Census Things: To Revive The Material World Using The Blockchain

Chapter from the book don and Alex Tapscott “Blockchain revolution” — infinite data register only and distributed capitalism. In a sparsely populated area of Australia on a hot evening at eight oclock falls power line support. This is a serious problem for William and Olivia Monroe, pastoralists living hundreds of miles from the old zolotoiskatel city Laverton, on the edge of the Great Victoria desert. In summer the temperature often rises to 50 degrees Celsius.

Children of William and Olivia, Peter and Lois attend school remotely, via satellite. Its the only way for the family to seek medical help. They have a backup generator, but he wont be able to power the pumps, communication and air conditioning. In short, the whole life of the Monroe family depends on a reliable electricity supply.

In the morning, nine hours after the accident, the power company otrajaet a team to search and repair support. Consumer complaints allow you to set the area of the incident, but the repair crew has to spend the whole day in order to determine what support is out of order, to get to her and fix. All this time the family Monroe and nearby residents, companies and institutions are forced to do without electricity and communication, suffering considerable inconvenience, incurring losses and being exposed to physical risk.

In sparsely populated remote areas power outages are not just paralyzes life, but really dangerous. To reduce risk, the energy company is spending considerable funds for regular inspections of the entire network and extensive search of the failed or collapsing pillars. Imagine how much safer, easier and more profitable it would be if each leg was an intellectual. She could report on their condition and initiate replacement or repair.

If the support suddenly caught fire, tilted or fell, would have automatically generated an incident report in real time and the repair crew would have received the instructions to go with the appropriate equipment to a specific point. At this time, the bearing would transfer its load to nearest support working — because they are all networked. Thus, the company would restore electricity to the population much faster, without huge fixed costs to inspect.

And this is only the beginning. Using new software and technologies associated with the Internet of things, you can make the existing infrastructure, such as electricity, intellectual, entering into her smart device that can communicate with each other. Imagine that you can quickly and relatively inexpensively create a new flexible and reliable network that will open more opportunities for new services, new members and increase economic value. This configuration is known as the mesh network, i.e. a network that connects computers and other devices directly to each other.

They can automatically reconfigure themselves depending on available bandwidth, memory and other parameters and thus to protect against disconnection and other problems. Mesh networks can be used for basic communication where other means are unavailable or too expensive. Mesh networks — an alternative to the traditional vertical models of organization, management and control; they are safer and provide better protection of personal data, since their traffic does not pass through any Central organization. The organization already combine mesh networks with the technology of the blockchain to solve complex infrastructure tasks.

The American company Filament is experimenting with so-called “taps” on transmission towers in remote and Outback Australia. These devices can share information at a distance of 16 kilometers. Supports are usually placed at a distance of about 60 meters from each other; the motion detector on the falling support reporting the issue nearest support located 60 metres.

If the withdrawal of this support for some reason is not working, the signal goes to the next, and so on within 16 miles, while one of the pillars will not be able to contact the company through the nearest Internet point in the transport network (within 200 miles). Battery drainage for 20 years, and technology BLE (Bluetooth Low Energy) enables clients to communicate with devices directly from any smartphone, tablet or computer. The withdrawal, if desired, is supplied with a set of sensors of temperature, humidity, light and sound, so customers can use this information for tracking and analysis of support in time and, possibly, to develop algorithms for predicting life cycle support and its failures.

The customers themselves can become “metanode” or metered to give this information as an information service or to license its use in the blockchain by another user — for example, a public authority, the broadcaster, the manufacturer of the poles or the Commission for the protection of the environment. The business model of the Filament is a service model that includes three parties. He Filament, client integration and the power company.

Electronic equipment is owned by the Filament; the device is constantly monitoring the state of transmission towers and signal the changes — the fall, the fire, the damage caused by dust, or smoke from a Bush fire. Filament sends a stream of data from sensors to the integrator, and the integrator sells it to energy companies. The power company is paying monthly for this monitoring. It eliminates the need for costly inspections on the ground.

Because the support is falling not so often, the power company rarely uses the communication capabilities of mesh networks, so that the Filament directs the excess resource allotments for other purposes. “As devices belong to the Filament, we have the right to sell additional network capacity through this network, which covers almost the entire continent, says Eric Jennings, co-founder and CEO of Filament. For example, we may contract with FedEx and give their vans the ability to send telemetry data to the headquarters in real time by our network deep in Australia.

We include Fedeh in the smart contract, and now theyre paying each device to forward data”. FedEx drivers can use the mesh network for communication and tracking vehicles in remote areas to inform them of your estimated arrival time and to signal the fault network is able to inform the closest repair, what you need to send spare parts and tools. And now, instead of transmission towers, imagine that digital is getting every node in the energy system and thus created a completely new peer-to-peer models of production and distribution of energy. Grid with bloccano open to all.

