IBM Sees Bitcoin and Blockchain Technology in Internet of Things
IBM, one of the leaders in the upcoming ‘Internet of Things’ era where most devices of everyday use would be connected to a cloud, and be able to communicate with one another, sees the future of this communication in blockchain technology, first used in Bitcoin. IBM has invested significant resources into the internet of things paradigm, and sees the blockchain technology solving some core issues, helping the ideas go more mainstream. According to IBM,
The Internet of Things represents an evolution in which objects are capable of interacting with other objects. Hospitals can monitor and regulate pacemakers long distance, factories can automatically address production line issues and hotels can adjust temperature and lighting according to a guest’s preferences, to name just a few examples.
The traditional model of internet of things involves a centralized data center that gathers all the information collected through the various connected devices. However, this has a serious drawback in terms of lifecycle costs and revenue. The company that makes a smart LED needs to consider the costs of managing the data collected from this device for an average of over 20 years, whereas the revenue is usually a one-time event when the consumer buys the light bulb. This makes the internet of things limited in scope only to devices that can be sold a high premium or that aren’t used often.
This post was published at Coin Setter on 4 Sep 2014.