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2018-12-17
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Blockchain energy
LICIA
Laboratoire systèmes d’Information de Confiance, Intelligents, Auto-organisants
Sara.TUCCI@cea.fr Chef de Laboratoire
Francois.LE-FEVRE@cea.fr ; Onder.Gurcan@cea.fr
LA BLOCKCHAIN, CE MAILLON MANQUANT DE LA TRANSITION ENERGÉTIQUE
2
Precautions of use
all that “bad” myths about blockchain are about the BITCOIN blockchain
(Energy consumption, ICO, the Chinese power, speculation, ….)
Blockchains can serve as backbone to industrial applications to bring
decentralisation and new services
BlockChain, key concepts
CEA IA Blockchain
POC Energy Security
Research questions and future interactions
2018-12-17
3
Timeline of a recent technology
< 2008 2008 2009 2013- 2015 2016 2017 2023 - 2028
Announcement of the
invention of bitcoin
Strong interest of banks
Ethereum Publication
Interest of
other industrial
sectors
Multiplication of
POC /
Experiments
2018-2023
Strong disappointments expected, Multiple obstacles to
overcome:
Switch from POC / Experiments to Deployment
Apply blockchains to the physical world
The brake of existing infrastructures
Key success factors to consider:
Exploit all their features
Convince CIOs of their added value
Bridging the legal gaps
Either the blockchains do not break
through
Either they are massively used
Development of
cryptography
technologies and
distributed networks
Publication of the
Bitcoin protocol
1995
First ‘blockchain’ in New York
Times
By Surety
4
Blockchain, what is it ?
The term blockchain refers to
A (replicated) data structure :
Ledger/register organized as a chain of cryptographic blocks
in which transactions between users belonging to the same
network are stored in a secure, verifiable and permanent way.
The protocol that allows to build the chain
(cryptography, consensus rules…)
Allows you to trace and verify all the transactions you have ever
made.
Data Structure
2018-12-17
5
Details for Bitcoin
A Data Structure
A sequence of blocks, each containing transactions, replicated at each process pi
A block Bh at level h is linked to the block Bh-1 at level h-1 by containing the hash
of Bh-1
The (Bitcoin) Protocol to update the data structure at pi
Make a block Bh solving PoW
Broadcast Bh
Upon reception of Bh : verify Bh and locally append Bh if Bh is valid
Bh contains the reward for the miner that made it
H(B1) H(B2) H(B3) time
6
Towards decentralisation
Users & service providers
multi-owner
decentralized
intelligence
one-owner
one-brain
(banking,
insurance, etc.)
Exchanges
Blockchain-enacted
users
owner/service provider
Knowledge,
decision,respons
ability,
resilience
Current systems
2018-12-17
7
Distributed
Ledger
Technology
Token
economics
Smart
Contracts
Digital
assets
2-layer
blockchain
Consensus
mechanism
Zero
knowledge
But more interesting to speak about…
Enabling Trust at the Internet Scale with:
- IoT &
- Energy Internet
- Blockchain
8
Registry « Notary »
Value Transfer « Banker »
Contracts « Trader »
Machines Economy
« Manager » Factory of the
future
Smart Home Autonomous
Transportation
Smart cities
Eco-districts
Insurance Logistics
Maintenance
MarketPlaces
(GO, REC,
Mobility, Data )
Cryptocurrencies
ICO
Account units Voting Systems
Certification
Authentification
Logbooks Personal data management
KYC
Blockchain interactions with the environment
(Increasing levels of complexity and coordination)
Blockchain roles and levels of innovation
Smart Contracts,
Oracles, Sidechains
BC+AI, DAO
Public BC,
Intensive mining,
Tokens
Cryptographic Ledgers,
Consensus
Energy
Performance
Contracts
Blockchain applications cartography
From: Panorama des applications des blockchains à l’énergie, Gilles Deleuze & Sara Tucci-Piergiovanni. Revue de l’Electricité et de
l’electronique, Numero 2, 2018
2018-12-17
9
•A MATURE TECHNOLOGY (IN GENERAL)
•A « KILLER APP »
•A COMPLETE SOLUTION
•A CUSTOMER NEED
DISTRIBUTED LEDGER TECHNOLOGY IS
NOT…
10
THE TRIANGLE “CONJECTURE”
[Slepak and Petrova. The DCS Theorem, 2018]
Pick two out of three
Autonomy Resilience/Security
Scale
Capacity of deciding autonomously on
the next state
The system continues to perform its
behaviour even if any single node is
removed/changes behaviour
Ability to maintain performances while
workload increase by adding resources
2018-12-17
11
A problem of scale
VISA, a single company, says their average
peak rate is 4,000 transactions per second but
that they can support 56,000 transactions per
second
How many companies are like this? Virtually all
Fortune 500 companies are likely looking at
close to a billion blockchain-transactions per
day, some many more.
