Augmate connect white paper

WORKING DRAFT
Augmate Connect
Whitepaper / v2.0

Augmate Corporation | 335 Madison Ave, 16 Floor | New York, NY 10017 | augmate.io 1
Abstract
IoT device management using Distributed Ledger Technology.
Industry 4.0 will create the need for substantial workflow efficiencies for companies all over the world. At the center of
this highly connected world will be an intelligently connected Internet of Things (IoT). IoT devices will become the vehicle
that enables a level of interoperability between businesses and people that has not been possible in the past. This
advancement however, combined with today’s centralized database architecture in most businesses and the connected
world, will mean a significant increase in making personal and business data more vulnerable. What will further
exacerbate these vulnerabilities is the lack of a robust human-to-machine policy.
The Augmate Connect™
platform builds a new, distributed device management layer and policy engine, which is
integrated with appropriate blockchain or blockless IoT protocols. Augmate has a proven platform for enterprise device
management as the first wearable environment system with an array of security features; policy settings between
humans and devices; SaaS and on-premise options for portal management; over-the-air updates of applications
firmware; and much more. The Augmate software resides as a trusted component of the device’s operating system and
is signed by the keys of the device manufacturer so as to allow complete device management, creating an efficient and
secure environment for IT managers to control their fleets of devices.
In order to protect information and address growing threats through this meteoric growth period, the Augmate Connect
decentralized platform integrates with both permissioned and public permissionless blockchains to augment the
security of popular IoT protocols.
• Augmate has created a new token called the MATE™, actually a large number of ERC20-standard cryptographic
tokens that reside in distributed form on the Ethereum public blockchain, defined and controlled by smart
contracts also according to the ERC20 standard. These tokens stay on the Ethereum blockchain but are
addressed within the Augmate environment and participate transactionally in the functionality of our
management platform. This is described further in the MATE section below.
In addition, Augmate has developed an integration architecture with selected blockchains such as IOTA (a
permissionless blockchain), HyperLedger Fabric (a permissioned blockchain) and others for our Augmate Connect
platform. According to this architecture, IoT devices reside at blockchain nodes and, using the large-scale value-transfer
and messaging properties of the blockchain protocols, Augmate Connect becomes in effect a management and
deployment layer on top of the underlying blockchains themselves. MATE tokens then become part of the functionality
of the system. In order to qualify as a candidate for integration, a blockchain has to allow messaging at scale with
sufficient performance.
With the IoT market for enterprise and consumers in rapid expansion mode, there are numerous business
opportunities. Market research firms see a 30% gain achievable for industries that move to implement IoT. Augmate and
the Augmate Connect platform is positioned as a time-tested platform for the new age of distributed device
management. Augmate was first in the market for creating Wearable Environment Manager (WEM), and we are
extending the industry standard to all of IoT. Our strategy is to further solidify our enterprise position with an Industry
First focus followed by a consumer offering that helps aggregate all consumer devices into a single management
platform.
Progressive Investor Base
In addition to our token offering, we have also received strong strategic funding from well-established traditional
venture investors.

Contents
Introduction......................................................................................................................................................................................... 3
Market Opportunity............................................................................................................................................................................ 4
Augmate Connect Platform for IoT................................................................................................................................................... 8
Our MATE™ Token............................................................................................................................................................................ 14
Team................................................................................................................................................................................................... 18
Conclusion......................................................................................................................................................................................... 22
Appendix A: Augmate WEM............................................................................................................................................................. 23
Appendix B: Augmate & IOTA Relationship................................................................................................................................... 25
References......................................................................................................................................................................................... 29
Disclaimer
Legal Implications of MATE tokens are functional utility tokens within the Augmate Connect Platform. MATE tokens are
securities. MATE tokens are non-refundable. MATE tokens are for speculative investment. No promises of future performance or
value are or will be made with respect to AUGMATE, including no promise of inherent value, no promise of continuing
payments, and no guarantee that MATES will hold any particular value. MATE tokens are not participation in the Company and
MATE tokens hold no rights in said company.

Introduction
Vision
Real-time access and management of smart devices and their data without fear of compromise.
Mission
Our mission is to be the world’s premiere IoT solution provider for device and human-to-machine policy management,
including and integrating data exchange, usage, analysis, decision making, artificial intelligence, management, human
advancement and future uses. All while providing the ultimate in security and speed to accessibility.
Augmate History  
Augmate got its start back in 2014 as an augmented reality glasses device management platform. In fact, we were one of
the first companies to partner with Google Glass in the workforce. Other smart glass manufacturers quickly followed
after Google Glass. We discovered there was a need with these devices in the workplace and companies wanted to be
able to control how their employees used AR glasses. Like many digital devices, when purchasing them they are an open
slate, meaning you can upload any application, connect to any network, and there was no commonly shared way of
managing user access or sending software patches to the devices.
By 2015 completed and deployed our Wearable Environment Manager (WEM), enabling device management, user
management, security, policies, and over-the-air application deployments all from the Augmate (Appendix A). We closed
out 2015 with a number of successful pilots with corporate partners including Toyota and UPS and were awarded a US
Patent for our WEM platform.
2016 represented our first year of production installations of the Wearable Environment Manager portal. Having several
production implementations of the WEM in client locations, we started to build out our distributed ledger solution in
2017, by successfully completing a proof-of-concept implementation with our first third-party protocol IOTA. Today we
are currently integrating Hyperledger Fabric and extending our IOTA Tangle integration. However, since our mission is to
remain protocol agnostic we are also in the research phase with RChain, Hashgraph, and EOS.
In an effort to be deeply imbedded in the global IoT space, in early 2018 we setup a Blockchain Center of Excellence in
Monterrey Mexico and a Medical Device Lab in Middletown, New York.
2017 Gartner Cool Vendor in Enterprise Wearable
and Immersive Technologies

Market Opportunity
Forecast for IoT Devices
Gartner says “11.2 billion connected ‘things’ will be in use in 2018, up 34 percent from 2017.”
Gartner continues to say that endpoint spending will reach close to $3 trillion U.S. dollars by 2020.4
Masayoshi Son, CEO of Softbank recently stated that “in the next 20 years, we will see 1 trillion Internet of Things devices”.5
Table 1: IoT Units Installed Base by Category (Millions of Units)4
Category 2016 2017 2018 2020
Consumer 3,963 5,244 7,036 12,863
Business: Cross-Industry 1,102 1,501 2,132 4,381
Business: Vertical-Specific 1,316 1,635 2,027 3,171
Grand Total 6,381 8,380 11,196 20,415.4
Gartner Market Research on IoT
• Companies expect Industry 4.0 to increase revenues by 23 percent and companies expect Industry4.0 to
increase productivity by 26 percent.
• Typically, predictive maintenance decreases the total machine downtime by 30 to 50 percent and increases
machine life by 20 to 40 percent.
• 80 percent of companies expect Industry 4.0 to impact their business model. 
• 92 percent of Industry 4.0 suppliers expect Industry 4.0 to have an impact on their business model.
• 74 percent of manufacturers expect Industry 4.0 to have an impact on their business model.
Enterprise & Consumer Examples
Enterprise customers are Augmate’s primary customer base today, but consumers and smart homes will also be
utilizing Augmate Connect in the near future. The following section will illustrate how both enterprise and the smart
home users may use Augmate Connect.
Field Service Technician
Challenge
Field technicians have always used a multitude of devices to aid them while they are servicing equipment in the field.
However, as we enter Industry 4.0 many of these devices will become connected, which will extend their efficacy and
provide an added layer of security, but an added layer of usage constraints may be required.
Scenario
John has recently graduated from his trade school and has been certified to work on conveyer belt systems at
distribution centers in his community. The Company that just hired him recently lost a couple of their field technicians,
so they are anxious to get John out to work on open jobs. The problem is, since John is new and lacks real world field
experience, the Company is concerned that he may make expensive mistakes and may be unproductive due to steep
learning curve because of the numerous models of conveyor belt systems.
In addition to all of the traditional non-connected tools in his toolbox, the Company equips John with a Vuzix M300
Smart Glasses and provisions it in Augmate Connect. The Company accesses the Augmate Connect portal to provision
and to set a usage policy for the glasses to be used by John. Since John will be visiting multiple distribution centers, he’ll

