Blockchain and IoT · Blockchain & IoT: Applying Blockchain Tracking Record metadata and results about logic executed at the edge. Regulatory compliance, immutable history of why

Presented By: Miguel Torres, Principal Architect / Developer

www.linkedin.com/in/migueltorreslopez

[email protected]

Blockchain and IoT

http://www.linkedin.com/in/npetrace

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Blockchain & IoT: Industry Trends

Security, Privacy, Identity

IoT data must be

collected,

transferred, and

delivered in a

secure, guaranteed

fashion.

Misbehaving

sources must be detected.

Three “V’s”

Enterprise systems

must be built to

handle the

volume, velocity,

and variety IoT data. Traditional IT

systems are not

sufficient. Devices

are becoming more capable.

Hybrid Integration

The vast collection

of devices,

protocols,

standards, and

data must be tied

to new and

existing IT systems

in an efficient and scalable fashion.

AI / ML to the Edge

Enterprise IoT

solutions must be

built to

accommodate

both edge and

cloud based IoT

data processing.

Shift to build

“edge-native” applications.

“Now” Responses

IoT data must be

processed at the

speed in which it is

generated, in

order to achieve maximum value.

Threats and

opportunities must be identified now.


Blockchain & IoT: Industry Trends (Security)

Security, Privacy, Identity

IoT data must be

collected,

transferred, and

delivered in a

secure, guaranteed

fashion.

Misbehaving

sources must be detected.

Physical Device Attacks (e.g. Taking over a device)

Software Attacks (Denial of Service, Viruses, etc.)

Network Attacks (Denial of Service, Wireless Vulnerabilities)

Encryption Attacks (Brute Force Passwords, “Man In The Middle”)



Blockchain

IoT

“Smart” Device-Driven Processes

and Context!

Supply Chain, Manufacturing, Obligation Tracking, Micropayments,

…

And perhaps some AI / ML as well…

Blockchain & IoT: Industry Trends

So How Can Blockchain be Applied?

Blockchain & IoT: Core Concepts

Distributed System of

Record

Embedded Business

Terms

Security, Verifiability,

& Provenance

Consensus &

Agreement


Blockchain & IoT: Sample Reference Architecture


Source: industrial internet consortium / industrial internet reference architecture v1.8

Blockchain & IoT: Applying Blockchain

✧ Capture IoT related data and store periodic representations (e.g. hash) on the

blockchain.

✧ Can be difficult to store the complete stream of IoT data

due to performance & storage limitations.

Asset Data Augmentation

✧ IoT devices can register themselves against the blockchain & be validated by the

network.

✧ No central system to attack, denial of service requires

attacking many nodes.

Device Identity

✧ Automatically execute business logic represented via smart contracts, in response to IoT data.

✧ Record immutable IoT “snapshots” of data and logic on the blockchain, and

link to offchain processing & storage.

IoT “Smart Contracts”


Blockchain & IoT: Applying Blockchain

✧ Record metadata and results about logic executed at the edge.

✧ Regulatory compliance, immutable history of why certain “decisions” were

made as part of IoT processing.

Analytical Model Tracking

✧ Publish software updates as a URL on the blockchain, along with a cryptographic hash

of the update.

✧ Hash is validated by blockchain-connected IoT

devices during update.

“Trustless” to “Trusted” IoT Software Updates

✧ Payments to business network participants based on sensor data (e.g. product delivery).

✧ Micropayments between devices themselves for certain capabilities,

without human involvement.

Payments & Micropayments


Let’s Talk About Identity…

Blockchain & IoT: Thinking About Identity


“Identity”

Relationships

Agents

Attributes • Identity is not just about “who” you

are, but also includes your

relationships (e.g. friends) and

agents (e.g. lawyers) that can act

on your behalf. *

• Identity can represent not just

“people”, but also devices (IoT).

*Daniel Hardman, Evernym / Hyperledger



Direct From Individual to the

Organization

https://medium.com/evernym/the-three-models-of-digital-identity-relationships-ca0727cb5186

Individual to the Organization via

Third Party

IDP



Direct From Individual to the

Organization

https://medium.com/evernym/the-three-models-of-digital-identity-relationships-ca0727cb5186

• Identity today tends to be very siloed

and/or centralized.

