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Social Coin: Blockchain-mediated
incentivization of citizens for sustainable
collaborative processes
(co-authored by Diego López-de-Ipiña, Jorge El Busto, Daniel Lauzurica and Diego Casado-Mansilla)
6th International Conference on Smart and Sustainable Technologies (Splitech 2021)
8 – 11 September 2021, Virtual 2021, http://2021.splitech.org/
Dr. Diego López-de-Ipiña González-de-Artaza
dipina@deusto.es
http://paginaspersonales.deusto.es/dipina
http://www.morelab.deusto.es
@dipina
2
Internet of People (IoP)
• A new Internet paradigm where humans & their personal devices are not seen
merely as end users of applications but become active elements of the Internet
– IoP promoting technologies seek more effective collaboration and behaviour change of
citizens and devices aiding processes where they intervene
– People’s personal devices and surrounding environmental objects easily become their
proxies in the cyber world, in addition to acting as a fundamental tool to sense and
change the physical world
• PROBLEM! To seek effective involvement and engagement of end users for process
improvement is not obvious and hard to achieve!
• Hypothesis: IoP & Blockchain can be used to promote sustainable incentivization
of community collaboration to pursue sustainable development goals
– Objective 1: Realize such a solution to illustrate how “Blockchain for good” can be used
– Objective 2: Assess the environmental impact and cost of deploying such a solution
3
Internet of People (IoP)
Hybrid
Intelligence
Human
Behaviour-
change
Citizen
Science
Human in the Loop &
Semantic Interoperability
Sentient
Things
Internet
of
People
Situated IoT & Engaging
Interaction
4
Motivation
• Research question: Can IoP paradigm through its enabling
technologies, e.g. Blockchain & Ubiquitous Web, enhance citizen
collaboration to meet social good goals?
• IoP entails mixing Human Collaboration + Emerging Technologies
– Continuous engagement of users in Smart Cities/Environments is hard to
achieve !!! Why?
• Self-motivation does not last for long
• Past techniques like gamification partly work
• Clear benefits have to be spotted by users to keep using those services
• Solution: Social Coin to audit and reward user collaboration!!!
5
Citizen Engagement Approaches
6
Engagement driven by Incentivization
• We want to improve citizen collaboration through
incentivisation (token economy) and recognition,
i.e., trustworthy recording of citizen collaborations
– Blockchain is used to deal with rewarding and recognition
aspects, i.e. active collaboration of citizens
7
Blockchain
8
Blockchain flavours
• Ethereum —an open source, public, blockchain-based distributed
computing platform and operating system featuring smart contract
(scripting) functionality
– Adoption of Ethereum has a cost, you need gas to record transactions
• costs related to the publication of goo deed transactions have to be considered
– Ethereum does not work in real-time:
• transaction duration on Ethereum depends on the gas price that the user pays when
performing a transaction
• Hyperledger Besu is an open-source Ethereum client that supports
operations across public Blockchains
– allows creation of permissioned Networks adopting distinct consensus
mechanisms
– operates according to the Enterprise Ethereum Alliance standard
9
Deusto Social Coin
• DSC aims to incentivize University of Deusto’s community to adopt more
sustainable living habits which contribute towards UN’s Sustainable
Development Goals (SDG)
• Deusto Social Coin – roles and features:
– Administrative organization (social coin minter) is concerned with social
reputation by promoting adoption of social good aims
– Campaign organizers launch campaigns promoting Sustainable Development
Goals according to an organization’s aims
– Campaign participants fulfil actions associated to campaigns which are traced
and rewarded
– Community members (participants) may use the gained credit to purchase
products within the university or transfer credit to other users.
• Exemplary good behaviour collaborative processes:
– enhancing recycling in the cafeteria
– enhancing active mobility among university’s community members
10
Deusto Social Coin
“social recognition and rewarding as an incentive to encourage active long
run community participation in achievement of common objectives”
• IoP enablers used: Blockchain & Ubiquitous Web
– Blockchain network used to register as immutable transactions
completion of good deeds and receive rewards as execution of
triggered smart contracts
• Auditability through images verifying good deed actions stored in a
decentralized manner in IPFS peer-to-peer network
• Transparency and accountability features of Blockchain ensure that
honesty is encouraged, since your actions are exposed to scrutiny of
all the network users
– Ubiquitous web (QR codes) are used to trigger actions with real
world
11
DSC Architecture
• Microservice based solution with hybrid client-server model and third
layer dedicated to external services used to offload operations either to
peer-to-peer networks (Ethereum and IPFS) or Cloud-based
microservices, e.g. Cryptocompare or Google Accounts
12
Deusto Social Coin: Front-end
• DSC leverages from QR codes to foster real world interaction
• DSC leverages from PWA to provide device agnostic web interfaces which
are rendered both in browsers and mobile phones.
