Day 1: Moritz Kaminski (Bosch IoT Lab)

Transcript

[Music] / next out we are gonna hear from maritza Kaminski from the Bosch IOT lab Moretz thank you and you [Applause] hi my name is Moritz I'm working at the Bosch IOT lab and specifically for Bosch digital solutions and I will tell you something about our perspective when it comes to the Internet of Things and the economy of things so so IOT is basically all about software and connectivity of products like this clicker here or the

microphone but it also comes with challenges like interoperability security data privacy and tears we're basically blockchain comes into play because it holds a lot of promises to us to solve these issue when it comes to data privacy and this interoperability and that's that's what basically our talk is about today where we see us at Bosch so what is a big company they are active in all kinds of just different disciplines in mobility agriculture

healthcare industrial services building technology and generally energy and storage they have revenue of around 70 million five hundred thousand employees worldwide and they they are really strong when it comes to research on on blockchain and Internet of Things and here I show you basically what their activities are so when and when we look at the Internet of Things today we kind of develop a vision

of this economy of things and there we see five big roadblocks to reach this and in this presentation I will give you a short overview of each of these and what are our activities so the first one digital tokens and contracts we see blockchain basically as a basis for payments and contracts between humans and machines but also later on between machines themselves so when you go through Surak for example what you see is there in the meanwhile like there's a bike company that doesn't sell car bikes but only rents them out based on on IOT

services there's lime bike there's but also SUV also they are different several different providers of these new IOT services but with these IOT service you always have to do a new own account you have to top up your account you have to download a separate app and this is basically what where we see as a blockchain where where you have these destination investments which creates a certain stable API for payments holds a lot of promises and we at the Bosch IOT lab we did some research on it for example we developed a sensor as a service where you can basically pay with

Bitcoin for a service sense a sense of service where you get an the data back and another topic was app where you can build on on aetherium where you can rent yeah the classical posh home appliances like drilling machines for example however we see let's say a lot of a challenges in this field when it comes to this interoperability because for each and every term and in scalability because for each and every transaction and payment each node has to verify it

and also because of the latency issues and public blockchains where you need to reach a certain consensus state and and we've seen that back then there are tons of different apps available and none of them are yeah is has reached a certain distribution so far but within the last month and also like years we've seen different technologies involving and enabling new really new apps on top of this and this is a visualization of this between the blockchain and the app where we have

where we see new layer 2 technologies coming up for example the Lightning Network as you have probably known heard about that that enables new low latency micro payments and they are really really cheap almost cost nothing they are built on Bitcoin and abled like these is yeah payment channels which means that payments are each payment is not directly contacted on the Bitcoin blockchain but routed over HHS and payment channels and only the results are then shown on the Box chain here this is a screenshot of of the test net

of the activity of on the Lightning Network in the mean why we the many wallets are also already online and also them on the main net and we have I think even 5,000 channels around and and and to 2,000 nodes already active on the minute so you see it really first traction of this in real world another technology is the Peru Network when it comes to off chain state machines this is based on aetherium I mention it because Bosch has committed to do to ya some development work on it

and - yeah contribute to the open-source community by by building a yeah this Peru Network and in our own implementation but overall at this economy of things research project that we are working on we are not necessarily looking only into Bitcoin or aetherium but our rather open so stating here a hyper ledger we look at core de iota hash graph or WIPO for example and we really say okay there is not necessarily

this own this only technology that fits to this use case but we say okay if there is a use case for blockchain technology then we also see does it really make sense to use this technology in which one is the most suitable one and then when we selected technology the distributed ledger technology we do not only look at the technology itself but also on the governance for example on network effects and on the community because as you see later that's also a very important point of this project you another like the second the second pillar of this is the digital notary

where blockchain basically acts as a basis of registering immutable and certain indisputable information records and I think you can really imagine blockchain s or the big conversion for example as a as a clock where each block yeah kind of displays a second for example or a certain time and this enables everything what is now written on it enables a certain yeah or audit audit trail basically and this audit trail is not now based on a sort certain authority but really unprovable data and this like the new step that what makes a difference basically so you can also say

that what we have developed here is also a certain second layer technology what we do here is we we write raw data and with a salt we hash it and and write umbrella of a miracle tree and only anchor the the root of this miracle tree on the on the blockchain and this creates a notarized receipt and with this notarized receipt and the and and the raw data now we can show that there has not been any manipulation priori of this original data set so we came up here or what we did is or we enable the

kind of scalable solution now this is public if publicly variable so each and every one can verify with this raw data that this data has existed at a certain point in time by still preserving the privacy and here this is also like well can you really use it and we've built here our service is called certificate with certificate we write or we extract card data basically from your car from your used car directly over the obd interface or if it's a connected card

and directly over the manufacturer and hash this this odometer value and create this miracle trees and building up a data history so we really want to build up kind of a digital twin of your car where you see the whole history and when you want to sell your used car now you can purchase this certificate or can generate a certificate and show proof that there has not been any manipulation of your car data for example there has no the the odometer has not been wrote back before this is one side so this certificate when you want to

generate trust in the selling process and when you want and this enables you basically to to increase the purchase value of your use card also what we what we provide here is a dashboard where you have a yeah very easy to easy to handle and nicely presented dashboard of your car data with all the relevant data that you can also show like the digitalis check if for example all the other service states the emissions for examples or the fuel consumption so this is one it's a product this is almost at the market I'm I'm also proud to