Currently in new York within the framework of state-sponsored programs to improve resiliency of the grid in extreme weather conditions work is underway on the creation of public microenergy in the Brooklyn area of Park slope. This microenergy and local power generation will allow to provide fault tolerance in case of accidents and reducing clients costs, encourage consumption of environmentally friendly renewable energy, energy efficiency and additional features of accumulation in the area.

Microangelo has long been common on University campuses, but in a residential area yet are rare. Most homeowners, entrepreneurs, government bodies and other organizations in cities in North America receive electricity from regulated companies at regulated prices. Now there are new options for local generation of renewable energy, e.g. installing solar panels on the roofs. The power company takes the excess energy in your system for redistribution at wholesale prices, and often with noticeable losses.

The consumer, even living across the street from a local source of energy, is still forced to contact the company and pay retail rate for renewable electricity produced by its neighbour. This is absurd. “Instead of a hierarchical system, which is now working for the power company, where the network is controlled by a small group of people, you can build your network so that it will govern, says Lawrence Orsini, founder and Director LO3 Energy. €? The network becomes more stable, because all the elements in it help maintain the grid and to manage it”. Is a distributed peer-to-peer networking model of the Internet of things with smart contracts and other controls, embedded directly in the element (that is, bachanova model).

If a hurricane destroys a transmission tower or a transformer substation was damaged by fire, the grid quickly and automatically reroute to avoid massive blackouts. Stability is not the only benefit of such a model. Local generation of energy for local use are much more effective than the model at the scale of the energy company, which is based on the transfer of energy over long distances with inevitable losses.

LO3 Energy together with local energy companies, representatives of the population and technology partners are working to create a market where residents can sell and buy from each other, the local environmental value of electricity generated by them. “As a result, instead of paying the power company that buys the renewable energy points, you pay the people who actually generate energy that is used in your home, locally produced, environmentally friendly and really has a positive impact on the environment. Much more fair scheme, right?” notes Orsini.

Right. If you define the location of each of the elements and according to it assign a value for generation and consumption, will create a market operating in real time. According to Orsini, can be sold on a competitive basis surplus electricity to neighbors, which do not produce renewable energy. Thus, in the community provided by the energy sustainability through peer-to-peer Commerce.

Members of the community agree (reach consensus) on the rules micronegocios energy market. Determine the tariffs depending on the time of day, maximum and minimum price, priority to the nearest neighbors and other parameters to optimize prices and reduce leakage to a minimum. The customer will not have all day to sit behind a computer and trade to profitably buy or sell electricity.

Microenergy of the future will collect heat from the computing power required to create and maintain a transactional network platform. The distribution of computing power to buildings in the area, the use of heat for heating, water heating and air conditioning systems will increase the efficiency of the same power. “Our goal is to increase Exergy,” says Orsini. As soon as the growing generation of renewable energy at the local level, the Internet of things is closely regulated utility model, and very timely. Need to respond to climate change, to prepare for increasingly extreme weather conditions, particularly the melting of the polar ice that are flooding the Islands, and drought causing desertification.

Currently, we annually lose about 6 million Ha of agricultural land due to desertification, mainly in Tropical and southern Africa, where, unlike Australia, not every family living in remote areas, can afford pumps, air conditioners or moving. We need to make our power grid, and the motors are not thrown into the atmosphere energy and carbon dioxide. Utility companies are already thinking about the benefits that IOT can bring to their existing infrastructure (“smart grid”), however, the connection of microangela can lead to the emergence of fundamentally new energy models.

Utility companies and their associations, and regulatory and policy makers, along with young innovators like LO3 are already exploring these new models of generation, distribution and use of electricity, first at the district level, and then throughout the world. Unlike the grid computing power have passed in its development through a series of paradigms. In the fifties and sixties, the market was dominated by mainframe — International Business Machines and the Wild BUNCH (Burroughs, Univac, National Cash Register Corp., Control Data and Honeywell).

In the seventies and eighties the market was invaded by microcomputers. Tracy Kidder described the take-off Data General in the 1981 bestseller “the Soul of a new machine”. As manufacturers of mainframe, most of these companies left the industry or gone. Who remembers Digital Equipment Corporation, Prime Computer, Wang, Datapoint, or microcomputers, Hewlett-Packard and IBM.

In 1982, the IBM hardware and Microsoft software has led us to the decade of the PC, which the Apple Macintosh could barely keep up. How things change. The same technological advances have facilitated the development of communication networks. Since the early 1970s, the Internet (which began with the network of Advanced Research Projects Agency Network in the United States) gradually acquired a modern look — global distributed network of more than 3.2 billion people, enterprises, bodies of state administration and other institutions.

Computing and network technologies converged to mobile tablets and handheld computers. BlackBerry in the early 2000s brought to the market smartphones, as Apple and the iPhone in 2007 has made them popular. A relatively new and very promising perspective reveals the ability of modern devices to move from relatively passive monitoring, measurement and communication (weather, road congestion) to the perception of and response — that is, the execution of a transaction or action in accordance with the previously given rules.

