Blockchain-Based Internet of Things …

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4.4

Hybrid Blockchain

A hybrid blockchain is a network that combines public and private ledgers. It

combines the functionality of both types of blockchains, allowing for the provi-

sion of both a private permission-based and a public permission-less system. Users

may control who has access to the data stored on the Blockchain in such a hybrid

network. Only a subset of the data or documents on the Blockchain may be made

public, while the remainder is kept secure on the private network [4].

The hybrid blockchain system is scalable, allowing users to enter a private

blockchain while simultaneously accessing numerous public blockchains. Typically,

a transaction within a private network of a hybrid blockchain is evaluated by

other members of that network. However, users may also submit it to the public

Blockchain for approval. Public blockchains enhance hashing and increase the

number of nodes available for authentication. This would increase the blockchain

network’s dependability and transparency. Dragonchain frequently makes use of

hybrid blockchains [27].

5

Opportunities for Blockchain Technology in IoT

Blockchain has been applied for different internet-based services in banking, finan-

cial, healthcare, Identity management, Insurance, Music, real estate, supply chain,

voting & other allied services and has achieved multiple benefits. Intelligent contract

services help to carry out financial transactions without an intermediary. It has the

ability to automatically handle shares, cash, settlements, and claims [4, 12, 27]. Few

use cases and opportunities of blockchain applications are as follows.

5.1

In Banking Sector

The fields in which Blockchain can be used in the banking sector are capital market

transactions, monitoring of consortium accounts, cross-border transfers, FX trading,

trade finance, etc.

Capital market transactions: Different parties such as exchanges, central counter-

parties, Central Securities Depositories (CSDs), brokers, custodians, and investment

managers are involved in Stock Market Dealing, and they must maintain their ledgers

based on the messages exchanged between them. The ledgers must be up-to-date in

order to complete the transaction and require intermediate beneficiaries for cash

management. It could lead to delay and require potential costs for the final settle-

ment. Blockchain plays a vital role in each and every stage of the exchange, such as

pre-trade and post-trade. The Blockchain system makes it simpler to verify Know

Your Customer (KYC) and repeatedly prevents several numbers of similar checks.