In the last decade, the ‘Big Four’ technologies have emerged with the promise to revolutionize the world as we know it by reshaping the global economy – Big Data, AI, Blockchain, and IoT. Although IoT has faced many adoption challenges, which by the way, still exist, it was among the first to prove its value with the successful solutions and implementations ranging from healthcare, manducating, agriculture, and smart home devices, to smart cities.
On the other hand, there is blockchain – technology that is likely to change all aspects of digital business. Blockchain technology has been attracting the attention of leading corporations since 2009 when bitcoin had made its public debut. This form of currency has become increasingly mainstream over the past few years, with more and more organizations and companies supporting this payment method. While the story about bitcoin is undoubtedly captivating, what may end up even more revolutionary is the blockchain technology that the currency has helped to popularize.
The merger of blockchain and IoT has ducked out as one of the most promising use cases for blockchain. The number of IoT devices is growing exponentially by the minute, and it’s estimated that by 2020, there will be 50B IoT connected devices. However, managing all of these devices could pose a great challenge, and that’s where blockchain technology kicks in.
Many business leaders in medicine, finance, and other industries have already acknowledged that blockchain could be a potential game changer. Before we see what the benefits of the merging trending duo are, let’s go over some of the basics about bitcoin, and blockchain.
Blockchain and Bitcoin
Bitcoin boasts of being a peer-to-peer cryptocurrency, meaning that this form of payment is decentralized and it isn’t controlled by any government or authority. Instead, the bitcoin community itself manages the transactions.
Governments back national currencies, and the central bank controls the supply. Such a bank has the power to either increase or reduces the money supply, thus changing the overall value of the currency itself. These banks can also set interest rates that can impact national currencies significantly.
The situation is different with bitcoin as it doesn’t submit to any authority. Instead, the whole bitcoin community monitors transactions, controls the supply, and maintains the currency itself. The blockchain technology plays an integral role in this collaborative management.