One of the most important technologies of today is the internet of things (IoT). While people can recognize that nearly every household electronic is gaining the capacity to connect to the internet, the IoT ecosystem encompasses much more than consumer goods. Businesses are using IoT sensors to acquire valuable data about their operations, supply chains, facilities, etc., and governments are using them to make cities safer. Thus, it’s no surprise that the IoT market is expected to surpass $500 billion by just 2021.
The internet of things isn’t just growing, it’s also evolving. The number of devices connected to the internet of things is increasing, and these devices are sharing data with each other, enabling the devices to operate better on the network. However, the sharing of data has not reached its full potential and thus the evolution of all things IoT can still be further accelerated. A key hinderance is that, since data is the oil of the digital age, the owners of IoT devices are unwilling to share data for free. Data is valuable and, understandably, those who possess it seek to acquire the fair value for it. The trade of data, though, is slow, inefficient, and marred by the expense of various middleman agencies; this is where blockchain technology can play a pivotal role in the advancement of the internet of things.
By layering the data trade of IoT devices upon a blockchain, tens of billions of IoT devices will be able to abide under the terms of a smart contract and automatically swap relevant data with its fair value. While blockchain technology has the potential to bring an incredible amount of efficiency to the IoT market, the throughput demand of tens of billions of IoT devices is exponentially higher than the maximum capacity of any leading blockchain. The blockchain and the internet of things are cutting-edge technologies of today but for them to be utilized in cohesion, a blockchain must be capable of handling linear scalability. To address this problem, Elrond Network, a blockchain that has been in development for more than one and a half years, utilizes Adaptive State Sharding to deliver a blockchain infrastructure that possesses an unprecedented degree of scalability.
A Blockchain that can handle the Internet of Things
Elrond Network can currently support more than 3,750 transactions per second per shard. This isn’t a theoretical figure, but the delivered performance of the live testnet blockchain. The unique aspect of Elrond Network is that, through Adaptive State Sharding, it can integrate more shards as network demand grows.
Adaptive State Sharding propagates network resource demands to a capacity low enough that even a household laptop can become an active node on the network. These nodes can then be activated in groups, forming new shards capable of processing additional transactions. The network’s linear scalability allows resource supply to match throughput demand. Were a growing number of IoT devices to transact on Elrond Network, the network rewards will increase. As more nodes join the network to benefit from the available rewards, new shards will be activated, allowing the Elrond blockchain to handle a greater number of transactions. Thus, Elrond Network is the first blockchain to possess the technological infrastructure to adjust network throughput in real-time.
Additionally, the Elrond Virtual Machine is compliant with the Ethereum Virtual Machine. This allows the existing IoT solutions that have been developed on Ethereum to be extended on the blockchain for scalability needs. With the aid of the SPOS consensus mechanism, Elrond Network’s scalable nature does not compromise network security. Additionally, the smart contracts operating on the network will be significantly more bug-free as they are formally verified at the point of creation. This will ensure that the automation of transactions between IoT devices will be less prone to bugs or external attacks.
Through the Secure Proof of Stake (SPOS) consensus mechanism, only nodes that have a sufficient stake and network reputation can receive the role of block proposer or validator. Each round, a group of nodes is randomly selected and one of them becomes the block proposer while the others receive the role of validator. The source of randomness is derived from a completely new blockchain for each shard. Each leader signs with its own private key, the previous randomness source; thus, the network avoids all possibilities of bias. Moreover, a block is produced only when 2/3 + 1 validators aggregate a signature to approve a proposed block. Thus, the network is able to maintain practical Byzantine Fault Tolerance (pBFT).
The internet of things and blockchain are two of the most important technologies of today and their utility will only increase in the future. Blockchain technology holds the key to greatly improving the data and value transfer that takes place between IoT devices, and Elrond Network is the blockchain that possesses the throughput capacity needed to support the massive volume of interactions that take place between IoT devices. The IoT market is already a multi-hundred billion dollar market and Elrond Network stands at the forefront of delivering blockchain-enabled solutions in this sector.
For more information visit https://elrond.com/