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TAD Summit 2017Blockchain Micropayments Demo

•Blockchain (few slides…)

BlockchainWhen do we need it?

• Blockchain (distributed ledger) is a network that records ownership through a shared registry

• It eliminates the need for central authorities to authenticate and clear transaction

• Can be open, verifying anonymous transactions,

or closed and requiring actors to be authenticated

CENTRAL

DATABASE

CENTRALIZED LEDGERDISTRIBUTED LEDGER

BlockchainHow it works

• Mobile banking and micropayments, including MI and IoT use cases

• Device identity & authentication, data time-stamping and

asset management

• Contract-as-a-Service for enterprise-facing telcos

• Manage SLAs for CSPs' own network services

• An efficient billing system that accurately tracks usage of services and instantaneously

charge their subscribers

• NFV monetization, fraud prevention, wholesale reconciliation and data-integrity protection

BlockchainSuggested Use Cases

BlockchainTechnologies

•Blockchain Micro-Payments – Idea

• Create simple and efficient billing system that can accurately track subscribers' use of the

services and instantaneously charge their subscribers

• Streamline operational and business processes by adopting hybrid blockchain networks

• Overwhelm blockchain scalability limitations

• Building blocks: Telestax Restcomm,

Speech Recognition AI,

µRaiden

Blockchain DemoIdea

• An open source payment channel framework for fast & free off-chain ERC20 token

transfers between two parties

• Complementary to the Ethereum blockchain

• Business models involving frequent payments between the client

and the service provider are not efficiently possible on current

blockchains due to slow confirmation times and high transaction fees.

• Using µRaiden, service providers can comfortably cover Pay-per-Use

scenarios (APIs, digital content and utilities) via micropayments in

Ethereum based tokens

µRaidenread: Micro Raiden

•Demo

• Restcomm App requests for speech

recognition services

• Restcomm Media Server pays tokens for

each word recognized by external

Speech Recognition Service

• µRaiden implements the ERC20-based

authentication and micropayments

• Everything works in the Kovan or

Ropsten Revival testnets

Blockchain DemoArchitecture

SIP

MGCP

RTP/UDP

Speech API

(wrapper)

Restcomm

RCML

Media Server

Ethereum Blockchain

• Part of the network of unidirectional payment channels

• Managed by dedicated smart contract that works as an escrow*

• No need to transact every micro-payment on the blockchain, so do not cost any gas

• Transfers are secured and trustless, backed by an on-chain deposits

• Few parameters: GAS Price, Channel Lifetime in Blocks, Deposit in Tokens

• Can be closed by sender and receiver at any point in time

*third party that holds and regulates payment required for two parties involved in a given transaction

Blockchain DemoµRaiden Micropayment Channel

1. Client ("sender") opens a micropayment Channel with the provider ("receiver") using Ethereum Wallets

2. Sender funds the channel and creates Deposit with a certain number of Tokens

3. Consuming the service, Sender sends signed Cheque (balance proof) to Receiver

4. Receiver verifies signature on the Cheque and

decides on the further provisioning of service

(Steps 3 and 4 can be repeated)

5. Receiver may decide to claim the collected Tokens

from the channel and cashes the Cheque

6. Receiver closes the Channel

Blockchain DemoProcess

BlockchainSender Receiver

Channel

Deposit Cheque

53

42

1

Three main parts: Driver, Billing Service, VR Service.

• Driver – VR Service: binary format for communication through Java NIO

Netty server

• Driver – Billing Service: REST

Spring Boot with embedded Tomcat

• Billing Service – VR Service: REST, JSON format

Spring Boot with embedded Tomcat

• WebSocket is used for push notifications from Backend to UI in Billing Service (when

a new Cheque generated) and in VR Service (when the new Cheque received)

• UI for both applications implemented on Angular 2

Blockchain DemoImplementation

1. Started with 1810,

2. Opened Channe#1 and deposit 50

balance is 1760

3. Spent 2 and 4 (one and two words

are recognized)

4. Opened Channel#2 and deposit 50

balance is 1710

5. Creating new channel

Sender informs Receiver that he may cashe the cheque

6. Closed the Channel#1, signed cheque and got back deposit minus 6, balance is 1754

Blockchain DemoRecording…

1. Started with 1810,

2. Opened Channe#1 and put 50 as deposit,

balance is 1760

3. Spent 2 and 4 from Channel#1 deposit,

4. Opened Channel#2 and put 50 as deposit,

balance is 1710

5. Creating new channel Sender informs Receiver that he may cashe the cheque

6. Closed the Channel#1, signed cheque and got back deposit minus 6, balance is 1754

Blockchain DemoAn Explanation…

Channel 150 TKN, -2 TKN, -4 TKN

Channel 250 TKN

1810 171050 2 4 50 441760 1754

•Thank You!

• https://raiden.network/micro.html

• https://hackernoon.com/%C2%B5raiden-micropayments-for-ethereum-

f0756cd400b3

• https://raiden.network/101.html

• https://medium.com/databrokerdao/enabling-micro-transactions-in-

the-ethereum-erc20-based-databrokerdao-iot-marketplace-with-the-

3020d729b10e

Blockchain DemoUseful links