need to have access to their WiFi. The Company can include and set the credentials as policy settings in Augmate
Connect. This will save John quite a bit of time because he won’t have to hassle with finding out how to connect to the
networks and the management of the distribution centers will be assured that his glasses will not connect to any one of
their many other networks.
John will need his smart glasses for only two purposes; to interact with experienced technical dispatchers back at the
Company (for the dispatchers to walk him through what he is looking at) and to view mechanical schematics. Like most
connected devices, when you purchase it, it is an open slate meaning that you can download any application on to it and
you can open a browser and visit any site. Therefore, the Company deploys only one application to the glasses and
includes a setting in the policy, which locks down the ability to download any other. Furthermore, they include another
setting in the device’s policy that limits the browser to only the Company’s online technical library of schematics.
Benefits
• Reduced learning curve
• Centralized device provisioning
• User and device policy settings
• Hands-free access to databases or libraries
• Real-time video with 2-way messaging
Medical Device Failure
Challenge
With the rapid advancement in medical technology, medical professionals are faced with a steep learning curve well
outside of their traditional medicalpurview. This change will both help and potentially hinder the overall health of the
patient. Much like IoT Edge devices in an industry setting (i.e. environment sensors), the medical field will begin to see a
rise in connected devices used on or implanted in their patients. Similar to the growth of of disparate devices in the
home and business, these devices will frequently need to communicate with one
another and require human-to-machine policy controls.The inappropriate or lack of
access to these human connected interfaced devices could lead to injuries or
fatalities. Furthermore, it is unrealistic for medical professionals to hot swap
between a myriad of management tools for monitoring device health and pushing
software patches.
Scenario
In the fall of 2017 the FDA and Homeland Security confirmed that St. Jude Medical’s
implantable cardiac devices could be compromised by hackers. It was found that
once hackers gained access to the device, they could deplete the battery or
manipulate transmission, which could deliver painful shocks or incorrect pacing that
could kill the patient.
Consider the scenario of a patient’s cardiac device under attack and the likely
response from medical professionals without the proper tools to quickly address it.
Jim is a 62-year-oldmale who had a connected pacemaker implanted 9 months ago and has just been rushed into urgent
care because of excruciating pain and convulsions every 10 seconds. The emergency room doctors run tests and are
perplexed why this could be happening. Their immediate diagnosis is that the pacemaker has malfunctioned, but there
had not been any warning signs that the device was failing from recent checkups, nor had they ever heard of a device
behaving this way.
Jim is quickly moved to the cardiac unit for further tests. The doctors fear that time is limited because nothing they do
show signs of stabilizing his condition and they fear that if something isn’t done soon it may result in complete heart
failure. After a few minutes in the cardiac unit, specialists are able to wirelessly access the pacemaker, but unfortunately
the device manufacturer’s application does not provide any information or controls to remedy the issue. The decision is
made that the only choice is to surgically remove the device, so Jim is moved into an emergency surgery, requiring the
expensive re-implanting of a new pacemaker and weeks of recovery.

This scenario may have played out quite differently if the pacemaker was provisioned in Augmate Connect. Since
Augmate Connect is part of a private blockchain consortium of local hospitals, Jim’s pacemaker would have been easily
visible to the emergency room staff and doctors through the Augmate Connect Portal. During Jim’s ambulance
transport, a dispatcher would have had immediate visibility to the health of his pacemaker – the medical professionals
would have this immediate visibility because they are frequently accessing the Augmate Connect Portal to check up or
provisioning other connected devices on or implanted in their patients.
After a brief review of Jim’s pacemaker in Augmate Connect Portal they learned the exact time in which the device failed
and that there was a recent vulnerability to hackers discovered, therefore there was a software patch update available.
The dispatcher at the urgent care unit, who was in contact with the paramedics in the ambulance, had visibility but did
not have the policy rights to push the software patch update, so they messaged one of the cardiac doctors who did have
the policy rights. Once the ambulance arrived, Jim was moved into a room and the cardiac doctor deployed the software
patch to his pacemaker and within seconds Jim was back to his normal self. The doctors held him for another hour for
observation and then released him.
Benefits
• Reduced learning curve
• Immediate deployment of software patch updates
• Visibility to disparate connected devices on or implanted in patients
Limiting the Use of Household Electronic Devices
Challenge
A parent’s biggest fear is the safety of his or her child. Taking precautions such as installing outlet and cabinet guards may
not be enough when there are potentially dangerous appliances around the house such as in a kitchen or in the garage.
Scenario
Consider an example of a kitchen filled with smart kitchen appliances, which will allow users to control the Who, What,
and Why of any connected device.
Mark and Jennifer have two children, Mike 11 and Ashley 14. They want to limit and monitor the use of certain kitchen
appliances. They also have other dangerous connected devices around the house and garage that they want to
provision and set policies in Augmate Connect.
Refrigerator: Since it is a smart refrigerator it has an interactive screen, which allows users to browse the Internet or
confirm the repurchase of expired/consumed food. Mark and Jennifer set the policy setting allowing only Ashley to
repurchase items. For both of the children, they limit the Internet access to only food related sites.
• Range pilot burners: Jennifer sets the policy for the burners to allow only Ashley to use them, but she connects
the camera in the kitchen to the policy. The policy on the camera sends her a message on her phone if Ashley
walks away from the kitchen with any of the burners on for more than 5 minutes. If Jennifer does not confirm
the alert, the burners will automatically shut off.
• Mark sets a policy that permits only Jennifer and him to turn on the connected electric bush trimmer in the
garage.
Benefits
• Peace of mind that the use of dangerous devices can be controlled

