⚙️Background

Blockchain

Decentralization techniques have existed for decades on the internet. In 2009, when the world's first cryptocurrency was introduced, blockchain technology was implemented in its most authentic and formal form.

As a result of the 2009 and 2015 inventions of Bitcoin and Ethereum, a new form of virtual currency came into existence. Bitcoin generates stories about its security and solves numerous problems that plague our current form of currency in the current economic system. This has led to the development of blockchain and cryptocurrencies as a decentralized form of finance and commerce.

Blockchain is a data structure that is completely decentralized in nature. It implies that none of the network's users possess "absolute" authority. Prior to being recorded on the public ledger, each transaction is approved by consensus. Once a transaction is broadcast and published on the ledger, it cannot be removed or altered.

Internet of things

Even though networks are expanding at an astounding rate, what we see now is only the beginning. In this emerging market segment, IoT is also shaping the long-term vision and strategies. Internet of Things refers to an industry in which devices are network-connected and communicate according to their respective capabilities.

A survey predicts that the number of IoT devices will reach 18 billion within the next few years. In turn, the market capitalization would increase to approximately $560 billion.

Benefits and Challenges

When viewed from our perspective, the advantages of blockchain can also benefit the IoT industry. For example, decentralization, which is a central feature of blockchain technology, enables devices and users to operate in a completely decentralized environment. In a broader context, it can give the IoT niche flexibility.

If a network becomes congested and requires additional nodes to maintain efficiency, a decentralized system can generate new nodes and distribute tasks accordingly.

Moreover, since the data committed on a blockchain cannot be altered in any way, it provides an additional benefit to the IoT industry by ensuring that the data received from multiple devices is stored permanently and cannot be altered. To address these concerns, a variety of factors must be taken into account. First and foremost, it is crucial to distribute power so that the authority to monitor or execute decisions regarding IoT devices is not vested in a single person or machine. Multiple parties must be involved in order to reach a consensus. A further characteristic of blockchain would enable the network to automatically select the best user/machine to write the record on the distributed ledger, thereby reducing favoritism and inefficiency. When we combine the terms 'Internet of Things' and 'blockchain,' people are curious as to whether the nodes would be able to efficiently handle the massive amounts of data generated by IoT devices. Nonetheless, has editable access to it. In addition to these benefits, the technology also has limitations and difficulties. There is currently no blockchain protocol capable of resolving all IoT industry problems.

Solution

To address these concerns, a variety of factors must be taken into account. First and foremost, it is crucial to distribute power so that the authority to monitor or execute decisions regarding IoT devices is not vested in a single person or machine. Multiple parties must be involved in order to reach a consensus.

A further characteristic of blockchain would enable the network to automatically select the best user/machine to write the record on the distributed ledger, thereby reducing favoritism and inefficiency.

When we combine the terms 'Internet of Things' and 'blockchain,' people are curious as to whether the nodes would be able to efficiently handle the massive amounts of data generated by IoT devices. However, given the long-term outlook, the network will contain millions of nodes, and data management will become more efficient.