Blockchain and IoT: how "crypto" Likely to go to Herald Industry 4.0
While most people only started learning about “blockchain” because of Bitcoin, its roots and applications go much deeper than that.
Blockchain is a technology in itself. It powers Bitcoin, and is essentially the reason why *so many* new ICOs have flooded the market: setting up an “ICO” is ridiculously easy (with no barriers to entry).
The goal of the system is to create a decentralized database, which essentially means that instead of relying on “Google” or “Microsoft” to store data, a network of computers (usually run by individual people) can act on it. way than a larger company.
To understand the implications of this (and therefore where the technology could take the industry), you need to look at how the system works at a fundamental level.
Created in 2008 (1 year before Bitcoin), it is an open source software solution. This means that its source code can be downloaded and edited by anyone. However, it should be noted that the central “repository” can only be modified by particular individuals (so code “development” is not a free-for-all basically).
The system works with what is known as a merkle tree, a type of data graph that was created to provide access to versioned data to computer systems.
Merkle trees have been used to great effect in various other systems; most notably “GIT” (source code management software). Without getting too technical, it basically stores a “version” of a data set. This version is numbered and therefore can be uploaded any time a user wishes to revert to the previous version. In the case of software development, it means that a set of source code can be updated on multiple systems.
The way it works, which is to store a huge “archive” with updates from a central data set, is basically what powers “Bitcoin” and all other “crypto” systems. The term “crypto” simply means “cryptographic,” which is the technical term for “encryption.”
Regardless of its core operation, the true benefit of broader “on-chain” adoption is almost certainly the “paradigm” it provides to the industry.
There has been an idea called “Industry 4.0” doing the rounds for several decades. Often confused with the “Internet of Things”, the idea is that a new layer of “autonomous” machinery could be introduced to create even more effective manufacturing, distribution and delivery techniques for businesses and consumers. While this has often been mentioned, it has never actually been adopted.
Many experts are now looking at technology as a way to facilitate this change. The reason is that the interesting thing about “crypto” is that, as Ethereum especially demonstrates, the various systems built on top of it can be programmed to work with a layer of logic.
This logic is really what IoT/Industry 4.0 has missed so far, and why many look to “blockchain” (or an equivalent) to provide an entry-level standard for new ideas moving forward. This standard will give companies the ability to create “decentralized” applications that empower intelligent machinery to create more flexible and effective manufacturing processes.