Mitigating Potential Plumbing Disasters in the Home
Challenge
For most homeowners, one of the nightmares is plumbing problems, especially when away from the home for an
extended period of time. Most homes today are not equipped with smart sensors that can identify issues and ones that
do are not interconnected to proactively take action to remedy potential disasters.
Scenario
Consider an example of a “smart” water meter, “smart” water shutoff valves and other interconnected devices. “Jane”
has a smart home and connected devices. She has devices such as:
• Smart thermostat  
• Smart water meter  
• Smart water shut-off valves  
• Smart water heater  
• Smart door locks  
• Smart refrigerator, etc.  
Jane leaves for a vacation and while she is away, her water heater springs a leak and water starts to drain onto the floor
of her basement. If only the water heater were a smart connected device, Jane would be able to get alerted and have a
repairman sent over to fix it. But by the time the repairman could arrive, Jane may have a flooded home with lots of
damage to the home and contents. An interconnected ecosystem and device policies through Augmate Connect with
device-to-device interaction capability, an emergency “plan” could go into effect immediately with a scenario such as:  
• Water heater fails and sends message to Jane while sending an interaction to the smart water meter that is
connected to a direct electric shut-off valve or a selective valve located closer to the water heater.  
• Concurrently, Jane’s predetermined plan ensures that her plumber gets an immediate notification and activates
a temporary electronic house key code for access.  
• In-house camera system is activated at point of issue and allows Jane to review issue and determine if she
needs to send in a cleaning crew as well.
By connecting Jane’s scenario through an enterprise ecosystem, the enterprise learns about timing from deployment to
failure of their water heaters and has the opportunity to anticipate potential failure signals and potentially prevent the
failure from happening in the first place.  
Now consider the aspect of privacy and data security as well as interoperability. Currently the disparate environment of
device manufacturing, micro operating systems and management make it a complex and overwhelming process for the
homeowner to implement and use. And they have no confidence that their data is private. Using distributed ledger
technology and an aggregated management platform with Augmate, the homeowner can be assured that their
information is held as a faceless, nameless component on the ecosystem that cannot be used for nefarious purposes.
The manufacturer just knows that at a node, there is a pending or immediate issue and the steps are taken to mitigate
the problem as well as add the anonymous data to the database for future analysis. A hacker can’t tap into a
vulnerability on Jane’s thermostat and then open her front door because the distributed ledger technologies create an
impossible numberof variables that could not be aligned for a hack to work. For consumers, connecting to the
Enterprise ecosystem creates a stronger security layer due to the millions of devices that act to provide additional
distributed ledgers than just those associated directly with that consumer.  
Benefits
• Peace of mind that potential disasters can be dealt with quickly
• Data security and privacy

Augmate Connect Platform for IoT
Understanding How to Best Manage IoT Devices
When evaluating how to best manage IoT devices, we first looked at how standard IoT architecture has traditionally
worked. In most IoT environments there is a centralized architecture where a company will manage devices from
centralized database and communicate out to all devices through gateways. With a small and controlled group of
devices, a centralized architecture may appear to work best, but as you scale and diversify the types of interconnected
devices, the hardware and compute power become fiscally unrealistic. Furthermore, many of the edge devices are
resource-constrained, meaning that they may not even have the resource to properly connect to the gateway, leaving
them completely open and vulnerable to attacks.
A significant problem with a centralized architecture is that it exposes single points of access to all devices, or as it is
known among technology professionals a “single-point-of-failure” (see Figure 1). We all unfortunately know the painful
truth about breaches occurring with centralized databases, such as the 70 million credit card holders in the 2013 Target
breach or the 145.5 million exposed personal credit records of the 2017 Equifax breach. The unfortunate reality of these
single points of failure is that they are most often the result of inadvertent human exposure. According to a 2017 Risk
Based Security Report 68.1% of all breached records was the result of inadvertent exposure, while only 30.8% was from
intentional hacks.
Figure 1: Centralized IoT architecture with two common single points of failure.
The IoT industry is discovering that a better and more secure approach to managing IoT devices is to decentralize them
on a distributed ledger, which is commonly done on blockchains. Utilizing today’s many IoT blockchain protocols,
devices communicate peer-to-peer with strong identity-proofing provided by Public Key Infrastructure (PKI) certificates,
which are bound to the devices. To further secure these devices, most blockchain protocols use consensus mechanisms.
Combined with PKI certificates, it is virtually impossible for bad actors to inject malware into large numbers of IoT
devices or perform common attacks such as DDoS (see Figure 1).

Figure 2: Decentralized IoT architecture with no single point of failure
Another advantage of using decentralized architecture and an appropriate blockchain protocol is that devices can
communicate with one another peer-to-peer and take advantage of small instructive programs called smart contracts.
These smart contracts trigger based on certain conditions being met along any given IoT workflow. However even within
a decentralized workflow, vulnerabilities can still occur because many of these devices still require human interaction.
The data posted in a decentralized workflow is as good as what is posted in it. Therefore, there is a need to have human-
to-machine policies to govern/regulate the interaction. For example, a requirement for a device’s behavioral interaction
with its human counterpart, providing assurance that who is supposed to be using the device is using it and is using it
the way it supposed to be used.
The Augmate Connect™
Solution
Figure 3: Augmate solution diagram

After identifying what works best for managing IoT devices, Augmate designs an optimal solution, which would take
advantage of a decentralized architecture and provide strong protection to prevent inadvertent error or malicious
human interaction with IoT devices.
At its core the Augmate platform (operational with existing clients for several years) is first and foremost a device
management platform that provides users with a way to provision devices and handle fleet management. Augmate
Connect is comprised of three key components (See Figure 3);
• Augmate Portal: Setting user policy, deploying trusted applications to devices, keeping up with software patch
updates, and monitoring device health.
• Augmate Marketplace: Finding and deploying trusted applications vetted by both the device manufacturer
and Augmate. The platform’s token, the MATE, will provide users with both access and device deployment rights
(See MATE token for more detail).
• Augmate Integration with Third-Party Protocols: Since Augmate Connect is protocol agnostic, we will
integrate with a growing list of appropriate blockchain protocols. In 2017 we successfully created a proof of
concept integration with IOTA.org (see Appendix B). We are also currently in the research phase with RChain,
Hashgraph, and EOS.
Augmate Connect Enterprise Workflow Scenario
Acme Corp has been using connected devices in their factories and offices for the last several years, but their CIO has
suggested that they begin to map out a new IT strategy that will take advantage of the massive efficiencies of Industry
4.0. For the most part, the executive committee is in support of the CIO’s plan, but the CEO is concerned about the
growing threat of liabilities that come with both machine-to-machine connectivity and the human-to-machine
interactions. He tells his team, “remember, the data from the devices and the handling of them are only as good as who
or what has control.”
In order to combat/protect the company from these liabilities there needs to be tools and new architecture in place to
govern and regulate the fleet of smart connected devices. So, the CIO builds a two-tiered approach to address these
concerns.
First, he makes the decision to migrate away from their traditional centralized architecture where fleets of devices are
managed in a centralized database and controlled through centralized gateways. The architecture he chooses is to
decentralize the devices by choosing a Distributed Ledger Technology (DLT) utilizing a permissionless IoT blockchain
protocol, where each device will have cryptographically signed certificates peer-to-peer with an easy audit trail of all
active devices. Since he will be using Augmate Connect’s device management platform he’ll also need a way to connect
and authenticate the third-party protocol’s native token into Augmate Connect’s permissioned ledger (see Figure 4). For
more detail on see section below, Platform Integration with Third-Party Protocols.

