In this article we will understand the relationship between IoT and blockchain.
The blockchain brings undeniable advantages in terms of security, reliability and immutability of information in everything that can be represented through a digital transaction.
The revolution of this new paradigm radically changes the world to which we are accustomed, where classically we have to „trust“ someone who guarantees something and who in one way or another pays a high price.
Today, thanks to the blockchain, the only thing we have to trust is mathematics.
This disruptive technology is revolutionizing the digital world, having as its only limit the fact of being confined to it.
IoT: what is it?
The technology called IoT, an acronym for Internet of Things, literally translated is the Internet of Things.
This technology makes it possible to exchange information to and from objects in the physical world via the Internet.
There are many applications of this technology, from the slightly more futuristic ones, such as the intelligent fridge that automatically orders the shopping, or the smart car that chooses the best route based on traffic and weather information, to the most common ones, such as the hoover robot, which tells us that cleaning is finished, or the wi-fi intercom, which allows us to talk to and welcome our guests even when we are away from home.
What are smart contracts?
Smart contracts or smart contracts, in short, are contracts that can independently verify that the conditions necessary for their execution are met and consequently self-execute themselves.
A typical example of „smart contract“ in the traditional world is the use of a vending machine for coffee, drinks or even petrol.
In the act of putting money into the vending machine, I actually enter into an automatic contract, with which I agree to pay the indicated countervalue in exchange for the goods in question.
For example, I enter 10 € into the vending machine and know that I will receive 7.2 litres of petrol in exchange, as the price per litre is clearly displayed.
With the advent of the blockchain, smart contracts take a giant leap forward, as they can now take advantage of all the advantages of this technology (transparency, immutability, decentralisation, incensurability, etc.), thus eliminating the need to trust a third party.
The marriage of the century between IoT and blockchain
Smart contracts on blockchain have, as Bitcoin Era software the only real limit, the need to exist only in the digital world. IoT technology is the natural solution to this problem.
Just as the merger of smart contract and blockchain has immensely expanded and enhanced the applications of both technologies, the merger of blockchain and IoT is having disruptive effects on countless aspects of the modern world.
A fascinating example is the traceability of the cold chain (useful for food and pharmaceuticals): today it is not possible to guarantee that at any given time (due to accidental or malicious causes) this chain has not been interrupted.
Let us imagine a refrigerated truck transporting medicines that must remain constantly below a certain temperature.
Any of the people involved in the transport, accidentally or to save money, could temporarily switch off the refrigeration of the truck and then switch it on again later, thus irreparably ruining all the medicines.
Until yesterday it was not possible to prevent, or even to identify in good time, such an event from happening.
Thanks to the application of very simple IoT temperature sensors, which send the temperature of the truck’s refrigeration compartment every few seconds and write them down immutably on blockchain, it is now possible to solve this problem once and for all, using very few economic resources.
The applications of the combination of blockchain, smart contract and IoT are truly endless and cover practically all areas: industrial, agri-food, urban planning, healthcare, financial and even legal.