currency • Processing power • Require quite a bit of processing power • Can IOT devices afford ? Can Audino run this ? • But remember moorse law, computing power will increase and cost gets lower
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  Challenges • Storage • Seekssignificant storage • Can IOT devices support this ? • There may be miners like devices for IOT, how do we incentivize them ? • Scalability • IOT is all about scale, million, billions of devices (50billion by 2020 ?) • Can the algorithm scale well at these numbers • Currently there is around 16M bitcoins and will max out at 21M
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  Thankyou [email protected]