• You “freely” give your identity to

multiple websites and

organizations.

• Identity is controlled and managed

by third parties, either the org itself or

a third party identity provider.

• This puts identity out of your control,

and at risk (there are many examples

of identity breaches and data theft).

Individual to the Organization via

Third Party

IDP



Distributed Identity Network (Blockchain) Enables Peer to Peer Connectivity for the Purposes of Credential Verification

Auditable / Traceable, Secure Distributed Ledger, No Central Authority

Wallet Wallet Wallet



Decentralized Identity Foundation

• Identity is comprised of verifiable credentials, such as

a digitally verified driver’s license or passport.

• Identity is placed back in the control of the individual.

Private data and credentials are stored “off-chain”. • Can be instantly verified by the receiver.

• Need to meet regulations such as GDPR.

• May be applied to “people”, “organizations”, and

“devices”.

• Examples include the Hyperledger Indy project,

Sovrin (provides a trust framework / constitution

around identity), Evernym, etc.

Blockchain & IoT

Product / Asset Journey (e.g. Smart Energy Distribution)

Distributed Business Network (Blockchain) IoT Triggered Smart Contracts, IoT Augmented Asset Information

IoT Device Verification and Tracking, Micropayments

IoT Device

IoT Device

IoT Device

IoT Device

IoT Device


Blockchain & IoT: Consensus


• Common consensus algorithms are likely not sufficient to be effective in an IoT context.

• Performance and scalability

• Time to reach consensus

• Transaction costs

• A new type of “blockchain” platform is required to support the volume of devices likely to be attached.

• Beyond common enterprise blockchains (e.g. Hyperledger Fabric).

• Will likely result in a hybrid / polyglot blockchain architecture, with

varying frameworks at the edge, platform, and enterprise layers.

Blockchain & IoT: Lots of Choices for Consensus…


Proof of Work

Proof of Stake

Delegated Proof of Stake

Proof of Elapsed time

Proof of History

Proof of Space Time

Proof of Stake Time

Practical Proof of Kernel Work

Proof of Authority

Proof of Contribution

Proof of Retrievability

Proof of Use

Complements of Martha Bennett, Forrester, Sept 2018

Proof of Resource

Proof of Believability

Proof of Coverage

Proof of Weight

Proof of Reputation

Proof of Existence

Proof of Capacity / Space

SPECTRE - Serialized PoW

Proof of Stake Velocity

Delayed Proof of Work

Proof of Importance

Proof of Bandwidth

Proof of Burn

Ouroboros (PoS variant)

Proof of Time

Proof of Asset

Proof of Activity

Resulted Delegated Proof of Stake

Adaptive Proof of Work

Leased Proof of Stake

Dynamic Proof of Stake

Proof of Process

Proof of Participation

Is a Blockchain All I Need?

Blockchain is not without its challenges; we have considerations such as:


Governance &

Stewardship

Data Privacy Legal &

Regulatory

Risks

Deployment,

Management, &

Logging

New Technology,

“Picking a Winner”

Some Challenges & Considerations


Programming

Errors

Required

Collaboration

Supporting

Infrastructure

Needs

Legal

Implications

Lack of

Standards

Smart contracts have a lot of promise, but there are also concerns such as the following:




• Compiled to bytecode

before being stored on the blockchain.

• Executed with the EVM

(Ethereum Virtual Machine).

• Contracts are assigned an

address which doesn’t

change once it becomes part of the blockchain.

• Read-only functions do not require gas.

https://www.ethereum.org/greeter



• State created by

chaincode is scoped

exclusively to that chaincode.

• Chaincode may invoke

other chaincode (with

appropriate permission).

• May be bound to any number of “channels”.

• Written in Golang.

• Client APIs available in

Node.js or Java. https://hyperledger-fabric.readthedocs.io/en/latest/chaincode4ade.html



Problem

• Within the enterprise, smart contracts contain the “business logic”.

