tech enablers - IoT & blockchain Flashcards
what is IoT?
network of “things”,i.e. physical devices, vehicles, home appliances, and other items with embedded electronics, software, sensors and connectivity
- these “things” connect, collect and exchange data
4 main components of IoT systems
- sensors/devices
- network
- data processing
- user interface
- work together to create a complete IoT system that can collect and process data, provide insights and information, and enable users to interact with the system
- dependent on use case and requirements
how does IoT deliver value using data (3)
- asset monitoring and control
- prediction and action
- powering new business models
examples of IoT
- smart grids
- BOSCH Smart building: lift monitoring, chatbot, asset tracking
- smart city OS in Hull: city-wide management of public assets in real time, street lighting, refuse collection, parking, traffic congestion
what is a ‘system of systems’
- IoT systems combine and has more value than simply the sum of its parts
- eg. smart city initiatives: insights from IoT systems for weather, traffic => integrated to navigate drivers
challenges of IoT (8)
- integrating IoT into existing applications and processes/workflows
- sourcing, storing, and managing enormous amounts of data
- adopting sophisticated analytics and machine learning capabilities
- deploying end-to-end security
- ensuring privacy
- fragmented markets, ecosystems (interconnectedness)
- lack of skills
- over-reliance
IoT trends (3)
- analysing data on the edge
- eg. oil and gas remote monitoring, traffic management, autonomous vehicles - operational efficiencies
- eg. automated vendor managed inventory, robotics in retail stores, warehouse automation - convergence
- of IoT and Blockchain : eg. alipay launch facial recognition car rental service powered by blockchain tech
- oracle white paper
what is blockchain
- a decentralised, distributed ledger of records
- immutable and tamper proof
- facilitates the process of recording transactions and tracking of assets
- uses smart contracts, which contains rules, for transactions
- most infamous as the technology powering speculative asset classes (eg bitcoin, NFT)
how does blockchain work
- ‘blocks’ of data (eg. transaction, record)
- each block is ‘hashed’; refers to the hash if the previous block in the chain
- changes anything about the block changes its hash
what is stopping an adversary from re-hashing all the blocks
- blockchains are distributed
- changes to blockchains require consensus
establishing consensus - PoW
proof-of-work
- early blockchains use PoW for consensus
- deters manipulation of the blockchain by requiring computational effort to be able to change or add blocks
- PoW algorithms are asymmetric; computation must be hard but feasible but easy to verify
cost of PoW
- energy and resources
- maintenance and operations
- environmental impact
establishing consensus - PoS
proof-of-stake
- required validators to have some quantity of blockchain tokens, instead of computational prowess
- attackers would require a large number of tokes to mount an attack
smart contracts on blockchains
- specify agreements as self-executing code on the blockchain (code cannot be changed - immutable; automatically run when pre-determined conditions are met)
- languages like Solidity are used to write smart contracts
- other languages like JS, python are used in Hyperledger Fabric (open source, permissioned blockchain framework)
permissioned (private) blockchains
- only users with permission can participate
- preferred when security, identity and roles are required
- with trusted users, consensus can be achieved by proof-of-authority
4 types of blockchain technology
- public
- private
- hybrid
- consortium
use cases of blockchain
boeing: digital aircraft record system
coinbase: coinbase cloud software
JPM: digitized version of the U.S. dollar
De Beers: records diamond info
use cases of block chain - supply chain operations
- provides a complete, trustworthy, tamperproof audit trail
- greatly reduces execution, traceability and coordination problems
use cases of blockchain - education
- portable credentials
use cases of blockchain - travel
- GovTech uses a blockchain to notarise vaccination certificates
- American Airlines has a decentralised marketplace for travel agents and corporate travel bookers; bypass traditional global distribution systems
blockchain benefits and challenges
- what are the 4 features
- decentralisation
- distributed
- cryptography
- automation
benefits and challenges - decentralisation
benefits:
- enable high levels of resilience
- provide solutions where there is no trusted central party
challenges:
- challenges in governance
- added complexity in ensuring consensus among participants
benefits and challenges - distributed
benefits:
- maintained in decentralised form across different locations
- no need of a central authority to keep check against manipulation
challenges:
- network speed (not limited to single geographical location)
benefits and challenges - cryptography
benefits:
- creation of “immutable records, with permanent audit trails”
- encryption of sensitive data
challenges:
- complexity involved in cryptographic techniques
- dependence on the security of cryptographic techniques
benefits and challenges - automation
benefits:
- use of smart contracts to automate processes
- improved process efficiency
challenges:
- risk of errors in contract code
- legal questions on use of smart contracts
other blockchain challenges
- blockchain discourse is dominated by cryptocurrency hype
- permissioned blockchains have some interesting applications
- public blockchains face an uncertain regulatory landscape
what is cryptocurrency
- decentralised digital money designed to be used over a blockchain where all transactions are tracked
- allows transfer of value online without the need for an intermediary – lowers fees
- issued by private org
- alternative to traditional banking systems
- aims to provide equal opportunities for all around the world through borderless trade
what is metaverse
- 3D virtual world on the internet
- predicted by 2026, 25% of people will spend at least 1hr a day in metaverse
- business are expected to have presence in this world
- use of digital tokens to buy, own, sell things
examples of leveraging the metaverse
- Kpop
- Fashion: forever21, adidas
issues with the metaverse
- crime: how to ‘police’? can digital identities be erased/isolated with their network removed?
- ownership: real vs virtual
- work: jobs in the metaverse?
what is an NFT
non-fungible token
- a digital asset that represent real-world tangible or intangible objects
- bought and sold online, usually with a cryptocurrency
- 1 owner at a time
- allow artists to have the opportunity to monetize their assets