Now factor in social and content needs. If you
want to track your identity on a blockchain,
you’re sending at least 100 transactions a day,
and that’s for a relatively light user of online
materials
Bitcoins 3 to 7 transactions per secund
12
BLOCKCHAIN @ LIST
Laboratoire d’Intégration des Systèmes et des Technologies
A brand new Laboratory for Trusted, Smart and Self-Organizing
Information Systems was created in January 2018 to structure the CEA
LIST's research work around the blockchain
Software
Eng.
Formal
Methods
Distribut
ed
Systems
Artificial
Intelligen
ce
CEA List
DNA
> 100
persons
(1+2
depart.)
Blockchain research is integrated into the LIST Institute's Artificial
Intelligence program
2018-12-17
13
•GUIDANCE AND TECHNOLOGY QUALIFICATION
•RAPID PROTOTYPING TO ASSESS AND IDENTIFY
BOTTLENECKS
•WORK ON BOTTLENECKS AND ACCELERATE
TECHNOLOGY MATURATION
OUR ACTIVITY
Blockchain Technologies for Industrial Applications
14
GUIDANCE AND TECHNOLOGY QUALIFICATION
2018-12-17
15
Rapid prototyping based on a platform for
trustworthy decentralized applications
The laboratory develops Pluralize: a
formal framework for the development of
industrial applications based on DLT
technologies.
It’s focus is on safety and security.
Pluralize features
•A formal transaction-based language for
decentralized applications, agnostic of
the blockchain for correct-by-design
applications
•Added-value services for complex
business interactions
•New second-layer protocols
•Qualified blockchains
Blockchain protocols
(Tendermint, Ethereum, Lightning, etc…)
Added-value services : auditing,
monitoring, validation
dApp dApp dApp
Domain-specific: built with Pluralize
Pluralize framework
Coq
&
ocaml
Design completed…Under development !
16
Pluralize – examples of contributions to ASM & App
layers
Blockchain protocols
(Tendermint, Ethereum, Lightning, etc…)
Added-value services : auditing,
monitoring, validation
dApp dApp dApp
Domain-specific: built with Pluralize
Pluralize framework
Coq
&
ocaml
2018-12-17
17
VIEWPOINT #1
incorporating IoT in blockchains applications
EnergyInsurance FoodFinance
IoT interaction
Bouygues – ConfluenceAxa Wallmart
IoT data from sensors and transaction in distributed ledger
18
Machines
economy
Decentralized
Interaction
MicropaymentsIdentity & Access
Management
Blockhain complexity
VIEWPOINT #2
incorporating blockchains in IoT applications
50 Billions connected devices worldwide
20 Millions electric vehicles
100 Millions robots operating between 2020 and 2035
3 Millions solar panel in Germany
2018-12-17
19
Convergence Blockchain & Internet Energy
Application of Blockchain Technology in Sustainable Energy Systems: An Overview JianiWu 1,* and Nguyen Khoi Tran
new type of power grid structure
based on renewable energy
generation, distributed energy
storage devices, and the existing
Internet
20
Characteristics & Applications of Energy Internet
2018-12-17
21
Registry « Notary »
Value Transfer « Banker »
Contracts « Trader »
Machines Economy
« Manager » Factory of the
future
Smart Home Autonomous
Transportation
Smart cities
Eco-districts
Insurance Logistics
Maintenance
MarketPlaces
(GO, REC,
Mobility, Data )
Cryptocurrencies
ICO
Account units Voting Systems
Certification
Authentification
Logbooks Personal data management
KYC
Blockchain interactions with the environment
(Increasing levels of complexity and coordination)
Blockchain roles and levels of innovation
Smart Contracts,
Oracles, Sidechains
BC+AI, DAO
Public BC,
Intensive mining,
Tokens
Cryptographic Ledgers,
Consensus
Energy
Performance
Contracts
Blockchain applications cartography
From: Panorama des applications des blockchains à l’énergie, Gilles Deleuze & Sara Tucci-Piergiovanni. Revue de l’Electricité et de
l’electronique, Numero 2, 2018
Energy
Performance
Contracts
22
Energy Performance Contracts
• an intelligent contractual framework where
• energy savings (S) = a predictive baseline model (Eb) – the actual consumption (E)
• savings are generally computed on a basis of one
month and financial transactions occurs once a
year.
