Another are of interest for me is the Internet of Things or IOT as it is commonly known. The internet of Things are already all around us and it is growing rapidly We still require global standards , but we are not to far from getting there.

Again, I will try and write this article for the non-technical people. I'll start with some basics on the two technology stacks.

Blockchain basics

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Blockchain is the underlying technology which underpins the Bitcoin cryptocurrency which started way back in 2009. The blockchain is a distributed network, which consist of many nodes all over the world. This network of nodes is basically a ledger of all accepted transactions, that happened on the specific blockchain and is automatically built over time, when consensus is reached between the nodes. The beauty of this is that we are building a trustless system. At the end of the day we do not need to trust each other, as the way the algorithms and consensus system work, is guaranteed for accuracy and fair record keeping. It can never be wrong. Another very important aspect as that the blockchain keep a full detailed audit trail, forever

How is the ledger built?

As mentioned above, it is built over time. Each time a new transaction occurs, an encrypted record is sent to everybody (All Nodes) in the network. This record is then verified by the other nodes in the network, by a complex cryptographic calculations on the data in the record. These nodes then notify each other when a new block of transactions are confirmed. All the nodes then add this to the ledger and this is then used as the basis of the new updated version of the record, adds it to the ledger and this is then used as the new basis for verification going forward. This is how the blocks are created in a chain - hence the blockchain.

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Internet of Things

I have written a post on the Internet of things in laymen's terms before. This time around I want to show how Blockchain Technology can assist in the building of the internet of things.

So what is the Internet of Things or (IOT)

It is basically exactly what the name says. It is a distributed network of things … stuff that is connected through a common protocol and a unique identifier.

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The Internet of Things (IoT) is a system of interrelated computing devices, mechanical and digital machines, objects, animals or people that are provided with unique identifier and the ability to transfer data over a network without requiring human-to-human or human-to-computer interaction.
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Blockchain and IOT

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There are too many similarities between blockchain technologies and the internet of things to ignore that these technologies should work together.

I found some good examples on the postscape blog:

Imagine a vending machine that can not only monitor and report its own stock, but can solicit bids from distributors and pay for the delivery of new items automatically -- based, of course, on the purchase history of its customers. Or a suite of smart home appliances that can bid with one another for priority so that the laundry machine, dishwasher and robo-vacuum all run at an appropriate time while minimizing the cost of electricity against current grid prices. Or a vehicle that can diagnose, schedule and pay for its own maintenance.

Source Postscsape.com

Think about it, the blockchain is a distributed network of nodes which authenticates transactions in a ledger and keeps a full audit trail and IOT requires a common protocol of a distributed network of nodes with a unique identifier and requires a full audit trail

Well it seems like a good fit to me.

Blockchains could enable smart devices, anything from your fridge to your television or geyser or even your vehicle , with a unique identifier (Private and public keys), and keep a full audit trail, of a variety of transactions.

Why would you need a key for your vehicle, when you are issued a digital identity at birth? Why can't you use your private key to start your vehicle as the private key will be programmed into your vehicle when it becomes your property. Obviously you cannot enter your Private key or Password every time you start your vehicle, but I am sure there will be innovative ways to handle this?

Why not use an implant of a chip that transmits "trustless" peer-to-peer messages using a robust and scalable form of device coordination when you are close enough to the vehicle.

Happy Steeming

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