The device is able to perceive (the temperature, the tube on the road) and react (turn on the stove, to extend the green traffic signal), measure (movement, heat) and to inform (emergency service), detect (broken pipe) and alert (repair crew), track (location, distance) and change (direction), identify (your presence) and focus (is on you), among many other possibilities. These devices can be either static (pole, tree, tubing), and cell (clothes, helmet, car, dog, animal, endangered species, tablet). Specialists care use smart or edible electronic pills to diagnose and fix if the patient the medication and when.

Special patch or tattoo captures data and measures, for example, pulse, the volume of the ingested food or other parameters and transmits them to the doctor, the nurse or to the patient through the application that identifies patterns and gives the result. Soon this technology will be used for the targeted drug exposure in certain types of cancer, measuring the temperature of internal organs and other biomarkers. The device can communicate with computers and databases either directly or via cloud services, as well as with people (to send a message or call on mobile). These devices due to their developing machine intelligence and data they collect, pass into the hands of private users, analysis of data, recognizing patterns, and identifying trends.

The industry term “big data” is hardly suitable to describe the amounts of information that will generate the material world. According to the most conservative estimates, if today is through the Internet connected about 10 billion devices by 2020 their number will exceed 25 billion. It will be “infinite data” from an infinite number of devices.

So why do we still not live in smart houses, they dont drive smart cars dont take smart drugs. This is the six big obstacles. The first is the excessive complexity of applications and services. Simply put, very few of the first applications of the Internet of things have practical value — unless you want the smoke detector could ask the light bulb to call your smartphone to warn you about the fire.

The second problem is the inertia of organizations and the unwillingness or inability of top managers, industry associations and unions to devise new strategies, business models and roles. While some creative entrepreneurs have managed to open new businesses on the basis of some of these principles (automation of identification, search, use and payment of physical objects) and thereby to turn the existing market (Uber, Airbnb), their impact remains relatively small and relies on the mediation of the company and its applications. The third obstacle is concerns about hackers and security breaches, is able to maliciously change information and rules for the operation of the devices, taking control over them, with potentially dire consequences.

Fourthly, there is the issue of “test of time” – critical items long-term use with a high life expectancy, exceeding the average life cycle of the application or even the company. Start-UPS and then go bankrupt or are sold to larger firms. The fifth obstacle is a matter of scale.

To realize the full potential of the Internet of things should connect multiple networks so they can interact. Finally, there remains the complex problem of technology, centralised databases — it is unable to process trillions of transactions in real time without huge costs. To overcome these obstacles, the Internet of everything requires a register of everything — cars, people, animals and plants.

Welcome to the Internet of everything. It becomes possible to register only distributed reliable and secure exchange of information, response to external circumstances and automation of actions and transactions through the Internet thanks to the technology of the blockchain. Specialists and science fiction writers have long imagined a world where integrated global network of sensors, connected via the Internet, it captures every event, action and change on Earth. The ubiquity of networks, the continuing growth of computing power and an expanding range of cheap and small-sized connected devices bring the Internet of things to translate into reality.

Remember that Satoshi Nakamoto has developed bichenovii the blockchain to ensure the integrity of each transaction on the bitcoin network and bitcoin in General. Recording each transaction on each node and then making that recording available to any other node in the network (i.e. the blockchain), a blockchain allows for fast and continuous approval of the transaction on the peer to peer network.

We can carry out transaction values — in this case financial — automatically, reliably and confidently, and thus we do not need to know every node in the network to trust him or to turn to intermediaries. Register only the necessary minimum of trust. The technology of the blockchain allows us to identify smart devices in the relevant basic information and programming them to certain actions in the pre-agreed terms without the risk of errors, interference or outages in the Australian desert. Because the blockchain is tamper-proof register of all information transactions within the network, fill up over time and maintained through the collaborative efforts of nodes in a particular network, the user can be sure that the data is accurate.

Technology companies are increasingly coming to the fact that the blockchain is needed to realize the potential of the Internet of things. Joined by none other than the founder of a large centralized computer systems — IBM. This company recognizes the value of the blockchain in the report “Democracy devices. How to save the future of the Internet of things”.

“In our vision of a decentralized IOT, the blockchain plays the role of the structural frame, providing transaction processing and coordination of connected devices. Each of them manages their roles and their behavior, and the result is “Autonomous decentralized Internet of things” — and, accordingly, the democratization of the digital world. The device is empowered to implement digital contracts, such as agreements, payments and non-monetary exchanges with peer devices, detecting of updates to its own software, confirming the trustworthiness of the peers, paying for resources and services and sharing them. This will enable them to function self-sufficient and self service..”.

Thus, the use of the blockchain makes it possible for completely new business models, because each device or node in the network can function as a self-sufficient microbusiness (for example, to share energy and computational capabilities at a very low price). “An example would be a music service or an Autonomous car, says Dino mark Angarita, founder Smartwallet. €? For every second of music playback or motion of the car from my balance is deducted a fraction of a cent.

