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Blockchain: Empowering the Industrial Internet of Things

While Bitcoin is the most popular application of Blockchain, the technology also has trustless, secured and decentralized capabilities that can redefine business solutions, including those that empower the Internet of Things.

What makes the Blockchain an essential element of industrial Internet of Things? The fact that the technology behind the Bitcoin is autonomous, trustless and decentralized makes it an ideal component of industrial IoT solutions. Thus, many enterprise IoT technologies have quickly become its early adopters.

In an IoT network, the Blockchain keeps an undisputable record of the history of smart devices. This enables the autonomous function of smart devices without the need for a centralized authority. This means that difficult or even impossible scenarios of the Internet of Things are now probable.

By leveraging the technology, industrial IoT solutions can enable secure communication between smart devices in a network. This means that the Blockchain will treat the exchange of data between devices like financial transactions in a Bitcoin network. To enable this trustless and secure data exchange, smart contracts are required between two parties.

The Blockchain also enables autonomous smart devices to exchange data without the need for centralized broker. It also maintains a suitably decentralized ledger, which allows regulatory and compliance requirements of industrial IoT to be applied without the need for a centralized model.

The promise of Blockchain in IoT solutions is more than just a theory. Many IoT solutions are already leveraging the technology, including IBM, Samsung, and Filament. IBM and Samsung collaborated to build decentralized IoT solutions. Filament develops wireless devices that accept Bitcoin payments.  While these solutions are still in the early stages, they have garnered remarkable results.

How does the Blockcahin empower IoT solutions? It enables secure communication, keeps undisputable record of history, and enables data exchange without a centralized authority. In a word, it redefines business solutions. Sign up for our weekly blog summary and newsletter!      

Explaining the Blockchain Technology to an Average Person

What do we call blockchain technology so the people will understand it better? The blockchain technology is not for average persons. It probably ranks on the 10,000th level of the nerd scale. This makes it difficult for a startup business to get people to comprehend it. They need to explain the technology behind Bitcoin in ways that laymen understand to help unpack some of its complexity.

In order to unpack the complexity of blockchain, some shiny marketing gloss should be placed on top. However, marketing to the masses will clearly take more than a 10-minute brainstorming session. It can be difficult to get mainstream consumers to trust their life savings to a decentralized bank or a blockchain-based insurance when they don’t understand the concept.

The blockchain is a massive decentralized trust machine and a distributed ledger technology. It is a programmable trust infrastructure that allows you to program your trust in the concept or the rules. This allows you to remove the systemic risk, which is one of the technology’s key benefits. Technically, it cryptographically validates secure web pages and pulls together data from them.

There is a broad range of things that you can do with the blockchain technology. Integrating it into the Internet of Things lets you keep track of rental or ownership of physical objects. It could also act as a real-time inference audit tool that promotes continuous blockchain traceability. This means that you do not have to do another audit on failed spot checks because, essentially, you would be auditing as you go along.

There are a bunch of upstart players across industries, and they can benefit from the blockchain technology if consumers understand the concept. The technology is a distributed ledger that records and verifies every transaction made worldwide. It is a decentralized trust machine; thus, it is difficult to hack or alter records in its registry. Understandably, it is a brilliant and extraordinary technology.

Other Possible Uses of the Blockchain that can Change the World

Looking at the blockchain technology, it is important that we determine its potential as a threat and its use in boosting the efficiency of communication – ultimately making a better world. It is a networked approach to an open, decentralized and very difficult to steal, hack or counterfeit transactions. It promotes digital trust through radical openness. For the first time, we will be able to reimagine how our world transacts without the need for intermediaries.

The significance of blockchain was recognized even before; however, it took a while for the broader market to understand what a big leap it is towards transparency. Here are potential uses of the underpinning technology of Bitcoin that can change the world.

  • Electronic Voting
    With the election just around the corner, it is a relief that there is a technology that can verify a machine’s accuracy during recounts. Automating the paper vote counts will not only save time and cost, it will also improve accuracy. Since blockchain is composed of blocks that contain a hash from previous blocks, changing one vote requires altering millions of votes before another one is cast.

    The election has been a primary target of hackers; thus, political parties have turned to blockchain for internal voting. A hacker would need more computing power to rewrite multiple of votes quickly – something that he cannot do. This eliminates election corruption in the undeveloped world.

  • Unbreakable Contracts
    The blockchain replaces the role of a third party in resolving legal disputes among suppliers, customers and partners. Changes in agreements would not require the services of an expensive lawyer anymore. Instead, companies would create a token that can be used to represent an asset with a self-executing contract, which eliminates dependency on a third party.
  • The End of Patents
    Every now and then, we read news about patent disputes between large tech companies like Apple and Samsung. The blockchain replaces patents by barring replication of a transaction hash associated with a unique document. Gone are the days when companies need to file a publicly-known patent. Blockchain can prove the existence of ownership through date-specified internal documents linked to a transaction hash.

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