• Smart contracts can be difficult to write, and there is no consistency or standardization across platforms. Complete

rewrites are required to move from one platform to another.

Current Research / Effort

• Investigate the use of TIBCO’s graphical flow modeling capabilities

(Flogo) in a smart contract context. Enable contracts that are technology agnostic.

Project Dovetail™: A TIBCO LABS™ Project


✓ Simplify and reduce effort.

✓ Reduce technology lock-in.

✓ Enable multiple concurrent technology stacks.

✓ Leverage blockchain infrastructure.

Various Blockchain Technology Stacks (e.g. Hyperledger Fabric, R3 Corda)

Smart Contract

Write Once Deploy Anywhere

Mo

de

l




How Do I Get

Data In/Out of

the Blockchain?

How Do I Extend

Smart Contract

Logic To My

Enterprise?

How Do I

Respond To

Events from

my Ledger?

How Do I Analyze

Data Contained

Within the Ledger?

Can I Provide

Controlled,

Managed Access

to Blockchain

Capabilities?

For the appropriate use case, blockchain can provide “part” of the solution. However, during implementation, there are still questions like the following to answer:


Blockchain & IoT: Additional Capabilities

Device Identity

Off-Chain

Execution & Storage

Distributed Ledger

Blockchain

Security On-Chain Execution & Storage

Blockchain APIs HFC SDK

REST HTTP

JSON RPC

Web3

Blockchain Proxy Layer Smart Contracts

ChainCode, Solidity, …

Data Distribution Transport

Microservices Event Handlers

API Management Analytics

Edge Processing


Blockchain & IoT: Additional Capabilities

Distributed Ledger

Blockchain

Security On-Chain Execution & Storage

Blockchain APIs HFC SDK

REST HTTP

JSON RPC

Web3

Blockchain Proxy Layer

TIBCO Hybrid Integration

Smart Contracts

ChainCode, Solidity, …

TIBCO BusinessEvents, Dovetail

Data Distribution Transport

TIBCO Messaging

Microservices & Process Automation

TIBCO Hybrid Integration

Event Handlers

TIBCO BusinessEvents

API Management

TIBCO Mashery

Analytics

TIBCO Spotfire

Off-Chain

Execution & Storage

TIBCO (Various)

Edge Processing

TIBCO Flogo

Device Identity





CLOUD

Applications TCI / TCE, Cloud Starters

Dashboards Spotfire

API Management TIBCO Mashery

SEC

UR

ITY

SER

VIC

ES

Ed

geX

Fo

un

dry

DEV

IC

E M

AN

AG

EM

EN

T S

ER

VIC

ES

Ed

geX

Fo

un

dry

Device Services (Standard and Proprietary Protocols) EdgeX Foundry, Flogo Runtime

Device SDK

Core Services - EdgeX Foundry

Registry & Config Metadata Command Core Data

Supporting Services - EdgeX Foundry & Flogo Runtime

Export Services (Client Registration, Data Distribution) EdgeX Foundry

Analytics Rules Alerts & Notifications Aggregation Logging

Analytics/ML Data Science, Spotfire

Data Storage AS, Graph, ComputeDB

Project Air™: A TIBCO LABS™ Project

© Copyright 2000-2017 TIBCO Software Inc. © Copyright 2000-2019 TIBCO Software Inc.

Project Air Menu


Project Air Gateways


Project Air IoT Dashboard

Blockchain & IoT: Recommendations

• Gain awareness through experimentation – be prepared!

• Blockchain shows promise in the IoT

space, but many issues are still to be resolved for large scale deployments.

• Complete IoT / blockchain device

interactions will require both technical and business innovations.

• Performance, security.

• Transaction fees and payments. • Standardization.

Distributed System of

Record

Embedded Business

Terms

Security, Verifiability,

& Provenance

Consensus &

Agreement


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Blockchain and IoT · Blockchain & IoT: Applying Blockchain Tracking Record metadata and results about logic executed at the edge. Regulatory compliance, immutable history of why