the fourth industrial revolution …...mark weiser the most profound technologies are those that...

FLAMMA SEMINAR

©PROF. DR. BEN VAN LIER CMC DIRECTOR STRATEGY & INNOVATION

April 27, 2018

Uden, 18 april 2018

THE FOURTH INDUSTRIAL REVOLUTION

QUESTIONS CONCERNING

TECHNOLOGY

April 27, 2018TITLE PRESENTATION

Sanderink Investments

Centric Holding

Centric

Netherlands

Centric

International

Oranjewoud N.V.

(95,56%)

(beursgenoteerd)

Antea Group

Strukton Group

April 27, 2018@COPYRIGHT PROF. DR. BEN VAN LIER

CMC

CENTRIC HOLDING

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Netherlands

Software Solutions

IT Outsourcing

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Staffing Services

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International

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Norway

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© 2012 Steinbeis | Technologie. Transfer. Anwendung. | www.stw.de

Technologie.Transfer.Anwendung.

© iSto

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Systems & Complexity TheoryInteroperability of Information Network Centric Operations

Ethics & Information

Prof. dr. Ben van Lier CMC


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REPRESENTATIONS


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22 – 24 June 2016 | RAI Amsterdam

Advisory Board

Forum Smart Industrydutchdigital delta

connect and create

http://www.smartindustry.nl/

http://www.smartindustry.nl/

ECOSYSTEMS

The whole is a synthesis or structure ofparts in which the synthesis becomes evercloser so as materially to affect thecharacter of the functions or activities whichbecomes correspondingly more unified orholistic Smuts 1926

But certainly the inorganic factor are alsoparts – there could be no system withoutthem, and there is constant interchange ofthe most various kinds within each system,not only between the organisms butbetween the organic and inorganic.

Tansley 1935

A sort of super organismic unity not alonebetween the plants and animals to formbiotic communities but also between biotaand the environment Lindeman 1942


HOMEOSTASIS Is the property of a system in which a

variable is actively regulated to remain very

nearly constant

By definition homeostasis is maintained by

compensatory mechanisms operating

within the system. Compensation is the

tendency of coexisting, competing species

to exhibit negative co-variances in

population dynamics.

Morgan, Ernest and Brown 2011

The stability of a system is a property of the

system as a whole is related to the fact that

the presence of stability always implies

some coordination of the actions between

the parts Ashby 1954


PHENOMENOLOGY II (MODERN ONTHOLOGY)

Martin Heidegger The question concerning technology (1954:24)

The essence of modern technology lies in Enframing;

Thus the question as to how we are to arrive at a relationship to the

essence of technology, asked in this way, always comes too, late.

But never too late comes the question as to whether we actually

experience ourselves as the ones whose activities everywhere, public and

private, are challenged forth by Enframing.

Above all, never too late comes the question as to whether and how we

actually admit ourselves into that wherein Enframing

itself comes to present.


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TECHNOLOGY


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INTERNET OF THINGS – HISTORY

Mark Weiser The most profound technologies are those that disappear. They weave themselves into the fabric of everyday life until they are indisguishablefrom it. (1991)

Kevin Ashton A system to describe where the Internet is connected to the physical world via ubiquitous sensors. (1999)

Sundmaeker c.s. In the context of Internet of Things a thing could be defined as a real/physical or digital/virtual entity that exists and move in space and time and is capable of being identified either by assigned identification numbers, names and/or location addresses (2010)


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CYBER PHYSICAL SYSTEMS

Cyber Physical Systems (CPS) are smart

systems that include engineered

interacting networks of physical and

computational elements. These highly

interconnected and integrated systems

provide new functionalities to improve

quality of life and enable technological

advances in critical areas such as

personalized healthcare, emergency

response, traffic flow management, smart

manufacturing, defense and homeland

security, and energy supply and use.

