The expandable AI Network

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1 The expandable AI Network

2 The Context Compliance with regulation & respect of user privacy Automation fundamentally impacts business Obligation to monitor & audit data How will regulation (GDPR) affect business? How can we stay ahead of the curve? What can we learn from dieselgate?

3 We envision a world where equally distributed intelligent systems enable meaningful collaboration and trust.

4 Distribution complements Intelligence New business models Process automation Data reporting and monitoring Ai Bc Artificial Intelligence - Reinforcement Learning - Predictive data analytics - Network stabilization Enterprise Platform Creates trust & transparency in intelligent systems. Blockchain - Fully distributed network - Data security & privacy - Immutability of data

5 Oxford origins......in 2014, Leif-Nissen Lunbæk teamed up with University of Oxford researchers to create the expandable Artificial Intelligence Network (XAIN), a truly decentralised, dynamic and energy efficient blockchain for machine networks.

6 Our Further Evolution Feb 2018 Successful pilot of Porsche Vehicle Network Jun 2017 Sucessful Mercedes pilot Development of vehicle management platform as the 1st OEM to implement & successfully test a Blockchain in a car for production audits Automated auditing and monitoring of production data for predictive maintenance & quality control Feb 2017 Incorporation of XAIN AG in Berlin with core team

7 What Experience Has Taught Us 1 The business case for private Blockchains has yet to be made Complexity of policies & governance of consortia Non-consortial private Blockchains are open to internal attacks 2 Public Blockchains are not enterprise ready Costly integration with enterprise / legacy systems Enterprises have little control over network policies 3 Public Blockchains are still relatively centralized & inefficient Few actors yield disproportionate control Bitcoin mining represents 0.6% of global energy demand in 2018

8 Addressing the, Challenges... our mission is to build an intelligent infrastructure for humans, devices and organizations to purposefully work together. We thus created The Public Enterprise Blockchain as a public plug and play platform for enterprises to automate the monitoring and auditing of data.

9 General Architecture of Layers Auditing & Monitoring 1. Plug & Play Application Layer Enterprises Data Reports Hash Verifier Application Integration Layer Solidity Smart Contracts 2. Client & Consensus Layer Blockchain Mobiles Machines Consensus (PoKW)

10 1. Plug & Play Application Layer Automated Monitoring Platform of Mobile or Production Machines Reporting Monitoring Dashboard #zx <xml/> {JSON} SAP R3/HANA Oracle (ERP, RDBMS) IBM DB2 API # # <data/> #3x #cd Processor Client Storage #rd

11 2. Client & Consensus Layer Energy-efficient Proof of Kernel Work (PoKW) How does it work? PPoKW uses Cryptographic Sortition: Here, a fixed number of nodes is randomly assigned to a committee that runs the Proof of Work. What are the benefits? Performance & energy consumption remain constant regardless of network size. Small machines (ECUs, mobile devices, etc.) can participate. Step 1: Cryptographic Sortition to Select the Committee Leader Step 2: Proof of Work selects Leader Committee Whitelisted Nodes

12 SARSA AI Engines Distributed Machine Learning for Network Stabilization Artificial Intelligence SARSA is a reinforcement learning algorithm that allows for predictive network stabilization 5 PM XAIN SARSA SARSA Engines Engine 3 AM Network analysis: Records the performance & stability of Blockchain, e.g. Number of online nodes. Many cars are online Most cars are offline fast verifications slow verifications Example: car sharing & fleet management Stabilization Action: The SARSA engine automatically changes network parameters to mitigate performance fluctuations

13 Benefits & USPs of Pure Plug & play 1 2 Enterprise focus - e.g. SAP R3 & HANA API & integration of Watson on top Integration with low-energy and mobile machines - IoT devices, ECUs, etc. due to energy-efficient consensus 3 Automatic data monitoring 4 and auditing - Reporting, certificates & predictive maintenance Privacy preserving access control and data structure - Distributed key Management (NuCypher Integration)

14 Top-Level Application: Automation of Production Audits Daimler Product: Platform that automates the auditing and monitoring of manufacturing production data Applications: Predictive maintenance of machines and quality monitoring What does it solve: Speed,trust,risk prevention & cost efficiency in the auditing of production data

15 Top-Level Application: Porsche Vehicle Network Product: Distributed platform that gathers & manages vehicle data Direct Offline Authentication 1 Applications: Predictive maintenance, car certificates, access permission, remote updates and data collection of driving behavior 2 Update Log & Permissions With Vehicle Network What does it solve: Trust, speed and security issues with gathering and sharing car data

16 Our Clients & Partners

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