The document discusses a hands-on lab that will integrate the IBM Watson IoT Platform with IBM Blockchain. Participants will deploy smart contracts for IoT devices on the blockchain and connect MQTT devices to send sensor data to the blockchain. This will allow physical devices to participate in blockchain transactions to create a more efficient business network with an immutable record of transactions.
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Integrating IBM Internet of Things Platform and IBM Blockchain
1. InterConnect
2017
Hands on Lab 2234
Integrating IBM Internet of
Things Platform and IBM
Blockchain
Rahul Gupta
Senior Software Architect
rahul.gupta@us.ibm.com
1 4/27/2017
@rahulguptaibm
2. Hands on Lab Agenda
2 4/27/2017
In this hands-on lab, you will deploy smart
contracts for IoT in IBM Blockchain, and
connect MQTT devices to send IoT data
to the blockchain using the IBM Watson
IoT Platform. In an IoT context, data
comes from "things" to private blockchain
ledgers for inclusion in shared
transactions with tamper-resistant
records. Attend this lab and start creating
a more efficient business network with the
IBM Watson IoT Platform and IBM
Blockchain.
IBM Watson IoT Platform IBM Blockchain
3. 3
The Business Value of Blockchain
Blockchain is a shared ledger technology allowing any
participant in the business network to see
THE system of record (ledger)
7. 7
Integrate Watson IoT Platform with Blockchain
Enable physical devices to participate in blockchain transactions.
• Enable business networks to use IoT devices
to supply data to blockchain transactions.
• Abstract devices from contracts. Watson IoTP
can provide data mapping and filtering between
devices and blockchain contracts.
• Examples: smart devices could send GPS
coordinates or temperature data, barcode or
RFID scanners could send registration or
update events.
8. 03/21/2017 2017 IBM InterConnect 2017 8
IBM Watson IoT
Platform
Validating Peer 1
Validating Peer 0
Validating Peer 2
Elevator Manufacturing
Company
Government Inspection
agency
Elevator at Customer
Location
Blockchain Fabric
Shared, replicated, permissioned
Device data
transmitted on
MQTT REST API
Hands-on Lab Scenario
user_type1_2
user_type1_1
user_type1_0
11. 11 4/27/2017
Notices and disclaimers
continued
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So Blockchain technology comprises these four main blocks, that can lead to increased efficiencies, and cost reduction across the business network.
We will “unpack” CONSENSUS PRIVACY & SMART CONTRACT in the next couple of slides.
Shared LEDGER has been already covered, and a SMART CONTRACT enables the business rules implied by the contract to be embedded in the Blockchain and executed with the transaction
This is the “BEFORE” picture representing the “status quo” for business networks.
Each participant keeps their own ledger(s) which are updated to represent business transactions as they occur.
This is EXPENSIVE due to duplication of effort and intermediaries adding margin for services.
It is clearly INEFFICIENT, as the business conditions – the contract – is duplicated by every network participant
It is also VULNERABLE because if a central system (e.g. Bank) is compromised due to an incidents this affects the whole business network. Incidents can include fraud, cyber attack or a simple mistake.
The novel Blockchain architecture give participants the ability to share a ledger which is updated every time a transaction occurs through peer to peer replication.
Cryptography is used to ensure that network participants see only the parts of the ledger that are relevant to them, and that transactions are secure, authenticated and verifiable.
Blockchain also allows the contract for asset transfer to be embedded in the transaction database determining the conditions under which the transaction can occur.
Network participants agree how transactions are verified through consensus or similar mechanisms. Government oversight, compliance & audit can be part of the same network.
Participants SAME AS BEFORE – this is not a disintermediation play
CONSENSUS– means all participants agree that a transaction is valid
PROVENANCE– means participants know where the asset came from and how it’s ownership has changed over time
IMMUTABILITY– means no participant can tamper with a transaction once it’s agreed. If a transaction was in error then a NEW transaction must be used to reverse the error, with both visible
FINALITY– means that there is ONE place to determine the ownership of an asset or completion of a transaction. This is the role of the SHARED LEDGER.
Enable physical devices to participate in blockchain transactions.
Enable business networks to use IoT devices to supply data to blockchain transactions.
Abstract devices from contracts. Watson IoTP can provide data mapping and filtering between devices and blockchain contracts.
Examples: smart devices could send GPS coordinates or temperature data, barcode or RFID scanners could send registration or update events.