Framework for Cyber-Physical Sytems Release

1.0, May 2016, CPS Public Working Group, NIST


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“In general, the proliferation of CPS and the IoT will present new opportunities for adversaries to abuse their connectivity and cause disruption at scale for bigger payoff”

Report FirEeye 12/2016

CYBER PHYSICAL SYSTEMS OF SYSTEMS

The concept of Systems-of-Systems has been

developed to characterize large, distributed,

systems that consists of interacting and

networked, but partially autonomous,

elements and can show emergent behaviour.Trans-Atlantic Research and Education Agenda 2013


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Cyber Attack Ukrainian Power Grid 24-12-2015

AUTONOMY THE QUALITY OR STATE OF BEING SELF GOVERNING


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To be autonomic a computing system needs to know itself -and comprise components that also posses a systems identity. Horne (2001:20)

Self-Configuring adapting automatically and dynamically to environmental changes

Self-Healing diagnosing and reacting to disruptions

Self-Optimizing efficiently maximizing resources allocation and utilization for satisfying requirements of different users

Self-Protectingreliably establishing trust, and anticipating, detecting and recovering from the effects of attacks

Ganek and Gorbi (2003), Parashar and Hairi (2005), Salehie and Tahilvildari (2009)

USA - ADVANCED MANUFACTURING


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Depend on the use and coordination ofinformation, automation, software, sensing, andnetworking and/or make use of cutting edgematerials and emerging capabilities enabled bythe physical and biological sciences, for examplenanotechnology, chemistry, and biology.Executive office of the president, 2011

Responding to the economic effects of AI-driven automation will be a significant challenge for the next administration and its successors. AI has already begun to transform the American workplace, change the types of jobs available and reshape the skills that workers need to thrive. Artificial Intelligence, Automation, and the economy Executive office of the president, December 2016

CHINA - PRODUCING IN CHINA IN 2025

Accelerate the transformation and industrialization

of national defense and promote two-way transfer

between military and civilian technologies.

We will promote the full integration of next

generation IT and Industrialization and take

intelligent manufacturing as the main priority of

integration Made in China 2025, july 2015, State Council

At present, China’s situation in national security and

international competition is more complex, and

must, looking at the world, take the development of

AI to the strategic level with systemic layout, take

the initiative planning, firmly seize the strategic

initiative in the new stage of international

competition in AI development, to create new

competitive advantage opening up the development

of new space, and effectively protecting national

security. A next generation AI development plan, July 2017


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SMART INDUSTRY - FACTORIES NETHERLANDS - FLANDERS


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THE 4TH INDUSTRIAL REVOLUTION

“we do not yet know how the

transformations driven by this industrial

revolution will unfold, their complexity

and interconnectedness across sectors

imply that all stakeholders of global

society – governments, business,

academia, and civil society – have a

responsibility to work together to better

understand the emerging trends”.

Schwab K. 2016 WEF


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“Will also blur the distinction between war and peace, because any networks or connected devices, from military systems to civilian infrastructure can be hacked and attacked”

INTEROPERABILITY OF INFORMATION

SYSTEMS THEORY

Hybrid system Hybrid system

Interoperability of Information

“The realisation of mutual relations between two or more systems andentities in order to use these connections to exchange and shareinformation to further develop activities, functionality or production”.

Context

Semantics

Technology

Context

Semantics

Technology

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INTEROPERABILITY OF INFORMATION


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Enactment i.e. the act of assigning meaning

NETWORK-CENTRIC APPROACHThe difficulty will therefore no longer lie in understanding each

individual, autonomous, autopoeitic and referential system, but in the

existence and the nature of the relationship between these systems

van Lier & Hardjono, 2011

Fault TolerantConsensus

Distributed LedgersProtocol

NEW PARADIGMS

Edge computing is a new

paradigm in which substantial

computing and storage

resources are placed at the

Internet’s edge in close proximity

to mobile devices or sensors

(2017)

Fog computing is a horizontal,

physical or virtual resource

paradigm that resides between

smart end-devices and

traditional cloud or data centers.

NIST -2018


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BLOCKCHAINSatoshi Nakomoto (2008)

What is needed is an electronic payment system based oncryptographic proof instead of trust, allowing any two willingparties to transact directly with each other without the needfor a trusted third party

UK Government Office for Science (2015)

The key message is that, by fully understanding thetechnology, government and the private sector can choosethe design that best fits a particular purpose, balancingsecurity and central control with the convenience andopportunity of sharing data between institutions andindividuals

Federal reserve board (2016)

But there are also concerns about the costs and risks from theearly adoption of rapidly evolving and uncertain technologicalhurdles in integrating new technologies into legacy systemsand achieving interoperability across different ledgers andnetworks


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BLOCKCHAIN DEVELOPMENTS


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Ethereum was designedto be much more than apayment system

The financial technologystart-up is the owner ofXRP, the third mostvaluable cryptocurrencybehind rivals bitcoin andethereum,

We have the ambition to be a global company. So my vision is that we want to serve two bln people in the next 10 years by using technology, by working together with partners … to serve those underserved

It will soon be possible to rent a flat with a facial scan and pay automatically by locking the door when you leave, thanks to blockchain-enabled “smart contracts”, according to Ant Financial.

