Slock.it

Transcript

[Music] Okay. So, um, for those who don't know me, I'm Kristoff Yench. I'm working actually I'm a theical physicist. That's my background, but I'm working for the C++ team, the Ethereum and working on the tests. So, all the clients use my tests basically. And yeah, that's what I've done over the last year. But now I want you to to know a little bit more about Socket. So what is the problem we are

trying to solve? So most of you have a lot of property. Think about your house, your car, your washing machine, your lawnmower, your bike, and a lot of different other things. But you use them only like 5% of the time. Most of the time they're just sitting around there. Don't do anything. So now the problem comes how could you rent sell or share them easily and that's basically the problem we are trying to solve. So when you try to rent them, there are a lot of problems which come up for you such as doing the payment, it's organization. So you actually need to meet someone and speak to someone. No, I'm a German and we don't like this. So you want to have

this completely automated. Um you need to match the user somehow. You need all the security, all of those kind of things. So that's a real problem to rent out small things which only cost like $1 that someone can use a bike for 20 minutes or your washing machine. And so those are the problems we have and that's the reason why you usually just don't do it. You do it maybe sometimes for the big things and use some platforms for it. But we want to show you now a solution which is basically a lock that can directly opened by paying it. I mean paying the lock. Now we are just not talking to paying someone else.

So how does this work? So the basic process is very simple. A owner of a slot, he can set two numbers which is a deposit and a price. And then he's basically done. He doesn't need to do anything else. Just lock his property with this lock. Now when a user comes along, he just needs to pay the deposit. After he's done this, he has access to open and close or switch it on and off as often as he wants to. He is the current user and he can also um set some other sub users like family and friends because he paid for it so they can also use it. So you have a user management system included and then let's say he he used

it for a couple of days and then he returns it. when he returns it after a while he gets back his deposit minus the costs and the payments or the costs they go directly to the owner and this of course happens automatically on the blockchain without anyone interfering. That's a visual visualization of the smart contract behind this lock. Okay. So now how does this work under the hood? Of course it's a smart lock connected to the Ethereum blockchain.

That's why I'm talking here. So what do you have? You have now um this big SLO and what what belongs to a SLO. Um first of all there's a smart contract which I just explained which is running on the Ethereum blockchain. Everyone can read it. Of course the code is open source. It's actually so easy to read that if you can if you are a developer even not a developer I think you can understand it and just read it. Here's just a part of it. It's that's a part of the closing function. I need to make it nicer after latest validity updates. Um but yeah, you just see something here that the user gets sent the deposit minus the cost and the owner got sent the cost and there are some other edge cases handled here. So it's really simple to read and

you have the smart contract. So what are the things? How how is the user interacting with the smart contract? All he can do is paying the deposit open, reopen, close. That's all the interactions he does. On the other side, the owner what he can do to through the smart contract is setting a deposit a price. He can also open closed on a restricted basis. So if he's not if there if it's rented out, he of course cannot open close it. But if the user has used up his deposit, then he can kick him out. Yeah. So if all those um rules implemented in the smart contract. So but how do we now get the connection between the smart contract and the device? So we have those little tiny embedded devices and you see more

and more coming like this. You know the Raspberry Pi many people have played with it but even better ones. You see there a little Intel Edison really really tiny and we got a full client running on it. So when I say full client I mean a pruned client. So it doesn't need to that much storage. Um so the C++ line of course and we also there some in a couple of months will be something from Samsung called the Arctic coming out even tinier and the spec are good enough that we can run that we can actually run a client on it so and those devices now can talk to existing smart devices we can use Bluetooth set or sigb for those of you

who don't know setwave or sigb it's just used in smart home so it's a smart home technology connecting all the smart devices in your home and there are thousands of different setwave and squee products out there which we can connect to. So I would not call us directly a hardware manufacturer. We're just connecting to all of those existing devices out there and just enable them with our smart contract to be controlled by the blockchain instead of just by an app because you know all the internet of things you have those cool devices but basically all you can do is just controlling them with an app. It's nice but controlling by the blockchain. This gives you complete different scenarios and use cases. Okay, now let's come to our products. So what have we built until

