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The Fourth Industrial Revolution

and
Internet of Value

Prof. Dr. Xiaodong LEE

Center for Internet Governance, Tsinghua University


Institute of Computing Technology, Chinese Academy of Sciences

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Industrial Internet
=
The Fourth Industrial Revolution
+
Internet of Value

--Prof. Xiaodong LEE

All Intellectual Properties are reserved by Dr. Xiaodong Lee


The Fourth Industrial Revolution

  The first industrial revolution


u  1760 to 1840, ushered in mechanical production
u  Triggered by the railroad construction and the steam engine invention
u  Logistics network

  The second industrial revolution


u  Late 19th century to early 20th century, make mass production possible
u  Fostered by the advent of electricity and the assembly line
u  Energy network

  The third industrial revolution


u  1960s to early 21st century, computer and digital revolution
u  mainframe computing(1960s), personal computing(1970s and 1980s), and Internet(1970s, and 1990s around the
world)
u  Information network

  The fourth industrial revolution


u  Now to future, artificial intelligence with ubiquitous Internet connection
u  Internet of Things, 3D printing/AR/VR, Cloud Computing, Big Data, Blockchain, and etc.
u  DE: Industry 4.0 vs. US: Industrial Internet of Things vs. CN: Industrial Internet/Internet plus advanced
manufacturing industry

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The Fourth Industrial Revolution

  The first industrial revolution


u  Logistics network, for materials transportation and exchange
u  Highway, railroad, and air or aero transport

  The second industrial revolution


Exchange u  Energy network, for energy transportation and exchange
produces u  Hydropower, thermal power, wind power and solar energy
value!
Network   The third industrial revolution
u  Information network, for data/information transportation and exchange
magnifies u  2G/2.5G, 3G, 4G, 5G, and xG? 802.11a/b/g/i/n/k, Wi-Fi vs. Li-Fi
value!
Integration   The fourth industrial revolution
increase u  What kind of network? And to exchange what?
u  Can we imagine what happened and unify and face the challenges?
value! u  What are the key technologies and standards?
u  How to define and build the system and infrastructure?
--Prof. X. LEE u  What kind of role for governors to play and which governance model to be used?

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The Era of Internet of Value
Internet of Data/Packet Internet of Information Internet of Value
•  From 1974 to 1994. •  From 1994 to 2014. •  From 2014 to present.

•  TCP/IP is the key standard, which is •  HTML is the key technology, which is •  Blockchain is the key protocol, which is
invented by Dr. Vinton G. Cerf and Dr. invented by Tim Berners Lee, who setup based on distributed computing,
Robert E. Kahn in 1974/1976 the first web server in late 1980s encryption and smart contract
•  To transfer a data packet reliably from •  To describe the data structurally to technologies
one machine to another in unreliable construct information in unstructured •  To achieve trustworthy transactions in
network. network. untrustworthy network.

•  ICCB(1978), IAB(1984), IANA(1988), •  W3C(1994), Yahoo(1994), Amazon(1995), •  Ethereum(2014), DONA(2014), ICANN-


IETF(1985), ISOC(1992), ISC(1994), Google(1998), ICANN(1998) PTI(2016)

•  Digitalization is the premise of Internet of •  Networking is the premise of Internet of •  Trustworthiness is the premise of Internet
Data. Information. of Value.
•  Licenses for Internet connection is the •  Traffic with business model is the ticket •  Producible Technology is the core
king for market competition. for high market value. competitiveness.

•  The critical infrastructures is physical •  The critical infrastructure includes logical •  The critical infrastructure will cover the
facilities. systems, such as DNS. P2P computing platform.

•  The governance focus is IP address. •  The governance focus is Domain Name. •  The governance focus is Token.

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The Era of Internet of Value

Information

Network
•  Information Exchange


Internet of Value
•  Value Exchange

Logistics Network Energy Network
• 
Goods Exchange
•  Energy Exchange

  Internet of Value in the Fourth Industrial Revolution


u  Deep Integration of Logistics Network, Energy Network and Information Network, which take three key things in the world(material,
energy and information).
u  Based on the rapid iterative development of various information technologies, such as Internet of Things/Sensors(input), 3D Printing/
AR/VR(output), Cloud/Quantum Computing (CPU), Big Data(storage), Blockchain with Smart Contract(control), Artificial
Intelligence(application), and so on.
u  It has become the core force of the fourth industrial revolution to promote social transformation, and promote digital economy from
digitalization, networking to value orientation, and will bring us into Knowledge Economy, which is after Agricultural Economy and
Industrial Economy in human history.
u  Trustworthy Data is the basis of Internet of Value, because of Data à Information à Knowledge à Intelligence, only trustworthy data
can be used to form useful information and then valuable knowledge, which could be learned by machine to build the secure, stable,
resilient and AI-driven world.

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E-mail Xiaodong.Lee@me.com to join the Internet Value Initiatives(IVI).

All Intellectual Properties are reserved by Dr. Xiaodong Lee

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