To read Part 1 of the series, click here.
To read Part 2 of the series, click here.
Blockchain in the IoT world
A blockchain implementation in the IoT world is probably not best served by a public blockchain based on Proof of Work. The inefficient consumption, not to say waste, of energy to generate Proof of Work is pretty much orthogonal with the premise of IoT devices, which have to consume less energy and are in some cases battery powered. POW comes at a severe cost and it does not add much value to the use case of a distributed ledger used within a consortium of partners. Hence the implementation based on Proof of Stake provides a better starting point for any attempt to chainify an IoT ecosystem where a consortium of partners is adopting a new business application. The security would then be based on a limited number of centralized nodes or cloud servers and by design it does not rely on independence of central trust as do the public cryptocurrencies. Most blockchain use cases I came across start from the assumption that there is a set of parties or a consortium of partners that have a common interest in a specific ledger, and while it might serve the larger public in terms of better quality and faster service, the consumer is not directly concerned with or interested in the ledger itself, only the parties who provide the service and rely on the ledger for remuneration will be.