[ad_1]
Editor's Note: The following is an article for guests of Maciej Kranz, VP of Cisco Systems Strategic Innovation Group.
A few months ago, I wrote a piece that dispelled some of the most common misunderstandings about the ubiquitous Internet of Things (IoT). But as I said in the article, IoT alone is not really transformational.
To achieve the greatest impacts – create new business models, markets and value propositions – the IoT must be combined with other emerging technologies including artificial intelligence (AI), machine learning, the fog computing and, of course, the blockchain.
Blockchain is perhaps the most overwhelmed and disconcerting of these interconnected transformation technologies.
In simpler terms, blockchain is the main technology that serves as a distributed ledger. It allows a shared set of computer systems to agree that a transaction between the parties is genuine.
These results are recorded on an encrypted led register (the blockchain itself). Since it is extremely difficult to change information within the ledger without affecting other parts of the ledger, all parties can agree on a single version of the truth in a transaction.
With this definition in mind, it's time for a reality check to separate the blockchain facts from fiction.
1. Fiction: Blockchain is not related to IoT
Done: Blockchain can act as a missing link for IoT transformation projects.
Blockchain is one of four technologies that can be combined to create leapfrog business value.
In a company, IoT data often cross the boundaries of the partner organization and ecosystems. However, it is difficult to guarantee that these data are accurate, reliable and secure.
It is even more difficult to reconcile data, especially when it comes to information from disparate sources that do not match.
Using blockchain technology, IoT professionals can bring transparency and security to these decentralized transactions through operations and even borders. Now, all parties know that they are looking at a single source of truth and can make more informed business decisions that ultimately affect economic performance.
2. Fiction: Blockchain = Bitcoin.
Done: Blockchain is used in bitcoin accounting.
Bitcoin and cryptocurrencies have brought the blockchain into the mainstream, so it is not surprising that the two are often interconnected and confused.
To clarify, bitcoin (and other cryptocurrencies) is just one of many applications that can be run on a blockchain software platform.
However, there are many other blockchain applications besides cryptocurrency, including use cases in corporate supply chains, health care and beyond.
3. Fiction: All blockchain networks are public and anonymous.
Done: There are several types of blockchain networks, including both public and private.
There are two main types of blockchain networks: public and without authorization, private and authorized.
Public networks without authorization, such as those used in the cryptocurrency arena, allow individual users to remain anonymous while they monitor and verify transactions. However, large companies are more inclined to use private licensed blockchain networks.
These networks allow known entities such as suppliers, customers and other partners to participate as the company uses protocols to verify and assemble each blockchain.
The authorized private networks also offer the added benefit of providing thousands of transactions per section and provide granular control when managing who can access the data stored in the blockchain.
4. Fiction: Blockchain can not be compromised.
Done: Blockchain is only as secure as the weakest link in the network.
It is true that it is almost impossible to change the data once written on the blockchain. It is also extremely difficult for unauthorized users and applications to access this data, as well as to feed new data into the blockchain, but this depends on the quality of the security architecture.
In other words, companies must ensure that the data and transactions entered into the blockchain ecosystem have adequate security controls. If the points of integration are compromised, the entire network of blockchain could be compromised. Therefore, end-to-end security is a must.
5. Fiction: Blockchain is applicable only to the financial services sector.
Done: There are cases of Blockchain use in many areas.
Although most of the discussions on the use of blockchain focus on the financial services industry, the applications of this technology are actually much broader.
For example, supply chains can use private blockchain networks to track and track goods, deter counterfeiting and mitigate product calls. By creating a unique digital signature for each product or part, companies can trace their provenance, chain of custody and transfer of ownership for complete visibility.
In the healthcare sector, providers can use blockchain technology to securely manage electronic health records. For example, doctors may request permission to access a patient's medical history. They can then register transactions on the general register, making them available to other network health workers.
Other blockchain applications include the simplification of microtransactions (such as those used in the music streaming industry), the creation of smart contracts and the strengthening of consumer data privacy through social networks.
With the global blockchain technology market expected to grow to $ 7.59 billion by 2024 with a CAGR of 37.2%, companies should begin to explore its potential uses, especially when combined with IoT, AI / machine learning and fog computing.
But before starting a concept demonstration, the industry must overcome exaggeration, understand how to apply the blockchain and discover new ways in which this technology can become a fundamental technology for the business.
