IOT AND BLOCKCHAIN - AUTOMATION AND RELIABILITY(test1)

Today, most everyone knows what blockchain is and how it approximately works. The number of projects based on this prominent tech concept is growing exponentially (statistics indicate that in 2018, $1.5 billion was invested in blockchain-based solutions, and by 2022 this figure will increase to $11.7 billion).

And, despite a large number of scammers with their crowdfunding cons, it is quite difficult to overestimate the importance of blockchain in the global software development industry. In this article, we take a look at particular use cases and discuss the symbiosis of blockchain and IoT - two outstanding, hugely promising tech concepts to transform the world as we know it.

Investment Statistics
Investment Statistics

IOT AND BLOCKCHAIN — BRIEF DEFINITION OF TERMS

Before diving into real use cases of blockchain in IoT and vice versa, let's briefly outline the definitions of these two terms.

Thus, as comes from its name, a blockchain is a chain of blocks, each of which is marked by the time of its creation, by a link to the previous block, and is stored on a separate physical medium. This allows for implementing a serverless architecture. On top of that, the application of modern encryption algorithms allows you to protect individual records belonging to a specific person from copying/editing by other users of the centralized system.

A SYSTEM THAT HAS BLOCKCHAIN IN ITS CORE WORKS IN THE FOLLOWING MANNER:

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  • an initial block with no previous block records is created;
  • every subsequent block holds info about the previous block, about the type of data stored, and about the title for the generation of another block;
  • despite the fact that all system users can see a number of all existing blocks, they can only access blocks they created personally.

ALL IN ALL, A DEVELOPER OF A BLOCKCHAIN-BASED SYSTEM GETS FOUR SUPER USEFUL ELEMENTS:

  • consensus, which confirms the actions of users in the network (the most popular examples are Proof-of-Work or Proof-of-Stake);
  • ledger, which displays all the transactions taking place in the network;
  • encryption, which guarantees the security of transferred and stored data;
  • smart contracts, which are used for network participants’ authorization.

Despite the fact that many of us associate the blockchain with bitcoin (in fact, bitcoin became the first public implementation of the blockchain), this technology can be applied in a huge scope of directions, including the IoT niche.

As for the IoT or the Internet of Things, this term describes several concepts efficiently combined into one tech concept: a set of interconnected devices (things) governed by a centralized network, the Machine-to-Machine connection format implemented without human intervention, and the big data that these devices generate and process.

Together, blockchain and IoT are able to tailor reliable, safe, and user-friendly solutions for organizing and processing data coming from Internet-compatible devices. Let’s go into more detail.