I am not making a large down payment and pay only for what you use. The service provider does not risk to remain without payment. This is not possible with traditional payment networks because the Commission is too large to transfer from card a fraction of a cent”. Guest bedrooms, empty apartments or free meeting rooms themselves will be able to rent.

Patents will themselves be licensed, but our electronic mailboxes is to take the spammers money for each delivered message to us. In General, the picture is clear. Thanks to machine learning, sensors and robotics and Autonomous agents will take over the management of houses and office buildings, interactive sales and marketing, over the roofs of bus stops, traffic and use of roads, collection and removal of garbage (that is, the containers will start to talk garbage trucks), energy systems, water supply, implantable or wearable medical devices, inventory, factories, and supply chain.

CEO of WISeKey, Carlos Moreira said that the biggest opportunities from what he calls industrial bloccano. The Swiss company WISeKey operates in the management of electronic persons, cyber security and mobile communications, and equips the capability of secure transactions watches and other wearable devices, and now offers its own model of establishing trust manufacturers and chip manufacturers to provide a wide range of other IOT devices that will be able to confirm their identity and to communicate via the Internet and other networks. “We are moving to another world where trust is delegated to the level of objects.

The subject, which is not trusted will be automatically without reference to a Central governing body, rejected by other devices, says Moreira. It is a huge paradigm shift that has tremendous consequences for many years to come”. In this future world, users connect to smart devices using the reliable identification and authentication is possible, public and private keys, and set conditions for interaction with other devices, such as requirements to safety of personal data, and do not follow the rules of the Central node or an intermediary.

Producers delegate maintenance, ownership, access and responsibility to the community self-sustaining devices, allowing the Internet of things the test of time and saving on infrastructure costs, since each device is replaced precisely at the moment when it starts to become obsolete. So the blockchain is able to overcome the six obstacles to a functional Internet of things. To summarize the nine network effective properties of a new register just: Why do we believe that the Internet of things with bloccano a huge potential.

First of all, because it allows you to animate the material world. As soon as the items come to life at the register, they will be able to feel, react, communicate, and act. Assets will have the opportunity to seek, to find, to use and to Finance each other in terms of smart contracts, thus opening the revolutionary new markets, just as the Internet did for people and all kinds of digital content. The question for managers, entrepreneurs and public figures.

As you take advantage of these new opportunities for change and development. How your organization will react to the inevitable destabilization of your current operating model. How will you compete with new creative models of startups and teamwork. In our lives a huge number of possibilities to increase efficiency, improve services, reduce costs, increase security and improve results — and all this we can achieve by applying the logic of the blockchain for Internet of things.

We are entering a major new phase of the digital revolution. Michelle Tinsley from Intel explains why her company is seriously exploring the blockchain revolution. “When personal computers became omnipresent, the level of productivity has risen to unprecedented heights. We connected PCs to servers to storage centers and data processing to the cloud so that poor startups to easily and affordably get access to computing power, and again we observe the rapid pace of innovation and the emergence of new business models.”.

Intel seeks to accelerate the process of understanding. What works, what doesnt work, where opportunities. “We want to see this technology absolutely new stage of innovation where possible entirely new types of companies, new market players. To be a leader in the industry, we cant participate in the conversation,” she says.

Just imagine the potential applications of these capabilities to a variety of industries, many of which are still not touched by the Internet revolution. How you can animate the material world. We dont have a Blue Fairy that turned Pinocchio into a boy. (And, unlike Pinocchio, the blockchain does not lie).

But now we have the technology of the distributed register, which will allow everyone “to do good in life”. And even better is the fact that Pinocchio will not be able to grow a nose in the register. We are just starting to think about the possibilities of the register total (integrated into the Internet of things). Recently special attention of media use, consumer devices, however, the potential application in practically every activity.

To classify and group the applications in different ways, because many of them are on the border and fall into several categories. McKinsey, for example, in the classification of the Internet of things uses the concept of “setting”. We have identified opportunities to register only twelve major functional areas. Each application describes their particular advantages and business case. These categories reflect the potential and possible radical changes to existing markets, players and business models.

In the future you will be to call an Autonomous car that will take you where you want. He intuitively will choose the shortest path, will go round the repair area, pay the toll on the toll road and Park — all without your intervention. During rush hour your car with another transport will establish road capacity to about time you got to the destination, and the managers of transportation connects the entire load to the Internet of things with bloccano to quickly pass through customs and other inspections.

No red tape. Manufacturer of street Allianz technology can equip your sweepers mini-cameras or sensors that detect the cars that are not pereprobovali owners (or pereferkovich themselves) from the other side of the street where Parking on odd days banned (as in new York), and to send this data of road police, so no one had to physically write out Parking tickets. And in General, sweeping machine could levy a fine in bitcoins with the cars just drove past — because the new York city Department of transportation would oblige all vehicles registered in the city, to connect to the vehicle number bichenovii wallet. On the other hand, Autonomous cars would feel the approach of sweepers and pereprobyval would be to give her a pass.

