Why the IoT revolution will go through the blockchain
Since 1944, every 10 years, a major innovation changes everything. There was the first computer in 1944, the first mainframe in 1954, the first mini computer in 1964, the first microcomputer in 1974, the McIntosh in 1984, the Web with Netscape in 1994, social networks in 2004. Here is the ‘Internet of ME with the Blockchain of Things – BoT.
The blockchain can be defined as the decentralized and exhaustive history of all the transactions carried out since its creation and which are recorded there in consecutive blocks in a general ledger. The security of the transaction is ensured by a network of computers which validate and certify the transaction before registering it definitively in a block. Once registered, it becomes tamper-proof and easily verifiable. It is therefore a distributed network within which transactions are carried out in peer-to-peer (P2P) fashion.
The main advantage of the blockchain is that it allows individuals to trust each other without the intervention of a “trusted third party” (notary, bank, state, intermediation platform such as Uber, AirBnB, etc.). This intermediary function is provided by a network of computers. In other words, the blockchain is an infrastructure for certifying transactions on the Internet.
Blockchain technology can be used for transactions that go beyond a simple payment or registration transaction and that contain much more complex instructions (conditional and programmable instructions), we then speak of contracts. These contracts are published on a blockchain so that they are executed automatically under certain conditions, which is why the expression “Smart Contracts” is used.
The stakes are huge. All the players involved in intermediation are concerned: banks, insurers, notaries, lawyers, etc. are concerned. It is a market of several trillions of dollars that must be re-invented!
The success of the IoT (Internet of Things) indeed depends on the blockchain and its distributed algorithmic trust infrastructure. Remember that with blockchain, the fact that a transaction is accepted or rejected is the result of a distributed consensus and not of a centralized institution. In other words, the consensus-as-a-service (consensus on demand) or TaaS (Trust as a Service) is at the heart of the blockchain business model.
With the Internet of Things, the blockchain protocol will find one of its broadest applications, given the colossal trust issues that are sure to arise. Trust, the question of identity, respect for private life and the confidentiality of personal data will be at the heart of the development of the Internet of Things market.
In other words, blockchain technology will become the infrastructure of a globally digital and massively interconnected world, notably with Wearable Computing, IoT, sensors, smartphones, laptops, quantified self devices, the Smarthome, the Smartcar and the SmartCity.
The world of tomorrow will be blockchain or it will not be.
Xavier Dalloz heads the consulting firm Xavier Dalloz Consulting which specializes in information technology monitoring. Xavier Dalloz Consulting works with companies to help them integrate information technologies into their strategy in order to gain a competitive advantage.
He is the French correspondent for CES (Consumer Electronics Show) and KES (Korean Electronics Show). He is a member of the WEF (World Electronics Forum).
He will be present as an expert at the BlockChain conference: “Smart contracts, the blockchain revolution is underway! », On April 6, organized by the sido.