IoT Chain interviewed by Zero Knowledge Chain
The following article was translated from an exclusive interview of ITC by Zero Knowledge Chain, originally titled: “Returning data sovereignty to users: providing a safer and more efficient online environment”.
IoT Chain aims to be a highly secure, low-cost operating system for IoT, driven by the Internet and blockchain technology. The architecture can be divided into two main parts: the first is the operating system which is used to connect devices. The second is the main chain, which is used to manage data and the transfer of information. ITC will bring a safer, more efficient development environment for the IoT industry where value is provided to the end user.
ITC is a secure, lite OS for the Internet of Things. The ITC team explains their use of “lite” with regards to the high standards of IoT equipment and its combination with blockchain technology. There are two main aspects. The first is to give an Internet identity to the equipment, which is provided security and uniqueness through cryptography. Another aspect is the management of data uploads, downloads and encryption. Because of ITC’s intelligent, modular design, the cost of connecting equipment to the IoT Chain network is inexpensive. ITC’s technology is easily combined with existing intelligent equipment, creating a network of devices using blockchain technology.
From a technical standpoint, ITC combines asymmetric cryptography and a distributed structure to store information without a data center. This not only solves equipment security problems but also protects device and user data, sovereignty, and privacy. Hackers would not be able to maliciously control equipment, giving users the confidence that only they have access to their smart devices.
The ITC team feels we are generally passive about security problems affecting the Internet today. In other words, people generally acknowledge problems only after incidents occur. There are two parts to the security issues plaguing IoT. The first is control and safety of devices and the second is the safety of the user data generated. For example, unauthorized use of a camera is a control and safety problem. The data generated by the devices we use gives us a digital identity. This digital footprint tells a lot about us, sometimes more than we realize. The data we generate is incredibly valuable and sometimes very sensitive. We need to be cognizant of the risk that this data could be misused; security issues affecting the Internet can have a very serious impact on the user.
IoT Chain will resolve the problems of equipment safety and data security. The ITC team believes that security is a game of cost. At a certain point, hackers will give up if the cost is too high. The reason why hackers love traditional Internet systems is because control is often centralized to a single server or cluster. Thus, hackers only need to gain control of one or a few servers to impact a large number of connected services which is relatively inexpensive. Blockchain technology can solve this problem. People often associate blockchain with decentralization. Removing centralized points of control helps secure connected equipment. For example, a user who owns a connected camera can authorize access to a specific set of mobile phones. Due to the nature of the blockchain, control of the camera is not placed in the hands of a single server. Hacking a single node would not provide control of the camera; hackers would need to gain significant control of the network which would be incredibly difficult and expensive. This means of decentralization acts as a strong deterrent for bad actors and increases the security of the online environment.
The ITC team firmly believes that IoT is the biggest breakthrough opportunity for data since the Internet. This is a driving force for launching the IoT Chain project. The team has two main goals. The first is to secure control and access of IoT devices. The second is to return data sovereignty to users. These objectives are equally important. Business data is largely provided by consumers. By giving control of data back to users, it becomes even more meaningful and valuable.
The ITC team has a lot of experience with the traditional Internet. They saw the security advantages offered by blockchain technology and realized the value it could provide to the Internet. The team sees blockchain adding value in two ways: the first is increased security and the second is the ability to give control of data back to the users. The team believes that a major reason Google is so successful is because of the AI engine behind it. This AI is trained by its users and it becomes smarter the more it is used. It is the continuous contribution of data from users that allows companies such as Google, Facebook, and Zhima Credit to thrive. While this data contributes to the advancement of the Internet, the value behind it should be returned to the users. IoT Chain looks to return value back to users during this blockchain technical revolution.
In order to return the value back to users, the team explains that data ownership will be secured on the blockchain. As people use more and more connected devices, large amounts of data will be generated. Companies and platforms such as search engines, social networks, and online retailers need access to this data to make better business decisions and train artificial intelligence. These platforms can utilize data on IoT Chain’s network, but they first need to obtain user consent. They also need to identify what value is created by their use of the data, and provide a percentage as payment back to the user.
Currently, IoT Chain is returning value back to users using a C2B2B model. After obtaining user authorization, data service providers will receive access to the data. They will then cooperate with companies that have a need for that data. These companies will transfer a portion of the value generated by its use back to the service providers who in turn pay users as per agreed upon contracts. Data can be classified by security and sensitivity. For insensitive data, the service providers can work with users to help create value.
The IoT Chain architecture provides a safe environment for a data economy. They are developing semi-homomorphic encryption among other technologies to help ensure secure data management. Their goal is to become the fundamental safe operating system for the internet of things. Their project is similar to that of IOTA, and the team believes IOTA is a successful project as well. Both use DAG (Directed Acyclic Graph), which is actually a traditional data structure that has been around for many years. The Git project, a popular version control system, uses DAG to relate commits.
The reason ITC is using a hybrid DAG architecture is because it is much more efficient than a pure blockchain network. The DAG data structure is distributed, unlike their heavily linked blockchain counterpart. Not only does this resolve concentration of mining (as with Bitcoin) but it also greatly increases the capacity of the network and lowers transaction fees. The DAG data structure represents the next generation of distributed ledger technology (often called “blockchain 3.0”).
Beyond the data structure, the consensus algorithm also plays a part in network performance. ITC is using PBFT (Practical Byzantine Fault Tolerance) to achieve consensus on the main chain. The team believes decentralization is the most important characteristic of blockchain projects; only when true decentralization is achieved can data structure security be guaranteed. This is an important distinction from IOTA, as their network currently uses a centralized coordinator to help secure their fee-less network. Their network has also experienced performance issues as a result. Thus, while some similarities exist, IOTA and ITC are unique projects. IoT Chain’s technical orientation is strong and their fundamental structure is more convenient and practical for achieving decentralization.
The ITC team has a true entrepreneurial mindset which is sure to pay dividends in the future. Everyone on the team is self-motivated, efficient, and is able to problem solve and execute on new ideas quickly. Their development team consists of many talented individuals from Chinese giants such as BAT (Baidu, Alibaba, Tencent) and Xiaomi. They plan on expanding the team with further talent as well. ITC received their startup capital from several famous blockchain investment firms including FBG Capital and Korea’s #HASHED. They are focused on both the domestic market and international expansion, with #HASHED providing plenty of support for the Korean community.
IoT Chain is developing ahead of schedule and is planning a main net release for December of this year. Their goal is to become a truly decentralized DAG IoT solution, with best-in-class security and performance. In terms of competition, the team believes there are only a small number of IoT projects trialing blockchain solutions. While large corporations such as IBM and Tencent are developing their own solutions, these are more geared towards cloud services with a new technical architecture rather than a blockchain infrastructure. The blockchain IoT market is still a blue ocean of uncontested space with plenty of room for several projects to grow.
This article was translated from an exclusive interview of ITC by Zero Knowledge Chain.
