Blockchain can be used for many things… Blockchain technology has the potential to reduce costs, improve product offerings and increase speed for banks, according to a recent report from the Euro Banking Association (EBA). If you’d like a nice overview of blockchains and bitcoin, there’s one on Khan Academy.
Blockchains can be used to keep track of transfers and to ensure that the data collected has gone through a verification process. One of the properties is that the blockchain is a globally distributed database that anyone can add to, but whose history no-one can modify.
This feature could be very valuable for IoT applications where there is data coming in that you would like to both verify and keep for predictive analytics… IBM has been looking at this for a while, since one of the security concerns has been that nefarious data sources could either modify the incoming data or change the data history. Blockchain techniques could make that almost impossible. One of the issues when you have an abundance of data coming into the enterprise is that the length of the chain could expand to the point where maintaining the chain costs more than the data is worth so the processing of the chain would probably need to be outside the IoT sensors/devices themselves. The devices would need to have their own private/public keys though if the validation goes all the way to the edge.
A simple way to think of the block chain for data transactions…
Where each block likely contains:
- A timestamp
- The hash of the previous block as a reference (except the Genesis Block)
- A pointer to the data transactions hash
- The block’s own hash
- The Merkle Root – a hash of all the hashes in the block
This is definitely quite a bit of security but when needed it should be sufficient…