Internet of Things and Blockchain

Kevin Ashton, a known British hi-tech entrepreneur which created a standard system for RFID (radio-frequency identification), coined the phrase “the Internet of Things” in 1995.

The IoT (Internet of Things) concept refers to billions of devices (sensors wired to lighting, heating and air conditioning, smartphones and others) around the global world that are connected to the internet, collecting and sending data to be shared.

This revolution is based on an intelligent infrastructure connecting every device, every home, every vehicle (planes, cars and others) and every company to an intelligent network, which operates without human intervention. It has been possible thanks to the production of cheap processors and wireless networks and also to the development of the IPv6 protocol, which provides around 340 sextillions addresses.

In my opinion, there is an important question unsolved so far: If it is estimated that there will be 30 billion connected devices by 2020, how are we going  to guarantee the right to privacy of people?

At this point we could think that blockchain technology associated with the huge amount of data produced by connected devices could solve the problem. Blockchain could set up shared trust in the information created and interchanged by the connected devices.

But the challenge of using blockchain associated with IoT to guarantee our privacy, still has to solve the possibility of making hundreds of thousands of transactions per second.

For instance, the Ethereum network is capable of performing 6 transactions per second, which is still far from the desired solution.

Plasma in this regard the solution proposed by the physicist Joseph Poon and the co-founder of Ethereum Vitalik Buterin, in which scalability is achieved under the assumption that the user does not have to verify every transaction that is sent to the system.

On the other hand, it is said that the young generation, that has grown up interconnected in social networks, that talks in them constantly and about every moment of their lives, may be less interested in privacy and more interested in transparency.

Jeremy Rifkin, sociologist and economist author of best-selling books such as ‘Zero Cost Society’,  says on it:

“The connection between all people and all things in a global neuronetwork will take humanity from the age of privacy, […], and will introduce it into the age of transparency. Although now we see privacy as a fundamental right, the truth is that it never had been. Throughout the history of humanity prior to the Modern Age, a person’s life was more or less public, as is the case with almost all social species. Not so long ago, in the sixteenth century, people who always wandered alone during the day or hiding at night were considered possessed. […]

People did not begin to confine themselves behind a closed door until the beginning of the capitalist era. Bourgeois life was a private matter.”

Nuria de las Heras

Nuria de las Heras

Databases & Blockchain Specialist Living the change of economic, social and personal paradigm.