I am a theoretical physicist, that's my background

but I'm working with the C++ Team for Ethereum,

and working on the tests for all the clients.

that's what I did last year.

But now I want to tell you a little more about Slock.it.

What is the problem we are trying to solve?

Most of you have a lot of property.

Think about your house, your car, your washing

machine, your lawn mower, your bike, and more

But you use them only about 5% of the time.

Most of the time they just sit around and don't do anything.

so now the problem is: How could you rent, sell or share them easily?

And that's the problem, we are trying to solve.

When you try to rent these, there are many problems that come up.

such as: receiving the payment;

the coordination. You actually have to meet someone and speak to someone.

I am a German and we do not like to do this.

We want it completely automated.

We have to match the users some how

and worry about all the security, and all this.

So it's a real problem to rent out small things,

that only cost $1 to use: a bike for 20 minutes, or the washing machine.

These are the problems that you have and the reason why you don't do it.

But maybe you do it for the big things and use a platform for it.

But we want to show a solution.

This is basically a lock which can be opened directly by paying IT.

I mean paying the lock!

We are not talking about paying someone else!

How does this work?

The basic process is quite simple.

The owner of a "Slock" can set 2 numbers:

the deposit and the price

And then they are done

They do not have to do anything else. Just lock their property with the Slock.

Now when the user comes along, he just needs to pay the deposit.

After he has done this,

he has access to open and close or switch it on and off as often as he wants.

He is the current user.

and he can also set other sub-users, such as

family or friends because he has paid for it.

So you have a user management system included.

And let's say he used it for a couple of days, and then returns it.

When he returns it, he gets back his deposit minus the cost.

The payment for the cost goes directly to the owner.

And this happens automatically on the Blockchain without anyone interfering.

This is an illustration of the "Smart Contract" behind the Slock.

So, how does this work under the hood?

Of course, there is a Smart Lock connected to the Ethereum Blockchain.

That's why I'm talking here.

What do we have? What belongs to a Slock?

First, there's the Smart Contract, which I just explained.

Which is running on the Ethereum Blockchain.

Everyone can read it. The code is open source.

It's actually so easy to understand both developers and non-developers can read it.

This is just a part of it.

This is a part of the closing function, but I need

to make it nicer after the latest Solidity updates.

Here you can see: The user gets the deposit back minus the costs.

and the owner gets sent the costs.

And then other edge cases are handled here.

It's really simple to read.

How is the user interacting with the Smart Contract?

All he can do is pay the deposit, open, reopen, close, that's all the actions he does.

On the other side, the owner, what he can do, through the Smart Contract,

is set the deposit, a price.

He can also open / close on a restricted basis.

If it's rented out he of course can not open/close it.

But if the user has used up his deposit, then he can kick him out.

All those rules are implemented in the Smart Contract.

But how do we now get the connection between the Smart Contract and the device?

So we have those little tiny imbedded devices and you see more and more coming.

Like the Raspberry Pi. Many have played with it, but even better ones.

You see there a little Intel Edision. Really really tiny!

And we have a full client running on it.

When I say a full client, I mean a "Pruned

client" so it doesn't need that much storage.

the C++ Client of course ;-)

And also in a couple of months there will be Samsung's "ARTIK" coming out.

Even tinier, and the spec is actually good enough that we can run a client on it.

And those devices now can talk to existing "Smart Devices".

We can use Bluetooth, Z-Wave, ZigBee, and for those who do not know, Z-Wave or ZigBee

it's just used in smart homes so it's just smart

home tech connecting all the devices in your home.

There are thousands of different Z-Wave or ZigBee

products out there, with which we can connect to.

I would not call us directly a hardware manufacturer, we are

just connecting to all of those existing devices out there

and just enable them to be controlled by the Blockchain, rather than just by an app.

Because in the IoT you have all these wonderful devices,

but all you can do is control them with an app.

It's nice, but controlling them by the Blockchain, this

gives you completely different scenarios and use cases.

Let us turn to our other products. What have we built so far?

The first thing we will come out with is the SHS (Ethereum Computer)

And now I will try a real life demo on the real live net.

I really hope that it works. So turn off all your Wifi's.

This is what our app looks like, it runs on Android and iOS.

So what is the user doing?

If he knows the name of the Slocks that the Slock owner registered on the blockchain,

then he gets the public key from there.

Otherwise, he can type in the address or scan the QR code,

to get the address and the public key of the Smart Contract.

For now let's use the last used Slocks.

For example, a power switch

The owner has set a deposit of 10 wie, a subunit of ether. Really low!

And a price in Wei per minute.

What I will do now is rent it.