now? The first thing we come out with is a SLO home server. And I will now try a real life demo on real life net. So really hope that it works that you turn off all your Wi-Fi. Um so this is this is how our app looks like. We have it on Android and iOS. So what what is this the user doing? So he can now here if he has the name of the SLO which the SLO owner registered on the blockchain then he gets the public key from there otherwise you can type in the address or just scan in a career code to get the public key of the smart contract. So for now just let's use last used locks for example a power switch. Um this power switch um the owner set here 10 deposit in V. So it's

a subunit of ether. really low um and a price and y per minute for example. What I would do now I rent it and this is now sending a transaction on the Ethereum blockchain. So now we wait for one block to confirm it. But you could do this like a couple of days before you don't need to do it when you're in front of it. So we need now one block to to get this transaction confirmed. That's actually really happening on the live Ethereum network right now. So after this transaction is going through, I am the current user in the smart contract and then I have access to open and close it. So now it's done.

Thank you minus. Um now if I for example push this open button um this power switch there goes on. Okay. And you can think about here this just a kettle but you can think about a washing machine, a dryer which just went out in your shared apartment for example. Um, let's just say you're a shared apartment, five people, one bought a washing machine. So, if other people want to use it, they just pay one ether or$ one dollar to use it. But you don't need to handle any of those things. Payments automated. The device is really connected to the blockchain. So, you can Yeah, you can have a lot of things behind the power outlet. Just get your imagination going in industrial processes like paying

money to use a big machine behind the power outlet. A lot of different use cases. Um let's I want to show you something else too like for example the door lock. Um if we just use a smart door lock um I can do the same thing. I see the deposit is now 100 E is the price per day is 10 E is so I'm now renting out this door lock and I'm just using now my SLO home server to connect to all those devices. So people who already have a smart home Yeah. can can now say I can control all those devices with the SL home server. So basically you have a Ethereum client running in your home.

You know there's this startup making the Bitcoin computer and you know but here you have the Ethereum computer in your home controlling all of your devices. So let's now wait for the miners. So they are done now. So here you have a closed door. This is a door lock smart door lock you can buy on the market on Amazon today. And I could now say open and it now will send a whisper message. That's important. Um, confirm it. I hope you can all see it. Make click. It's turning around for those in the front seats. Um, so how this is done because of scalability, we do not want to send a Ethereum transaction for every time you open close something. So you only have Ethereum transaction for renting it and returning it. But in between, we just

use whisper messages where they can see is this signed by the right public key which I can find the blockchain. If so, I execute open or close. So this goes therefore it's much faster when you're in front of the door. It's just that the visor matches. It takes about one or two seconds and it opens. You do not need to wait one block to for to confirm this. So when I'm done using it, I can return it. Then I get back my deposit and minus the cost and the owner gets his cost. It's as simple as that. So this is how um the app works. Okay. Also, it's just another feature which I like. You can think I I'm here in front of those devices, but you actually don't need to be like I can turn out, you know, we have a bubble

machine there at our stand. I already rented it. So, I can now open it and you now will see the bubbles going coming out there. So, you can imagine I'm standing in front of the door. I don't have money. I just call a friend. Could you please open this door for me? Just send some Easter to this account and then it's open. So, because it's a blockchain, it's international. It works. So, I will close it because people don't like it sometimes to get too many bubbles. Okay, this was about the products. So, what else do we have? Um, this supports setwave stick and Bluetooth. We made a I call it allin-one box a lock power switch. Here we use this little tiny Intel Edison connected to relay to just switch power on and

off. So, you don't need a SLO home server for this. Home server is good if you want to control many devices in your home or something like a door lock. But if you want to have it cheaper and all in one box, then you have for example the slot power switch. You see those prototypes on a stand if you want to try them out. But those are it's really just the beginning. And we are currently speaking to a bike lock manufacturer. They're doing smart bike locks. So you can really rent out your bike for example. Just lock it with a lock and then you can leave it for three or four months and people can just find it, unlock it, drive around, leave it there.

With GPS you can say where they should leave it. Um, so we are partnering up right now with a bike lock company. We have also a company building smart pack padlocks. So thinking about just a locker where you can have some stuff in there, lock it and people pay to open it and get it. I I could imagine for example a store which is open 24/7 without any stuff and the things in there are just locked with this lock. You can go there in the middle of the night because you really need this smartphone and then you just unlock um the lock, pay for it, grab it and go. So you can really automate a lot of things.