Linear:
R scripts...
Complex:
Machine Learning,
Tıme-dependent...
Client
Contractor
(e.g., Veolia)
Other
(e.g., Meteo France)
(e.g.,
shopping
malls,
hotels)
2018-12-17
23
The Pain
in Energy Performance Contracts (EPCs)
24
A New Contracting Process
Definition of
the contrat
Agreement on:
• Predictive Model
• Usage Conditions
• Energy Price
• Data qualification
process
1 Programming
corresponding
smart contrats
Security rule: the
conditions granted
are "hard coded" in
the "smart contracts":
not possible to update
them afterwards.
2 Deployment into
the blockchain
system
3
Generation of blockchain
adresses (IDs)
(Client, Veolia, Meteo France)
Generation of smart contract
adresses (ID)
4 Execution in the
blockchain
The "smart contract" is
executed only if it is called
via its address.
If the contract changes
(step 1), a new smart
contract shall be rolled out
(step 2).
2018-12-17
25
Calculating the energy bill requires
An increasingly complex predictive model
Environmental data
Conditions of use
How to make the
predictive model
explicable ?
At any time, both the client and Veolia can verify
any information stored in the blockchain.
Solution: blockchain as
trusted third party
Secure billing
auditable by the client
Increased trust
Adoption
Energy Performance Contract
Motivation: can we trust an Energy Performance Contract (Monitoring & Trading)?
26
Calculating the energy bill requires
An increasingly complex predictive model
Environmental data
Conditions of use
How to make the
predictive model
explicable ?
At any time, both the client and Veolia can verify
any information stored in the blockchain.
Solution: blockchain as
trusted third party
Secure billing
auditable by the client
Increased trust
Adoption
user interface and audituser interface and audit
Successful EPC tested on 5 months of real data
Energy Performance Contract
Motivation: can we trust an Energy Performance Contract (Monitoring & Trading)?
2018-12-17
27
28
2018-12-17
29
30
2018-12-17
31
32
2018-12-17
33
34
2018-12-17
35
Identified Technical Challenges …
Challenge #1. Oracles management
• False/no information
• Data protection
Challenge #2. Contract digitalization
• Complex businesses and trades
• Life-cycle (negotiation, stipulation, litigation,
amendment)
Challenge #3. IA support
• Machine learning algorithms are
resource consuming
• Blockchain scalability problems
36
Highlights
Communica
tion /
Impact on
Society
Industrial
commitment
Scientific
Excellence
Prototype to be deployed to
Client infrastructure
Industrial report submitted
to IEEE Smart City 2018
Standards: Participation to ISO TC307 standard
Önder Gürcan, Antonella
Del Pozzo, Sara Tucci-
Piergiovanni,
On the Bitcoin
Limitations to
Deliver Fairness to
Users, Proc. of 25th Int.
Conf. on Cooperative
Information Systems
(CoopIS 2017), Rhodes,
Greece, 25-27 October
2017. RANK A
Zaynah Dargaye, Onder
Gurcan, Florent Kirchner
and Sara Tucci-
Piergiovanni,
Cyberlogic for smart
contracts :
trustworthy
cooperation without
a trusted third-party.
JFLA 2018
Önder Gürcan, Alejandro
Ranchal Pedrosa, Sara
Tucci-Piergiovanni. On
Cancellation of
Transactions in
Bitcoin-like
Blockchains, Proc.
of 26th International
Conference on
Cooperative Information
Systems (CoopIS 2018): )
RANK A*
2018-12-17
37
Thanks!
