The blockchain is more than technology empowered by Bitcoin, on the contrary, there are many Blockchains, and it is not only limited to financial services companies. Many research firms have termed Blockchain as the next big revolution, most of them wanting to merge Blockchain with the Internet of things.
What is Internet of Things (IOT)? To put it very broadly, the internet of things can be considered as the third wave of development on the internet. It is an odd set of information, interaction, transaction, which is supplemented to the internet, with the help of devices which are armed with data sensing, analysing and communication abilities, with the use of internet protocols. It basically bridges physical and digital realities through automation, which aids in the improvement of businesses and people’s lives.
So the internet of things applications is distributed in nature, and Blockchain is a distributed ledger technology, hence it is only customary that they will play a part in the way devices communicate with each other directly.
Blockchain technology is designed on the basis, where through applications and transactions, interactions can be done. On the meeting of specific conditions, smart contacts are automatically carried out. These conditions could be anything ranging from goods to environmental conditions or any other smart applications that support specific internet of things (IOT) processes.
Therefore, by this theory the Blockchain technology can, not only merely support, but also improve the agreement with IOT, further adding to the compliance with IOT features, and help in managing the cost effectiveness.
How will this bring about a Revolution in Our lives?……
Perhaps on the onset of the next decade, almost most of our daily live devices will be online and integrated with the internet of things, connecting us, taking responsibility for all our actions, monitoring and recording most of it, like our health with the doctors, our transactions with our banks, the development of our businesses, managing groceries etc. Sensitive data will be online, and we will need to find a way to communicate and transact this data securely through peer-to-peer interactions. The ‘internet of things’ will need a ledger of ‘everything’. If transactions are done automatically between devises, they won’t be able to use your credit card, they will need a new format for new business models for it.
Imagine if we have autonomous cars in the future, they will need to connect with your device, in this case a phone, to search, transact and communicate and pay for your transport, hence your phone will need a more secure way to make payments and transactions around sensitive data and value, and the only way to manage that is the distributed ledger technology that Blockchain offers.
Now imagine applying this technology for electronic voting, where your vote is not only confirmed, but private to you and you can also confirm the counting of it, this will revolutionise traditional electronic voting, replace it by voting on Blockchains.
Wishful thinking……? not really, it is established, this can be achieved. However, as always it is in a nascent stage and yet has to overcome a few challenges like assured security in technology, practical and operational challenges, and lastly legal and compliance issues, managing new complexities.
How is The Blockchain Transformation Helpful?
Impact of Blockchain on Financial Services