- How Is IOT Impacting Cryptocurrency in Modern Times?
Just now·4 min read
Ever wondered what would happen if IOT and cryptocurrencies were combined together? Let’s explore the answer!
What Is Cryptocurrency?
Cryptocurrency is an encrypted decentralized currency that’s being used around the world in digital form. The technology used to run this currency around goes by the name “Blockchain”. It’s a fact that the entire concept of this decentralized currency is a bit too complex and complicated but the results have always been crystal clear which is why it’s hyped around the globe.
We have all heard stories about how people used Bitcoin to make billions overnight. Those stories are true but before you expect a lot out of this business, it’s important that you have extensive knowledge of cryptocurrencies, a team working on those currencies with you, a good network of computer systems, and of course, an expensive server.
The upside of cryptocurrency is that it can be traded easily and freely because it’s not regulated by any financial institute or any central authority.
Combining IOT With Cryptocurrency
Combining the two most powerful innovations of technology together will surely bring you some mind-blowing results. When it comes to Internet-Of-Things and cryptocurrencies like Bitcoin, there’s a lot of potentials. Theoretically, cryptocurrencies can be used one way or the other to power the IOT. For example, if you have a Wi-Fi-operated washing machine, instead of using a credit card, you can use your digital currency to buy a new detergent whenever it’s required.
The one thing common between these two technologies is that they provide high-security levels and they both protect data in ways that no other security measures can.
Here’s an example of what we could do using IOT and cryptocurrency together;
-Using IOT Devices To Make Purchases
IOT devices can be used to buy products in need. For example, when the fridge is empty, these devices can automatically buy food. You won’t require any physical currency here, instead, you’ll be using your digital currency to make transactions. Here, it would be of utmost importance to maintain Point Of Sales all the time and the entire process of trading and purchasing will have to be optimized in the best way possible. For the currency to grow sustainably, it’s important that more people know and use such devices.
IoT And Crypto’s Go Hand In Hand
IOT is basically all about a huge number of lightweight devices. On the other hand, a decentralized network of software is used to power Blockchain. For this software to run seamlessly, IOT devices can make great hosts just like the Bitcoin wallet. As of now, we see these IOT devices being controlled by highly secured centralized, cloud based-servers. But in the future, it’s expected that these devices will have control of their own under a decentralized network.
What The Future Holds?
Big changes are on the horizon right now and they sure come with consequences. As of now, it’s unclear how the IOT and cryptocurrency technology will change in the future especially when Artificial Intelligence and Machine Learning are on the rise. It’s going to be one big war between these technologies but for now, it’s expected that cryptocurrencies will soon be integrated into our personal lives and societies.
IOT Botnets Influencing Cryptocurrencies
When discussing IOT, we can’t just overlook the fact that botnets are serving as big game changers in the modern world. Cryptocurrency is mostly about mining and for that hashing power is required. The formula here is that the bigger your computer and the bigger its processor is, the more hashing power you’ll have to mine your digital currencies. This ultimately leads you to acuminate more units. All of this can be done with the help of botnets!
Botnets can destabilize the cryptocurrency economy and create some big-time risks. The concept here is that the more people mining a currency, the higher its value is. For example, Bitcoin already has a lot of mining resources but the smaller currencies will be affected due to botnets. People will require relatively lower processing power to mine small currencies. This entire plan can change the value of cryptocurrencies dramatically and hence destabilize the digital currency economy.
All of what we’ve talked about today is just the tip of the iceberg. The entire IOT and cryptocurrency relation is a lot more complex than we think. We yet have to take the laws and regulations under consideration before putting in a final word about the impact of one super-technology on another. What we do know now is that there’s going to be an exciting turn of events in the future when industries start integrating these two technologies together.
- Date of publication:
- Thu, 06/10/2021 - 16:04
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