Cryptocurrency and IoT are a lethal combination of two new technology trends. Cryptocurrency, also known as the currency of the Internet, is a new trend while on the other hand IoT has been in the block since the past 25 years or more, but gaining momentum now. Before digging deeper into the details of the topic let us first understand the technology involved.
What is Cryptocurrency
Cryptocurrency is basically an encrypted decentralized current who works on the digital platform. This can be exchanged in the form of blockchain. The whole process of extracting this digital currency and then exchanging it receipt as mining. You all must have heard about bitcoins. Many have earned lakhs and some have become a billionaire through this just overnight. So yes, this bitcoin is and the perfect example of cryptocurrency. This is one of the earliest and most successful cryptocurrencies. These types of currency are typically formed by that businessman who believes that working upon conventional currency comes with a lot of legal formalities. On top of it, these cryptocurrencies do not come with any regulation from the central authority which also makes circulating the currency quite easy. If someone wants to exchange this cryptocurrency can conveniently do so by just issuing the receipt from where the currency has been sent. Now, this goes to the large files of unchecked data to the miner. Now the buyer and seller don’t have to do anything but the task is done by a trained skilled professional called miner. conveniently the whole process requires a lot of computing expertise and knowledge. This cannot be done by every individual.
How Cryptocurrencies are exchanged
For better understanding let just take the example of bitcoin.
Although there are many varieties of cryptocurrency in the market and each one has their own unique way of exchanging. But most of the module works fine with bitcoin too. Bitcoin can be exchanged through the two-way process first from the vendor itself and secondly mining. Buying from a vendor id the easiest way of buying cryptocurrency. Directly laying the vendor to validate and then wait for the coins to be addressed in your wallet. The average amount and rate are usually fixed through the vendor side. But on the other hand, mining is quite an interesting expanding point. You may require computing skills but it may enhance the return of your cryptocurrency.
Mining mostly uses a blockchain that has public ledger attached to the transaction. ledger is all the information regarding your past transaction.
This is a complicated process that requires another complex procedure known as harsh so whenever there is a new client or block within the market in a short location few bitcoins are generated and then add it to the wallet along with the transaction fees. This transaction fee has to be born upon by the user. Now let us just some of the components of the cryptocurrency which are as follows.
1. Coins: These are an essential part of the currency that completes the currency. sometimes they’re just used as coins or with a modified name like we all love bitcoins. Sometimes each company prefers using its own coins like Ethereum uses Ethers and Ripple uses XRP.
2. Wallet: Currency exchange cannot go without the wallet so here also every cryptocurrency has Some called afford it then coins are stalled. These holidays are usually public address but sometimes my have a private key also. Combination of what can be present and the sole use of a public address is to provide a call, whereas a private key is used to verify transaction that is done in case of asymmetric encryption.
3. Blockchain: This is the technology that is basically regulating the whole trip to the currency system it is based on a public ledger that records all the transaction data in the past as it is present. I have an exchange in the next block lord of the technical technique called hashing should be known.
4. Hashing: Hashing is a method which is basically used to find a new block of the blockchain which might be similar or work with every slot in the currency. As we all know every digital currency has some kind of logical algorithm behind it which makes finding the next block is set easier logarithm is known as hashing. in bitcoins, the algorithm is SHA – 256. So, every set of currency form has its own algorithm combination.
Impact of IoT
For exchanging anything, how to strengthen the whole system is the first question that arises in the mind. To increase the value of any currency within the financial ecosystem, centers for Point of Sales need to be maintained. These centers are able to do the easy exchange of currency with the help of Internet. These points of exchange requires programming and connectivity with the physical world, online interpretations to make the new currency hit in the block.
Calibration of cryptocurrency or coins can be very well made with the IoT devices example your car buys oil when your tank needs fuel, your fridge can get milk and detergent can be bought by machines. You do not need to send out physical currency it’s just your devices that can be made integrated with the Internet system so that they are empowered to directly buy things not from the traditional money but through cryptocurrency. This can, however, hold true for small screen personalize uses but when we talk about large-scale industrial performance deregulation from a centralized authority becomes the priority.
This can move forward the use of cryptocurrency and larger screens and the hopes of such currencies moving forward increase. However, when we talk about the combination of IoT and currencies the bigger issue is the volume that is created within the financial system or whether this system is ready to accept these device changes at the macro as well as micro-level.
Many other disruptive technologies like Big Data and Cloud Computing have been benefited by the use of IoT to overcome its limitation since starting and similarly blockchain can be the next technology that can solve a true fall by the use of IoT. As the organization of electronic and wireless communication is the rapid, it is basically advancing on interdependent Web of purposes.
Benefit of applying IoT to blockchain or vice versa should be analyzed carefully and with questions and as a cheque relates with caution as it regulates and dependent on the financial system there are few challenges that the combination of both these Khan says I need to be addressed to stop the feasibility of using IoT devices and blockchains interchangeably with each other’s need to be checked up on also. Blockchains have the power to realize the whole IoT system through the adoption of the regulation, the inclusion of blockchain, and making IoT as a part of infrastructure. This adoption would speed up the interaction between not only these technologies but individual entities and companies. But on the contrary one main concern which remains suspended for the use of cryptocurrency is the volatility has due to the unfair advantages people are taking regarding the situations. The integration of Fire TV and Blockchain great to have the capability of increasing the use of cryptocurrencies at the same level as we do use our money today.