Contact: sara.tucci@cea.fr
Antonella
del Pozzo
Önder
Gurcan
Agnès
Lanusse
Francois
Le Fevre
Yackholley
Amoussou
Alejandro
Ranchal
Sara Tucci
Head of the Lab
Zaynah
Dargaye
Aimen
Djari
News:
http://www.tokenomics2019.org/tokenomics/
International Conference on Blockchain
Economics, Security and Protocols
May 6 & 7 2019, Paris
International forum for theory, design, analysis,
implementation and applications of blockchains and smart
contracts. Original interdisciplinary works exploring the
conjunction of economic concerns with distributed
systems, networks and system security are particularly
encouraged.

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[Meetup 9] Nuit de la Blockchain #2, François Le Fevre du CEA

  • 1. 2018-12-17 1 Blockchain energy LICIA Laboratoire systèmes d’Information de Confiance, Intelligents, Auto-organisants Sara.TUCCI@cea.fr Chef de Laboratoire Francois.LE-FEVRE@cea.fr ; Onder.Gurcan@cea.fr LA BLOCKCHAIN, CE MAILLON MANQUANT DE LA TRANSITION ENERGÉTIQUE 2 Precautions of use all that “bad” myths about blockchain are about the BITCOIN blockchain (Energy consumption, ICO, the Chinese power, speculation, ….) Blockchains can serve as backbone to industrial applications to bring decentralisation and new services BlockChain, key concepts CEA IA Blockchain POC Energy Security Research questions and future interactions
  • 2. 2018-12-17 3 Timeline of a recent technology < 2008 2008 2009 2013- 2015 2016 2017 2023 - 2028 Announcement of the invention of bitcoin Strong interest of banks Ethereum Publication Interest of other industrial sectors Multiplication of POC / Experiments 2018-2023 Strong disappointments expected, Multiple obstacles to overcome: Switch from POC / Experiments to Deployment Apply blockchains to the physical world The brake of existing infrastructures Key success factors to consider: Exploit all their features Convince CIOs of their added value Bridging the legal gaps Either the blockchains do not break through Either they are massively used Development of cryptography technologies and distributed networks Publication of the Bitcoin protocol 1995 First ‘blockchain’ in New York Times By Surety 4 Blockchain, what is it ? The term blockchain refers to A (replicated) data structure : Ledger/register organized as a chain of cryptographic blocks in which transactions between users belonging to the same network are stored in a secure, verifiable and permanent way. The protocol that allows to build the chain (cryptography, consensus rules…) Allows you to trace and verify all the transactions you have ever made. Data Structure
  • 3. 2018-12-17 5 Details for Bitcoin A Data Structure A sequence of blocks, each containing transactions, replicated at each process pi A block Bh at level h is linked to the block Bh-1 at level h-1 by containing the hash of Bh-1 The (Bitcoin) Protocol to update the data structure at pi Make a block Bh solving PoW Broadcast Bh Upon reception of Bh : verify Bh and locally append Bh if Bh is valid Bh contains the reward for the miner that made it H(B1) H(B2) H(B3) time 6 Towards decentralisation Users & service providers multi-owner decentralized intelligence one-owner one-brain (banking, insurance, etc.) Exchanges Blockchain-enacted users owner/service provider Knowledge, decision,respons ability, resilience Current systems
  • 4. 2018-12-17 7 Distributed Ledger Technology Token economics Smart Contracts Digital assets 2-layer blockchain Consensus mechanism Zero knowledge But more interesting to speak about… Enabling Trust at the Internet Scale with: - IoT & - Energy Internet - Blockchain 8 Registry « Notary » Value Transfer « Banker » Contracts « Trader » Machines Economy « Manager » Factory of the future Smart Home Autonomous Transportation Smart cities Eco-districts Insurance Logistics Maintenance MarketPlaces (GO, REC, Mobility, Data ) Cryptocurrencies ICO Account units Voting Systems Certification Authentification Logbooks Personal data management KYC Blockchain interactions with the environment (Increasing levels of complexity and coordination) Blockchain roles and levels of innovation Smart Contracts, Oracles, Sidechains BC+AI, DAO Public BC, Intensive mining, Tokens Cryptographic Ledgers, Consensus Energy Performance Contracts Blockchain applications cartography From: Panorama des applications des blockchains à l’énergie, Gilles Deleuze & Sara Tucci-Piergiovanni. Revue de l’Electricité et de l’electronique, Numero 2, 2018