So everything you can lock, you can now rent and share it. So it's a real powerful platform to be used. And every time I talked about this to someone, they came up with different use cases like having a parking slot, for example, rent out your parking slot in front of your door. Other use cases, um, use your power outlet to charge cars. So the electric cars can park in front of just your home and they paying you for getting some energy of your house before they go along driving. So there's a lot of things you could do with this technology. So our vision of course is far greater than just the sharing econ sharing economy. That's where we want to start. But you know internet of things is going to be a big thing. I think the first thing when a developer sees this

he thinks about oh scalability you can't do this on the Ethereum blockchain. Two and not two. The good thing is that's a problem for IBM and Samsung. They cannot put all the device on the blockchain. But actually we can because we don't have that many devices yet. So scalability is not a problem for us the next coming two or three or four years and I hope until then Vitalik has solved the problem. So but for the next couple of years we won't have a problem because really the Ethereum transaction only to rent it and return it. Everything else are just whisper messaging. So it's just basically a user control system on the blockchain. So we are hope that we are really the first one to bring together IoT and blockchain world on the Ethereum. And I think it's the first real prototypes you see working.

Everyone's talking about this big thing IoT and blockchain, but we just did it. Okay, I hope those things were amazing to you, but we have just another thing. Um, a really cool thing like we are speaking to investors and yes, there are some investors who want to give us some money and we have some how do we do the business model? How can we make money? We talked for hours about this and we have this Ethereum blockchain now. So we thought we can do much better today. We do not needed to do it old way. We can do it in the blockchain way. So what is the blockchain way of creating a company? Of course it needs to be in DAO. So and I will how today show you how this DEO a decentralized autonomous organization will work. So of course you

have the DEO and you have service provider. I hope for the first time we will be the service provider but actually they are free to choose which any for any service provider they want to. So this DO has of course a smart contract in the blockchain where the constitution of the DEO stands and you can interact interact with. So what are the tasks of the DEO? First of all, they fund the development. So we will do a pre-sale, we'll do a fundraising like a crowdfunding and that's where we need your help. I will now explain to you what you can get from this when you participate in our pre-sale or crowdfunding. So you fund the development, you are able to vote on major decisions and very importantly you control the funds. So when we do this crowdfunding the money will not go just

to us like all the money to us and we can maybe use it good or maybe use it bad. You stay in complete control of the funds and your goal is it to be a profitable DO. So this is a forprofit DAO. So how does it work? Of course, you send some Ether to the CEO and you get some SLO tokens which are basically just membership in this do. So, you have a right to vote and very important, you get a reward. I will explain later how this works, but you can think about this like buying shares in a company and getting actually dividends. And I don't know if there are many crypto tokens out there where you accept of volatility just get a dividend a monthly basis or weekly basis. This is something you invest and you get dividends compared to

how much we grow. I will I will explain you how this dividends come to you and of course you vote on major decisions like how to spend the money where where do you want to send send the money to. So then you give some task and orders to a service provider usually through a smart contract and we will set up for this. So what does the service provider do? So the first service provider will be Slogage GmbH in Germany and what we do we produce this locks we do the marketing the partnerships with all those hardware manufacturers which are producing smart locks. So this is basically our task and we need money for doing this. So but how are we rewarding you now and this is the interesting thing we can do it actually automatically on a blockchain so that you don't not need to trust us to pay

you out or to send some money to the DO. So how are we going to do this? So how is the reward going back um to the DO? So there are two ways of doing this and actually the owner of this lock has an option. Essa he has a certain percent of fee for every transaction. So basically if I rent out let's say this apartment I pay 1% to the DO every time and the DEO will vote on how many% this is. If you the DEO make it high then it's hard to sell those locks. But if you make it low we maybe can sell more. So we need to talk. So but let's say you have a 0.5 or 1% fee. So every time something is using a slot to renting out something, you get a direct payment to the DO and you can

get your shares all the time there. So without us interfering that means if our GBH is gone. So CBH is a like you like a limited in Germany and if we are gone this still works. You still get payments as long as there are locks out there. SLS out there you get your get your money. Another thing could be because we spoke to our Airbnb host. We are staying in the Airbnb here. We just found out that our host is also here. So just by chance he know about blockchain. He wants to integrate this now. And but he didn't like to pay 1% all the time. So but he he said what he would like to do is have like a one-time deployment fee.

