Blockchain-Based Internet of Things …

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Bitcoin and BitTorrent came along. The concept is quite simple. You have a central-

ized organization that has processed all the information, and you have to deal with

this entity alone in order to access whatever information you need. An example of a

centralized system is the banks. All of your money is deposited with them, and the

only way you can pay anyone is by going through the bank. However, for several

years, centralized systems have served us well, but they have many disadvantages.

First, since it is centralized, all the information is collected in one location. For poten-

tial hackers, this makes them simple target spots. Second, if a software update were

to go through the centralized system, it would interrupt the whole system. Third,

when, for an unknown reason, the centralized body somehow shuts down. Nobody

would then be able to access the data they possess, where the information is not

stored by one single entity in a decentralized system such as the Blockchain. Instead,

everyone on the network owns this data. Therefore, bitcoin could be the solution for

the discussed banking problems [10].

Transparency: In the Blockchain, one of the most interesting and misun-

derstood concepts is “transparency”. Here through complex cryptography, a

person’s identity is concealed and identified only by their public address. So

if you were to look up the transaction history of an entity, instead of seeing

“2NA3cgsKPRAxzy8pvEMFpvtL4PacWr6MYK sent 5 BTC”, you would not see

“Rao sent 5 BTC”. So while the individual’s real identity is safe, you can still see

all the transactions conducted via their public address. Never before has this degree

of accountability existed within the financial sector. It adds that the degree of trans-

parency that some of these largest organizations need is extra and much needed [30].

Immutability: In the context of the Blockchain, immutability means that it cannot

be tampered with after anything has been entered into the Blockchain. Since the

Blockchain is a linked list containing information and a hash pointer pointing to its

previous block, thus forming a chain, that approach makes blockchains so incredibly

accurate and revolutionary [5].

No expense of a transaction: Although an infrastructure cost is associated, a

blockchain carries no transaction cost. For example, the Bitcoin concept not only

can transfer and store money, but it can also substitute all procedures and business

models that rely on charging a fee for a transaction or any other operation charges

between two parties [17].

Abstraction: Abstraction plays a vital role in the Blockchain. On top of the

Blockchain, it provides application interfaces that offer a platform to use Blockchain

without having detailed knowledge of the blockchain technique. You can install

this app on your computer or mobile device, or it can be hosted on a third-party

website. For example, Bitcoin wallet software creates and stores private and public

keys that enable users to retain control of the bitcoins. The application layer includes

an understandable interface that allows users to keep track of their transactions [3].