A Hybrid Blockchain for the IoT and Tokenized Hardware

1 . A Hybrid Blockchain for the IoT and Tokenized Hardware Jollen Chen, Founder & CEO, Flowchain Beijing, China, June, 26, 2018 

2 .About me Jollen Chen, Founder & CEO, The Flowchain Foundation Jollen Chen is the creator and lead developer of Flowchain.io, an open source based IoT blockchain solutions. Before Flowchain.io, he has been working on embedded software and full-stack web development for many years. His research interests are the Distributed Ledger Technology (DLT) and IoT data security. Jollen holds a Master's degree in Manufacturing Information and Systems from the National Cheng Kung University, Taiwan. You can find him online at http://jollen.org. 

3 .Flowchain Quick Start 

4 .Flowchain Visions FLOWCHAIN Flowchain = (mining)*(IoT, Blockchain, AI) Cryptocurrency
 (Incentives) Flowchain Technologies 4 

5 .The Distinguished Aspects FLOWCHAIN Hardware/Software
 Blockchain designed Development from the ground up FLOWCHAIN Proof-of-Concept Reviewed via opensource Research Papers 5 

6 . Free and Open ๏Free and Open Source License ๏Open Standards ๏Web Technologies ๏100% JavaScript Implementations FLOWCHAIN 6 

7 .Github Repositories 7 

8 .The Flowchain Insides ๏The dataflow blockchain ๏The Blockchain OS for IoT ๏The Hybrid blockchain for IoT ๏Decentralized AI FLOWCHAIN 8 

9 .Dataflow Blockchain, #1 of 4 FLOWCHAIN ๏ The IoT nodes are self-organized as a “Ring”. ๏ Exchange data (dataflows) over a p2p network. P2P (Chord algorithm) N1 N8 N2 N7 Flowchain N3 Edge Computing N6 N4 N5 9 

