Blockchain technology solves the core link of the Internet of Things. IBM began to study blockchain as early as 2014; recently, the domestic Wanxiang Group also invested 50 million US dollars in venture funds to fund blockchain projects; Hangzhou complex beauty blockchain research The center also revealed that it is currently communicating, cooperating and connecting with some domestic enterprises and institutions,
and is committed to making blockchain technology no longer limited to the research stage.
At present, there are many problems in the Internet of Things, mainly due to high cost, lack of trust by users, no actual use value, and no predictable business model. Privacy, security, and fault tolerance are prerequisites for IoT development. So how does blockchain apply to the Internet of Things?
The blockchain records every transaction of every participant. Cryptography is used to confirm transactions and keep information on the blockchain private. Participants confirm each transaction, providing highly redundant confirmation, and at the same time, they will also receive corresponding rewards for their computing power.
Blockchain eliminates the need for trust by using decentralized consensus to confirm transactions .
While blockchain may pose regulatory and economic risks as a long-term store of value (such as Bitcoin), it is a revolutionary innovation as a transaction processing tool. In the decentralized Internet of Things, blockchain is the infrastructure that facilitates transaction processing and collaboration between interacting devices. Each
blockchain manages its own behavior and plays its own role, thus forming a "decentralized autonomous Internet of Things" to achieve democracy in the digital world.
When there is no centralized server to act as a message intermediary, support file storage and transfer, and perform an arbitration function, any decentralized IoT solution should support the following three basic types of transactions: trustless peer-to-peer communication, secure Distributed data sharing and powerful and scalable device
collaboration .
A secure distributed file-sharing protocol has the potential to replace cloud-based file storage and transfer, enabling secure software, firmware upgrades, and direct file sharing between devices. The biggest challenge to IoT development is not simply to build a decentralized IoT, but to build a general IoT that can
scale , while ensuring privacy, security, and trustless transactions. In other words, not all of the hundreds of billions of participants in the IoT are trustworthy, and some are even malicious, so some form of verification and consensus mechanism is needed.