announce that we started with the landing page this week so yeah check it out please give us our feedback the real service now will start within the next two months where you can also access the near car data so this is one of the first let's say blockchain based services that are soon in the market as opposed to several others then another let's say yeah column of these five are digital identities as a really basic for economic of things where you have basically as this Hardware wallet and

this Hardware wallet stores all these attestation and claims and this and your identity your digital identity is not more provided or anymore provided by our let's say particularly identity provider like a cloud platform but is managed by yourself and do you see also this self server Rana TM this trend where you can let's say manage your own identity and this identity is basically presented by attestation and claims but through third parties for example and you can show basically lock you can manage with him to to to share it with

so the in the fourth appoint our economic devices so you're already out also here in this economic devices you also have this identity layer yeah with with a basically a hardware wallet what also can be then it's not only you data can be I have a hardware wallet but also learned machines where it's applicable and this um this hardware wallet then represents the keys then you have this economic interface typically as I said this could be less like the Lightning it could be you know payment channels like through lightning Network or temp like contracts over the

over perón auction system and that is implemented there and then on top you have now let's say this new layer this this brain is intelligence where you know as the owner of a machine can bring in this intelligence so it could be either based on simple rules yeah then it's very simple but it could also be we are derived from your preferences as the owner from your goals for example and one application scenario could be imagine you you own I autonomous electric vehicle driving from Zurich to

Berlin for example and do you don't want to end up without electricity so what you have here like preferences could be yet this please guarantee data is always 10 percent of electricity in the battery that electricity comes also from renewable energy sources that I don't have to wait for better for charging stations for example and I want to have a coffee place right next to these and on the other hand you also have like the preferences of the charging stations that could be uh maximising all the charging stations reduce Peaks

for example but all these preferences need to be like negotiated out and there comes the agent and - and to play another example what Bosch realizes in this field is a implementing this on an autonomous carrier in a yeah let's say a closed industry environment where different participants and here we are talking not about like yeah Bosch internal departments but real companies that are part of the network and they can bid for this resource for this independent and carrier and this enables

all sort of yeah added values and use cases like you centralized marketplace for products and services through this auction bidding system you can really reduce your fixed assets for example reduce your inventory and you have then at the end you have this agent based system that is totally independent and can can act as it is like preferred from from the owner and here the goal is basically to support really disparate this production network to learn from this mutual distributed ledger technology to to really see ok which

which kind of auction mechanism make make most sense here another example is fattiest home it's a peer-to-peer energy trading yeah platform basically and here you see already the first let's say a micro micro autonomous market this project is built at the Bosch IOT lab right now and so what you have here is that like there are prosumers in the market that produce electric electricity but also consume electricity and they want to sell it and basically optimize their revenue and

within a small village this market now is enabled by via trading this this blockchain based billing mechanisms and you get this electricity as a fifth pillar now real the really the platforms and the economies and you have several challenges when you look at this this point when you design these systems because often these systems are actually always these systems start off in a decentralized way and but but like this networks are based on on individual

communications between each other so but starting decentralized and then over time all the market participants learn how others react how how can I basically maximize my utility so you have this changing external environment all the time and what we see is that this often ends up in a very central central form or centralized form however like when you look at Bitcoin you have similar challenges yeah but the real value proposition of this blockchain technology of this Bitcoin blockchain technology comes from it's isn't realization but they also have the same

challenges for example when we look at the Bitcoin mining or the the commits to Bitcoin core for example and the morph or the farther away that the curve from this yellowed diagonal line is this to the less decentralized it is so having that in mind what you see here is this platform provider they they often start decentralized by building up the best service in the market but really to solve to solve a certain problem but over time when they grow they they got more and more centralized

and they start to extract rent they start to to maximize their revenue and this means like they're reached from a certain cooperate stand point with their developers with their creators to a certain competition over time and this transition needs to be closely also or we just we need to be aware of it and we need to have a need to know how to deal with it when we come up with with these new economies and Bosch has as a let's say manufacturing and an engineer driven

a company also very engineer driven perspective on this and they do a lot of research on on game theory and mechanism design to really understand and and and analyze the network and it's yeah the degree of for example distribution and patterns to really have a very stable network at the end there they also published a research paper on this topic so towards the end I like to share you our mission with Bosch digital solutions

and with Bosch overall regarding the economy of things so one part is really this decentralization that we have in mind and we have on our strategy meaning that we enable these these cooperatives solutions and want to create alternatives to these to these centralized platform and monopolies in the market another point is innovation yeah we want to contribute to to new cross industry and value networks and enhance them by by creating new business model and also evolve meaning

that we want to industrialize complimentary new services in the market and extend an established product based business model so at the end of this talk some recommendations from my side I think Bock Chen can be really a differentiator in the market and build up this trust and I've presented you several technologies and also some applications where Bosch applies and yeah

sets this really into practice why because simple we say that ok this new technology enables to process automation and cross company business transactions and you can now really close digital contracts and and process this transaction and pavements now reliably and in a secure way and I would say that really you as a company when you're on this field focus on the technology itself to experiments yeah and not focus on the hype of trading and I SEOs but really um if you want to come up with this with an IOT solution

focused really on the link between physical and digital world and this is still a big issue overall when it comes to the economy of things we say that or we see us as like enabler of decentralization decentralized marketplaces and this comes with a lot of new opportunities when it comes to business models and therefore I think I think that or I can recommend really that start exploring in this field as soon as possible and not to be disrupted later on and we

would help you or we'll be glad to help you as posted resolution on on your way there thank you very much