Kevin is an IOTA Evangelist, going "beyond blockchain" for the Internet of Things (IoT). IOTA's Tangle does not have blocks, mining or fees, and is quantum computing resistant.

1. Distributed
Ledgers Meet
Mesh Networks
By:
Kevin Chen

2. 2
Table of Content
1. Our Evolving Internet
2. Introducing IoT / M2M
3. Blockchain Secure Value Layer
4. Cases Studies
5. What’s Next?

3. 1.
Our Evolving
Internet
3

4. ➢ Global communications
network
➢ Connects billions of….
○ Computers
○ Mobile phones
○ Now custom devices
➢ Web: the UI of Internet
○ Starting with websites
4
What is the Internet?

5. ➢ Mid 1900s - Early 2000s
➢ Personal computers
becoming mainstream
➢ Static information pages
➢ Webmasters determine
information on site
➢ Connect by hyperlink
5
Web 1.0 (The Static Web)

6. ➢ Mid 2000s - Early 2010s
➢ Client - Server - Client
➢ AJAX, CSS, and widgets
➢ Social web, interactivity
➢ Rise of open-source
➢ Rise of social media
➢ Rise of e-commerce and
Digital payments
6
Web 2.0 (The Interactive Web)

7. 7
Web 3.0?

8. Web 3.0 under the hood...
8

9. 2.
Introducing
IoT & M2M
9

10. ➢ Supply Side (More Ubiquity)
○ Moore’s Law
○ Maker Movement/Customization
○ Smaller Embedded Devices/Machines
➢ Demand Side (Greater Need)
○ Intel gathering: Data = Oil, “Smart” = Insightful Info
■ For internal and external consumption
○ Predictive Analytics (i.e. Maintenance)
○ Now there is an arm’s race, FOMO
10
Why IoT? Why Now

11. 11
Cloud, Fog, and Mist Computing

12. 12
Challenges...
1) Fragmented Network
Protocols
2) Security Vulnerabilities

13. 13
1) Fragmented
Networks
➢ Differences in:
○ Range
○ Bandwidth
○ Power Usage
○ Latency
➢ Wireless Types:
○ Cellular
○ Wifi
○ RF
○ LPWAN
○ Mesh

14. ➢ Cell sites networks
➢ 3G/4G (LTE)/5G
➢ Range:
○ GSM: 200 km max
○ HPSA: 35 km max
➢ Large quantities of data,
less latency
➢ High power consumption
➢ Use cases: self-driving cars,
telemetry health care
➢ “Visa” of IoT Networks
14
Cellular

15. ➢ Connects to router (wireless
access point → Ethernet)
➢ Range: 100 m max
➢ Data Rate: 150-600 Mbps
➢ Fastest Data Rate
➢ Most power consuming
➢ Vulnerable to attack
➢ Use cases: This presentation!
15
Wi-Fi

16. ➢ Short-distance communications
➢ Radio Frequency ID (RFID)
○ Use RF to ID and tag objects
○ Range < 12 m, Data: ~600 kbps
○ Use cases: retail and warehouse
merchandise tagging, car
➢ Near Field Communications (NFC)
○ D2D proximity communications
○ Range: < 10 cm, Data: 100-400 kbps
○ Use cases: contactless card tech,
newer cell phones, badge
➢ Bluetooth Low Energy (BLE)
○ Battery-powered + RF chip beacon
○ Range: < 70 m, Data: ~1 Mbps
○ Use cases: beacons UI, wearables
16
Radio Frequency (RF)

17. ➢ Low Power [Wireless] Wide Area
Network (LPWAN)
➢ Interconnects battery-powered
devices with a central hub
➢ WAN: kilometers, LAN: meters
➢ Battery (2.5 Ah) Life: 10-20 years
➢ Greater number of devices
➢ LoRa: 2-15 km, < 27 kbps
➢ SigFox/UNB: 3-50 km, < 100 bps
➢ RPMA: ~5-10 km, more power comp
➢ Use Cases: Smart Cities, Industry
4.0, AgTech
17
LPWAN

18. 18

19. ➢ Edge-to-edge (E2E), with gateway
➢ Endpoints become signal receivers
➢ Non-interference
➢ ZigBee
○ 7 years for batteries
○ Range: 10-100 m, Data: 20-250 kbps
○ Use Cases: utility, retail
➢ Z-Wave
○ Range: ~30 m, Data: 10-40 kbps
○ Use Cases: home automation
19
Mesh networks

20. ➢ ANT
➢ 6LowPAN
➢ OnRamp (LPWAN)
➢ DigiMesh (Mesh)
➢ Helium
20
Others

21. 21
MESHWIFI / LPWANCELLULAR

22. 22
IoT Protocols Cheat Sheet
Network Distance Battery Life Data Rate Topology
Cellular Very Long Low High Centralized
Wifi Short Very Low Very High Decentralized
RF Very Short Medium Medium P2P
LPWAN Long Very High Very Low Decentralized
Mesh Medium High Low Distributed
Inversely correlated

23. 23
Rest of the Internet Stack today...