So you could free yourself of this rule like paying 1% all the time and instead paying a certain amount of money which the DEO decides how much this will be. Let's say like $10 to $100. And every time someone deploys a smart contract for his SLO, this money goes directly to the deal. So we can make it happen on the blockchain that you who participated in the crowdfunding get your money back all the time as SLO is used. The SLO is sold or they use it for sharing something. So this is the real DO. The DO stays in charge of the funds and maybe they say we we have a good marketing campaign going on there. We send it to them. They promised us to if they make a good job, we send money to them again. So it's like not sending money to us with one thing, one step,

but really staying in control. We looking maybe we can use some nice tools. We saw here at the Defcon some great tools for managing um this DEO. We'll look into this and then make a decision which one to use. Okay. So that's the complete picture. You will see now for the first time a real do. We have we have spoken about this last one or two years but now it's happening. We have a real decentralized autonomous organization where you can participate, buy in shares and get dividends back completely automated on a blockchain. So if you believe that IoT blockchain sharing economy has some future, you should invest try this out and participate really in this. Okay. Now just who are we for now? This is the team I explained

who I am core developer the C++ team. This is yeah it's not by chance that he has the same name. Simon is my brother. He's a great um developer for over 20 years now working for large German companies um like Deutschean and other ones and I think some of you may remember Stephan Tul. I hope so. Yes, he has worked for for Visa and for other big analyst companies. He has been the former the former CCO of Ethereum. So I think he makes a great job for strategy and market development. I think we have a great team in place and there are other people so that for example k I have not mentioned them here um who are helping out right now with the community so we building this community we're building this do and in a couple of

months or weeks time you will be able to participate in this do so yeah thank you very much this was [Applause] I think that's a little bit time for question I think. Absolutely. So, yep. Any questions for the audience? Uh so is there any uh feedback? So for example, if I want to sell electricity, it's not just I want to be able to unlock it. I would actually like to meter it. So what I guess would be needed is something that sends out

timestamped measurements. Yeah, but this could be done. It could be done, but you haven't done anything. No, like for now, what we have done is this lock home server, the smart contract and like controlling smart devices in your home. But of course, you know, things are we can we can do those things. It's not too hard to do with IoT. Just connect it, measure how much goes through it. Yeah. Also, if you have some great ideas for new products, please join us on our email. You can set up an email list. We invite you to our Slack. Then we discuss all those things. We can come up with new products. What you think is the killer dep, the real power application?

Just let us know. We can build it. Other questions? What happens if the person that rent the device doesn't return it before the time that they rent it? For example, if they rent it for half an hour and if they don't return it, what happens at that moment? Yeah. After this, the owner gets accessed again. So he can like he loses access control to the lock and the user the owner has then access control over the lock. Yeah. Any other questions?

Uh hi. What about the network transaction fees? How your Airbnb host feels about this that he will have to pay the network transaction fees? They are they are so tiny. Like if we preload this lock home server with five ether, this will last a while just for transaction fees. So they need to go to the exchange and get some ether to do this. So everything is just pre preloading it with a couple of ether. This I don't know currently I think it's 0.002 cent something like this currently a transaction. So he can make thousands of transactions with a little bit of pre-loaded ether. Great.

How do you plan to solve the problem where the final end user that is renting the the machine doesn't need to know or understand Ethereum or has an ether. Yes. So we tried to solve this of course in our app. What we saw now is just using ether. So in the future we are also planning that you can pay with PayPal or credit card but then you have a centralized exchange between. So this basically means like for you guys who know how to use eon cryptocurrencies, it's a completely decentralized system working without us. But if you don't use cryptocurrencies, you then we will offer a service for those people that is really easy to use. We do all the work behind and we will probably charge a fee for this to make some money out of this if you use it decentralized way. But for

for you paying with ESO or maybe with a Bitcoin relay paying in Bitcoin, it's yeah free free of charge. Any other Anyone? Cool. Well, I'll give it up again for Socket and their incredible products. Thank you very much.