Blockchain as a Trust Enabling Infrastructure Opportunities and Challenges

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1 Sixth Regional Workshop for Africa on "Standardization of future networks: What opportunities for Africa?" Abidjan, Cote D'Ivoire, March 2018 Blockchain as a Trust Enabling Infrastructure Opportunities and Challenges Dr. Ramy Ahmed Fathy, PhD Director of Digital Services Planning and Risk Assessment, NTRA Co-Chairman of ITU-T WP1/20 Vice Chairman of ITU-T SG20 IoT and its Applications including Smart Cities and Communities (SC&C)

2 Content Why Trust is Important? DLT Key Ideas DLT Challenges Use Cases

3 WHY TRUST IS IMPORTANT?

4 IoT, Blockchain, AI, Machine Learning, Deep Learning, AR, VR

5 New Issues Coming Up! IoT: Notions of security, privacy (data), cloud security, interoperability, lock-in, identification Blockchain: Notions of anonymity, accountability, decentralized platform, smart contracts, permissioned vs. permission-less ledgers + money laundry issues (bitcoin and similar digital currencies) AI: Notions of autonomy, accountability, unknown behavior, & unpredictability will pop up mistrust New regulatory tools are needed for security, and safety checks are needed

6 Security leads to trust.. Trust is the willingness of a party to be vulnerable to the actions of another party based on the expectation that the other will perform a particular action important to the trustor, irrespective of the ability to monitor or control that other party Disposition of Trustor Perceived C/C s of Trustee Trust Mayer et al. (1995)

7 Antecedents of Trust: Theoretical Framework Cognitive Trust (Schumann et al.) PEDICTABILITY The degree to which a person meets the expectations of the trustor in terms of reliability and consistence of behavior ABILITY Capability of a trustee (based on knowledge, competence, and skills) to perform tasks within a specific domain Tripod Model (Mayer et al.) BENEVOLENCE The perceived level of courtesy and positive attitude INTEGRITY The intrinsic moral norms of a trustee to guard his actions with (e.g. sincerity, discretion, honesty) Affective Trust (Schumann et al.) Adapted from Fabio Calefato et al. (2015)

8 Which impacts trust more? Propensity vs. Trustee C/C s? Propensity of Trust High impact if no info is available on the INTEGRITY, BENEVOLENCE, & ABILITY of the Trustee. No impact if these info are available. ICT Intermediary Systems Expert system, Trust Analysis and Management Platform (TAMP), Trust Service Broker (TSB) etc. Trustee Available Info INTEGRITY The intrinsic moral norms of a trustee to guard his actions with (e.g. sincerity, discretion, honesty) BENEVOLENCE The perceived level of courtesy and positive attitude ABILITY Capability of a trustee (based on knowledge, competence, and skills) to perform tasks within a specific domain

9 DLT KEY IDEAS

10 DLT Key Ideas No centralized control.. Is this the key idea? Consensus: Realized between equals!,e.g. nodes, peers, etc. Embedded software logic to perform a pre-built function in response to preprogrammed event! Smart Contract Crypto for fidelity, authentication, authorization transaction records, validation, blockchain..

11 Does that ring any bells? Ehrsam, Meyer, Smith and Tuchman invented the Cipher Block Chaining (CBC) mode of operation in 1976.

12 DLT is an encryption problem + P2P

13 DLT CHALLENGES

14 Let s have a closer look at the ledger! Data? Transaction? State? Finite State Machine? Access from any web terminal Management platform Notification server Home control e.g., access from office or via phone Subscriber, service and device management Home office Security Webpad Different networks Entertainment/gaming Gateway Internet/wireless network Firewall Family portal Y.2067(14)_FI.1

15 Let s have a closer look at the ledger! Data? Transaction? State? Finite State Machine? and think IoT, in terms of which element provides ledger services.. Access from any web terminal Management platform Notification server Home control e.g., access from office or via phone Subscriber, service and device management Home office Security Webpad Different networks Entertainment/gaming Gateway Internet/wireless network Firewall Family portal Y.2067(14)_FI.1

16 Let s have a closer look at the ledger! Data? Transaction? State? Finite State Machine? and who maintains the ledger in a typical IoT setup.. Access from any web terminal Management platform Notification server Home control e.g., access from office or via phone Subscriber, service and device management Home office Security Webpad Different networks Entertainment/gaming Gateway Internet/wireless network Firewall Family portal Y.2067(14)_FI.1

17 Who is responsible for the ledger update and validation? Things? - Home appliances - CCTV cameras - Wearables - Medical equipment - Cars - Web services - Sensors/Valves Or a dedicated DLT asset issuer? new elements? Or a dedicated DLT asset validator? new elements? Gateway? Service Enablement platforms? IoT Platforms? Software/Service? - Autonomous? (e.g. smart contract)

18 Incentives! Blockchain P2P participation depends on the idea of incentives. Transaction fees may not be suitable in the future, specially in micropayments cases. New innovative incentive protocols are needed for many type of deployments.. e.g. IoT deployments.

19 USE CASES

20 DLT Use Cases.. It really depends! Is it about management and control? Or about trust? Do we want to get rid of.. say the centralized platforms? Do we want to operate in trust less environment? DLT Client and validation protocols are needed Implementations in lower or upper layers - Lower layers need high computing capabilities! Platforms are needed!

21 Use Case# 1: Using BoT to mitigate DDoS attacks from hijacked unsecure IoT devices IoT service A Organizers experts IoT service B Gateway A ledger constract crypto communication DM communication networks Gateway B ledger constract crypto communication DM ledger constract crypto communication DM Gateway C ledger constract crypto communication DM Gateway D Legend: ledger constract crypto communication DM BoT application home smart devices road smart monitors

22 Consortium Members Participants Use Case# 2: Using BoT to improve ITS for trust data exchanges organizer ledger chaincode membership crypto event monitor ledger chaincode membership crypto event ledger chaincode membership ITS provider A Mobile network A crypto Trust Communication ITS provider B ledger crypto chaincode membership event Mobile network B ledger chaincode membership ledger chaincode membership crypto ledger chaincode membership crypto crypto ledger chaincode membership crypto ledger chaincode membership crypto ledger chaincode membership Legend: ledger chaincode membership crypto (event) BoT application crypto

23 Use Case# 3: Using BoT to improve workflow and shipments transaction traceability

24 Thank you Ramy Ahmed Fathy, PhD

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