– QRCode is a Python library that allows the generation of QR codes in real time.
13
Deusto Social Coin: Back-end
• Back-end logic is hosted in the cloud but uses decentralised networks for
file storage in the interplanetary file system (IPFS) and transactions
recording in Blockchain (Ethereum or BESU)
– RegisterAction.sol: records a good action by collecting the data: who
did it, what action, when, with what validation.
– GrantCredit.sol: contract that validates that a given promoter has
enough balance to pay for the good actions registered by a participant.
14
DSC is Blockchain network agnostic
• Ethereum was first chosen for several reasons: public
permissionless nature, flexibility, ample adoption, and
excellent documentation.
– BUT … its associated energy consumptions are very significant; it
requires 75 KWh per transaction
• DSC’s internal architecture gives rise to the possibility, of using
alternative DLT technologies to reduce these emissions
– Hyperledger BESU offers lower level of trust, but it is faster and much
more energy efficient
15
Deusto Social Coin: Evaluation
• Qualitative comparison:
– Ethereum uses Proof of Work (PoW) consensus algorithm where miners have
to solve a mathematical challenge to win the right to record a new transaction
and gain the associated credit.
• Energy consumption is very high since large number of CPUs/GPUs are constantly
consuming cycles
• The use of gas ("transaction fee") is necessary to carry out transactions
• Between 5 seconds and 5 minutes on average, depending on the gas used and
network traffic
– Hyperledger Besu behaves like an Ethereum client that allows the creation of
Proof of Authority (PoA) networks using Ethereum functionality, as well as
connecting to its MainNet
• Energy much lower since in PoA there is no "competition" to mine the block
• It is possible not to use gas
• It is possible to perform around 35 transactions per second
16
Deusto Social Coin: Evaluation
• Quantitative comparison: Cost comparison
Cost comparison Ethereum public network Besu private
free gas
network
Function/
deployment
Fast: 65 gwei Average: 58
gwei
Slow: 37 gwei
Deployment of Register
Action smart contract
21450000 gwei
45,3842 €
19140000 gwei
40,4967 €
12210000 gwei
25,8341 €
0€
Deployment of Grant Credit
smart contract
23400000 gwei
49,51 €
20880000 gwei
44,1782 €
13320000 gwei
28,1826 €
0€
registerAction 2028000 gwei
4,2909 €
1809600 gwei
3,8288 €
1154400 gwei
2,4425 €
0€
sendCoins 1560000 gwei
3,3007 €
1392000 gwei
2,9452 €
888000 gwei
1,8788 €
0€
17
Deusto Social Coin: Evaluation
• Quantitative comparison: Energy consumption comparison
System: AMD Ryzen
5 2600
(6 cores, 12 threads,
3.4GHz base speed),
16GB of RAM
%user %system %iowait %steal %idle
Proof of Work
(PoW) network
9.08% 0.37% 0.02% 0.00% 90.38%
Proof of Authority
(PoA) network
0.49% 0.25% 0.02% 0.00% 99.16%
Idle computer 0,32% 0.24% 0.03% 0.00% 99.41%
PoW consumes approximately 51.53 times what PoA consumes (in a
Besu, Ethereum-based network).
