Jul 3, 2018
According to a report by Ericsson Mobility, it is expected that there will be upwards of 28 billion connected devices worldwide by 2021. By 2025, IDC forecasts that 95% of data generated by the Internet of Things will be produced in real-time.
The IoT Chain Foundation (ITC) advocates that data sovereignty belongs to the user, and the value generated by data should be shared with the producer. In the IoT Chain ecosystem, we use public-key cryptography to give each IoT device a unique ID. Once generated, it cannot be changed. Information is collected by standard wireless communication technologies such as RFID, GPS, and Zigbee, and this data becomes part of a distributed collaborative system. Based on the IoT Chain data classification solution, data will be classified and encrypted, and then stored locally, on-chain, or through distributed systems depending on the scenario. Data can be synchronized, transferred, and exchanged in a variety of use cases. Only authorized sources can invoke, access, or trade data using ITC token transactions.
In a traditional financial service model, small, medium, and micro business entities cannot demonstrate their credit capabilities due to a lack of appropriate collateral. They are therefore unable to take advantage of conventional financial services. The widespread, fragmented distribution of business entities in the supply chain industry leads to asymmetric information sharing and high transaction and management costs for financial institutions.
IoT Chain enables credible inclusive financial solutions through asset digitalization and creditization. Both upstream and downstream entities can contribute equally in data sharing, including key items such as operating assets, inventory, orders, transactions, invoices, logistics, and cash flow. This data is synchronized to a dedicated distributed data store which is transparent, traceable, and tamperproof. The data store can ultimately be used to provide a reliable credit rating by validating the repayment ability of the entity.
Due to the nature of the IoT Chain data classification scheme, financial institutions cannot acquire, use, or verify credit and asset information without permission from the data provider. Using IoT Chain smart contracts, lenders and borrowers can reach an online credit agreement to clarify rights and avoid repeat pledges. Moreover, authorized financial institutions can conduct real-time reconciliations, follow up on related asset flows, and strengthen post-lending management.
Issues such as price discrimination and a lack of transparency in the distribution of benefits have made the shared economy market vulnerable to criticism. Many sharing economy models do not achieve a true sharing model. Due to the presence of third party agencies, most sharing economies behave more like access or rental economies.
Many sharing economy mechanisms are centralized and use undisclosed market mechanisms which leads to non-transparent distribution of benefits and price discrimination. The main goal of sharing economies is to share and utilize idle resources publicly. By not using these idle resources, we are forcing an unnecessary increase of supply to meet demand which leads to an enormous waste of resources.
The incentive mechanism for a true sharing economy should be open and transparent, and not altered arbitrarily. This will encourage participation and utilization of idle resources, ultimately paving the way for a greener society based on efficient use of finite resources.
IoT Chain (ITC) provides a decentralized resource sharing solution that supports peer-to-peer value exchange. In the IoT Chain solution, users can conduct free peer-to-peer transactions for their resources without a third party. This enables the sharing of physical and virtual assets such as cars, data, and idle computing resources. Agreements between users are solidified using the IoT Chain smart contract system.
The incentive mechanism in IoT Chain is open, transparent, and tamperproof because it is stored on the blockchain. IoT Chain preserves the incentive income of participating users, protecting value from bad actors and preventing others from changing the rules in the ecosystem. A counter-example of this is Didi, a popular ride-sharing service in China managed by a central authority that has changed policies without notice, robbing value contributors of the benefits they deserve.
Institutions and users alike can participate fairly in market transactions and data sharing. Through exclusive collections of distributed data, all circulating information such as profit distribution and transaction pricing is open, transparent, and traceable. Using the IoT Chain data classification solution, shared data can be purchased, accessed, and used through ITC token transactions after an encryption-based desensitization process.
Lastly, in current sharing economy models, smart devices are often owned by third parties while the data is generated by its users. IoT Chain helps users and agencies form agreements in advance on how data revenue is distributed, ensuring fair and
transparent income distribution where users receive their fair share.
When photovoltaic cells are used to generate electricity, the energy output rarely matches demand perfectly, which results in waste. Traditional energy systems are dominated by large institutions, and their centralized operation does work efficiently with a distributed power model, leading to wasted residual energy.
Using IoT Chain, photovoltaic energy partners can build decentralized green energy sharing communities. Direct peer-to-peer transactions can be used to match users with electricity demands to those with a surplus. ITC tokens are used for settlement, and transactions are secured by smart contracts that optimize energy matching to reduce waste. Moreover, the community is able to share data on equipment and assets, creating a collaborative collection of distributed data that is open, transparent, and traceable. The IoT Chain data classification solution ensures that sensitive information is controlled and protected at all times.