Taraxa Project
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Taraxa Project

AMA #3: Steven Pu x Wanxiang Blockchain.

Our CEO Steven recently took part in a live stream with @WXblockchain to chat about everything blockchain meets IoT, and how Taraxa helps to confidently collect, structure and audit business operational data

The talk was translated and edited for clarity.

What’s a typical IoT + Blockchain application scenario?

SP: Essentially, an IoT device’s blockchain capability is determined by its ability to record data on the blockchain. For a typical IoT meets blockchain application scenario, let’s have a look at Taraxa’s use case in arcade machine leasing. The blockchain layer here allows equipment vendors and operators to be certain about the distribution amounts based on the performance of arcade machines, as the revenue stream becomes 100% transparent thanks to immutable digital identities and a tamper-free audit log of all the transactions.

Can you share Taraxa’s clients’ use cases of how using blockchain in combination with IoT helped them to expand their business?

SP: Sure. To continue with the cross-border asset leasing application, one of our customers is a Japanese arcade machine leasing vendor. They lease out arcade machines and then distribute the revenues generated by each of them among their machine operators. This is a pretty straightforward application, but at the same time requires a lot of trust between the vendor and the operator. So when they started expanding their markets in East and Southeast Asia, their growth rate accelerated very quickly, but they found it difficult to agree on incoming asset performance numbers with their overseas customers. And if there is no agreement on the numbers, you can, of course, change your business model to the fixed-cost, but then fixed-rate return on assets is too low.

So we offered them a hardware module solution. We set up and installed hardware modules to arcade machines connecting the signals in multiple spots like coin slots and tickets. The signals are transmitted both to the cloud and to the blockchain. This helps to prevent the data from getting compromised and facilitates the audits later.

Can you describe how this works from an operational perspective?

SP: Data is transmitted directly to the cloud from the device through a hardware security module. After the data is collected, the next step is to hash it to the blockchain. Hardware modules, for their part, guarantee that data batches are coming from this particular machine: each equipment vendor has a set of cryptographic keys and signatures to identify the machine under lease. So these two things combined give certainty that the data is accurate and tamper-free.

As enterprises put more data into the cloud, what broader value does Taraxa bring to the enterprise data infrastructures?

SP: For today’s enterprise, it’s increasingly important to collect more accurate and relatable data promptly to better deal with the rapid changes and complexities of the business landscape. And this data is extremely challenging to obtain, which leads to the lack of actionable insights limiting the potential for scaling up.

You seem to put much focus on the notion of credibility and trust. Why is it so important?

SP: In the past, when I was doing strategic consulting, most executives of multinational companies would tell me that the data in their internal ERPs were fake, while the trust in data collected by the enterprise was very low.

In the traditional data collection model, an enterprise spends a lot of money and time preparing ERP software. Once the data needs to be shared with the third parties and viewed by banks, governments, and partners, the cost becomes even higher because now they need to hire very costly external counselors like the Big Four auditors. So operational data has a very high cost of internal and external recognition. That’s why I see the biggest value proposition of Taraxa’s On-The-Record in reducing the operational cost by building up trust enterprise-wide.

What’s Taraxa’s primary goal at the moment?

SP: Taraxa is actually doing two things at the same time. For one, we’re building a Layer One public blockchain ledger. Then there is an application platform on top of it that collects critical operational data with a high degree of trust. These are the two paradigms of the application platform — data collected from the machines (that’s the IoT part), and data collected from humans.

Conceptually, our platform collects various data from the actual enterprise application scenarios and integrates with all commonly used software and hardware platforms. The main interface we’re working on now ultimately helps to connect to the go-to apps like Salesforce and Slack.

And it’s a wrap for today. As always, shoot your questions to our Telegram chat, and stay tuned for the next round of AMAs!

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A fast, scalable, and device-friendly public ledger designed to help IoT ecosystems become more trusted, autonomous, and valuable.

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Olya Green

Olya Green

I write about Tech and Design

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