18
Conclusion
• Blockchain technology allows to create a tool to incentivize contributors
of social good actions in a trustable manner
– DSC solution allows deployment of social coins in organizations willing to
motivate their communities to collaborate and achieve their sustainable
development goals
• Deployment of DSC in two blockchain networks has been tested:
– Ethereum is a public permissionless blockchain network widely adopted but
requires high running costs and involves important energy consumption
– Besu is a blockchain network compatible with Ethereum which minimizes
energy consumptions, eliminates miner costs, but requires trust on the
organizations deploying the set of nodes that compose the network
• Future work will consider the deployment of the solution in the
University of Deusto during an academic year
19
Social Coin: Blockchain-mediated
incentivization of citizens for sustainable
collaborative processes
6th International Conference on Smart and Sustainable Technologies (Splitech 2021)
8 – 11 September 2021, Virtual 2021, http://2021.splitech.org/
Dr. Diego López-de-Ipiña González-de-Artaza
dipina@deusto.es
http://paginaspersonales.deusto.es/dipina
http://www.morelab.deusto.es
@dipina

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Social Coin: Blockchain-mediated incentivization of citizens for sustainable collaborative processes

  • 1. 1 Social Coin: Blockchain-mediated incentivization of citizens for sustainable collaborative processes (co-authored by Diego López-de-Ipiña, Jorge El Busto, Daniel Lauzurica and Diego Casado-Mansilla) 6th International Conference on Smart and Sustainable Technologies (Splitech 2021) 8 – 11 September 2021, Virtual 2021, http://2021.splitech.org/ Dr. Diego López-de-Ipiña González-de-Artaza dipina@deusto.es http://paginaspersonales.deusto.es/dipina http://www.morelab.deusto.es @dipina
  • 2. 2 Internet of People (IoP) • A new Internet paradigm where humans & their personal devices are not seen merely as end users of applications but become active elements of the Internet – IoP promoting technologies seek more effective collaboration and behaviour change of citizens and devices aiding processes where they intervene – People’s personal devices and surrounding environmental objects easily become their proxies in the cyber world, in addition to acting as a fundamental tool to sense and change the physical world • PROBLEM! To seek effective involvement and engagement of end users for process improvement is not obvious and hard to achieve! • Hypothesis: IoP & Blockchain can be used to promote sustainable incentivization of community collaboration to pursue sustainable development goals – Objective 1: Realize such a solution to illustrate how “Blockchain for good” can be used – Objective 2: Assess the environmental impact and cost of deploying such a solution
  • 3. 3 Internet of People (IoP) Hybrid Intelligence Human Behaviour- change Citizen Science Human in the Loop & Semantic Interoperability Sentient Things Internet of People Situated IoT & Engaging Interaction
  • 4. 4 Motivation • Research question: Can IoP paradigm through its enabling technologies, e.g. Blockchain & Ubiquitous Web, enhance citizen collaboration to meet social good goals? • IoP entails mixing Human Collaboration + Emerging Technologies – Continuous engagement of users in Smart Cities/Environments is hard to achieve !!! Why? • Self-motivation does not last for long • Past techniques like gamification partly work • Clear benefits have to be spotted by users to keep using those services • Solution: Social Coin to audit and reward user collaboration!!!
  • 6. 6 Engagement driven by Incentivization • We want to improve citizen collaboration through incentivisation (token economy) and recognition, i.e., trustworthy recording of citizen collaborations – Blockchain is used to deal with rewarding and recognition aspects, i.e. active collaboration of citizens
  • 8. 8 Blockchain flavours • Ethereum —an open source, public, blockchain-based distributed computing platform and operating system featuring smart contract (scripting) functionality – Adoption of Ethereum has a cost, you need gas to record transactions • costs related to the publication of goo deed transactions have to be considered – Ethereum does not work in real-time: • transaction duration on Ethereum depends on the gas price that the user pays when performing a transaction • Hyperledger Besu is an open-source Ethereum client that supports operations across public Blockchains – allows creation of permissioned Networks adopting distinct consensus mechanisms – operates according to the Enterprise Ethereum Alliance standard
  • 9. 9 Deusto Social Coin • DSC aims to incentivize University of Deusto’s community to adopt more sustainable living habits which contribute towards UN’s Sustainable Development Goals (SDG) • Deusto Social Coin – roles and features: – Administrative organization (social coin minter) is concerned with social reputation by promoting adoption of social good aims – Campaign organizers launch campaigns promoting Sustainable Development Goals according to an organization’s aims – Campaign participants fulfil actions associated to campaigns which are traced and rewarded – Community members (participants) may use the gained credit to purchase products within the university or transfer credit to other users. • Exemplary good behaviour collaborative processes: – enhancing recycling in the cafeteria – enhancing active mobility among university’s community members
  • 10. 10 Deusto Social Coin “social recognition and rewarding as an incentive to encourage active long run community participation in achievement of common objectives” • IoP enablers used: Blockchain & Ubiquitous Web – Blockchain network used to register as immutable transactions completion of good deeds and receive rewards as execution of triggered smart contracts • Auditability through images verifying good deed actions stored in a decentralized manner in IPFS peer-to-peer network • Transparency and accountability features of Blockchain ensure that honesty is encouraged, since your actions are exposed to scrutiny of all the network users – Ubiquitous web (QR codes) are used to trigger actions with real world
  • 11. 11 DSC Architecture • Microservice based solution with hybrid client-server model and third layer dedicated to external services used to offload operations either to peer-to-peer networks (Ethereum and IPFS) or Cloud-based microservices, e.g. Cryptocompare or Google Accounts
  • 12. 12 Deusto Social Coin: Front-end • DSC leverages from QR codes to foster real world interaction • DSC leverages from PWA to provide device agnostic web interfaces which are rendered both in browsers and mobile phones. – QRCode is a Python library that allows the generation of QR codes in real time.
