IoT integration: Cisco files patent for blockchain

The technology conglomerate Cisco applies to patent for an invention that could enhance the efficiency of IoT networks
24 October 2017   1387

The technology conglomerate Cisco files US patent application for “Block Chain Based IoT Device Identity Verification and Anomaly Detection”.

Cisco patent application
Cisco patent application

The concept is enabling a blockchain-based system that could record changes to the conditions affecting and captured by sensors (i.e., smart objects) in a network and instrumentalize network relationships and the data that the network generates in order to exercise control over those nodes.

While working with Low-Power and Lossy Networks (LLNs), “routers and their interconnections are constrained” in terms of their “processing power, memory, and/or energy (battery), and their interconnections are characterized by, illustratively, high loss rates, low data rates, and/or instability.”

Additionally, “changing environmental conditions may also affect device communications.” As such, a system that enhances communications between these sensors and another device in the network could expand the number of practical LLN use cases.

In one embodiment, a device in a network receives a network registration request from a particular node. The device causes performance of a validation of the information about the particular node via comparison of the information about the particular node to a distributed block chain that includes information regarding the particular node and one or more other nodes.
 

About Cisco application

The application also lists “the smart grid, smart cities, and building and industrial automation” among the types of LLNs that might operate more efficiently with the integration of the invention.

The device causes an update to the block chain based on the information about the particular node and the validation of the information about the particular node. The device uses the updated block chain to control behavior of the particular node and the one or more other nodes.
 

About Cisco application

The smart objects/sensors that could, at least partially, comprise these networks include “lights, appliances, vehicles, HVAC (heating, ventilating, and air-conditioning), windows and window shades and blinds, doors, locks,” as well as actuators – automated devices that can, for instance, start an engine.

German Financial Regulator Clarifies Stance on ICOs

The Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) has clarified its position on ICOs
22 February 2018   36

German financial regulator admitted it was receiving many inquiries about the status of tokens and cryptocurrencies. According to an advisory letter, BaFin provides some basic definitions of ICOs and related terms. It is important because the results of a new survey showed that more than two-thirds of Germans know about bitcoin.

In this letter, BaFin educates the public and explains how tokens are typically generated, how blockchain works and that ICOs are used to raise funds for startup projects. The note states that for regulatory purposes, ICOs, tokens, coins, and cryptocurrencies are subject to the existing provisions in the field of securities supervision and other relevant national and EU laws.

The authority advises participants in ICOs to check and follow rules applicable to regulated financial instruments, such as securities. If businesses or individuals have any doubts about regulations, they should approach BaFin.

According to BaFin, companies should fulfill any obligations under the Banking Act and the Capital Investment Code, the Insurance Supervision Act and the Payment Services Supervision Act. The transactions may be prohibited if relevant regulatory requirements are not met.

The authority also states that legal classification of tokens requires precise examination. It will determine their status on a case-by-case basis after studying their features. The token should be transferable and tradable on cryptocurrency trading platforms in order to be classified as a security.