- Cryptocurrency is a great example of a product that can exist on the blockchain
- Traditionally, the internet has been a network, a network of connectivity that allows users to use computers as a portal to access data and information.
The terms ‘Blockchain’ and ‘Internet of Things’ often appear side by side, though in order to understand the true implications of these technological revolutions, we need to actually understand what they are, and of course, how they can work together.
The blockchain, as you probably know is a trustless and secured network that can automate a range of processes and can provide storage solutions. Cryptocurrency is a great example of a product that can exist on the blockchain, though the blockchain isn’t simply limited to finance, the blockchain can be used to facilitate a range of processes, from games to gambling and even audit trails.
Internet of Things or IoT refers to a broader idea in that the internet is soon to evolve into a new phase. Traditionally, the internet has been a network, a network of connectivity that allows users to use computers as a portal to access data and information. IoT takes that one step further and refers to these computers and devices as being interconnected, things that work together and things that have a connection to the internet, and other technologies.
Take a smartphone, for example, it allows us to not only use the internet but to also interact with it.
It’s important then, to understand just how blockchain technology and IoT can work together. If they couldn’t, projects like IOTA wouldn’t exist. IoT can help the blockchain grow and indeed, blockchain technology can help improve the prospects of our growing IoT world.
According to Jaxenter:
“Blockchain on its own is just the technological backbone: enterprises need a way to connect to that technology in order to interact and get value from it. This means integrating the blockchain technology with the applications and platforms enterprises already use – such as Salesforce or SAP – to get access to the data in a format that it can use. Adding IoT technology, and using blockchain to share the data, will soon become as common for manufacturers as automated conveyor belts or basic process optimizations. The potential benefits are so broad, and the relative costs so low, that only a small portion of manufacturers would decide the technology is not worthwhile.”
The blockchain should be seen as the skeleton and the muscle structure when IoT is the brain, the skin and the personality of the blockchain. Together, the two can help to change the world we live in.