What is blockchain? Why does everyone seem so interested in it? and what is relationship between Blockchain technology and the Internet of Things (IoT)?
What is Blockchain?
A peer to peer (P2P) distributed ledger, Blockchain is changing how the world performs financial transactions and interacts within the digital realm. A technology that is aiding the fight against cyber-threats faced by smart IoT based concepts such as smart cars, smart homes etc., blockchain is helping to significantly lower the cost and complexity of doing business.
Blockchain maintains a list of a data records that are cryptographically secured, continue to grow, and are made resistant to revision and tampering. Not only does this technology streamline business processes, it also helps establish transparency, accountability and trust. A technology currently employed to secure cryptocurrency transactions occurring over the internet between users, blockchain makes it easy for individuals and businesses to track and trade anything of value without involving a central authority or mediator.
Blockchain is a technology that shows great promise and one that presents individuals and businesses with exciting opportunities for the future. In recent years, there has a been a lot of interest and frenzy around blockchain. Let’s explore the reasons for it.
Why the Interest in Blockchain?
Unlike banks, blockchain puts the control of transactions in the hands of the public or the people performing them and this is perhaps the greatest lure of the technology. While it isn’t the be-all-and-end-all solution for the challenges facing the digital economy, blockchain is certainly playing a major role in securing and advancing the Internet of Things (IoT).
Mentioned by nearly all research companies as a rapidly evolving technology, blockchain is not limited in scope as most people wrongly believe. Instead, its scope goes far beyond cryptocurrencies or even financial services. A topic on the agenda for many companies, the use of blockchain for devices and systems enabled by the Internet of Things (IoT) is increasingly being considered for initiatives, solutions and implementations outside of financial services and cryptocurrency.
Understanding the Relationship Between Blockchain Technology and The Internet of Things (IoT)
Blockchain enables Internet of Things devices to be part of transactions. Today, it is possible for to use information from IoT devices with a blockchain platform.
In the future, these devices will be able to verify or update smart contracts by communicating this to blockchain-based ledgers. This means that it would be possible to update the temperature and location information of an IoT connected item that moves along several distribution points on a blockchain in the future. This will make the sharing the status and information on items moving along the supply chain easier, which can only be a good thing for businesses.
By using IoT in conjunction with the blockchain technology, businesses can gain access to enormous amounts of valuable data that can benefit the bottom line. To get more information on this, get in touch with IoTSense today!