Figure 4: Device data/interactions posted peer-to-peer on a blockchain protocol.
Now that he has selected a vendor/DLT to handle the device-to-device connectivity he realizes that the protocol’s smart
contract capability will not accommodate the level of flexibility and granularity he needs to provision and manage the
devices from a human-to-machine perspective. He recognizes that he needs a strong policy engine and provisioning
mechanism for devices that will be in the hands of employees with different levels of experience and authority. So, he
selects the Augmate Connect Platform, using its Portal to build policies for connected devices.
The Augmate Portal provides him with a user experience to select devices, provision them, and create specific user
policies, which can be easily modified on-the-fly (see Figure 4). So as an example, the warehouse manager wants to
manage the five forklifts he has in his distribution center (DC). He has 15 employees who are licensed to drive the
forklifts, but each of the employees have very different levels of experience from ones with 20 plus years of driving, to a
couple who just got their license. For the experienced drivers he sets policies that allow full coverage of the entire DC
(the driver will need to pair his mobile device with the provisioned forklift to operate it). For the newly licensed drivers,
he sets a policy group that limits them to specific areas of the DC (geo-fencing) with lower valued inventory. Although, he
has one new driver that has been making frequent and costly mistakes, so he creates a policy that, in addition to the
coverage, limits the time he drives and sets a governance on speed. Furthermore, the manager connects and sets limits
on other devices to the policy (i.e. augmented reality glasses and handheld tablets).

Figure 5: Augmate Connect Portal
As part of the CIO’s process to execute the smart connected device ecosystem, he looks to Augmate Connect to help him
select the best applications to run on the devices (see Figure 5). Augmate Connect will have a Marketplace where the
device application developer community can place their vetted applications (vetted by both Augmate and the device
manufacturers). An Augmate Connect user will be able to use MATEs to access and select (for more detail on MATEs, see
Augmate Connect Token: The MATE). After selecting an application for a specific device, the user will be able to deploy
and set policy to a device through the Augmate Connect Portal.
Figure 6: Augmate Connect Marketplace

Augmate Connect Features
For Augmate to achieve its goals to build out Augmate Connect, our development team will enhance the existing
Augmate platform (WEM). The following are a few features that we’ll be including.
Permissioned Blockchain
For the handling of data in the Augmate Connect platform we have chosen to use a permissioned blockchain, or shared
ledger. Today’s non-blockchain distributed databases lack two important features. In a PwC interview with Gideon
Greenspan, CEO of Coin Sciences, discusses these two distinct differentiating features. First, today’s distributed
databases do not have transaction-level constraints, meaning each transaction is validated by looking at the transaction
as a whole. Permissions in distributed databases today allow administrators permission to modify tables, and allow
constraints on information that tables can contain, but they don’t have rules that dictate conditions. Blockchains do
have this rule-based capability, which is imperative if a database is being shared between non-trusted parties. So, for
example, Augmate Connect can assign policies such as a device’s area coverage, specific application access, and
triggered events.
The second feature is the strong identity capability provided by Public Key Infrastructure (PKI) certification bound to
devices. This capability is perhaps one of the most important differences between a blockchain and typical distributed
database because it eliminates the need for a central validator. Every transaction has its own proofing-identity and this
proof can be verified by every participant in the blockchain network.
These two features allow us to efficiently manage a shared ledger to keep track of devices and key management
components such as the associated policies, applications, and device health. Permissioned blockchains are also the
predominant choice of enterprises due to its control over who is allowed to participate in the network, execute the
consensus protocol, and maintain the shared ledger. This level of control is closer to traditional processes within a
company and communication with business partners. Walmart, for instance, has started working on a permissioned
Hyperledger Fabric blockchain consortium with 9 other food retailers to better manage food safety in China.
Perhaps one of the most important reasons why we chose to use a permissioned blockchain is that it permits orders of
magnitude greater scalability in transactional throughput compared to public blockchains (largely because of a public
blockchain’s need for high computational power to perform its consensus mechanism). Since many of the third-party
IoT protocols are using public blockchains, there is already a chance of increased latency, Augmate Connect’s intent is to
eliminate an additional bottleneck when connecting with one of the third-party IoT protocols.
Augmate Connect’s permissioned blockchain serves the following functions:
• Augmate Portal registry, for access and usage on Augmate Connect (in conjunction with our native token the
MATE).
• Access and participation in the process of validation and certification and use of partnering third-party
protocols (REST API)
• Blockchain data logging
In the following section the Augmate Connect solution’s technical architecture will be described in more detail.

Augmate Connect Technical Architecture
The main goal of our backend architecture is to optimize the way we handle and store data, and process transactions.
The success of our solution rests on its ability to efficiently gather and store data while being able to analyze it to answer
key organizational infrastructure questions. The solution we are implementing is primarily cloud-based and utilizes AWS
Aurora.
When deciding on a message-oriented framework, we had to ensure that it would be easily deployable, have an intuitive
API and require minimal management. For messaging, we are using RabbitMQ due to its maturity and scalability, and for
inbound data, we are using Kafka for its ability to handle large scale message processing. Kafka will interface with our
inbound data processor before the data continues on its path. The blockchain layer will integrate with the WebSockets
layer which is detailed later. We will be using Hyperledger Fabric as our primary blockchain transaction store.
Augmate’s platform is moving from an architecture where augmented reality wearables are supported over local area
via WiFi, to one where a variety of IoT devices are supported over an internet scale. In order to achieve this, we must
retool the way we handle our current system. Inbound data will be less consistently structured, because different
devices will provide different sensor data in terms of field layout. In addition, we will be gathering other types of data
than sensor data, for example, client-defined data types. As a result, it is more appropriate to store this in a NoSQL
database than in a relational database where the record layout is more fixed. We have chosen CouchBase as the NoSQL
persistence tool.
Once devices are provisioned and deployed, messaging between the Augmate Connect service and the remote devices
becomes critical. There are two considerations to be considered: messages can’t get lost even if not immediately
delivered, and at scale, the kind of polling Augmate does over a local area is no longer appropriate - push notifications
are a better approach. Therefore, two other changes will be put in place in our messaging infrastructure: a RabbitMQ
message queue to support reliable messaging, and a WebSockets layer to allow presence-based push notifications.
WebSockets will support both notifications to devices and visualization messages to our operational browser interface.
For our first third-party protocol integration with IOTA Tangle, we are building an adapter. As mentioned in the
Augmate Service Node: Device
Augmate
Manage
Augmate
Installer
Rabbit
MQ
Web
Sockets
Wearable
App
Services
WiFi
Admin
Launcher Updater
Shim
Priveleged
Operations
Android Platform
Inbound data
processor
Hyperledger
Fabric
Apache Kafka
USB Cable
WEM AWS S3
Storage
Files
Augmate Core
Web Socket
API
Web Server
AWS Aurora
CouchBase NoSQL
Sensor DB

