Unless you live in a cave, by now, everyone knows what Blockchain is and how it works.
The past few years has seen the emergence of Blockchain and their popularity increase in the modern day age courtesy of their security, transparency and instantaneous transactions. Blockchain as a technology itself separated from bitcoin, the entity. Now businesses are seeing benefits of applying the technology in daily usage.
Types Of Blockchain
There are three types of Blockchain, which we will briefly look into before we explore possibilities from the merge between Blockchain and Internet of Things.
Public Blockchain is the first type and bitcoin is the star example. It’s made for people and by the people. It functions as open ledgers for everyone to participate. The public Blockchain is also known as public distributed ledger and is decentralized, transparent and P2P. The ledger is open at any given time for anyone to check transactions, audit and mine.
Private Blockchain is the exact opposite. It belongs to the entity that holds the absolute control. The authority in charge decides who can make transactions and who can mine. They also regulate information within the Blockchain. Private Blockchain is, in essence, centralized and only a few individuals have permission to control it.
Consortium and Federated Blockchain are peculiar types of Blockchain. Their control characteristic makes them a bit similar to private Blockchain. In the consortium Blockchain, a group comes together to control the Blockchain. The group doesn’t give authority to one person like the federated Blockchain. Only members can transact and mine, nobody else.
The Internet Of Things
The internet of things (IoT), is rather something physical that has unique identifiers which relate to the internet. The distinctive characteristic about IoT is that it operates free of human to human interaction for transfer of collected and shared data over the network.
A good example of devices on IoT is the smart refrigerator which stores your groceries and food items once you get home from shopping. When you put everything in the fridge, it scans the expiry dates of the packaged products and lets you know when they are close to expiry. This saves you money in the long run.
Blockchain And IoT Are The Perfect Match
Researchers claim that 12 billion devices have internet capabilities in the world today. The same researchers estimate that 20 billion devices will be available by 2020.
With the numbers of people with devices growing daily, anything with an internet connection is being advanced and added to IoT. And that’s where Blockchain comes in.
Blockchain technology will be there to ensure security from cyber attacks. Of course the merge is not limited to this function alone, however, it creates endless possibilities. It’s safe to say that the technology signifies the beginning of something great.
In a few years, smart cities with IoT connections will be popping up everywhere. The same cities will have the ability to track everything in real time from smart cars to smart houses and water system. The changes IoT and Blockchain are bringing will be revolutionary and the rest of the world will have to adapt to the fourth wave of industrial revolution.