The IoT ecosystem works perfectly with blockchain technology. IoT is based on a centralized model which in business terms is known as a client model. IoT has opened up a gateway to communicating physical objects with the internet world by being able to operate them from any location. These devices work on cloud servers which hold unlimited storage capacity. IoT identifies and authenticates devices.
Blockchain with IoT helps in rebuilding the entire digital infrastructure, making the internet a place where financial transactions can also take place easily. Using blockchain with IoT helps to connect devices in a better and faster way with the highest level of security. Blockchain technology is being used almost in every single organization to meet business needs that help to build better infrastructure. For instance, Walmart uses blockchain technology to increase efficiency and accuracy in the workflow. These two features make every single Blockchain Application Development Company want to create more inter-related services.
How does it work with the blockchain model?
Blockchain has a decentralized system which has the capability to store unlimited records for any financial transactions. Blockchain being decentralized means that there is no one master that can access the entire financial information. In blockchain technology, there are different computers that hold the entire permitted network of information stored in blocks. These blocks consist of nodes which keep the information stored in chronological order.
IoT and Blockchain is a deadly combination where you can securely connect with physical devices without worrying about a breach. Here are a few reasons why blockchain technology is so demanding in the IoT industry: –
Transparency: Every transaction has a transparency and it visible to anyone who is permitted to see that transaction. Blockchain technology provides a public and private key which are in alphanumeric form as a proof of individual identity. The transactions occur between blockchain addresses to keep it as transparent as possible.
Uses all logic: Blockchain has a digital nature which enters logical algorithms only. Computational logic helps in setting automatic rules to any financial transactions between any nodes.
Peer-to-Peer: Using nodes the communication happens only between peer to peer. Once the node has full of information storage, the information is automatically stored in the next node.
Un-alteration of records: Once the data has been entered in blockchain it cannot be deleted. Even altering the data is impossible as it is linked to all the pre-transactions made before them. The database remains permanent as the algorithms are constructed such a way.
Looking at the big picture using blockchain with IoT can certainly help in bringing better security to online problems that we face during a transaction. The lack of efficiency, fraudulent charges, misuse of card information and various barriers we have in the online banking communication while transferring money.
Internet of Things is every computer nerd’s dream come true. The ability to allow technology operate your home, every single physical object is away from a single touch of the button is quite a mesmerizing idea. Blockchain technology on IoT is like a cherry on the cake where one can store information, control devices and keep every single aspect of secure makes these two a deadly combination.