introduction, our mission is to remain protocol agnostic therefore we are also in the research phase with RChain,
Hashgraph, and EOS.
Augmate Connect will still exist in a local, off-cloud scenario. For those kinds of deployment cases, a reduced or
modified infrastructure may be implemented.
Our MATE™ Token
Token Purpose and Characterization
Core to Augmate Connect’s use and access is the MATE™ token. The MATE is redeemable for Augmate Connect services,
software, partner applications and products. The MATE is classified as a security token though its initial function is more
utility focused since it is a fractional usage token for using Augmate Connect. However, given the nature of future
expanded usage and potential value for additional products and services, the securitization of the MATE is prudent for
the current nascent phase of regulatory guidance on tokens. Our responsibility is to ensure that our shareholders,
investors, company and employees are protected from risk while providing the best environment for growth.
As mentioned in the previous section, we have chosen to use a permissioned blockchain as the registry function to
Augmate Connect and to provide interoperability with other ecosystem partners, however in some implementations we
may use a microMATE™ as a more efficient bridging mechanism. The microMATE is a true utility token and will not be
tradeable. It will be generated when a customer subscribes to Augmate Connect based on their subscription type and it
will be used as needed to perform the functions as described here.
Augmate has been operating as Software as a Service (SaaS), meaning enterprise clients will negotiate different
subscription fee structures based on their enterprise size and level of platform usage. The levels of service will require
clients have a number of MATEs to use as access and for platform services. Therefore, MATEs can be either purchased
or earned.
Earning MATEs will happen through the Augmate Connect rewards engine, which will rationally reward them and
partners for contributions they make to the ecosystem.
Purchased MATEs
• Initial token launch 
• From Exchange 
• Direct customer purchase through the MATE Foundation to facilitate market acceptance (modulated to account
for market price)
Earned MATEs
• Rewards engine for customers and ecosystem partners 
• Auditing and distribution by the MATE Foundation to ensure independent oversight and best practices
As a core component of Augmate Connect, the MATE is designed to ensure flexibility and control over the future
evolution of the project. The utility of the MATE are as follows:
• Resource usage to cover any third-party protocol fuel cost or fees.
• Access and rights to applications/in-app services from the Augmate Marketplace
• Data acquisition or sharing
• Credits earned in Augmate Connect loyalty program
The Augmate Connect rewards engine will be developed to rationally reward users and partners for contributions they
make to the ecosystem. For example, MATEs may be earned by providing anonymized data access, maintaining the
distributed ledger, distributing data, running smart contracts or DApps, referring customers, and more. Earned MATEs
can only be used directly for up to 50% of the cost of an Augmate Connect license or subscription. Third party providers
will be able to offer solutions to Augmate customers.

The total MATE supply will be fixed at 50 billion and has been determined by the expected number of IoT devices in the
market by 2027 - a reasonable market share of these devices.
Token Creation and Distribution
In character, MATEs are a token with fixed supply. The 50 billion created MATEs will be distributed into three different
pools.
Pool A
Pool A of 30% of total MATEs created, in maximum 15 billion MATEs intended to be sold during an early Seed Round and
Public Round.
Pool B
Pool B of 50%, 25 billion MATEs, managed by the Augmate Foundation for:
• 35%: Rewards for users of the platform
• 15%: Marketing incentives to bring new users in and operating expenses of the Foundation
Pool C
Pool C of 20% of total MATEs created to early contributors and team members who have made early financial
contributions and/or worked to develop the ideas, implementations and supporting structures of the Augmate Connect
Project.
• Early Contributors will vest with the following schedule:
• 25% at SAFT conversion to tokens
• Remainder of 75% at even monthly increments over 3 years.
Augmate Connect Roadmap
2017
• Partnerships established with protocols and exchanges 
• Whitepaper draft developed and distributed to advisors 
• Communications channels opened up for supporting participants
• Full offering revealed on Augmate.io 
• Whitepaper completed 
• IOTA Proof of Concept’s begin
• Conference presentations 
• Marketing in full release
2018
• MVP platform rollout 
• Expansion platform for IoT development in testing
• Asia expansion planned and implemented 
• Alliance partners expanded 
• Pilots moving into beta environments
• Augmate IoT pilot-in-a-box first shipments to customers
• Augmate Connect Medical Device Lab, Middletown, NY
• Blockchain Center of Excellence, Monterrey, Mexico
• APIs for Augmate Connect
2019
• Enterprise strategy in full swing 
• Consumer strategy and roll out - 2nd 1⁄2

2020 and beyond
• Market integration with API strategy realized
• Consumer aggregation strategy in full mode
• Augmate protocol

Team
Management Team
The Augmate team is led by seasoned executives who have deep expertise in bringing new technologies to market. They
also have significant consulting and marketing backgrounds and base decisions on real business case opportunities.
Pete Wassell, CEO
Pete is the visionary behind Augmate, starting the company in 2012 and leading it to become the
first and premiere management platform for wearable devices. As a former IBM executive, Pete ran
multimillion dollar programs and startup projects and knows the importance of a scalable
environment. He is an active speaker and his recent AWE presentation on the Industry 4.0 and IoT
illustrates the interconnected necessity of humans and machines. He is an officer of the AREA
(Augmented Reality for Enterprise Alliance), runs the Augmented Reality New York Meetup (3,000 members), and the AR
Glasses Group on LinkedIn (7000+ members). https://www.linkedin.com/in/petewassell
Dana Farbo, COO
Dana Farbo has been innovating in digital for over 20 years and is constantly looking at how the
interoperability of things can lead to a better world. His early work in digital marketing led to
breakthroughs in dynamic messaging and advanced personalization. His firm was an early mover in
augmented reality and mobile location-based-services. As COO, Dana brings the knowledge of a
marketer and customer experience to the role of operations where he ensures that the human is still
an integral part of the system. He has built and sold companies, written a best-selling book on online marketing, is an
Adjunct Professor at Fashion Institute of Technology in New York City, co-leads the world’s largest augmented reality
meetup and has spoken at many technology events around the globe. https://www.linkedin.com/in/dfarbo
Bob Visnov, CTO
Bob is Augmate’s senior technology strategist and CTO. His proficiency in business planning and
technical and operational services for startups and larger organizations helps guide Augmate to
smart roadmaps and implementation plans. Bob has deep experience with virtual and cloud
infrastructures, mobile applications, social network interactivity, large data environments,
information security, and operational processes. He is the founder of Timegen Consulting which
designs, develops and builds scalable Internet businesses, big data analytics and forward-looking interactive solutions.
Bob has developed a blockchain-based mobile identity solution for organizations in the public sector.
https://www.linkedin.com/in/bobvisnov
Eddie Quiroz, CIO
Eddie Quiroz is an Internet serial entrepreneur and digital media evangelist with extensive
information technology experience. He has led multiple IT projects and is well-versed in web-based
systems architecture and database design. Eddie has worked with leading venture NYC funds and
promising start-ups from early stage conceptual ideas into early stage development strategies and
product marketing campaigns to deliver customer-centric solutions. He is active across the
investment community and is an adviser to both start-up and emerging companies. He is an active board member of
the MIT Enterprise Forum of NYC and holds a master’s degree from the Massachusetts Institute of Technology MIT.
https://www.linkedin.com/in/eaquiroz
Thomas Miller, CXO & CMO
Thomas is an entrepreneurial creative, user experience and marketing professional with award-
winning work on global brands and digital startup experience. He speaks the languages spoken by
developers, marketers, business strategists and creatives. Thomas builds teams that bridge business
needs and drive results-driven solutions. http://www.linkedin.com/in/thruform