24. 24
2) Security Vulnerability
➢ Vulnerable Cryptography
➢ Data can be intercepted
OTA
➢ Examples:
○ Dyn Inc.
○ Factories
○ Medical Devices
○ Smart Cars

25. 4.
Adding
Blockchains/DLTs
In the Mix
25

26. ➢ Distributed Ledger
○ REDUCES SINGLE
POINT OF FAILURE
○ Use cases: IDoT, Data
Encryption, Audit Trail
➢ Type of Propagated Data:
○ Transactions
○ Blocks
26
Basics

27. ➢ Public Key Cryptography
○ Sign and create Digital Signatures
○ Ex: transaction, software update, ID
➢ Consensus Mechanism
○ Set of confirmed and verified
transactions for distributed ledgers
○ PoW/PoS/others...
27
Properties of Blockchain

28. 28
Blockchain/DLT Avg Tx Size Max Block Size Avg Block Interval
Bitcoin < 1 kB 1 MB 10 min
Bitcoin Cash < 1 kB 8 MB 10 min
Litecoin < 1 kB 4 MB 2.5 min
Ethereum Up to ~53,000
Gas limit (for SC)
3,141,592
Gas (~800 kB)
15-17 sec
IOTA 1 - 2 kB* - -

29. ➢ RACE TO FIRST!
➢ Need Power Supply
➢ Need Fastest
Connectivity
➢ Need Fastest
Computing
➢ Biggest Mining Pools
29
Mining (PoW)

30. 30
Tx
Mining

31. 31
Partition-Tolerance (DAG)
Where DAGs come along...

32. 32
Blockchain/DLT layer on top of IoT Connectivity layer,
below Data or Application layer

33. 5.
Case
Studies
33

34. ➢ Early blockchain + IoT startup,
founded in 2012
➢ Vertical SPADE Framework
➢ Filament Tap device/beacon
➢ Use telehash for distributed
endpoint device comms
➢ Device discovery over Wifi,
radio, and Bluetooth
➢ Blockname: address on Bitcoin
➢ Blocklet: L2 accounting on BTC
➢ Use cases: rails, freights, and
other infrastructure
34
Filament

35. ➢ Comprehensive IoT-DLT app
platform provider
➢ IoT CMS, Device Registry, Data
Collection/Analytics
➢ Supports ZigBee, ZWave, BLE,
BT, and UWB
➢ Use Cases: Dynamic EV
Charging, Smart City
parking/utilities metering
➢ Using IOTA feeless network
35
Netobjex

36. ➢ Wisdom Alter Label Trade
Organizations and Networks
➢ VIOT (Value IoT)
➢ Phase 1.0: dev RFID tags to
placed onto materials not
accessible to the Internet
➢ Use Cases: retail, warehousing,
logistics (P 2.0), smart
manufacturing (P 3.0)
36
WaltonChain

37. ➢ Decentralized ISPs (monopolistic)
➢ Incentivized Community Mesh
➢ Create software for existing
hardware to connect to each other
➢ Hops with best AND cheapest paths
➢ IoT connectivity depending on hop
distances (i.e. LPWAN large hops)
➢ Uses Ethereum blockchain
➢ IoT network agnostic
37
Althea Mesh

38. ➢ Sensor (i.e. temperature
logger) records
environment conditions
while package is in transit
➢ Uses BLE or NFC
➢ Blockchain agnostic,
starting with Ethereum
➢ Use Cases: pharmaceutical
supply chain
38
Modum

39. 6.
What’s
Next?
39

40. 40
Digital Assets (Tokenization) of Everything?

41. 41
AI, bots, and DAOs
the next layer?

42. 42
Swarm Intelligence?

43. 43
New UI/UX?

44. ➢ Front-End Layer
○ Websites, AR/VR, Robotics, Smart Cities, Industry 4.0, Space Tech
➢ New Software applications
○ With built-in AI/IoT/DLT libraries
➢ AI Semantic Layer
○ Google DL/NN
➢ Data Aggregation Layer
○ MAM, MQTT, XMPP, JSON
➢ Blockchain/DLT Trustless Consensus Layer
○ Bitcoin, Ethereum, NEO, IOTA, Ripple, Litecoin, Monero
➢ IoT Connectivity Layer
○ Cellular, Wifi, LPWAN, Mesh
➢ Physical Layer (Wired/Wireless)
○ Radio frequencies, Fiber optics, Quantum tunneling?
44
Possible Web 3.0 Stack?

45. Thank you!
kevin.chen@iota.org
@kevrchen
www.iota.org
45