And this is now sending a transaction on the Ethereum

Blockchain and now we wait for one block, to confirm it.

But you can do this a couple of days before. You

don't need to do it when you are in front of it.

So, we need one block to get this transaction confirmed that's

actually happening on the live Ethereum network right now.

After this transaction goes through, I am the current user of this Smart Contract,

and then I have access to open and close it

That's done ! Thank you miners!

Now, for example if I push this "Open" button...

... this power switch there goes on.

Here it's just a kettle, but you can think about a washing machine or a dryer,

that you rent out in your shared apartment for example.

Let's just say in a shared apartment with 5 people one bought a washing machine,

so if other people want to use it, they just pay an ether ($1).

But you don't have to handle these things. Payments are automated.

The device is connected to the blockchain.

You can have a lot of things behind the power outlet. Just get your imagination going!

Industrial processes like paying money to use a big machine behind a power outlet.

A lot of different use cases

I can show you something else too for example a door lock

If we just use a Smart Door Lock, I can do the same thing

I see the deposit is now 100 ether and the price per day is 10 ether.

so I am now renting out this door lock.

I am just using my SHS (Ethereum Computer) to connect with all of these devices.

So people who already have a Smart Home can now control

all those devices with the SHS (Ethereum Computer).

Basically you have an Ethereum client running in your home.

There is this Start-Up, making the "Bitcoin Computer" ...

but here we have the Ethereum computer in your home, controlling all of your devices.

So, let's wait for the Miners ... So they are done now!

So here we have a closed door.

This is the smart door lock you can buy on Amazon today.

I can now say "Open".

And that will send a Whisper message (this is important) and confirm it.

I hope you can all see it! It made a "click"!

It's turning around for those in the front seats,

How does this work? For scalability, we do not want to send an ethereum transaction

every time you open or close something,

you only have an ethereum transaction for renting it and returning it.

But in between we use Whisper messages, where we can

see if they are signed by the right public key,

which I can find in the Blockchain, if so, I execute open or close.

Therefore it's much faster when you are in front of the

door it takes 1 or 2 seconds and it opens the door.

You don't need to wait one block to confirm this.

So when I'm done using it, I can return it and get back my deposit minus the cost.

and the owner gets the cost; it's as simple as that.

This is how the app works.

Ok, another feature which I like:

You can be in front of the device, but you don't need to be.

You may know that we have a bubble machine at our stand.

I already rented it.

And now I can open it and you can see the bubbles that come out.

You can imagine that I am standing at a door and I don't have money

I just call a friend, "Could you please open this door for me."

"Just send some ether to this account and then it's open."

Because the Blockchain is international.

So, we will close it, because sometimes people don't like to get so many bubbles.

That was our product.

What else do we have?

This supports Z-Wave, ZigBee and Bluetooth.

We made, I call it all in one box, the Slock Power Switch

We have the tiny Intel Edison connected to a relay to switch power on and off.

So you will not need the SHS (Ethereum Computer) for this.

The SHS (Ethereum Computer) is good if you want to

control many devices in your house, like the door lock,

but if you want a cheaper all in one box then there is the Slock Power Switch.

You can see the prototypes at our stand, if you want to try them out.

But that's really just the beginning.

And we are currently speaking to smart bike lock

manufacturers to rent out your bikes for example

Just Slock it with a Slock and then you can leave it for 3 or 4 months.

And people can just find it, unlock it, leave it

there, and with GPS you can say where they should leave it

So we are partnering up with a bike lock company.

There is also a company building smart padlocks.

So think about a locker with some stuff in there,

lock it, and people pay to open it, and get it.

I could imagine a store open 24/7 without any staff and

the things in there are simply locked with a Slock.

You can go there in the middle of the night because you really need this

smart phone and then you just unlock the lock, pay for it, grab it and go.

So you can automate a lot of things.

Everything you can lock, you can now rent, sell and share.

So it's a really powerful platform to be used.

Every time I talk about this with someone, they come up with different use cases

Like having a parking spot, renting out the parking

spot in front of your door, or other use cases.

Use your power outlet to charge cars.

so that the cars can park right outside your home and they pay you

for giving them energy from your house before they continue driving.

There's a lot of things you can do with this technology.

Our vision of course is far greater than just the "Sharing Economy".

That's where we want to start.

The "Internet of Things" is going to be a big thing.

I think the first thing when a developer sees this is: "Oh, scalability?"

"You can't do this on the Ethereum Blockchain?"

True, and not true!

The good thing is that's a problem for IBM and Samsung.

They can not put all of their devices on the Blockchain.

But actually we can,

because we don't have that many devices yet. So scalability

is not a problem for us in the next 2-3-4 years.