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There are a lot of misconceptions surrounding IoT and this was dealt with in one of our previous blogs. IoT by itself is not truly transformational and so it is extremely important to combine IoT with emerging technologies such as Artificial Intelligence, Fog Computing, Machine Learning, and Blockchain.
Perhaps, blockchain happens to be the most perplexing, and hyped up among all the interconnected technologies.
In simple terms, we can say that blockchain is a core technology which acts as a ledger. Using blockchain, a network of shared computers confirm the transactions between different parties.
Each and every transaction then gets recorded on the blockchain. Since altering information on the blockchain is nearly possible, each and every party agrees for their own single truth version.
Using this definition, we can separate blockchain hype from facts.
1. Fiction: There is no relation between blockchain and IoT
Fact: Blockchain serves as a missing link for IoT projects that are transformational.
In enterprises, it is not uncommon for the IoT data to traverse between the partner ecosystems and the boundaries of an organization. However, ensuring whether this data is secure and accurate happens to be a challenge.
Reconciliation of the data is even tougher, especially in cases where mismatched information from different independent sources is involved.
In this case, blockchain can be used to add security and transparency to these transactions across borders and operations.
2. Fiction: Blockchain and Bitcoin are the same
Fact: Bitcoin is just one of the applications of Blockchain
Blockchain was primarily brought to the mainstream due to bitcoin and other cryptocurrencies. Hence, it is not surprising that cryptocurrencies and blockchain are often linked together.
As a clarification, bitcoin and other cryptocurrencies are nothing but an application of the blockchain technology itself.
With that, there are a wide range of other applications of the blockchain such as its use in the supply chain.
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3. Fiction: All of the blockchain networks are anonymous and public
Fact: Both private and public blockchain networks can exist
The blockchain networks happen to be of two types. This includes the permissionless and public networks, and the private permissioned networks.
The public and permissionless networks are those networks that are used in applications such as the cryptocurrency. Through these, the individual users can remain anonymous while verifying and tracking transactions. On the other hand, the large enterprises and organizations are more keen on using the private permissioned networks.
Using these networks, known entities such as the customers, partners, and suppliers participate while the company makes use of different protocols and assembling and verification of the blockchain.
Moreover, the private permissioned networks provide the extra benefit of carrying out several thousand transactions in one second. At the same time, it also offers a granular control for the management of data access in the blockchain.
4. Fiction: It is not possible to compromise blockchain
Fact: Blockchain security depends on the security architecture
There is no doubt that changing data on the blockchain is extremely difficult, and nearly impossible. Moreover, unauthorized users cannot access the data or add new data on the blockchain. However, this primarily depends on the security level of the architecture.
Hence, proper security controls need to be put into place. In case an intruder manages to hack the integration points, the entire network of blockchain may get compromised.