- Blockchain is a decentralized digital system, I.e., not controlled or managed by any central authority, and helps to secure the confidential data.
- IOT (Internet of Things) allows internet-connected devices to share data with other IOT devices in a network.
Blockchain technology is utilized in cryptocurrencies like Bitcoin and Ethereum, while Internet of Things (IOT) uses internet-connected smart devices with embedded systems like processors, sensors, and communication hardware.
What is Blockchain?
Blockchain is defined as a revolutionary technology that revolves around decentralized digital systems, it contains a list of records in the form of blocks, and these blocks are connected securely using cryptographic hash function (special codes). Each block is connected to the previous block through those special codes, similarly they form a chain by containing previous block records known as “Blockchain.”
Types of Blockchain-
There are four types of Blockchain networks are defined:
- Public Blockchain
- Private Blockchain
- Consortium Blockchain
- Hybrid Blockchain
- Public Blockchain: Public blockchain does not have any limits anyone can use. Anyone with internet connections can send the transactions and even become a validator. Often, these networks offer economic incentives or reward people who keep them secure and use a method like Proof-of-Work or Proof-of-Stake.
Most famous public blockchains are Bitcoin and Ethereum.
- Private Blockchain: Private blockchain needs permission to access. Noone can just join it unless the network administrators invite you. They have their own specific participants and validators.
The term Distributed Ledger (DLT) usually uses private blockchain.
- Consortium Blockchain: It combines both the elements of Public and Private blockchains. It is like a teamwork blockchain. Here, a bunch of organizations team up to make and run the blockchain.
Consortium blockchain is often used in industries, like managing supplies or finance.
- Hybrid Blockchain: It has a feature of both centralized and decentralized nature. Based on which portion of Centralization and Decentralization are used the way of working of the chain may vary.
Advantages and Disadvantages-
- A major advantage of blockchain technology is anyone can use it, i.e., it is an open network that anyone can be a part of.
- It is a way to save information securely in a decentralized manner.
- It has a drawback that if multiple transactions can occur at a same time, then it may slow its speed.
What is Internet of Things (IOT)?
The Internet of Things includes electronics, communication, and computer science engineering. Some individuals think “Internet of Things” is a bit misleading because devices do not have to be connected to the public internet, they just need to have their own unique addresses.
- It helps to make cheaper manufacturing and deliver goods, which offers transparency in customers transactions.
Benefits of IOT-
- It keeps tracking the overall business processes.
- It helps to enhance employee productivity.
- It saves time and provides cheaper business processes.
- It also helps to get more engaging customer experience.
- It helps in finance also.
- Helps in business decision-making.
Pros and Cons-
- Reduces human involvement and provides automated tasks.
- Provides an effective and continuous care to the healthcare patients.
- Maintained the connections between electronic devices.
- If any bug can occur, it corrupts the other connected devices.
- Having compatibility issues between devices.