These records can’t be changed as the model is distributed: there isn’t a central authority but there also isn’t any involved party (those doing transactions) that can change information. Blockchain relies on peer-to-peer network principles whereby each encrypted block in the chain is linked to the next.
Why the peer-to-peer network and absence of a central authority?
Because blockchain was precisely ‘invented’ to solve the challenge of the lack of a central authority in cryptocurrency Bitcoin.
The attention for blockchain from a security and secure transaction perspective is, among others, related to the fact that blockchain is a cryptographic ledger whereby the chain consists of encrypted blocks and after the validation of the transaction (peer-to-peer and across the network)it is added as a block to the chain as a permanent and unchangeable record of transaction in digital ecosystems with heavy transaction processing whereby transactions, data and speed increase and meet the need for a layer of trust.
Blockchain in IoT
- There are already blockchain applications in the context of the Internet of Things and some vendors have specific solutions to enable the use of blockchain for IoT to, among others increase trust, save costs and speed up transactions.
- IBM is a frontrunner here, although several vendor and industry initiatives have been launched with new solutions and actual deployments.