Cryptocurrencies and blockchain tech in general have the potential to make machine to machine (M2M) payments very efficient. This talk explores different angles of M2M payments in the internet of things (IoT). Presented at Blockchain Week IoT conference, Barcelona, 6 Oct 2015 and M2M Digital Curreny Summit London, 17 Mar 2016.

1. M2M Payments
@meinharrd | @SatoshiPay

2. Machine to machine?

5. 1971: Caller ID for landlines

6. First machine to machine communication

8. 1982: Carnegie Mellon University Coke machine

9. First IoT device

10. 1995: Siemens M1 GSM module

11. Stripped down Siemens S6

12. IoT going mobile

13. Industrial applications:
monitoring, tracking, telematics

14. Point of sale terminals

15. After 2000: More features, faster, smaller

16. IoT payments

17. Proprietary solutions by
KORE, Gemalto, FTS

18. Revolving around vending machines and POS

19. Future use cases

21. Road tolls

24. Public battery chargers

26. Selling sensor data

28. Drones charging for delivery

29. M2M payment benefits

30. No cognitive load

31. Instant

32. Cost-effective

33. Deep integration in business logic / contracts

34. Permissions

35. Anonymity

36. Challenges

37. Transaction fees:

38. Cryptocurrencies potential solution

39. Security:

40. Storing payment data on devices

41. Legal:

42. “The current revision of the European Payment
Services Directive is not fit for M2M payments.”
Prof. Dr. Rolf H. Weber (Zürich)

43. Cryptocurrencies

44. Also known as blockchain

45. No coin, no chain

48. Open

49. Programmable money

50. Standardised

51. Identity

53. 21 Inc

54. Pre-installed payment infrastructure

55. + ?
2
(2013)(2014)

56. Cryptocurrency shortcomings

57. Not instant

58. Blockchain bloat

59. Relatively high fees

60. Solution: Smart Contracts

61. Bitcoin Payment Channel

62. Contract between sender and receiver

63. Funds parked on multi-signature escrow address

64. Transaction drafts exchanged “off-chain”

65. Contract can be executed by both parties
at any given time

66. Sender Wallet Recipient Wallet

67. Sender Wallet Recipient Wallet
Tx

68. Sender Wallet Recipient Wallet
Tx

69. Sender Wallet Recipient Wallet

70. Sender Wallet Recipient Wallet
Escrow

71. Sender Wallet Recipient Wallet
Escrow
Funding Tx

72. Sender Wallet Recipient Wallet
Escrow
Funding Tx
Refund Tx

73. Sender Wallet Recipient Wallet
Escrow
Funding Tx
Refund Tx
Payment Tx

74. Sender Wallet Recipient Wallet
Escrow
Funding Tx
Refund Tx
Payment Tx
Bitcoin Network

75. Sender Wallet Recipient Wallet
Escrow
Funding Tx
Refund Tx
Payment Tx
Signature Signature
Payment Tx
Bitcoin Network

76. Sender Wallet Recipient Wallet
Escrow
Funding Tx
Refund Tx
Payment Tx
Signature Signature
Payment Tx
Payment Channel
Bitcoin Network

77. No fees apart from 2 transactions

78. Instant

79. No blockchain bloat

80. Nanopayments

81. Thanks!
@
m
einharrd
@
SatoshiPay
slideshare.net/m
einhard