Before diving into real use cases of blockchain in IoT and vice versa, let's briefly outline the definitions of these two terms.
Thus, as comes from its name, a blockchain is a chain of blocks, each of which is marked by the time of its creation, by a link to the previous block, and is stored on a separate physical medium. This allows for implementing a serverless architecture. On top of that, the application of modern encryption algorithms allows you to protect individual records belonging to a specific person from copying/editing by other users of the centralized system.
A SYSTEM THAT HAS BLOCKCHAIN IN ITS CORE WORKS IN THE FOLLOWING MANNER:
- an initial block with no previous block records is created;
- every subsequent block holds info about the previous block, about the type of data stored, and about the title for the generation of another block;
- despite the fact that all system users can see a number of all existing blocks, they can only access blocks they created personally.