Bitcoins as an Implementation of Blockchain and Its Convergence with Internet of Things

Abstract

The digital signatures principle can be used for developing an electronic cash-based transaction model only after solving for the “Double spending” problem associated with the use of digital coins as a payment method. This can be achieved by the help of a central trusted third party. However, the real benefit of the blockchain technology lies in making it possible without the need of any central trusted third party. Bitcoin as an application of blockchain proposes an open distributed ledger system synchronized by the help of miner nodes. Converging the applications of blockchains with Internet of Things can develop a new methodology of machine-tomachine communications and autonomous transactions.