  • 5. 2018-12-17 9 •A MATURE TECHNOLOGY (IN GENERAL) •A « KILLER APP » •A COMPLETE SOLUTION •A CUSTOMER NEED DISTRIBUTED LEDGER TECHNOLOGY IS NOT… 10 THE TRIANGLE “CONJECTURE” [Slepak and Petrova. The DCS Theorem, 2018] Pick two out of three Autonomy Resilience/Security Scale Capacity of deciding autonomously on the next state The system continues to perform its behaviour even if any single node is removed/changes behaviour Ability to maintain performances while workload increase by adding resources
  • 6. 2018-12-17 11 A problem of scale VISA, a single company, says their average peak rate is 4,000 transactions per second but that they can support 56,000 transactions per second How many companies are like this? Virtually all Fortune 500 companies are likely looking at close to a billion blockchain-transactions per day, some many more. Now factor in social and content needs. If you want to track your identity on a blockchain, you’re sending at least 100 transactions a day, and that’s for a relatively light user of online materials Bitcoins 3 to 7 transactions per secund 12 BLOCKCHAIN @ LIST Laboratoire d’Intégration des Systèmes et des Technologies A brand new Laboratory for Trusted, Smart and Self-Organizing Information Systems was created in January 2018 to structure the CEA LIST's research work around the blockchain Software Eng. Formal Methods Distribut ed Systems Artificial Intelligen ce CEA List DNA > 100 persons (1+2 depart.) Blockchain research is integrated into the LIST Institute's Artificial Intelligence program
  • 7. 2018-12-17 13 •GUIDANCE AND TECHNOLOGY QUALIFICATION •RAPID PROTOTYPING TO ASSESS AND IDENTIFY BOTTLENECKS •WORK ON BOTTLENECKS AND ACCELERATE TECHNOLOGY MATURATION OUR ACTIVITY Blockchain Technologies for Industrial Applications 14 GUIDANCE AND TECHNOLOGY QUALIFICATION
  • 8. 2018-12-17 15 Rapid prototyping based on a platform for trustworthy decentralized applications The laboratory develops Pluralize: a formal framework for the development of industrial applications based on DLT technologies. It’s focus is on safety and security. Pluralize features •A formal transaction-based language for decentralized applications, agnostic of the blockchain for correct-by-design applications •Added-value services for complex business interactions •New second-layer protocols •Qualified blockchains Blockchain protocols (Tendermint, Ethereum, Lightning, etc…) Added-value services : auditing, monitoring, validation dApp dApp dApp Domain-specific: built with Pluralize Pluralize framework Coq & ocaml Design completed…Under development ! 16 Pluralize – examples of contributions to ASM & App layers Blockchain protocols (Tendermint, Ethereum, Lightning, etc…) Added-value services : auditing, monitoring, validation dApp dApp dApp Domain-specific: built with Pluralize Pluralize framework Coq & ocaml
  • 9. 2018-12-17 17 VIEWPOINT #1 incorporating IoT in blockchains applications EnergyInsurance FoodFinance IoT interaction Bouygues – ConfluenceAxa Wallmart IoT data from sensors and transaction in distributed ledger 18 Machines economy Decentralized Interaction MicropaymentsIdentity & Access Management Blockhain complexity VIEWPOINT #2 incorporating blockchains in IoT applications 50 Billions connected devices worldwide 20 Millions electric vehicles 100 Millions robots operating between 2020 and 2035 3 Millions solar panel in Germany
  • 10. 2018-12-17 19 Convergence Blockchain & Internet Energy Application of Blockchain Technology in Sustainable Energy Systems: An Overview JianiWu 1,* and Nguyen Khoi Tran new type of power grid structure based on renewable energy generation, distributed energy storage devices, and the existing Internet 20 Characteristics & Applications of Energy Internet
