Machine-to-machine communication has become increasingly important as technology advances, enabling the automatisation of processes in various industries and businesses. According to Statista, there are about 18 billion IoT devices in operation worldwide and the number is projected to grow over 30 billion by 2030.
However, the extent of hyperconnectivity is increasing not only quantitatively, but also qualitatively, as key technologies such as blockchain mature and can serve as a documenting fundament for communication between machines.
Richard Baker (Founder of Tokenovate) moderated a panel discussion “Building the machine-to-machine based Internet of value” at the London Blockchain Conference 2024 with the following participants:
- Dr Owen Vaughan (Chief Science Officer at nChain)
- Adam Feiler (Head of Partnerships at Minima)
- Patrick Gustafsson (Operations Leader at Volvo Cars)
The current state of the machine-to-machine web
Vaughan began by explaining the evolution of the Internet and its relevance for machine-to-machine networks and IoT devices, transitioning from Web1 (static, read-only websites) to Web2 (interactive platforms dominated by large players like Google and Facebook). In Web2, users benefit from convenience but lose control over data and face security challenges.
Web3 aims to empower users to control their identities and data. Vaughan notes that while IoT devices are pushing toward a Web3 future, many physical technologies, like driverless cars, remain tied to Web2 models dominated by a few major players.
Feiler discussed DePIN (Decentralised Physical Infrastructure Network) in this context, a concept integrating decentralised services with physical hardware. DePIN allows users to own hardware (e.g., mobile hotspots) and earn micropayments for services provided, reducing reliance on big tech companies. This decentralised model aligns with the broader goals of Web3, allowing for a richer tech stack that blends various technologies.
Web3 and the Consumer Perspective
The discussion then switched the focus to the consumer perspective with the scenario of buying a new car, which could be an autonomous vehicle. Gustafsson jokingly likened modern cars to “big smartphones” that collect data from drivers through their phones and personal sensors to enhance the driving experience. Baker connected this to the concept of Web3, suggesting that in the future, users could own and monetise their car data, possibly subscribing to different vehicle services based on preferences.
Baker then questioned data ownership in these vehicles, asking whether the data belonged to the driver or the manufacturer (e.g., Volvo). Gustafsson explains that while drivers typically own their data, they must read and agree to the terms when granting permission for its use. Future connected vehicles will have multi-signature access, allowing users to control vehicle services through biometrics or their phones.
Vaughan emphasises the importance of identity for both humans and machines in the evolving digital ecosystem. He explains that in Web3, humans are not just users of devices like cars but have their own digital identities, which interact with the car’s identity. Privacy and control over personal data are key concerns in this context.
Blockchain’s role in the machine-to-machine internet
Vaughan highlighted the significance of blockchain as a tool for establishing trust in ephemeral interactions between machines for example when cars pass each other in a very short time frame. He noted blockchain’s role as a permanent, immutable record.
He describes blockchain as a versatile system that works across different layers of technology, from applications to physical devices and is not limited by traditional internet protocols like TCP/IP.
In this framework, blockchain acts as a “digital reference of permanence” that records events and interactions for future reference, blending the physical and digital worlds. The panel went on to discuss further use cases for blockchain and tokenisation.
- Accountability in Automated Systems: Tokenisation helps assign responsibility, such as in vehicle accidents, improving transparency and accountability in automated environments.
- Blockchain for Identity and Payments: Blockchain can help manage ownership, liability, and payments in connected autonomous vehicles, allowing for momentary identity authentication and improving finance or insurance models.
- AI and Blockchain in Edge Computing: As AI moves to edge devices, blockchain will enhance transparency, ensuring accountability for autonomous machine decisions.
- Blockchain Integration in Vehicles: Blockchain technology can be embedded in-vehicle hardware, enabling seamless payment, data sharing, and secure communication.