Specialists of many professions will begin to use smart devices to track the location, integrity, age, quality and other important parameters of the sidewalks, rails, transmission towers, pipelines, airstrips, ports and other facilities public and private infrastructure to monitor its condition and identify the problem (failure or outside interference) and to respond to them quickly and economically. Here the main role will be played by companies like Filament with a new inexpensive technology for the recovery of the existing infrastructure without major capital investment in its replacement. Assessment Eric Jennings from Filament, “about 90% of the infrastructure is offline now, and it would be unwise to destroy it in order to install a new wireless connected objects”.

“I need a garbage truck,” said overflowing dumpster. “Fix me,” asked a leaking pipe. The Internet of things will certainly inspire hundreds of childrens writers. Traditional utilities in both developed and developing countries can use the Internet of things with bloccano to track the production, distribution, consumption and collection.

As we have seen, new players on the market that do not have significant internal infrastructure and intend to use these technologies to create entirely new markets and models (for example, the district microenergy). Cows can become blackanime applications to enable farmers to track their food, medical treatment and General health. Using the same technology will: Sensors in the soil and on the trees will help the agencies for the protection of the environment to monitor how farmers treat the land.

Remember Autonomous agent-meteorologist BOB. BOB will exist in the world of weather sensors and to earn money collecting and selling mission-critical weather data. The number of possible applications — monitoring the quality of air and water and issue warnings about the need to reduce the amount of pollution or not to leave the house, tracking lightning strikes and forest fires, early warning systems on tsunamis and earthquakes and, of course, monitoring the storm activity and early warning.

In addition to the responsiveness of emergency services and reduce the risk to human life in emergency situations, these dynamic data will help to better understand patterns and trends in weather conditions, to determine preventive measures and to improve forecasting capabilities to make early warning even earlier. Professionals in the health sector using digital technology for asset management and medical records, inventory, order, payment, equipment and medicines. Already, health agencies use a variety of smart devices for these purposes, but not all of these devices are able to communicate with each other or to take into account the importance of security of personal data of patients.

The Internet of things with bloccano can connect these devices with new applications. Developed applications for monitoring and control of diseases (e.g., smart tablets, wearable devices to monitor vital signs and feedback) and improve quality control. Imagine a prosthetic hip or knee, which he monitors his condition, the manufacturer sends anonymous data about your functioning, to help improve the development of, and reports to the attending physician of the patient. “It is time to replace”.

Technicians will not be able to use specialized equipment, not having before this taken measures to ensure its reliability and accuracy. New smart drugs will monitor its effectiveness in clinical research and transmit information on the results and side effects, eliminating the risk of data modification. Financial institutions can use smart devices and the Internet of things, to mark the labels applications for tangible assets, thereby gaining the ability to track their history and current status. Since digital currencies allow you to store and convey value quickly and reliably, regardless of the value of the user, they will find application in risk assessment and management.

Developing the theme, perhaps the poor and needy people will be able to earn a bit of cash and possibly, electricity and other benefits if they would provide the labels and share their limited assets, as in the example microangelo. Owners will be able to mention a priceless art objects, Antiques, jewelry, Museum exhibits, any object ever exhibited at Sothebys and insured by Lloyds.

Insurance companies can vary rates depending on the location of the object and the conditions of its storage. If the picture is in a room with climate control of the Metropolitan Museum in new York, the rate will be lower, and if forwarded by sea to Greece, the above. Jewelry will be able to advise in the safe it is or adorns the neck of a celebrity. Insurance rates will be higher for a necklace that is Lindsay Lohan, for example, than for decoration Anne Hathaway.

The car will definitely get lower rates, and the devices themselves will be able on the spot to settle insurance claims on the basis of information from sensors. As we have noted, the tangible assets are easily converted into digital. All the documentation related to specific “things” can be translated into a digital format and stored in the blockchain. Patents, title documents, guarantees, certificates of inspection, logistics, insurance, replacement date, endorsement and so on that will greatly enhance the availability and integrity of information, reduce the volume of paperwork, will solve storage problems and losses, and make possible other improvements associated with this documentation.

For example, the car wont start if it fails the inspection, he had expired insurance, the owner had not paid the fines or sits behind the wheel of the person deprived of driving license. The items in the shop will inform the administrators that they will soon expires, and administrators can even program products to reduce in this case its price. In the United States more than 1.1 million square meters of commercial real estate, statistically, is vacant about 65%.

Digital sensors could create markets for such property, allowing to find, use and pay for it in real time. Realtors are already investigating this sector and develop new models of service for hourly rental. For example, in the evening, your conference room can “earn” a class for night school or office local startup. Other possible applications include security and access control, lighting, heating, air-conditioning, control water and garbage removal.