Peter Orban, CCO
Peter is a strategic and digitally focused global marketing leader with agency, client and startup
experience. He is an entrepreneurial business leader with significant P&L experience in strategic
communications development across traditional, digital, direct and retail. With deep experience in
CPG, automotive, telecommunication and varying levels in nearly every other category, Peter brings
his innovative yet analytical thinking to all consulting challenges.
http://www.linkedin.com/in/peterorban
Brian Rogers, VP, Product
Brian is a serial entrepreneur having started several businesses in digital health, ecommerce,
machine learning, and recently blockchain. Brian is also the co-Founder and Chairman of the
Columbia Blockchain Alliance and Founder Machine Learning Society NY Chapter. Brian has managed
product development teams for Harry Winston, 1-800 Flowers, UnitedHealth Group and founding
Wilsons Leather’s ecommerce division. Brian has authored two patents. As an alumnus of Columbia
University, he has guest lectured at the Columbia Business School. http://www.linkedin.com/in/brogers
Steve Tollen, VP, Brand Strategy & Communications
Steven is a marketing and brand strategy executive who brings a wealth of experience to our
communications team. Prior to Augmate he was the Managing Director of the largest feature film
post-production facility in New York. Before that he was a brand strategist at New York advertising
agencies Creative Priority, Grey, Wells Rich Green, J. Walter Thompson and Chiat Day. He has been
responsible for strategic planning and creative development for Sprint Business, Hertz,
Proctor&Gamble, and Kraft Foods among others. http://www.linkedin.com/in/stevetollen
Gregory Rocco, Investor Strategy & Communications
Gregory Rocco is a cryptocurrency communications expert and blockchain application specialist. He is
the former editor in chief at investFeed – now active journalist in the space, and advises blockchain
startups on token economics, sale structures, and marketing strategy.
http://www.linkedin.com/in/gregoryvrocco
Harv Lotko, Solutions Architect
Software architect that specializes in controls and policy engines. Augmate board member and
advisor. Passionate about roadmap, process and systems building.
https://www.linkedin.com/in/harv-lotko-4010881
Board of Directors
The Augmate Board of Directors play an active role in advising and guiding the vision.
Pete Wassell (see above)
Eddie Quiroz (see above)
Harv Lotko (see above)

Stephen Pelletier
Steve is the Founder and a Director of VIAcode, a leading software development company and
provider of manageability solutions for web applications with offices in USA, Canada, Russia, and
Belarus with 100+ employees and growing. He is also a Member of ARC Angel Fund which invests in
seed and early-stage companies with high growth potential. We focus primarily on Software, IT,
Internet, Tech-Enabled Services, Business Services, Digital Media, Mobile, Healthcare IT, among
others. https://www.linkedin.com/in/steve-pelletier-027661
William Hickey
Bill is the former CEO and Chairman of Sealed Air and is an active investor in new technology. He
graduated with a Bachelor’s Degree in Mechanical Engineering from the United States Naval
Academy and got his M.B.A. from Harvard Business School in Finance and International Business.
https://www.linkedin.com/in/william-hickey-aa83a877
Consultants and Advisors
In addition to being investors, Augmate’s Consultants and Advisors are integral in advancing the vision, mission and
company objectives.
Clive Wang
Mr. Wang is the CEO of digitlens. He also serves as advisor for multiple startup companies. He is a
successful international entrepreneur in manufacturing, fashion industry, and supply chain. He
currently lives in Los Angeles but has conducted business globally. In the past five years, Mr. Wang
also focused on Silicon Valley’s venture capital investment. He has participated Hanson Robotics and
WiTricity’s early stage investment. Mr. Wang’s recent investment focus is in blockchain industry. He
has successfully invested in blockchain focused technology startups including Ven, Icon, EOS, Selfley, Gifto Props,
Eximchain, Fabcoin nkn, as well as Augmate. Mr. Wang’s successful investment experience, his international vision, and
his deep knowledge of the Chinese manufacturing industry, service industry, and financial industry as well as the
Chinese culture will help the company and investors on many different levels.
Ed Maguire
Ed Maguire is Insights Partner at Momenta Partners, a Connected Industry advisory, venture and
executive search firm. He has over 17 years of Wall Street experience in Investment Banking and
Equity Research with deep domain expertise in Enterprise Software. Prior to Momenta, Ed was Senior
Research Analyst and Managing Director at CLSA Americas, LLC covering the software industry,
technology and innovation, ranked #3 as top stock picker in Starmine in 2016. Prior finance roles
include Investment Banking Coverage Officer and Research Analyst at Merrill Lynch and CIBC World Markets. He has
appeared extensively in major media including CNBC, CNN, the Wall Street Journal, Bloomberg, BNN, NPR and other
outlets. Ed holds a BA in Music from Columbia University and received his MBA from Rutgers University in Finance and
Information Systems.
Kai Blache
Prior to becoming a seasoned NYC and LA based VC and FinTech specialist, Kai was an Investment
and Corporate Banker for 10+ years (from 2003 – 2012) at JPMorgan and BNP Paribas Bank in NYC.
Now, he takes an active role investing, raising capital, consulting and working internally alongside
several portfolio companies as President, CFO, Board Member and VP Finance and Investor Relations.
Some of his portfolio companies include, TicketSocket, TicketGuardian, Sports Safety International,
Augmate, One Paper Lane, Slyde, Digitzs, CrayPay, Shipsi and Crowdfund just to name a few.

Joseph Daniels
Partner, Co-Chair at Venture Capital and Emerging Companies Group at McCarter & English, LLP.
Regularly advise a broad range of startups, venture-backed companies and VC funds, and have led
hundreds of venture and strategic financing transactions. Handled over $5 billion of M&A and
transactions. https://www.linkedin.com/in/joe-daniels-4511a02/
Cristina Dolan
Founder and CEO, InsureX. Cristina is an MIT Media Lab alumna and Internet pioneer with over two
decades of experience building software, content, and Internet based businesses. She was a co-
founder of OneMain.com, which grew to be the 10th largest ISP after a successful IPO (Acquired by
Earthlink). She is a member of Forbes Technology Council and is Chair of the MIT Enterprise Forum
in New York. https://www.linkedin.com/in/cdolan/
Margaux Avedisian
Also known as the Queen of Bitcoin is a prominent Bitcoin entrepreneur, comedian, and public
relations practitioner. She is involved in several high-level bitcoin projects and has appeared in
documentaries and on numerous panels. Margaux has helped co-found three Bitcoin exchanges
(MonetaGo, Tradehill, Alphapoint), and has further advised over dozens of other leading Blockchain
platforms through her work as Vice President at Transform Group, a premiere Blockchain PR and
Advisory organization. https://www.linkedin.com/in/margauxwithanx/
Benjamin Kraus
Benjamin Kraus is the founder, CEO, and Chairman of the Board to Kraus Industries. In 2013, he
turned Kraus Industries into Asia’s first Bitcoin mining corporation. Kraus Industries became the
13th largest miner and creator of Bitcoins in the world surpassing all competitors in South East Asia.
He advises the United Nations on digital currencies and blockchain technology. In 2015, he was
invited to the United Nations Economic Business Advisory Council.
Bryan Feinberg
Bryan Feinberg is the CEO and Founder of Etheralabs, a NYC-based Blockchain Advisory. Bryan is a
Licensed Investment Banker holding Series 7, 63 & 79 Finra licenses and is passionate and active
across both the fintech and blockchain landscape.
Matt Garza
Matt is an organizational executions expert, and has been equity investing in blockchain projects
since 2014. He has advised on other projects including investFeed, where he specializes in building
partnerships and providing guidance to established companies pivoting into the blockchain space.
He understands the intricacies in performing Initial Coin Offerings/Token Generation Events to
support the successful longevity of projects and their native tokens.
Xu Yang
Xu is a crypto-enthusiast and activist, joining hands with multiple Chinese crypto communities to
publicize good projects.

