How Bitcoin opens the door to IoT growth

Image: Thomson Reuters

Don't let the Bitcoin name confuse you so you can't think openly. Many think of Bitcoin as fundamentally a nefarious cryptocurrency for bad guys.  For the purposes the Internet of Things (IoT) put that aside - its irrelevant. What makes Bitcoin relevant to IoT growth is one its key underlying technologies - blockchain. 

Think of  Blockchain  as a distributed or shared digital ledger where any relevant party can safely see any and all the ledger's transactions. In a CIO article Jesus Rodriguez succinctly and expertly describes blockchain in an IoT world. It's well worth the 15 minute investment.

Blockchain contains two important attributes for IoT.  It keeps track of all transactions in an open and secure way, and no third party is needed to verify the veracity of the components of a transaction. The decentralized digital ledger completes and confirms transactions far faster (minutes vs days) and with much less expense than with traditional 3rd party ledgers, like for example a banking network.  

Some, such as Filament, will apply the Bitcoin blockchain ledger itself for IoT apps. Alternatively some very large players are collaborating on their own independent blockchain systems. Hyperledger, backed by Accenture, JPMorgan, et. al., and R3, backed by huge financial firms, are developing blockchain services. Additionally IBM is offering blockchain microservices.  Both Hyperledger and IBM are positioning their blockchain services with an eye toward IoT applications.

The  advantages of blockchain technology will quite likely lead to its natural use within IoT applications. Don't pay attention to the fear mongering around Bitcoin, focus on the blockchain.

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