10 .Academic Papers FLOWCHAIN Hybrid Blockchain and Pseudonymous Authentication for Secure and Trusted IoT Networks Jollen Chen Flowchain Open Source Project Devify, Inc. jollen@flowchain.io ABSTRACT The rest of the paper is organized as follow: In Section 2 This paper addresses the issue of secure and trusted Inter- we describe the main components of the hybrid blockchain net of Things (IoT) networks by adopting the emerging design. In Section 3 we present the model including the blockchain technologies. This paper proposes a new hybrid architecture, algorithms and the hybrid blockchain design. blockchain technology to address the trusted IoT issues such The IoT blockchain economy is discussed in Section 4. Finally, as trustless communications and decentralized applications. Section 5 concludes the paper. Besides, we also present that the pseudonymous authenti- 1.1 Previous Works cation technique can use a puzzle-solving computation to enable trustless communications for the IoT and provide the A. Devify capabilities of near real-time transactions. In our previous work, we presented a decentralized software framework for Devify has already proposed a generic and comprehensive the IoT by using a p2p network and the concept of the software framework for building various types of trust IoT blockchain. In this paper, we outline the core components of networks in a decentralized manner that can execute on a the hybrid blockchain and delve deeper the algorithms of the variety range of hardware devices, such as cloud servers, hybrid consensus to provide the capabilities for our hybrid mobile devices, and resource-constrained devices. blockchain technology. B. Flowchain Flowchain is the blockchain technology for the IoT de- Keywords veloped on Devify. In a blockchain network, the consensus Internet of Things, Blockchain, Hybrid Consensus, Peer-to- system can ensure the trusted transactions among all IoT Peer, Trustless Computing, Decentralized nodes in a p2p network. The blockchain for the IoT tech- nology comprises of a p2p network system, and a consensus system. The traditional public blockchains, such as Bitcoin 1. INTRODUCTION [12] and Ethereum, use proof-of-work (PoW) consensus sys- The Internet of Things (IoT) devices can generate and tem; however, the PoW consensus system does not provide exchange security-critical data over the IoT network. Many the ability of near real-time transactions. Therefore, in our IoT networks use the public-key infrastructure (PKI) to au- previous work, Flowchain has also already proposed an IoT thenticate devices and ensure the data security as well as the blockchain technology and a mining based proof-of-stake data privacy. The IoT device has to sign the generated data (PoS) miner to ensure the real-time transactions for IoT by a digital public key, and deliver the data to the network blockchain. Consequently, IoT devices vary, e.g., resource- for exchanging. However, such authentication method tends constrained devices, mobile devices, and high-performance to be expensive for an IoT device regarding computing power server frames that the computing power varies from devices. and energy consumption. Flowchain uses the Devify software framework as the under- Furthermore, the blockchain technology has the decentral- lying p2p network system to implement such IoT blockchain ized, secure, and private nature to become a promising idea technology. Thus it can execute on various IoT devices. that can be approaching the next-generation IoT architec- ture. Therefore, in our previous works, Flowchain and Devify 1.2 Type of Blockchains have already been proposed to build a blockchain technol- The blockchains could be either a public blockchain or ogy for the IoT device over a p2p network. Therefore, to a private related to who is allowed to join the blockchain achieve a secure and inexpensive blockchain for the IoT, this network [7]. paper proposes Flowchain Hybrid Blockchain to enable fast authentication by eliminating the concept of traditional PKI A. Public Blockchain methods. Furthermore, our work can address the technical Anyone can join the blockchain network, meaning that the challenge of achieving an efficient and secure IoT device to blockchain network is entirely open to users for submitting exchange the captured data by the blockchain technology. transactions, accessing shared ledgers, and mining. More specifically, since the creation of Bitcoin in 2009, the public blockchain can enable a decentralized model that it can Copyright retained by the authors. operate without any central authorizations; thus the public blockchain has the natures of openness and trust. Reviewed Research Paper Reviewed Research Paper Reviewed Research Paper Devify: Decentralized Internet Flowchain: A Distributed Hybrid Blockchain and of Things Software Framework Ledger Designed for Peer-to- Pseudonymous for a Peer-to-Peer and Peer IoT Networks and Real- Authentication for Secure Interoperable IoT Device. time Data Transactions. and Trusted IoT Networks Reviewed and published in the Reviewed and published in the InProceedings of the Workshop Workshop on Advances in IoT 2nd International Workshop on on 2nd Advances in IoT Architecture and Systems, June Linked Data and Distributed Architecture and Systems, June 25, 2017, Toronto, Canada. Ledgers, May 29, 2017, 3, 2018, Los Angeles, USA. Portoroz, Slovenia. 10 

11 .The Flowchain Insides ๏The dataflow blockchain ๏The Blockchain OS for IoT ๏The Hybrid blockchain for IoT ๏Decentralized AI FLOWCHAIN 11 

12 .Blockchain OS, #2 of 4 FLOWCHAIN ๏ The flowchain OS called Devify enables Device Autonomous Machines 12 

13 .Flowchain OS runs Everywhere Dapps Dapps Dapps JavaScript RPC & DHT RPC & DHT RPC & DHT JavaScript Thing (WoT) Thing (WoT) Thing (WoT) JavaScript WebSocket / CoAP WebSocket / CoAP WebSocket / CoAP JavaScript Node.js 0.12 JerryScript Node.js 4.4+ OpenWRT (Linux) FreeRTOS MacOS MIPS Processor ARM Cortex-M4 Intel Core 2 580MHz 192MHz 1.4GHz 128MB DDR2 352KB RAM 2GB DDR3 heterogeneous 32MB Flash 4MB Flash 64GB SSD Hardware FLOWCHAIN 13 

14 .The Broker Server Layer FLOWCHAIN • A WoT Servient comprises of client and server combinations. WoT Servient WoT Servient WoT Servient CoAP Server Websocket Client Websocket Server CoAP Client CoAP Server Websocket Client (a) (b) (c) 14 

15 .FLOWCHAIN 15 

16 .The Flowchain Insides ๏The dataflow blockchain ๏The Blockchain OS for IoT ๏The Hybrid blockchain for IoT ๏Decentralized AI FLOWCHAIN 16 

17 .Hybrid Blockchain, #3 of 4 FLOWCHAIN ๏ The Flowchain comprises of a public blockchain and multiple private blockchains. ๏ The hybrid consensus nodes implement such hybrid blockchain model. AI Edge Computing Distributed AI Computing Pool Hybrid
 Consensis N1 N8 N2 N7 Flowchain N3 Edge Computing Flowchain Pool N6 N4 N5 17 