Conclusion
Augmate is an established company with a proven track record and a Fortune 500 client base. We are the global leader
in wearable device management and with Augmate Connect, we are evolving our existing platform to all of IoT using
blockchain and distributed ledger technology. Our protocol agnostic solution provides the ultimate in privacy, security
and connectivity— empowering IT managers to safely deploy and manage smart devices for enterprise.

Appendix A: Augmate WEM
Augmate Thought Leadership
Augmate was named a Gartner Cool Vendor1
in 2017 for enterprise wearables and immersive technologies. This
designation is more than cool in that a study done by HfS Research2
found that “Growth and visibility in the market are
two areas that substantially benefit from analyst recognition in the form of Cool Vendor nominations”.
In addition, Augmate participates in many sponsored events to further the industry and advance customer and
ecosystem capabilities. Cisco sponsored Augmate at the massive Vivatech 20173
conference in Paris where companies
were asked to prototype future use cases of interconnectivity between Cisco systems and devices. In addition, Augmate
was invited to be showcased in the McKinsey & Company Digital Manufacturing Lab in Chicago, IL.
Our management leads the largest Augmented Reality meetup in the world and holds monthly meetups in New York
City where global AR and VR leaders share the latest in the visual world. This connection to the immersive visual layer of
IoT is critical for a “Human-Centered” ecosystem. Though the facilitation of machine-to-machine frictionless interaction
will drive tremendous value in industries and for consumers, the most significant contributions will happen by full
integration with humans doing visual monitoring and management.
The industries that are positively impacted with wearables are: aerospace, automotive, manufacturing, warehouse,
distribution, logistics, retail, medical, energy and utilities. There are clear examples and studies being published that
demonstrate significant accuracy and efficiency gains for this technology that will be used in the next industrial
revolution.
The best application use-cases are remote maintenance, instructional work- ow, checklists, inspection, and supply chain
management (quantity tracking and logistics). The main value proposition of wearable technology is centered on
efficiency and accuracy of operations. Digital information is not where it is needed nor expected, smart glasses solve
this issue. We have also found that smartphone mobile applications do not perform as well as wearable solutions since
workers generally need their hands (or wear gloves) to do their job and smart glasses keep workers in a state of flow /
on task.
Some platform highlights:
• Automate device policies that control application, connectivity, and security management remotely
• Remotely locking of devices 
• We prevent unintended usage of wearable by completely locking down device accessory usage

• Whitelist applications (pre-approve software by management & IT admin)
• Normalize and unify end user experience between different smart glass devices 
• Monitor device inventory, including battery status and end user login history 
• Configure multiple WiFi networks to allow devices to move without losing connectivity across various wi access
points.
• Organize and isolate data by region or use cases through a parent/child hierarchy 
• Create security perimeters to control application usage via beacons
The Augmate Platform consists of two components: the administrator portal, and the Augmate Wear device software.
Our administrator portal is the command and control center of a wearable environment, giving IT administrators
complete transparency and control over a global fleet of wearables. The administrator portal is securely hosted in the
cloud at AWS, and is available on-premise as well. Our Augmate WEM software can be pre-configured and shipped with
wearables devices, or provisioned onto a device using Augmate’s provisioning software. Our device software has
privileged, system level access to a wearable device, giving Augmate the ability to run devices in a completely enterprise,
locked down security mode.
Encryption
All API traffic between Augmate’s cloud services and wearable devices is transferred over TLS 1.2, using a minimum of
128-bit AES in AEAD cipher modes. WiFi credentials and other Augmate policy data are encrypted at rest on devices,
using symmetric encryption. On-device data is secured using 256-bit-AES, with keys generated on-device from a secure
random salt and device-specific secret using PBKDF2 with HMAC-SHA1 hashing (with 1024 hardening rounds). Augmate
policy data includes download URLs for customer APKs and auxiliary les, WiFi configuration information, and various
Augmate-specific internal configuration parameters.
Authentication, Authorization, and Access Control
User authentication on devices is handled by a four-digit PIN, with PIN reset available through email, either initiated by
an administrator on our web portal, or on the device. In addition, users are locked out and must reset their PIN if they
fail to enter the correct PIN three successive times.
Authentication is handled through LDAP providing Authentication and Authorization to enterprise clients. Access to
Augmate’s API is secured by an Augmate-provided provisioning token and LDAP provided tokens for user login.
Augmate user accounts are managed through the Augmate Management Portal.
SQL-level multi tenancy cleanly separates customer data on our backend database. Transferring ownership of a device
from one organization to another involves a re- provisioning process, which first uninstalls all Augmate applications,
customer applications, and clears their associated user and policy data.
Augmate IoT Starter Kit
We deploy gateways (wireless access points) powered by the Augmate Platform along with AR/VR Smart Glasses devices
and initial applications (all in a Pelican Case) for $20k. The devices can remotely update (software + content) via the WiFi
gateway. We include a year of support in the price of the kit.
This offering turns our cloud platform into an on-premise solution for companies who require this type of architecture
managing devices on the edge of IoT. Our gateway strategy provides the customer in-roads for extended IoT device
management.

Appendix B: Augmate & IOTA Relationship
Our first integration implementation is with IOTA and rests on the fact that we are both platforms that support an IoT
ecosystem without being IoT endpoint application software.
• Augmate is an infrastructure for provisioning, deploying and maintaining endpoint devices of any type that
implement the Augmate interface.  
• An IOTA Tangle is a distributed ledger in a high-throughput, zero-fee transactional environment. This
represents the lowest level infrastructure for IoT device  interactivity.
Working together, IOTA and Augmate are naturally complementary and mutually supportive infrastructure layers that
enable device implementation and support. This frees IoT device vendors from a lot of non-core platform development.
 
