Blockchain Eine technische Einführung Roadshow Blockchain München, 21 März 2018

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1 Blockchain Eine technische Einführung Roadshow Blockchain München, 21 März 2018 Dr. Carsten Stöcker, Spherity GmbH

2 4 th Industrial Revolution (powered by the) fusion of technologies that is blurring the lines between the physical, digital, and biological spheres Source: World Economic Forum 2

3 Global Blockchain GDP 10% of the global domestic product will be stored on Blockchain technology in 2025 This equals USD 10,000,000,000,000 Currently a small tech elite and a handful of corporates are seriously looking into this huge opportunity space Source: Estimate of the World Economic Forum World Bank

4 Source: Coindesk, 23 September

5 Customer trust Trust w/o a Brand 5

6 BITCOIN = Digital Gold Money w/o a Bank 6

7 Farmer Market Transactions w/o Intermediaries 7

8 Blockchain Underlying technology of Bitcoin Decentral Public Ledger Immutable, no censorship No middle-man, Trustless Pseudonymous P2P Network 8

9 Blockchain 3 Column Excel Spreadsheet (1) Sender (2) Recipient (3) BTC Value Underlying technology of Bitcoin Decentral Public Ledger Immutable, no censorship No middle-man, Trustless Pseudonymous P2P Network 9

10 Smart Contracts = Algorithms + DATA Programmable contracts Integrated with physical and virtual assets Smart Contract Secure Transactions Asset Transfers, Lending Control your Data Audit Trails De-central Markets, 10

11 Adopting Blockchain for the 4 th Industrial Revolution On Fusion of Technologies 11

12 Source: CES Las Vegas

13 Source: EOS Germany 13

14 Machine Economy: As machines drive more buying choices, we must accept them as a new Customer Segment. M2M Economy enabled by IoT + AI + Blockchain + Modern Cryptography 14

15 Decentral Internet & Physical Delivery P2P Networks/ Blockchain + IoT + Physical Delivery Smart Contract P2P Networks = Blockchain + P2P Data Storage + P2P Communication + Modern Cryptography + Off-chain Computing 15

16 Our core believe Privacy and efficient transaction systems are an absolute necessity for an open society in the 4th industrial revolution. Based on Cypherpunk's Manifesto by Eric Hughes 2018 Spherity Bridging the spheres. Slide 16 16

17 Sensors/ Actors Economically Independent Machines Purpose, Authorisation Wallet, P/L Crypto Token Machine Embedded Computing Algorithms Blockchain Data Integrity & Authenticity Immutable Data Records Machine Identity (KYM, KYO) Interoperable Transactions Access Management Sharing & Ownership Transfer 17

18 Future of Mobility + + Autonomous Driving = The self-owning Car 18

19 Simple M2M Transaction Example Electric Vehicle Charging Block 1 Block 2 Block n Data Feed Smart Contract P2P Node Data Communication Authentication, Billing Light Node / Car ewallet or App Meter Load Switch/ Controller Charging Station Source: innogy SE 19

20 Convergence of Industries in single M2M transactions Physical Transaction Allice Digital Token = physical value of Energy Bob Convergence of financial, automotive and utility industry in a P2P transaction secured by business logic in a smart contract 20

21 Blockchainifying Systems (Retrofitting, Backend Integration) Commercial Backend Communication Gateway Blockchain Node Roaming services Banks Block 1 Block 2 Block n Data Feed Smart Contract M2M Communication Authentication, Billing Smart Phone App Source: innogy SE 21

22 Blockchainifying Systems (Disintermediation, Backend Integration) Commercial Backend Communication Gateway Blockchain Node Roaming services Banks Block 1 Block 2 Block n Data Feed Smart Contract M2M Communication Authentication, Billing Smart Phone App Source: innogy SE 22

23 Pan-EUROPEAN Charging Network Oslo2Rome Source: innogy SE 23

24 Adopting Blockchain for the 4 th Industrial Revolution On Identity, Digital Twins and Audit Trails Bridging the physical, biological and digital spheres. 24

25 We believe In the future human and non-human, economically independent entities will interact among each other. Independent Machines Physical Objects Digital Assets/Agents Living Organisms Secure transactions can only be enabled by a general purpose identity and data protocol 2018 Spherity Bridging the spheres. Slide 25

26 Get ready for Identities in the 4 th Industrial Revolution Digital Twin Basic Setup 01 Take any physical object 02 Use tagging solutions to give it a unique identity 03 Bring your object s data to Spherity platform 04 Interact with your unique digital twin Verification of authenticity and provenance Proof of ownership + Modern Cryptography Lifecycle traceability 2018 Spherity Bridging the spheres. Slide 26

27 2018 Spherity Bridging the spheres. Supply Slide Co. 27

28 2018 Spherity Bridging the spheres. Slide 28

29 Digital Twin of an Asset CarPass km Information w/ permissions Data + Data (Token Stream) Insurance certificate Storing of telemetry data immutable in decentralized data base Set-up user roles and access rights via blockchain Includes functions to transfer ownership and setting data access permission Financial token transfers Spherity Bridging the spheres. Slide 29

30 Digital Twin Fully digitized transactions among decentralized Digital Twins Liquid Supply Medium Exchange Fully Digitised Transaction Digital Control Unit Charging Station P2P Token Stream Digitised Energy Flow Decentral Transaction Layer CPID VID Decentral Identity / Digital Twin AC / AE Physical Data Oracle Control Unit Physical Supply Medium Exchange Charging Station Physical Energy Flow CPID: VID: AC: AE: Charge Pole ID Vehicle ID (aka VIN) Authenticated Communication Authenticated Encryption 2018 Spherity Bridging the spheres. Slide 30

31 Decentral Platform Defining unique digital identity for humans and non humans Blockchain Transactions in the 4 th Industrial Revolution For humans Unique biometric identifier For non humans Unique physical identifier Physical Identity Self-Sovereign Digital Identity P2P P2P Usage based micro transactions On demand mobility services Sub Identities Decentralized & encrypted layer 2018 Spherity Bridging the spheres. Slide 31

32 Ecosystem Innovation 2018 Spherity Bridging the spheres. 32

33 Ecosystem Innovation Leadership A Paradigm Shift With the fusion of technologies an entirely new leadership approach is required. Entrepreneurship Focus on commercialization Ability to build ecosystems Unformalised relationships Courage to openly share knowledge Dilutive approach towards IP Orchestration of interdisciplinary teams 4IR soft skills Hypothesis driven capability building No clear business case, long-term strategy (Chinese Supremacy) Focused execution in today s environment Retrofitting, not crying for regulations, blending with current industrial base 2018 Spherity Bridging the spheres. Slide 33 33

34 Privacy & Cyber Security Unique Identities CMS Backend Decentralized Applications AI & ML Decentralized Data Storage Urban environments IIoT ERP Backend Developers Users Supply Chains Micro Payments Legal Entities Community Dashboards Blockchain Corporates Grids Business Logics Smart Contracts 2018 Spherity Bridging the spheres. Slide 34