WZL x GCX x IOTA — Status Report 05

Conclusion on Micro-Payments, Secure Audit-Trails and Zero Marginal Costs

Daniel Trauth
Dec 31, 2018 · 8 min read
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Background: Finetool Machine with Coils. Image: © WZL | Christian May & Semjon Becker

Co-Authors: Semjon Becker, Ashri Anggia

Previous Stories

Retrospective: Fine-blanking

Video 1: Fineblanking at the WZL of RWTH Aachen University. Video: © WZL

Management Summary

Video 2: Internet of Production — data as an economic resource in a manufacturing economy. Please enable subtitles! Video: © WZL

Micro-Payments and Secure Audit-Trails

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Figure 1: Micro-Payments & Secure Audit-Trail. Image: © WZL | Daniel Trauth & Semjon Becker

Assumptions

  • These machines are used by one or more producers to manufacture individual components.
  • Furthermore, we assumed that an original equipment manufacturer (OEM) assembles the individual components into a finished assembly, a product, and does not sell them directly to the customer.
  • The trade is done by the retailers.
  • The end of the supply chain is the end customer who uses the assembly or product.

Definition of Micro-Payments

Definition of a Secure Audit-Trail


The WZL x GCX x IOTA PoC Micro-Payment Process

Video 3: Result of the WZL x GCX x IOTA PoC — Micro-Payment of a Digital Twin. Video: © WZL

A machine-to-machine communication will also enable Micro-Payments and Subscription Models in a Manufacturing Economy. Currently, Micro-Payment is performed manually and simulates a machine’s access to the digital twin. Access to only one digital twin will undoubtedly be possible with small amounts of money, but since fine-blanking is a mass production process, Subscription Models and As-A-Service models must be possible too. We are already working on As-A-Service model with our FEM-as-a-service extension, where the XFT 2500 can calculate a digital Finite Element Analysis (FEA) twin based on the actual measured machine data using a FEA server, which is paid / triggered via IOTA.


Pay-Per-X and Subscription Models in a Manufacturing Economy

Marginal Cost

Due to discounts and learning curves, “economy of scale” effects dominate this industry. This means the more units produced, the lower the fixed costs. At the same time, however, fixed costs cannot be lower than marginal costs, which is why there is a trade-off that has been limiting industrial production for years.

Digital goods, on the other hand, have no marginal costs. If a newspaper article is published on the publisher’s website, theoretically no further costs arise for the download of the article by an additional reader. This means that fixed costs can be reduced completely, since no marginal costs limit the fixed cost degression. The advantage of digital products is that it can be particularly low-cost for the customer and at the same time the margins can be particularly high for the producer.

Zero Marginal Costs in Manufacturing?

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Figure 2: The plenar talk during the Aachen Machine Tool Colloquium AWK 2017. Image: © Fraunhofer IPT

Donations to the IILA

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Check our address on thetangle.org.


Acknowledgement


Get in contact

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Image: © WZL | Peter Winandy

Industrial IOTA Lab Aachen @ WZL of RWTH Aachen University

Stay informed about the use case of WZL of RWTH Aachen…

Daniel Trauth

Written by

Co-Fdr. of senseering GmbH. Working w/ @rwth_wzl of @RWTH Aachen Univ twds the #InternetOfProduction. http://www.danieltrauth.com/

Industrial IOTA Lab Aachen @ WZL of RWTH Aachen University

Stay informed about the use case of WZL of RWTH Aachen University and senseering GmbH

Daniel Trauth

Written by

Co-Fdr. of senseering GmbH. Working w/ @rwth_wzl of @RWTH Aachen Univ twds the #InternetOfProduction. http://www.danieltrauth.com/

Industrial IOTA Lab Aachen @ WZL of RWTH Aachen University

Stay informed about the use case of WZL of RWTH Aachen University and senseering GmbH

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