18 .• Flowchain IoT nodes are devices 
 FLOWCHAIN that running Flowchain code. • Puzzles Miner is a computer that aims to generate the puzzles and broadcasts the puzzles to the private blockchains. Private Blockchain Public Blockchain Hybrid Node N1 N8 N2 N7 Flowchain N3 IoT Nodes Puzzle Miners N6 N4 N5 18 

19 .The Flowchain Insides ๏The dataflow blockchain ๏The Blockchain OS for IoT ๏The Hybrid blockchain for IoT ๏Decentralized AI FLOWCHAIN 19 

20 .Decentralized AI, #4 of 4 FLOWCHAIN Company A Company B (Flowchain Edge AI ) (Flowchain Edge AI ) Flowchain Hybrid Node Company C Flowchain Hybrid Node Flowchain Hybrid Node (Flowchain Edge AI ) AI Miners &
 AI Computing Pool Company F (Flowchain Edge AI ) Flowchain Hybrid Node Company D (Flowchain Edge AI ) Company E (Flowchain Edge AI ) 20 

21 . Flowchain Pseudonymous Authentication 

22 .IoT Blockchain + AI FLOWCHAIN over Pseudonymous Authentication Private Blockchain B Private Blockchain A Flowchain Flowchain IoT Nodes IoT Nodes Trusted Transactions Trusted Transactions Trusted Transactions Puzzle Miners Public Blockchain Trusted Transactions Flowchain Flowchain IoT Nodes IoT Nodes Private Blockchain C Private Blockchain D 22 

23 .Academic Papers FLOWCHAIN Hybrid Blockchain and Pseudonymous Authentication for Secure and Trusted IoT Networks Jollen Chen Flowchain Open Source Project Devify, Inc. jollen@flowchain.io ABSTRACT The rest of the paper is organized as follow: In Section 2 This paper addresses the issue of secure and trusted Inter- we describe the main components of the hybrid blockchain net of Things (IoT) networks by adopting the emerging design. In Section 3 we present the model including the blockchain technologies. This paper proposes a new hybrid architecture, algorithms and the hybrid blockchain design. blockchain technology to address the trusted IoT issues such The IoT blockchain economy is discussed in Section 4. Finally, as trustless communications and decentralized applications. Section 5 concludes the paper. Besides, we also present that the pseudonymous authenti- 1.1 Previous Works cation technique can use a puzzle-solving computation to enable trustless communications for the IoT and provide the A. Devify capabilities of near real-time transactions. In our previous work, we presented a decentralized software framework for Devify has already proposed a generic and comprehensive the IoT by using a p2p network and the concept of the software framework for building various types of trust IoT blockchain. In this paper, we outline the core components of networks in a decentralized manner that can execute on a the hybrid blockchain and delve deeper the algorithms of the variety range of hardware devices, such as cloud servers, hybrid consensus to provide the capabilities for our hybrid mobile devices, and resource-constrained devices. blockchain technology. B. Flowchain Flowchain is the blockchain technology for the IoT de- Keywords veloped on Devify. In a blockchain network, the consensus Internet of Things, Blockchain, Hybrid Consensus, Peer-to- system can ensure the trusted transactions among all IoT Peer, Trustless Computing, Decentralized nodes in a p2p network. The blockchain for the IoT tech- nology comprises of a p2p network system, and a consensus system. The traditional public blockchains, such as Bitcoin 1. INTRODUCTION [12] and Ethereum, use proof-of-work (PoW) consensus sys- The Internet of Things (IoT) devices can generate and tem; however, the PoW consensus system does not provide exchange security-critical data over the IoT network. Many the ability of near real-time transactions. Therefore, in our IoT networks use the public-key infrastructure (PKI) to au- previous work, Flowchain has also already proposed an IoT thenticate devices and ensure the data security as well as the blockchain technology and a mining based proof-of-stake data privacy. The IoT device has to sign the generated data (PoS) miner to ensure the real-time transactions for IoT by a digital public key, and deliver the data to the network blockchain. Consequently, IoT devices vary, e.g., resource- for exchanging. However, such authentication method tends constrained devices, mobile devices, and high-performance to be expensive for an IoT device regarding computing power server frames that the computing power varies from devices. and energy consumption. Flowchain uses the Devify software framework as the under- Furthermore, the blockchain technology has the decentral- lying p2p network system to implement such IoT blockchain ized, secure, and private nature to become a promising idea technology. Thus it can execute on various IoT devices. that can be approaching the next-generation IoT architec- ture. Therefore, in our previous works, Flowchain and Devify 1.2 Type of Blockchains have already been proposed to build a blockchain technol- The blockchains could be either a public blockchain or ogy for the IoT device over a p2p network. Therefore, to a private related to who is allowed to join the blockchain achieve a secure and inexpensive blockchain for the IoT, this network [7]. paper proposes Flowchain Hybrid Blockchain to enable fast authentication by eliminating the concept of traditional PKI A. Public Blockchain methods. Furthermore, our work can address the technical Anyone can join the blockchain network, meaning that the challenge of achieving an efficient and secure IoT device to blockchain network is entirely open to users for submitting exchange the captured data by the blockchain technology. transactions, accessing shared ledgers, and mining. More specifically, since the creation of Bitcoin in 2009, the public blockchain can enable a decentralized model that it can Copyright retained by the authors. operate without any central authorizations; thus the public blockchain has the natures of openness and trust. Reviewed Research Paper Reviewed Research Paper Reviewed Research Paper Devify: Decentralized Internet Flowchain: A Distributed Hybrid Blockchain and of Things Software Framework Ledger Designed for Peer-to- Pseudonymous for a Peer-to-Peer and Peer IoT Networks and Real- Authentication for Secure Interoperable IoT Device. time Data Transactions. and Trusted IoT Networks Reviewed and published in the Reviewed and published in the In Proceedings of the Workshop Workshop on Advances in IoT 2nd International Workshop on on 2nd Advances in IoT Architecture and Systems, June Linked Data and Distributed Architecture and Systems, June 25, 2017, Toronto, Canada. Ledgers, May 29, 2017, 3, 2018, Los Angeles, USA. Portoroz, Slovenia. 23 

