Innovation Project - IOTPAY
IoT-Based Automatic Payment Solution - In Collaboration with Gapask Inc.
Werenode is committed to advancing Web3.0, electric vehicle (EV) charging technologies, and decentralized energy solutions by developing innovative components that leverage blockchain, IoT, decentralized identity, and cutting-edge user interfaces. This document highlights one of our key innovation projects: IOTPAY. We have also developed several other Web3.0 systems: DEFev, DID-IMP, DECO developed in collaboration with OP Mobility and SII, the Alexa Speech HMI version of Werenode, developed in collaboration with Renault's ElectroShaker Lab, and the LG Web OS version of our application, developed in collaboration with LG Nova.
IOTPAY, Werenode's innovative payment solution, integrates Internet of Things (IoT) technology with blockchain to facilitate seamless and secure automatic payments. It is a research initiative by Werenode, developed within the NGI Sargasso framework-an EU-funded program dedicated to fostering a human-centered, trustworthy, and sustainable internet. The project focuses on creating a decentralized public key infrastructure tailored for IoT devices, utilizing blockchain-driven smart contracts to enable secure, traceable, and feeless payment across connected devices. By eliminating intermediaries, IOTPAY facilitates direct transactions between IoT devices, enhancing efficiency and reducing costs. Its blockchain foundation ensures enhanced security and transparency, making it a robust solution for the evolving IoT landscape.
IOTPAY was developed within the NGI Sargasso framework, Open Call #3. NGI Sargasso is an EU funded project which has Grant Agreement Number 101092887.
Project Description
In our interconnected world, the Internet of Things (IoT) is becoming increasingly integral, permeating sectors from smart homes to complex industrial systems. The proliferation of IoT devices has led to an exponential increase in data generation, with estimates suggesting that IoT devices contribute significantly to the 160 zettabytes (ZB) of data produced globally. This surge underscores the critical need for efficient, secure, and autonomous payment systems tailored for IoT ecosystems.
Traditional payment infrastructures are often ill-suited for the autonomous and decentralized nature of IoT devices. The necessity for human intervention, coupled with transaction fees and security vulnerabilities, hampers the seamless operation of IoT networks. To address these challenges, Werenode has developed IOTPAY - a decentralized autonomous payment system designed specifically for IoT devices.
Key Features
1) Decentralized Autonomous Payments: Eliminates intermediaries, allowing direct transactions between IoT devices. Users can enjoy fully automated payments without needing to manually approve transactions for each service. IOTPAY enables the integration of connected devices, such as domotic plugs, to enable direct and automated payment processing. 2) Feeless Transactions: Reduces costs associated with traditional payment systems. The use of blockchain allows for micro-transactions with significantly reduced costs compared to traditional payment gateways. 3) Enhanced Security: Utilizes blockchain technology to ensure secure and traceable transactions. Payments are executed using smart contracts on Tezos or Binance Smart Chain, ensuring secure and immutable transactions. This makes the payment process transparent and accessible to both users and IoT fleet operators. 4) Reduced Operational Costs: Streamlines processes, minimizing administrative overhead. 5) Improved Traceability: Provides transparent transaction histories for auditing and compliance. 6) Easy Scalability: Designed to accommodate growing IoT networks seamlessly. 7) Real-Time Efficiency: Facilitates instant transactions, improving system responsiveness. IOTPAY allows to initiate, pause, and stop service delivery using a connected device, with payment being processed in real time. This provides users with flexibility and complete control over their IoT devices.
Leveraging blockchain technology, IOTPAY ensures that each transaction is secure, transparent, and traceable, thereby enhancing trust within the network. This decentralized approach not only streamlines processes but also significantly reduces administrative overhead, leading to more efficient operations.
Designed with scalability in mind, IOTPAY seamlessly accommodates the rapid expansion of IoT networks, ensuring consistent performance regardless of network size. Its architecture supports real-time transactions, which enhances system responsiveness and allows for immediate data exchange and decision-making. By reducing transaction fees, IOTPAY makes microtransactions economically viable, opening up new possibilities for IoT applications that require frequent, low-value exchanges.
The enhanced traceability provided by IOTPAY offers transparent transaction histories, facilitating auditing and compliance with regulatory standards. This feature is particularly beneficial in sectors where data integrity and accountability are paramount. By integrating these capabilities, IOTPAY not only improves operational efficiency but also fosters a more secure and reliable IoT environment, paving the way for innovative applications and services in the rapidly evolving digital landscape.
Potential Applications
IOTPAY offers versatile applications across various sectors by enabling secure, autonomous transactions between Internet of Things (IoT) devices. By leveraging IOTPAY's capabilities, these sectors can achieve greater efficiency, security, and automation in their operations.
Energy Management for Smart Buildings: IOTPAY enables secure, value-driven energy transactions between IoT devices within a decentralized energy community, optimizing energy consumption and promoting sustainability.
Automatic Payment of Fees for Logistics: Streamlines logistics management by automating payments for processes involving fees or digital documentation, enhancing efficiency and reducing manual intervention.
Connected Cars: Facilitates autonomous payments for services such as tolls, parking, and charging, enhancing the convenience and efficiency of transportation systems.
Remote Healthcare: Supports secure transactions between medical IoT devices, ensuring timely payments for services and data sharing, thereby improving patient care.
Cognitive Cities: Enables seamless transactions between interconnected devices in smart cities, supporting services like public transportation and infrastructure management.
Smart Homes: Automates payments for smart home services and devices, enhancing user experience and operational efficiency.
Supply Chain Management: Facilitates secure and autonomous payments within the supply chain, improving transparency and reducing delays.
Architecture & Protocol
The architecture of IOTPAY comprises several core components:
1) Public Blockchain Network: Serves as the foundational layer, ensuring transparency and security. 2) Smart Contracts: Automate the issuance and revocation of certificates, manage data sharing processes, and enforce conditions without the need for intermediaries. 3) Embedded Wallet: Integrated into IoT devices, it manages digital currency and tokens, facilitating seamless transactions. 4) User Interface: A web application for IoT service providers to manage certificates, monitor transactions, and oversee device interactions. 5) Mobile Application: Offers key administrative features for on-the-go management of IoT devices and services.
A simplified overview of IOTPAY protocol is showed below:
Try IOTPAY
Conclusion
IOTPAY represents a significant advancement in the realm of IoT, addressing the critical need for autonomous, secure, and efficient payment systems. By leveraging blockchain technology and smart contracts, it eliminates intermediaries, reduces costs, and enhances the overall efficiency of IoT ecosystems. As the IoT landscape continues to expand, solutions like IOTPAY will play a pivotal role in shaping the future of interconnected devices and services. Indeed, the market is poised for significant growth. Market assessments project a Total Addressable Market (TAM) of $350 billion by 2030, with a Serviceable Obtainable Market (SOM) of $16 billion. This growth is driven by the increasing adoption of IoT devices and the need for efficient and secure autonomous payment solutions. IOTPAY's innovative approach positions it as a key player in this evolving IoT landscape, offering solutions that align with the increasing demand.