Just one small step from the IoT to the smartcontract…
Described as the most revolutionary concept of the next 10 years, the blockchain is a subject that has captured the imagination of many, and is being talked about everywhere. But what is it all about, and in what way will this new concept influence the IoT (Internet of Things)?
The image currently used to summarize the blockchain is a massive accounting ledger that records the history of different transactions. Each of these transactions is recorded from stage to stage, as a block, in such a way that it becomes indelible. Each of these blocks is associated with others and the chain that this forms is what is known as the blockchain.
The core of the blockchain is based around a peer-to-peer system that guarantees maximum security, through a network of computers that checks and certifies operations before recording them indelibly as a block. This means that the blockchain cannot be altered retroactively but is verifiable.
A powerful concept
So what is the advantage of this blockchain model? It allows trust between individuals without requiring the intervention of a trusted third party. This means that we can do away with the intermediaries used previously, and that we need to completely re-invent the transactions of tomorrow’s world! From now on, a network of computers will perform this intermediary role.
But the true power of the blockchain model lies in it not being limited to simple transactions (such as the best known payment/record types). It is capable of handling much more complex situations, which include conditional and programmable instructions. In this case, the term “contracts” is used, with the blockchain resulting in the creation of “smart contracts”. What advantages would come from so called smart contracts? Smart contracts would allow connected objects to negotiate transactions with each other, without the information needing to pass through a central server.
Key word: consensus
The power of the blockchain comes from the consensus that is distributed throughout the blockchain network. The validation and certification of transactions is based on this key word. With no consensus, there is no transaction! It has also been described as “consensus-as-a-service” or TaaS (Trust as a Service).
So in what way is the blockchain so important for the Internet of Things?
In this sector, where the number of connected solutions is growing and where it would be handy to resolve a fair number of problematic issues (confidentiality, identity, confidence & security), the blockchain protocol represents an extra guarantee in the creation of additional certified and secure protocols.
As part of the growth of connected objects, it is entirely conceivable that blockchain records could be kept of their activity, as well as exchanges between these objects, or between them and data recovery platforms. For example, they could store a variety of different types of data, such as temperature readings, alerts, or data directly associated with the functioning of connected objects.
The benefits:
- Guaranteeing improved security and confidentiality
- Connected objects with an enhanced ability to interact
For Qowisio
In the emerging IoT market, where numerous new uses are being identified, Qowisio is convinced that integrating the blockchain within its business model (object + network + application) will be a key additional asset. The future undoubtedly lies in the sale of connected objects and the supply of services related to these objects. So this would allow Qowisio to offer its clients – whether they are companies, SMEs, start-ups or local authorities – an additional level of confidence in a market that’s still in its infancy.