  • 13. 13 Deusto Social Coin: Back-end • Back-end logic is hosted in the cloud but uses decentralised networks for file storage in the interplanetary file system (IPFS) and transactions recording in Blockchain (Ethereum or BESU) – RegisterAction.sol: records a good action by collecting the data: who did it, what action, when, with what validation. – GrantCredit.sol: contract that validates that a given promoter has enough balance to pay for the good actions registered by a participant.
  • 14. 14 DSC is Blockchain network agnostic • Ethereum was first chosen for several reasons: public permissionless nature, flexibility, ample adoption, and excellent documentation. – BUT … its associated energy consumptions are very significant; it requires 75 KWh per transaction • DSC’s internal architecture gives rise to the possibility, of using alternative DLT technologies to reduce these emissions – Hyperledger BESU offers lower level of trust, but it is faster and much more energy efficient
  • 15. 15 Deusto Social Coin: Evaluation • Qualitative comparison: – Ethereum uses Proof of Work (PoW) consensus algorithm where miners have to solve a mathematical challenge to win the right to record a new transaction and gain the associated credit. • Energy consumption is very high since large number of CPUs/GPUs are constantly consuming cycles • The use of gas ("transaction fee") is necessary to carry out transactions • Between 5 seconds and 5 minutes on average, depending on the gas used and network traffic – Hyperledger Besu behaves like an Ethereum client that allows the creation of Proof of Authority (PoA) networks using Ethereum functionality, as well as connecting to its MainNet • Energy much lower since in PoA there is no "competition" to mine the block • It is possible not to use gas • It is possible to perform around 35 transactions per second
  • 16. 16 Deusto Social Coin: Evaluation • Quantitative comparison: Cost comparison Cost comparison Ethereum public network Besu private free gas network Function/ deployment Fast: 65 gwei Average: 58 gwei Slow: 37 gwei Deployment of Register Action smart contract 21450000 gwei 45,3842 € 19140000 gwei 40,4967 € 12210000 gwei 25,8341 € 0€ Deployment of Grant Credit smart contract 23400000 gwei 49,51 € 20880000 gwei 44,1782 € 13320000 gwei 28,1826 € 0€ registerAction 2028000 gwei 4,2909 € 1809600 gwei 3,8288 € 1154400 gwei 2,4425 € 0€ sendCoins 1560000 gwei 3,3007 € 1392000 gwei 2,9452 € 888000 gwei 1,8788 € 0€
  • 17. 17 Deusto Social Coin: Evaluation • Quantitative comparison: Energy consumption comparison System: AMD Ryzen 5 2600 (6 cores, 12 threads, 3.4GHz base speed), 16GB of RAM %user %system %iowait %steal %idle Proof of Work (PoW) network 9.08% 0.37% 0.02% 0.00% 90.38% Proof of Authority (PoA) network 0.49% 0.25% 0.02% 0.00% 99.16% Idle computer 0,32% 0.24% 0.03% 0.00% 99.41% PoW consumes approximately 51.53 times what PoA consumes (in a Besu, Ethereum-based network).
  • 18. 18 Conclusion • Blockchain technology allows to create a tool to incentivize contributors of social good actions in a trustable manner – DSC solution allows deployment of social coins in organizations willing to motivate their communities to collaborate and achieve their sustainable development goals • Deployment of DSC in two blockchain networks has been tested: – Ethereum is a public permissionless blockchain network widely adopted but requires high running costs and involves important energy consumption – Besu is a blockchain network compatible with Ethereum which minimizes energy consumptions, eliminates miner costs, but requires trust on the organizations deploying the set of nodes that compose the network • Future work will consider the deployment of the solution in the University of Deusto during an academic year
  • 19. 19 Social Coin: Blockchain-mediated incentivization of citizens for sustainable collaborative processes 6th International Conference on Smart and Sustainable Technologies (Splitech 2021) 8 – 11 September 2021, Virtual 2021, http://2021.splitech.org/ Dr. Diego López-de-Ipiña González-de-Artaza dipina@deusto.es http://paginaspersonales.deusto.es/dipina http://www.morelab.deusto.es @dipina