Will the use of blockchain technology in the Internet of Things bring more or less freedom?

In a South Park episode titled 'Crème Fraîche', which satirizes the rise of cooking and eating shows, Randy begins cooking and throwing coins into crème fraîche, of all things he has created.

Blockchain is French whipped cream, whether you like it or not. Everyone is looking for an application or two for the technology behind Bitcoin and trying to solve any problem using open ledger technology. While innovation and creativity are not necessarily bad things, too much of a good thing can be a bad thing.

There are many people playing with blockchain now, including securities companies, big banks, governments, individuals, stock exchanges and others. All of these people realize that blockchain's ability to process transactions without a core framework is important in the future.

The problem may be that it is free for everyone.

Identity crisis

Digitally verifiable IDs are the solution to many of society’s problems. They claim that having a unique ID can help narrow down the population of people with benefits and give them access to a system where their needs can be met.

The Indian government is currently implementing an ID scheme called Aadhar, which roughly translates to "Aadhar" in English. The success of the scheme has raised concerns about the privacy and security of the data collected.

Personally, I have avoided the government mandate for biometric identity management through the core identification authority as it is the same case as Aadhar. Because I am really worried about this data getting lost or this data falling into the “wrong hands”.

There is an alternative method of creating digitally verified ID documents, and it involves the use of blockchain. In its Sustainable Development Agenda, the United Nations said they want to provide legal identity for all people by 2030, including birth registration.

The United Nations is considering using blockchain methods and has met with industry insiders to this effect. However, this drives the need for everyone to have an identity and raises concerns for those of us who want to be free from the future where we are forced to prove we are who we are to those at the top of the power hierarchy.

However, the advantages seem to outweigh the disadvantages at the moment. EC District CEO Alex Matanovic responded to the question of whether digital identity will be based on a solution that runs on blockchain: "I definitely think it's something that will happen sooner or later. I still don't know what it will look like, but I'm looking forward to it. I believe that this solution will solve many of the problems we have now, but also create some new problems that we will have to solve in the next few years."

Internet of Things

It has already begun, both devices are talking to each other. The refrigerator and the oven talk to each other for the improvement of human life or at least that is the idea.

However, the central question of development is who controls the flow of data and who has the right to access all the information generated.

We are concerned that core authorities will abuse this data. Blockchain can indeed help decentralize information, but at the same time, issues around data openness are beginning to occur.

The fact is that while the Bitcoin blockchain has been around for some time now, there are still questions about how to efficiently and securely export it to global blockchain transactions.

Fully digitally encrypted

Many central banks are experimenting with blockchain technology. We have already attracted the interest of the Reserve Bank of India in blockchain, and there is also the Reserve Bank of the Netherlands working in this direction.

In the future, all money will be cryptocurrency, and all of this will be based on blockchain technology, which of course will carry certain risks.

One of the biggest issues is that every transaction will or could be in the open field. Even if it were not possible, authorities would still be able to track every transaction and know exactly who spent how much. While this has the potential benefit of deterring crime, it would also be a massive violation of personal privacy.

David V Duccini, executive director of Strength in Numbers Fundation, said: "The transactions themselves are essentially anonymous chains and there is no holding of acquisitions. What we do know is that two or more parties are trading and the information is certainly valuable. If the wallet identity of, say, a drug or illicit drug dealer is exposed, then all transactions will be affected, his actual identity, the user and his supplier may also be affected. If you meet him in a coffee shop and buy a phone from a local exchange (like Craigslist in the United States), the unsuspecting victim may be suspected."

Finally, this double-edged sword

Blockchain is an amazing technology that has the potential to be used in a variety of ways, but ultimately there are pros and cons. While open ledger systems offer a great deal of power to individuals, they also expose disturbing potential.

The trick is in blockchain implementation and concerns about anonymity, security and flawless execution must be addressed in the real world. This means we need scrutiny, as well as trials, to ensure things go well.

A centralized system poses no less risk than a distributed system. Ultimately, an approach must be taken that takes into account both the security of the system and the security of the individual end user.
The blockchain era has arrived, and it is just a matter of time before we witness it.