Blockchain and Internet of Things

In their impressions, crypto enthusiasts correlate the term “Internet of Things” to blockchain. Also picking up several misconceptions that IoT and blockchain are similar. Or even the same. Yet, those who show interest in this field know that the Internet of Things and blockchain technology are two very different things. People started mentioning blockchain far back in 1992. But, in 2009, it had its major breakthrough with the creation and launching of Bitcoin. It became a synonym for the fifth digital revolution. Right after the invention of the internet and the entire new world that goes with it. Although very different technologies, IoT and blockchain still have some things in common. And these similarities generate in the relation of blockchain and IoT. So, how are blockchain and Internet of Things related? And why do you often hear about the two technological wonders in the same sentence or context? What is the Relation Between Blockchain and the Internet of Things? Photo by Clint Adair on Unsplash The concept of machine-to-machine communication is older than the concept of blockchain technology. The appearance of the telegraph in 1900 marked its beginning. Tech enthusiasts, moreover, mentioned the concept almost a century before the telegraph’s invention. Despite early beginnings in 1900, the concept of the Internet of Things didn’t get its name until 1999. That is twenty years before we learned about Bitcoin and the spinning wheel behind it — blockchain technology. So, they developed two separate technologies and concepts. Yet how is blockchain still related to the Internet of Things? You have probably had a chance to hear that blockchain somewhat represents a flexible piece of technology. Giving that it has various applications in different sectors and industries. They also merged it with other technologies. Well, exactly this allows the technology to find different purposes and forms of applications. And this is how blockchain also found its way in the Internet of Things. The Internet of Things represents technology that allows machine-to-machine communication. It also creates networks with specific tasks. It connects machines and appliances with predetermined roles across the network. And that where the internet makes a significant component. IoT thus represents the connection between any type of device to enable communication. Of course, through programs and chips across the internet. That way allowing the exchange of data. Now, there’s another technology that has the purpose of transferring data through a secured network of blocks: blockchain. Which is where the security of blockchain and the potential of the Internet of Things in various domains meet. The nature of communication and authority in the Internet of Things that creates smart cars, smart houses and more, is centralized. This is unlike the initial idea behind blockchain technology that favors decentralization. Furthermore, the IoT concept is rapidly gaining popularity. With emerging projects connecting appliances via the internet and with centralized nature as the number of connected machines is growing. The IoT network is set to get crowded with millions and billions of devices that should join the network in the future. Scalability is then bound to become an issue for the Internet of Things. And the security of the network might also start expressing weak points that need to be addressed. This is where blockchain technology arrives as a possible and viable solution. While some blockchain-oriented startups such as IOTA are already working with major names such as Bosch. In order to bring the best to the Internet of Things with the help of blockchain.

Posted by Knoxon Tech