Framework of blockchain of things as decentralized

serviceplatform

BLOCKCHAIN TECHNOLOGY


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Fabric solves performance scalability and privacy issues bypermissioned mode of operation and specifically by usinga BFT algorithm and fine-grained access control.

The Coco Framework is an open-source system that enableshigh-scale, confidential blockchain networks that meet all keyenterprise requirements-providing a means to accelerateproduction enterprise adoption of blockchain technology

BLOCKCHAIN - DISTRIBUTED COMPUTING

LESLIE LAMPORT

As the name ‘Software Implemented fault tolerance’ implies, the central concept of SIFT is that Fault Tolerance is accomplished as much as possible by programs rather than hardware (1974)

A solution to the Byzantium Generals Problem consists of an algorithm by which the processes send messages to one another based upon the contents of messages already received (3m+1) + (6m+2) (1982)

Instead, each PAXON legislator maintained a ledger in which he recorded the numbered sequence of decrees that were passed

Ledgers were written with indelible ink, and their entries could not be changed

The first requirement of the parliamentary protocol was consistency of ledgers meaning that no two ledgers could contain contradictory information (1998)


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BLOCKCHAIN CHARATERISTICS

• Communication is efficiently handled between nodes

• There is no single point of failure

• Every node contains the encrypted shared ledger

• Blockchain technology is not the Bitcoin!

• Focused on a private blockchain

(BYZANTINE) FAULT TOLERANCE

Continue to perform tasks after the occurrence of faults

– State Machine Replication– Time stamps

Byzantine Fault Tolerance– Ability to deal with

malicious components that give conflicting information

– Signed messages

– Disadvantage• Number of messages

CONSENSUS ALGORITHM

• Contains a number of steps to reach

consensus about a proposed value– Paxos algorithm

– Based on voting principles

• After the consensus is reached about

a proposed value– The value is written in the shared

ledger

– This triggers an action in the distributed

system

THE MISSING LINK: OVERLAYING PROTOCOL

• Specifies the conditions under which the proposed values are

legit– Guarantees consistency and allows progress

– A context dependent element

SELF-ORGANIZATION


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This refers to the system that starts with its parts separate (so that the behavior of each is independent of the others state) and whose parts then act so that they change towards forming connections of some type

Ashby W.R. 1962 pp. 266

Self-organization may be defined as a spontaneous (i.e. not steered or directed by anexternal system) process of organization i.e of the development of an organized structure.

Heylighen F. 1989

We proposed that self-organizing systems, ratherthan a type of systems, are a perspective forstudying, understanding, designing, controlling and building systems.

Gershenson C. and Heylighen F. 2003

USE CASES

• Smart container (Logistics)

• Cure (Healthcare)

• Smart industry (Industrial)

• Care (Healthcare)

CENTRIC RESEARCH PROJECT

Research into mechanisms of

(private/permissioned)

distributed ledging and the use

of voting/consensus algorithms

for (information) transactions

Coco (Confidential Consortium)

Framework (Microsoft) in

Centric (private) cloud and

communication with distributed

ledgers / databases (Oracle)

Overlaying protocol from

Centric (private) cloud

27/04/2018

The Coco Framework is anopen-source system thatenables high-scale,confidential blockchainnetworks that meet all keyenterprise requirements-providing a means toaccelerate productionenterprise adoption ofblockchain technology

IN CLOSING


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The interconnection, intercommunication,

interaction and joint decision making by

autonomous systems makes the whole of a

blockchain into a complex entity. van Lier 2017

complexity results from the interaction between the

components of a system, complexity is manifested

at the level of the system itself. There is neither

something at al level below (co-source), not at a

level above (a meta description) capable of

capturing the essence of complexity. Cilliers, 1998

Increasing autonomy and independent decision

making by interconnected systems also raises

new questions about how to manage these new

wholes and what the complexity of the new

whole means for the extent to which we can trust

and form relationships with the new whole.

van Lier 2017

QUESTIONS?

April 27, 2018

@COPYRIGHT PROF. DR. BEN VAN LIER CMC

the fourth industrial revolution …...mark weiser the most profound technologies are those that...

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