  • 11. 2018-12-17 21 Registry « Notary » Value Transfer « Banker » Contracts « Trader » Machines Economy « Manager » Factory of the future Smart Home Autonomous Transportation Smart cities Eco-districts Insurance Logistics Maintenance MarketPlaces (GO, REC, Mobility, Data ) Cryptocurrencies ICO Account units Voting Systems Certification Authentification Logbooks Personal data management KYC Blockchain interactions with the environment (Increasing levels of complexity and coordination) Blockchain roles and levels of innovation Smart Contracts, Oracles, Sidechains BC+AI, DAO Public BC, Intensive mining, Tokens Cryptographic Ledgers, Consensus Energy Performance Contracts Blockchain applications cartography From: Panorama des applications des blockchains à l’énergie, Gilles Deleuze & Sara Tucci-Piergiovanni. Revue de l’Electricité et de l’electronique, Numero 2, 2018 Energy Performance Contracts 22 Energy Performance Contracts • an intelligent contractual framework where • energy savings (S) = a predictive baseline model (Eb) – the actual consumption (E) • savings are generally computed on a basis of one month and financial transactions occurs once a year. Linear: R scripts... Complex: Machine Learning, Tıme-dependent... Client Contractor (e.g., Veolia) Other (e.g., Meteo France) (e.g., shopping malls, hotels)
  • 12. 2018-12-17 23 The Pain in Energy Performance Contracts (EPCs) 24 A New Contracting Process Definition of the contrat Agreement on: • Predictive Model • Usage Conditions • Energy Price • Data qualification process 1 Programming corresponding smart contrats Security rule: the conditions granted are "hard coded" in the "smart contracts": not possible to update them afterwards. 2 Deployment into the blockchain system 3 Generation of blockchain adresses (IDs) (Client, Veolia, Meteo France) Generation of smart contract adresses (ID) 4 Execution in the blockchain The "smart contract" is executed only if it is called via its address. If the contract changes (step 1), a new smart contract shall be rolled out (step 2).
  • 13. 2018-12-17 25 Calculating the energy bill requires An increasingly complex predictive model Environmental data Conditions of use How to make the predictive model explicable ? At any time, both the client and Veolia can verify any information stored in the blockchain. Solution: blockchain as trusted third party Secure billing auditable by the client Increased trust Adoption Energy Performance Contract Motivation: can we trust an Energy Performance Contract (Monitoring & Trading)? 26 Calculating the energy bill requires An increasingly complex predictive model Environmental data Conditions of use How to make the predictive model explicable ? At any time, both the client and Veolia can verify any information stored in the blockchain. Solution: blockchain as trusted third party Secure billing auditable by the client Increased trust Adoption user interface and audituser interface and audit Successful EPC tested on 5 months of real data Energy Performance Contract Motivation: can we trust an Energy Performance Contract (Monitoring & Trading)?
  • 18. 2018-12-17 35 Identified Technical Challenges … Challenge #1. Oracles management • False/no information • Data protection Challenge #2. Contract digitalization • Complex businesses and trades • Life-cycle (negotiation, stipulation, litigation, amendment) Challenge #3. IA support • Machine learning algorithms are resource consuming • Blockchain scalability problems 36 Highlights Communica tion / Impact on Society Industrial commitment Scientific Excellence Prototype to be deployed to Client infrastructure Industrial report submitted to IEEE Smart City 2018 Standards: Participation to ISO TC307 standard Önder Gürcan, Antonella Del Pozzo, Sara Tucci- Piergiovanni, On the Bitcoin Limitations to Deliver Fairness to Users, Proc. of 25th Int. Conf. on Cooperative Information Systems (CoopIS 2017), Rhodes, Greece, 25-27 October 2017. RANK A Zaynah Dargaye, Onder Gurcan, Florent Kirchner and Sara Tucci- Piergiovanni, Cyberlogic for smart contracts : trustworthy cooperation without a trusted third-party. JFLA 2018 Önder Gürcan, Alejandro Ranchal Pedrosa, Sara Tucci-Piergiovanni. On Cancellation of Transactions in Bitcoin-like Blockchains, Proc. of 26th International Conference on Cooperative Information Systems (CoopIS 2018): ) RANK A*
  • 19. 2018-12-17 37 Thanks! Contact: sara.tucci@cea.fr Antonella del Pozzo Önder Gurcan Agnès Lanusse Francois Le Fevre Yackholley Amoussou Alejandro Ranchal Sara Tucci Head of the Lab Zaynah Dargaye Aimen Djari News: http://www.tokenomics2019.org/tokenomics/ International Conference on Blockchain Economics, Security and Protocols May 6 & 7 2019, Paris International forum for theory, design, analysis, implementation and applications of blockchains and smart contracts. Original interdisciplinary works exploring the conjunction of economic concerns with distributed systems, networks and system security are particularly encouraged.