Bitcoin and Internet of Things (IoT) are the two buzz words in the tech sphere at the moment. Bitcoin is something which we always keep talking about on this site. Internet of Things, not so much. But with the introduction of Bitcoin 2.0 and other upcoming alternatives like Ethereum, we will be forced to discuss about IoT soon. After all, the IoT will be made possible by Bitcoin technology in the coming days.
What is Internet of Things?
Internet of Things (IoT) is a concept where the objects and equipment area embedded with electronic sensors to create a network. These “smart” equipment can communicate with each other, its owners and manufacturers. The network will enable different objects to coordinate with each other and users will be able to remotely operate and control them as well.
Blockchain and IoT
Blockchain was created as a decentralized ledger for recording bitcoin transaction. Bitcoin mining is done by a huge global network of miners connected to the Blockchain. Apart from transaction records, Blockchain can also store other non-transactional data, and this property is already being utilized by few Bitcoin 2.0 applications for records and database verification and management.
Blockchain is used by both Bitcoin and the new Ethereum platform. Being a P2P protocol, Blockchain is ideal for supporting a large number of equipment talking to each other or communicating with the manufacturers and owners at regular intervals by creating online records of their status.
Progress so Far
The Bitcoin technology company, 21 Inc. has started working in that direction. The company has recently announced the launch of its new BitShare chips. These chips can be embedded into any device that can connect to the internet. These embedded chips turns the devices into mining platforms, thereby establishing a connection to the Blockchain. Once connected, they can push alerts and notifications on to the Blockchain and communicate with other devices in the network.
Ether, thought technologically similar has a different purpose. Ether completely concentrates up on the technical part of the Bitcoin and Blockchain network. While the value of Bitcoin translates to fiat currency, Ether’s value is associated with computing power. Ether is the tender used to access cloud storage or processing power to run Blockchain application. Ether network is made up of thousands of computers, contributing their computing power to the network. Ethereum software platform provides an application development environment for developers to create Blockchain based applications that work on Ether network. These applications will communicate with other devices in the Ether and run using the computing power contributed by these devices. Ethereum is working with IBM and Samsung to create an IoT environment on Ether. Ether is becoming the preferred network because of reduced computing costs, increased security and privacy.
In this age of cryptocurrency, the value of technology behind these digital currencies has grown bigger than the digital currency itself.