The most eco-friendly buildings will be managed by the register of things. Imagine how information on the use of elevators and the movement of people through the building to help architects in designing public and private spaces. The availability of premises can themselves be included in the registers and rent through the register only to meet the needs of tourists, students, administrators of homeless shelters and so on in the premises. These ideas are applicable to all types of residential, hospitality, office, industrial, retail and institutional real estate.

Global shop will require a global register of things or industrial blockchain. The administration of the plant will be able to use smart devices to monitor production lines, inventory, storage, control of supply, quality, and other. Perhaps some of the industry as a whole will move to the registers to greatly improve the efficiency of processes such as supply chain management.

Large and complex machines such as airplanes and locomotives, consist of millions of parts. Each individual component of the aircraft engine or wagon can be equipped with sensors that will signal the need for repair. It is even possible that the sensor will declare a tender for repairs and to choose the best timing and cost of the proposal, thereby saving time and transaction costs for the effective operation of such companies as General Electric, Norfolk Southern, and so on.

Moreover, manufacturers of all kinds of goods — from cars to light bulbs, and patches — are exploring the possibilities of embedding smart chips in their products and items to track, collect, and analyze data about its use. With this information, they can provide automatic updates to anticipate customer needs and offer new services, effectively becoming suppliers of products in permanent software services. You are alone. Chat with your home.

To market the home and numerous products and services focused on automatic and remote monitoring of the home. These services already exceeds the capacity of the camera and include access control, temperature controls, lighting and, potentially, everything in the house. “Smart home” is relatively slow, is gaining momentum, but Apple, Samsung and Google are already working on simplifying installation and operation. According to BCC Research, “the automation market homes in the U.S. will grow from $6.9 billion in 2014 to $10.3 billion in 2019, and this growth will be stable and long-term”.

You walk down the street, and then your mobile device is reported that in the nearest Gap store sold a dress to your taste. You go to the store, the dress is the right size for you is already pending. She tried on the outfit, you are scanning and buying paid. But you have other things to do, so the dress itself goes to your home and is waiting for you there.

In addition to enhancing the efficiency and monitoring of the environment, retailers can personalize products and services to identifiable customers who pass or pass by based on their location, demographics, known interests and purchase history — on the condition that these buyers have allowed the stores to access their “black boxes” in the blockchain. In this Chapter we addressed a number of potential advantages of the distributed Internet of things with bloccano at the individual, institutional, sectoral, and community levels.

Modernization and automation of processes, participants in peer-to-peer networks, rather than individuals or centralized applications, intermediaries can bring a number of advantages mentioned above, including. A distributed open model means that the Internet of things can samomoderirovanie, even if the company leaves the market or the manufacturer will go bankrupt. Built-in system compatibility allows you to connect different networks of the Internet of things and realize greater value. Many of these benefits rely on the concept of distributed, or decentralized, networks, and the exception of the Central (i.e. the power vertical) or other intermediaries (e.g., applications clearing house or management application).

As soon as such new intermediaries will emerge, others will try and “bypass” or remove it. According to the ideas of Eric Jennings, “people will do what they do to minimise their own inconvenience, hence the isolation of functional units, the concentration and centralization. That for these specific people is a short-term gain turns into long term loss for everyone else.”. He says. “the Internet of things needs to be completely decentralized.

In order for devices to act autonomously, to discover each other directly and establish direct and reliable connection with each other and in the future to pay each other in values directly between the machines.”. Institute for business value IBM explored five main so-called “vectors of destabilization” that will enhance our ability to exploit physical assets with the Internet of things with bloccano. Although IBM certainly have a vested interest in the Internet of things is a study of the business value is extremely useful. First of all, the Institute notes that the new network will allow users to instantly find available tangible assets, such as underutilized storage space or computing power, to access them and pay them.

The range of assets will be able to relate themselves with the demand. Because we can assess the risk and credit automatically online, and to recover the rights of ownership of virtual, have the opportunity to significantly reduce the price of loans and the risks. Automated use of the systems and devices increases the operational productivity.

Finally, firms can use crowdsourcing, engage in group activities and optimize cooperation with business partners in real time via the integrated in digital form the value chain. In short, it is the ability to create conceptually simpler and more efficient markets. There is access to previously unavailable asset pricing in real-time and to reduce the risk. As soon as the basic infrastructure, barriers to entry will be low (for example, to develop the app), and fixed costs are also relatively low (e.g. no more service fees for third party).

Significantly reduced costs in the movement of funds and reduce the barriers to opening Bank accounts, obtaining loan and investment. Maybe it will even keep the channels of micropayments, correlating the per-minute service use with pay per minute. The register makes things possible “distributed capitalism” and not just redistribution of capital. These markets — not fighting without rules, they can be shaped depending on our values as individuals, companies and societies, and to encode these values in the blockchain, such as the promotion of renewable energy, priority in applying for resources to the nearest neighbors, the observation of prices and protection of your personal data.

