Could Blockchain be at the center of IoT security?

Blockchain can be used for many things… Blockchain technology has the potential to reduce costs, improve product offerings and increase speed for banks, according to a recent report from the Euro Banking Association (EBA). If you’d like a nice overview of blockchains and bitcoin, there’s one on Khan Academy.

Blockchains can be used to keep track of transfers and to ensure that the data collected has gone through a verification process. One of the properties is that the blockchain is a globally distributed database that anyone can add to, but whose history no-one can modify.

This feature could be very valuable for IoT applications where there is data coming in that you would like to both verify and keep for predictive analytics… IBM has been looking at this for a while, since one of the security concerns has been that nefarious data sources could either modify the incoming data or change the data history. Blockchain techniques could make that almost impossible. One of the issues when you have an abundance of data coming into the enterprise is that the length of the chain could expand to the point where maintaining the chain costs more than the data is worth so the processing of the chain would probably need to be outside the IoT sensors/devices themselves. The devices would need to have their own private/public keys though if the validation goes all the way to the edge.

A simple way to think of the block chain for data transactions…

blockchain

Where each block likely contains:

  • A timestamp
  • The hash of the previous block as a reference (except the Genesis Block)
  • A pointer to the data transactions hash
  • The block’s own hash
  • The Merkle Root – a hash of all the hashes in the block

This is definitely quite a bit of security but when needed it should be sufficient…

Measuring the value and impact of cloud probably hasn’t changed that much over the years but…

cloud question markI was in a discussion today with a number of technologists when someone asked “How should we measure the effectiveness of cloud?” One individual brought up a recent post they’d done titled: 8 Simple Metrics to Track Your Cloud SuccessIt was good but a bit too IT centric for me.

That made me look up a post I wrote on cloud adoption back in 2009. I was pleased that my post held up so well, since the area of cloud has changed significantly over the years. What do you think? At that time I was really interested in the concept of leading and lagging indicators and that you really needed to have both perspectives as part of your metrics strategy to really know how process was being made.

Looking at this metrics issue made me think “What has changed?” and “How should we think about (and measure) cloud capabilities differently?”

One area that I didn’t think about back then was security. Cloud has enabled some significant innovation on both the positive and the negative sides of security. We were fairly naive about security issues back then and most organizations have much greater mind-share applied to security and privacy issues today – I hope!

Our discussion did make me wonder about what will replace cloud in our future or will we just rename some foundational element of it – timesharing anyone?

One thing I hope everyone agrees to though is: it is not IT that declares success or defines the value, it remains the business.

Service Innovations over time…

SaaSI was in an exchange with Jim Spohrer (of IBM) the other day about Service innovations and he gave me the following lists dealing with service innovations:

Top Ten Service Innovations in all of History
1. Division of Labor – an entity gets to do more of what they do best, and less of what they do less well
2. Cities – local concentration of division of labor, including security and protection
3. Writing – allows communications over distance and time
4. Written Laws – brings more objectivity into governance and justice
5. Money – brings efficiency into exchange transactions
6. Universities – local concentration of division of knowledge, including preparation of next generation
7. Democracy – collective decision making via voting (citizen -> decision)
8. Republics – two stage collective decision making via voting (citizen -> representative -> decision)
9. Checks – safer than carrying paper money
10. Banks – safe storage of money, and compound interest/loans

Top Ten Service Innovations of Last 100 years

1. Universal Education – increases capability of population, and allows more complex problem solving
2. Universal Service – even rural people can communicate, and have right to communicate efficiently
3. Rural Electrification – even rural people can have lighting and access to modern appliances
4. Credit Cards – convenience and safety
5. Loyalty Programs – incentives for usage
6. Franchises – standard service in multiple places
7. FedEx – overnight package delivery
8. Automobile Transportation – systems of filling stations, roads, laws
9. Internet & Worldwide Web – access to information
10.  Wireless Communication Networks – Radio & Television – conquest of distance and access to service

Top Ten Service Innovations of Last 10 years
(or so)
1. Amazon – market for books and things
2. eBay – market for personal stuff
3. iTunes – market for music
4. Etsy – market for home made things
5. Uber – market for rides
6. AirBnB – market for rooms
7. Smart Phones & App Economy – access to information, communications, and other mobile services, including cognitive assistants
8. MOOCs – massively open on-line courses to augment education
9.  Mutual funds – finance investments that provide benefits of diverse portfolios
10. Global IT-enabled Outsourcing – division of labor between nations and large corporations

I’d add 3D printing to this list myself, but that may be just me.

Top Ten Service Innovations that broke out in 2014
1. TransferWise – lower transaction cost of transferring money
2. Coinbase – bitcoin digital wallet
3. Apple Pay – easier to pay money out
4. Lending Club – easier method to get investments in and out (founded in 2006)
5. Quirky – inventor community (started in 2009)
6. Bill.com – small business pay bills better (started in 2008)
7. Betterment.com (investment personal assistant)
8. Kickstarter – crowd funding (I think this actually started in 2009)
9.  Amazon Echo (home assistant)
10. Google Nest (home assistant) (actually the first Nest appears to be released in 2011)

Some things to think about…
What would be on your list? What should make the list for 2015? Do these innovations have anything in common?