The Internet of Things has almost spent 25 years in this technological field and continuously gaining new attraction because of its dynamic services and effectivity. Cryptocurrency favours IoT in many ways. To understand that we need to understand the fundamentals of both the technologies.
The concept of cryptocurrency is very simple; it is nothing but an encrypted decentralized currency. A peer-to-peer architecture is necessary for the smooth functioning of the currency. A blockchain is required for the exchange of cryptocurrency. It is nothing but digitally mining currency and exchanging it with peers. A hyper ledger is required to record the whole process.
It goes without saying; the technical world is already aware of the concept of bitcoin, which is one of the leading currencies which communicate through peers; it is also known for its enormous volatility. In spite of its volatility, it has got worldwide recognition. Various businesses like Wikipedia, Expedia, Twitch, NameCheap etc. have already adopted this technology because of its effectivity.
All cryptocurrency platforms are capped. The demand and supply of the service determine the upper limit. One of the best parts of cryptocurrency is you can manipulate all conventional regulations, which makes it easy to use and acceptable among its users.
One of the main reasons, the cryptocurrency is accepted among all sectors of the world is there is no scope for fraud and error. There is no manual intervention in the calculation. A ledger will keep a record of all the exchanges; it can be accessed by anyone provided he/she has the password of the application.
Various Aspects of Cryptocurrency
There are three important units in the system of cryptocurrency; these are:
As we have mentioned earlier, the cryptocurrency coin is the currency unit of the technology-based platform. They are known by different names like Ethereum for Ether coin, XRP for Ripple coin etc. Cryptocurrency trading is managed on a coin basis.
The concept of digital wallet came along with cryptocurrency. For security reasons, you must save your cryptocurrency in a safe and secure wallet where no one else can access your credentials. A Two Factor authorization is required to secure it from top to bottom. Nowadays, many companies are using a combination of private keys and QR codes to strengthen security.
The main technology which allows the coins to perform is named as Blockchain. The technology is based on a public ledger which records all the transaction data. The technology does not allow any manual manipulation on the hyper ledger, that is why it is considered as the safest route of transaction. Once it is done, it can not be changed under any circumstances.
Effect of IoT and Cryptocurrency
Cryptocurrency and Internet of Things (IoT) is an unmatchable combination for various industries like Financial, Health, Manufacturing etc. The Internet of Things (IoT) is all about communicating between wireless devices via a strong and an uninterrupted internet connection. The IoT embedded sensors, together with cryptocurrency and make a lot of things possible. For example: upon emptying the oil tank, your car can refill it and pay it with crypto; similarly, your fridge can remind you upon reducing the milk or egg content.
You can also order your grocery using cryptocurrency via IoT application. The best part of this technology is for initiation and completion of the transaction the customer only requires providing the fingerprint for payment authentication.
From 2016 to 2019 the cryptocurrency has been accepted in many parts of the world for the smooth functioning of various applications. But soon, the various dark sight of this technology came into existence. Google and Facebook both prohibited the use of cryptocurrency ads on their platforms.
Cryptocurrency together with Internet Of Things (IoT) accelerates the whole process and increase the overall productivity of various sectors. Here we have explained some of the reasons:
- Global Recognition
Cashless transactions have been introduced to ease all the problems with black money and uneven cash distribution in ATMs. Under any circumstances, the currency had to go mainstream, for that buyers and sellers must recognize it for better management of the POS (Point of Sales) Systems. The enterprises can adopt the cryptocurrency application on their existing IoT devices.
- Seamless Operation
For the consumer, IoT cryptocurrency solves a lot of problems. Nowadays, consumers can have IoT devices like Amazon Alexa, Google Home etc. which are ready to use devices. If these devices can be integrated with cryptocurrency, it can automate the whole process of online shopping through the voiceover. For large scale operations, this application is unmatchable, especially for its centralized operation system.
- Small scale transaction
Cryptocurrencies, together with IoT, can be beneficial for microtransactions. If you have a micro or mid-sized venture, you can easily integrate the magic combination to ensure a smooth transaction. Apart from transactions, various other functions can also be done with the combination. For example, auto-off your pump upon overloading, switching off street lights automatically, penalty receipts send by traffic lights upon breaking traffic rules etc.
How can Blockchain solve various IoT challenges?
The digital ledger has dynamic scope both in financial and non-financial transactions, and it has a direct influence on IoT. Especially the manufacturing and factory setups get various benefits from multiple devices setups. But there is a drawback, which is hackers are now attacking various servers because of its weak infrastructure and security system.
With the help of IoT, a centralized cloud network can be created which can secure the overall infrastructure. Various research shows, the adoption rate of this new combination is gradually increasing among various business sectors, especially in manufacturing. Cryptocurrency with IoT making the automated living less complicated.