24 .Public Anyone can join the blockchain network that the blockchain Blockchains network is completely open to users for submitting transactions. The public blockchain can enable a decentralized model that it can operate without any central authorizations; thus the public blockchain has the natures of openness and trust. FLOWCHAIN 24 

25 .Private Only authenticated users can join Blockchains the private blockchain network. The user need to request permissions from an authority in the private blockchain for joining the network and submitting transactions to the private blockchain network. FLOWCHAIN 25 

26 .Pseudonymous authentication can replace the PKI to enable a fast authentication Puzzles miner IoT nodes FLOWCHAIN 26 

27 . Puzzle Miner is a scheduler that provides time-difficulty string search puzzles The IoT node was pseudonymously authenticated to submit transactions at (ti,tj,tk). Fix period scheduling: 1 second = 50.0 slices (50 kHZ) Blockchain Network λi λj λk An IoT Node ti tj tk FLOWCHAIN 27 

28 . a truly random λ Konami Code that only validate in a fixed time period FLOWCHAIN 28 

29 .Lambda.prototype._miner = function() { FLOWCHAIN var MAX_LOOPS = 1000000; // 1M // FIXME: the difficulty has to be a small number of a shared difficulty from the public mining pool var difficulties = [ '00F8888888888888888888888888888888888888888888888888888888888888', '0F88888888888888888888888888888888888888888888888888888888888888' ]; var nonce = this.nonce; while (MAX_LOOPS-- > 0) { var hash = virtualMiner(nonce, this.sHeaderHash, this.sSeedHash); if (hash <= difficulties[0]) { console.log(chalk.green('New block found: 0x' + hash.toString(16))); this.nonce = nonce; function Lambda() return nonce; { } this.sHeaderHash = ''; this.sSeedHash = ''; nonce++; this.sShareTarget = ''; } this.nonce = 1; console.log('Cannot found a valid lambda value. Please try again later.'); return this; return 0; } } 29