Use of MATE tokens; integration with a fat protocol 
Augmate’s service includes a variety of operational and maintenance transactions performed on IoT devices. These
transactions occur on the device itself, and may be initiated and logged locally, on an on-premise server, or centrally in
the cloud. Further, these operations range from the very simple (e.g. a message displayed; an enable/disable command;
etc.) to the complex (e.g. a software upgrade).  
Augmate’s challenge is to rationally tie together, facilitate machine-to-machine interactions and charge for a distributed
network of operational transactions of varying costs. This challenge will be addressed by a combination of Augmate’s
MATE tokens representing executable transaction permissions, and a technology such as IOTA, which provides
frictionless messaging and logging between locations, as well as value transfer between nodes.  
Smart contracts will be used to manage permissioning to execute transactions.  
Role of Fat Protocols and MATEs in the combined environment 
Augmate needs to have dynamic flexibility with regard to pricing its service for device vendors. Customers have different
pricing arrangements and these may change over time. Our new architecture, combining the global fee-less or micro-
transaction environments of fat protocols with local, variable-value MATE token stores and smart contracts, will allow
Augmate to move to usage-based pricing from its current less flexible pricing scheme.  
In a typical scenario, there are three types of nodes (please see the Diagram 1 on next page):  
• Devices themselves running Augmate software via an SDK  
• Controller nodes that issue commands or messages to devices and collect transaction data. These may be on-
premise at a customer site, or centrally-located in the cloud in Augmate’s multitenant environment.  
• Augmate’s central administrative environment.  
Devices and controller nodes hold a store of MATEs, tokens that represent permission to execute a usage function on
the platform, in some combination. In other words, Augmate will implement a point-based system similar to other point-
based pricing models such as credit card and restaurant loyalty programs, frequent-flyer miles, and the point-based
immigration systems used by Australia and the UK for entry.  
In our case, points are represented by distributed immutable cryptographic tokens called MATEs which are staged at the
locations where they need to be evaluated, i.e. at the controller and device nodes. There, smart contracts perform the
calculations by which a device is authorized to perform a platform function such as installations, upgrades and custom
messages to third party devices.  
It’s critical to note that while the MATEs may be cryptographically immutable, their contractual value may not be – as

with any point-based program, Augmate reserves the right to modify the meaning and value of MATE point
accumulations as conditions change with customers of the service. These variations over time are transmitted as a
business process from the Augmate administrative environment and executed via local parametrized smart contracts.  
Figure 4: Example using IOTA
This scheme gives Augmate and its IoT device partners maximum flexibility as far as permissioning and dynamic
business arrangements are concerned. However, there arises a practical complication in that the distributed nature of
this environment requires a very large number of lightweight messages and transfers of value to implement, and the
risk is that this messaging is intrinsically too costly and not scalable to handle the size of a global collection of IoT
devices. Success depends on a vast number of messages and value transfers happening in a scalable and cost- effective
way, just as it would with a micropayment service.
This problem can be solved using the IOTA Tangle and new technologies that prove out. By using their global lightweight
platforms for cost-free and reliable message passing and value transfer, Augmate can:
• Send messages representing platform function instructions  
• Instruct controllers and devices about changes to local MATE stores  
• Transfer value, represented by MATE pools, between nodes.  
• Inquire about inventory, device state, and local MATE accounting  
• Transfer transaction logs inward from device to controller to administrative environment

• Modify parametrized local smart contracts as business arrangements change  
• Etc. ... in a cost-effective and scalable way that enables the platform to succeed.  
We have implemented a POC (Proof of Concept) into our Management Portal to build the first steps of a full IoT solution.
Figure 5: This image shows an example of token exchange within an organization’s network.
©Augmate - 2018 Confidential

Specific implementation notes
• Augmate will enumerate device transactions such as installation, upgrade, maintenance, and operational
functions (whatever they may be), and create a rate sheet for these denominated in MATEs. A simple operation
such as a display message may cost a single MATE, while a heavier transaction like a full remote software
upgrade may cost multiple MATEs.  
• Vendors of IoT device software who incorporate the Augmate SDK will inherit this pricing and controlling logic
based on token availability in their software. At the time device vendors reach agreement with Augmate, a
specific rate sheet of cost per transaction type will be agreed, which may be a simple default set for common
operations. These rates may change over time.  
• At the cloud or remote on-premise controlling nodes, smart contracts will evaluate whether a device has a
balance of MATEs sufficient to perform an operation. Once the operation is performed, a smart contract will
debit the device’s available balance.  
• Logging of transactions takes place at all locations: device, on-premise node and cloud. For reporting and
management purposes there is a need to pass a large number of messages containing either commands or log
information from these locations to an aggregation point in the cloud. To handle the volume and make this
messaging frictionless, Augmate will initially implement IOTA’s environment, treating the underlying network of
device and management locations as an IOTA Tangle, and transporting messages via the IOTA mechanism.  
• Dynamically, the Augmate environment will need to transfer value, represented as a count of MATEs, between
nodes. As nodes reside on an IOTA Tangle, value transfer will take advantage of IOTA’s capabilities as a medium
of value transfer.
• In some scenarios in which Augmate is implemented, devices have differing levels of reliability or confidence
levels; an operational event should be preferentially performed on a reliable or trusted device rather than a less
trusted but otherwise similar device. IOTA includes a mechanism for nodes to vote on reliability, so this will be
used by Augmate when deciding where to execute a function.  
Aside from the above technical architecture there is the question of how MATEs are priced. Note: MATEs are not just a
token/currency separate from the functioning of the environment - they act as permission elements to perform
operations on an IoT device.

References
[1} Gartner Cool Vendor
https://www.gartner.com/doc/3741217/cool-vendors-enterprise-wearable-immersive
[2] HfS Research on Cool Vendors
https://www.linkedin.com/pulse/20141010063224-12289386-how-cool-is-it-to-be-a-gartner-cool-vendor
[3] Cisco Vivatech Challenge
https://gblogs.cisco.com/fr/zzfeatured/vivatech-2017-32-startups-4-challenges-1-theme-la-revolution-numerique-se-
cristallise/
[4] Gartner Press Release, Feb 2, 2017
http://www.gartner.com/newsroom/id/3598917
[5] Venture Beat article, Oct. 25, 2016
https://venturebeat.com/2016/10/25/softbank-ceo-masayoshi-son-sees-a-future-with-1-trillion-internet-of-things-
devices/
[6] Software De ned Networking (SDN)
https://en.wikipedia.org/wiki/Software-de ned_networking
[7] IOTA Whitepaper: The Tangle
https://iota.org/IOTA_Whitepaper.pdf
[8] The Forrester Wave™: IoT Software Platforms, Q4 2016
https://www.forrester.com/report/The+Forrester+Wave+IoT+Software+Platforms+Q4+2016/-/E-RES136087
[9] Bitcoin: A Peer-to-Peer Electronic Cash System, Oct 2008.
http://bitcoin.org/bitcoin.pdf
[10] A Next-Generation Smart Contract and Decentralized Application Platform
https://github.com/ethereum/wiki/wiki/White-Paper
[11] Regulation S
https://www.sec.gov/rules/nal/33-7505.htm
[12] The Argument for Private Blockchains – PwC, March 2016
http://usblogs.pwc.com/emerging-technology/the-argument-for-private-blockchains/
[13] The Difference Between Public and Private Blockchain, May 2017
https://www.ibm.com/blogs/blockchain/2017/05/the-difference-between-public-and-private-blockchain/
[14] FDA Issues Recall of 465,000 St. Jude Pacemakers To Patch Security Holes
https://www.zdnet.com/article/fda-forces-st-jude-pacemaker-recall-to-patch-security-vulnerabilities/
Additional Sources
“How to navigate digitization of the manufacturing sector” McKinsey & Company, 2015 “Challenges and solutions for
digital transformation and use of exponential technologies” Deloitte 2016 “Man and Machine in Industry” Boston
Consulting Group, Sep 2015.

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