In short, just register plus the Internet of things now quicken personalizeduyj material world. As IBM notes, “at the macroeconomic level, we all benefit in the future of the Internet of things, although different sectors will experience a mixture of different effects.”. According to McKinsey global Institute, the economic value of the Internet of things until recently had been underestimated, if not taken into account; its economic effects — including excess of supply over demand could reach $11,1 trillion per year by 2025 for applications of the Internet of things. This is a ten percent increase compared to todays global GDP of more than $100 trillion is a huge sum.

Network intelligence — a term introduced in the “Digital economy” — describes that the network in one area after another will become smarter than its most intelligent node. As we have noted, the first generation of the Internet reduced transaction costs. We have a faster supply chains, new approaches to marketing, huge projects based on joint production, such as Linux and Wikipedia, a number of innovative business models. Blockchain technology will accelerate this process. As the Internet of things takes root, these trends will move at superluminal speed.

Weve covered in this Chapter. Now combine all the threads of innovation in the same scenario. Consider aggregators like Uber and Lyft. Uber — ridderikhoff network-based applications that bring together drivers who are willing to drive others for a fee.

To use Uber, download the Uber app, create an account and give Uber your Bank card information. When you order the car with the app, it asks you to choose your desired car type and marks your position on the map. The application informs you about the availability and location of a potential driver. At the end of the ride, Uber will automatically deduct the cost from your card.

If you dont want to give a tip at the default size, you need to change your billing information on the website Uber. Uber Technologies, the company that developed the app and control them, receives a Commission on each trip. At first glance, its a great idea, especially for cities where taxi services are not developed. However, Uber is not without problems.

Hacking accounts of drivers, the sharp increase in prices; there have been cases that passengers become victims of careless driving, harassment and attacks. In addition, Uber keeps track of all movement of the user and transfers this information to the city to study traffic flows. In addition, the drivers create a lot of value, but they receive only a small part of it.

Now imagine how it would look Uber in the form of a distributed application in the blockchain. Mike Hearn, a former Google employee who quit to on a regular basis to work with bitcoin, introduced this alternate universe based on bitcoin technology the Turing Festival 2013. Hearn called this network TradeNet, and described how using bitcoin people will go on the car without a driver. Here is this picture. Most people own cars no they usually rent cars through a system of public use.

Melissa in Chicago ordered the car through SUber (bacchanalia super-Uber). All the vehicles automatically send offers that host Melissa sort and is it in accordance with its selection criteria. Melissa indicates how many are willing to pay extra for a faster trip (for example, using toll roads). At this time John, who, unlike most of the users there own car SUber, goes to her work.

The car behaves itself, simultaneously revealing all the Parking options, both private and public, chooses a place, reserve it and pay in the offline market Parking. Since pre-defined parameters John always include a choice of the cheapest available place within a ten minute walk to the destination, he almost always agrees with the first sentence of his car. A Parking database, based on which the market works parks, also contains information on the Parking regulations for specific streets on different days and different times of day, volume, open Parking lot or under a roof, and a minimum value, if it was asked by the owner of a Parking space.

It works on peer-to-peer distributed platform that combines a number of applications, so that there is no centralized company ignores orders and does not charge a Commission. Any unjustified price increases and unexpected fees. Especially noteworthy in the proposed models do not use the car, some cars soon enough will become common — and the fact that the cars are fully Autonomous agents, who themselves earn taxi driver, pay for fuel and maintenance, make car insurance and discuss liability in case of accidents and operate (drive) without external human control, except when they need someone — perhaps people — to prosecute.

As a condition of operation, administrators SUber can program the protocols of the machines in the blockchain to follow all the rules of the road, the choice of the most direct, fastest or cheapest route and the performance of the obligations. Possibly, the registration of the vehicle in the system SUber will need to present the necessary documents, including property inspections and insurance, and the system will permanently record this data to provide re-examination and renewal of insurance as required. Sensors will monitor the “health” of the car and signal the need for repair, to enroll in an appropriate shop and pre-order the right parts. In a car without a driver, the passenger is shielded from the sarcasm, nepotism, sexism, racism and other forms of discrimination and corruption.

In addition, he wont have to listen to the arguments of taxi driver about politics or the smell of his incense sticks. All interaction takes place “behind the scenes”, between objects and is controlled by a stand-alone application. Drivers created blockcanvas cooperative, which was described in the previous Chapter, and get almost all the wealth, which is created. Users Melissa and John — you experience only comfort and no hassle.

Whats not to like. Just as the Internet has reduced the costs of search and coordination, digital currency, such as bitcoin blockchain will enable us to reduce costs to the discussion, conclusion, authorize and control the implementation of these contracts. We will be able to choose the best conditions and get a guaranteed result from any party that accepts bitcoins — including a taxi without a driver. How is that going to compete Ubers world.

