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OPTIMIZING PACKET TRANSMISSION FOR LEDGER-BASED POINTS TRANSFER
                   SYSTEM IN LPWAN: SOLUTIONS, EVALUATION AND STANDARDIZATION


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               Xin Qi ; Keping Yu ; Toshio Sato ; Kouichi Shibata ; Eric Brigham ; Takanori Tokutake ; Rikiya Eguchi ; Yusuke
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                      Maruyama ; Zheng Wen ; Kazuhiko Tamesue ; Yutaka Katsuyama ; Kazue Sako ; Takuro Sato 4
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                          Global Information and Telecommunication Institute, Waseda University, Tokyo, Japan
                                                2
                                                 Skeed Co., Ltd., Tokyo, Japan
                           3 School of Fundamental Science and Engineering, Waseda University, Tokyo, Japan
                            4 Research Institute for Science and Engineering, Waseda University, Tokyo, Japan
                              ABSTRACT                        distance coverage with very low power consumption while
                                                              sacrificing only a small amount of data rate. LPWAN is
           Low Power Wide Area Network (LPWAN) is a long-range  not a new technology, and the prototype of low-power WAN
           low-power wireless communication network. Its features,  has already appeared as early as the late 1980s. In the 21st
           such as wide network coverage and low power consumption  century, with the market demand and industry participants
           of terminals, make it suitable for large-scale deployment of  driving this, so far, more than a dozen technologies have
           IoT applications. The points transfer system, especially points  been formed globally to compete, and can be divided into
           transfer system in LPWAN, as a typical third-party payment  two types of technologies based on unlicensed spectrum and
           application, is being closely attended by both industry and  licensed spectrum, the former including LoRa technology,
           academia.  Recent studies have shown that distributed  Sigfox technology, Ingenu’s RPMA technology, etc.; the
           ledger technology, because of its characteristics such as high  latter includes NB- IoT, eMTC, EC-GSM technology, etc.
           confidentiality, non-tampering, and decentralization, is a  Meanwhile, with the rapid development of information
           good solution to problems such as low-security performance  technology and the rise of the Internet, the development
           due to centralized storage for a points transfer system.  of third-party payment platforms in the context of Internet
           However, the distributed ledger will generate a large amount  finance has penetrated deeply into many industries. Recently,
           of data traffic in recording the transactions of network  the points transfer system based on LPWAN has gradually
           participants, which is a challenge for resource-constrained  attracted the attention of academia and industry [3].
           IoT devices. To address these issues, we propose an optimized
                                                              The traditional points transfer system is based on a centralized
           packet transmission mechanism for a ledger-based points
                                                              architecture, and there are many problems in the application
           transfer system in LPWAN. Simulation results show that our
                                                              [4]. (1) The traditional models are all centralized business
           proposed mechanism can well reduce the packet transmission
                                                              models, which naturally lack credibility and lead to a very
           of the whole system and meet the requirements of LPWAN.
                                                              slow construction of the points ecosystem. (2) Under the
           Moreover, we update the reader with information about
                                                              traditional centralized technology architecture, the operation
           distributed ledger and standardization-related activities in
                                                              platform is extremely complicated. It is very difficult to
           this paper.
                                                              realize a "real-time transaction of points" between a large
                                                              number of merchants.  (3) In the traditional centralized
             Keywords - Distributed ledger, LPWAN, points transfer
                                                              trading model, points are mainly circulated between users
                          system, standardization
                                                              and merchants, and merchants and the platform.  It is
                                                              difficult to realize points trading and transferring between
                         1.  INTRODUCTION
                                                              users, which leads to the efficiency of points circulation
                                                              being greatly limited.  To solve these problems, a
           According to data given by GSMA, the number of global
                                                              distributed ledger can be applied to the points transfer system
           IoT connections reached 7.5 billion by the end of 2017,
                                                              based on decentralization, traceability and tamper-evident
           and this number is expected to reach 25.1 billion in 2025
                                                              characteristics. As a "decentralized" system, the distributed
           [1]. Tens of billions of IoT devices cannot be connected
                                                              ledger accesses the unified points and forms a database
           by short-range communication and cellular networks alone,
                                                              without intermediaries, where each node is a consumer and a
           and a large number of demands cannot be met by existing
                                                              merchant, and everyone knows each other and supervises each
           technologies, such as monitoring and management of meters,
                                                              other. This ensures that both sides of the points transaction
           streetlights, manhole covers, garbage sites, etc. These require
                                                              can trust each other [5].
           new network connection technologies, and Low-Power Wide
           Area Networks (LPWANs) are born [2].  LPWAN is a   A distributed ledger-based points transfer system has many
           technology that can meet the requirements of coverage and  potential advantages over traditional centralized systems.
           battery life at the same time. It can provide the longest  However, the existing distributed ledger technology is heavily
           978-92-61-33881-7/CFP2168P @ ITU 2021           – 31 –                                   Kaleidoscope
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