IoT, Analytics & Decentralization: Rethinking The BasicsPaul BrodyNovember 2016

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The era of IoT isn’t just upon us, it’s inevitable. And it’s going to completely change the internet.

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We can get upwards of half a terabyte of data from a single flight from all of the different devices which are internet connected.

Virgin Atlantic on aircraft data output: http://www.computerworlduk.com/news/data/boeing-787s-create-half-terabyte-of-data-per-flight-says-virgin-atlantic-3433595/

We’ve become besotted with analytics and advertising as if that’s the world’s most important business

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Connected cars will send 25 gigabytes of data to the cloud every hour

Connected cars generating data for the cloud: http://qz.com/344466/connected-cars-will-send-25-gigabytes-of-data-to-the-cloud-every-hour/

We’ve become besotted with analytics and advertising as if that’s the world’s most important business

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So what?

We’ve become besotted with analytics and advertising as if that’s the world’s most important business

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Never forget the unique economics of information.

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The cost to reproduce information is zero.

Unless you have a monopoly on the analytics in question (and there are no reasonable substitutes), you operate in a market with infinite supply and finite demand.

The market clearing price in those situations is zero.

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Large data stores are shifting from strategic asset to security liability.

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0 40 80 120 160

Adobe 2013eBay 2014

Heartland 2009TJ Maxx 2007

AOL 2005PSN 2011

US Military 2009Target 2014

Evernote 2013Ashley Madison 2015

Major Security Breaches, Users, Millions

Source: "Chart of the Day," Statista: The Statistics Portal, https://d28wbuch0jlv7v.cloudfront.net/images/infografik/normal/chartoftheday_2540_data_breaches_n.jpg, accessed February 10, 2016

Breaches Are Evolving

Credit Cards

Personal Data

Corporate Information

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Never lose sight of the product value proposition.

8 Image from Wikimedia, creative commons license.

Features of a new $1,700 “Smart” Washing Machine:

•Start, stop, and check status remotely•Notification when laundry cycle is complete•Assign tasks to other family members•Remind you to do the washing

Key missing feature: does not actually do better laundry.

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Our customers own their data. End of story.

William Ruh, CEO, GE Digital

Strategic thinkers are already looking past simple analytics-based strategies.

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What’s all this data-frenzy good for? The Internet of Things needs to become the Economy of Things

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Instrument Optimize Monetize

Sensor networks

Asset Management

Asset Markets

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Every asset and resource is likely to participate in multiple digital marketplaces

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Rental / Leasing

Insurance

Utilities

Sensor Data

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Companies aren’t just pursuing the wrong business model, they’re pursuing the wrong technology architecture

• Extremely resilient, secure computing architecture without depending on a single, centralized source of truth

• Guaranteed replication of data & code to a large number of participants using cryptography and hashing

• Tamper-resistant database with exceptionally strong audit trail

• Secure, consistent code execution across platforms & devices

Trust & Security Are Scarce Processing Power Is Abundant

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8902,222

1

10

100

1,000

10,000

AWS Servers PCs SmartPhones

Global Installed Base of Computing Devices Millions of Units in 2015

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Blockchains are a true revolution in computing. And just what we need, right when we need it.

Secure

Efficient

Open

Commercial

Resilient and reliable.

Using the resources already there.

Open source, transparent.

Designed for commerce.

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A new era of computing is dawning, and it will affect every technology company out there.

Modern Era

Expensive Computing

Post-Modern Era

Free Computing

High Trust Environment

Centralized Internet

Low Trust Environment

Distributed Internet

@pbrodylinkedin.com/in/pbrodyPaul BrodyFebruary 2016