But the script does not end. The intellectual infrastructure of the city to manage traffic flows (to switch the direction of the stripes, vary prices, automatically control traffic signals depending on flux density), further reducing energy loss and costs. The blockchain can maintain protective equipment on vehicles (with drivers and without drivers) and/or infrastructure, such as alarm collision warning and automatic braking, as well as an alarm tracking measures and means to prevent drunk or deprived of the rights of the driver to get behind the wheel.

In addition, the city will use sensors to facilitate the management of transport infrastructure, including asset management of infrastructure and fleet condition monitoring of rails and sidewalks, preparation of plans and estimates of repairs and designation of repair crews as needed. Particularly impressive in this picture that all systems are working smoothly — smart vehicles in smart infrastructure. Although will remain in demand and the drivers of shared cars, cars without driver will be able to safely move around the city thanks to the built-in navigation and safety systems, often interacting with smart infrastructure to discover and pay for expedited lanes or Parking or finding the preferred routes.

Accessibility, wide distribution, and reliability Autonomous cars will significantly reduce the number of private cars as commercial property in the previous example, are often not used most of the time. And it will make possible not only a technology or automotive company. Theoretically, such a system can develop one urban transport Agency, to operate, to own and control it, but its unlikely to progress.

It is more likely that SUber will appear and be innovative to develop shared as an open transport platform, where a variety of applications develop and offer local businesses, groups, government bodies and others in the form of: The beginning of this innovation can be expected in regions with sufficient infrastructure, a division of transport corridors (rail, car, Bicycle, pedestrian), major traffic problems (traffic jams) and a population with a long tradition of observance of traffic regulations. Another option is the newly created city when urban planners work in tandem with the technological and automotive companies that need to test their applications.

Any scenario with a car without a driver will be less successful and potentially very dangerous if other road users cannot be isolated (in some corridors), predictable (animals run out into the road) or controlled (pedestrian). SUber scenario seems more plausible. Such applications will likely appear in the coming years and for a long time will solve our transport problems. Today, local taxi service limousine service come into the fight with Uber in many cities.

City officials strive to balance users needs for affordable options and public safety, and taxi licensing, while the market confidently put forward a new model activities. Why not pay attention to the natural direction of development of the transport sector and to develop solutions that best suit the needs of the city as Chicago in our hypothetical scenario SUber. In this Chapter, weve covered a lot of exciting possibilities in almost all aspects of our lives, including (and maybe especially focusing on them attention) areas less affected by the first wave of the digital revolution.

At the same time, such opportunities destabilisateur existing businesses and ways of doing business. How do you as a Manager can balance both sides of the equation. Realize new opportunities and to minimize threats. Regardless of whether you work in private, commercial or public sector if you have such assets that are not used or are underutilized and could be a source of value.

Do you realize highest possible efficacy and the potential development of products and technologies for the Internet of things. Whether industry newcomers who take away your customers and reduce your profit due to the fact that the use of innovative business models based on applications that deserve your undivided attention. What are your assets and how you can improve to bring more value to your organization or your community.

Do you have the facilities, machinery, equipment or other assets that you can supply labels to track and animate in the Autonomous network, where you will set the functioning parameters, in order to reduce costs or increase value. Can you implement, improve and program the sensors into a larger network to improve functionality and value. Can you learn from the Internet of things, the new information useful for further planning and analysis.

What are the opportunities for new products and services based on new functionality and data received from the network. Is it possible to profit from your data and assets of value, for example, to rent expensive equipment when not in use. Think about the value of information is not new (think Sabre and American Airlines), but still many people forget about it. Can you connect your network with others to further increase, for example, in continuous supply chain or distribution channel and sales.

Whether at the sectoral level shared processes and functions that can be automated with the use of blockchain. If you promote this interoperability, using technologies built on open standards and proven international teamwork. What operations attack in the first place newcomers to the market using innovative business models based on Internet of things, to serve markets that we now serve you.

For example, if instead of a one-time sale of the vehicle, consumer goods or specialized equipment be used with benefit for you and your customers with new service model built on the maintenance of your connection with this equipment. Can you capitalize on existing technical competencies, resources, infrastructure, and the loyalty of customers to develop new business models based on Internet of things, which reduce the “capacity market” and, accordingly, the probability of destabilization of the new player. What are the costs and benefits of these opportunities.

What is the real value to your organization. Whether you decide through innovation urgent business task or simply explore the technology. Perhaps its time to connect to experiment is a key customer of your company. According to McKinsey, “the leaders are three problems.

Disordering of the organization, technological compatibility, and analytical constraints, increased risks to cybersecurity”. We are adding a fourth major task. From the beginning lay in the business protection of personal data and the incentive plan, including appropriate security measures. Both it and business operations will have to adapt to the Internet of things. What parts of the organization and what kind of leaders will need to attract.

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