Transitioning from Internet of Information to Internet of Things and now onto the Internet of VALUE!

1. Next Wave of Disruptive Technology - Bitcoin & The Blockchain
Transitioning from Internet of Information to Internet of Things and now onto the
Internet of VALUE!
Bitcoin
The Worlds 1st
Decentralized Digital Currency
Bitcoin is a cryptocurrency (a digital currency in which encryption techniques are used to regulate the
generation of units of currency and verify the transfer of funds, operating independently of
intermediaries) and a digital payment system invented by an unknown programmer, or a group of
programmers, under the name Satoshi Nakamoto.It was released as open-source software in 2009.
Block Chain
The underlying technology of digital currency – the Bitcoin
The block chain is a distributed database. The Block Chain system operates on the seamless peer-to-peer
network, where transactions take place between users directly, without an intermediary. These transactions are
verified by network nodes and recorded in a public distributed ledger called a block chain. Since the system works
without a central repository or single administrator, Bitcoin is called the first decentralized digital currency.
Bitcoin can be exchanged for other currencies, products, and services in legal or illegal markets.
The blockchain is a public ledger that records bitcoin transactions without any trusted central authority.
The maintenance of the block chain is performed by a network of communicating nodes running bitcoin
software. Any transactions between payer X sending Y bitcoins to payee Z are immediately broadcast to
across the blockchain network using readily available software applications. Network nodes can validate
transactions, they may add them to their copy of the ledger, and then broadcast these ledger additions
to other nodes.
Approximately six times per hour, a new group of accepted transactions (a block) is created and added
to the blockchain and is published to all nodes. This allows bitcoin software to determine when a
particular bitcoin amount has been spent, which is necessary in order to prevent double-spending in an
environment without central oversight.

2. Bitcoin and Blockchain hold vast promise for every business and society at large.
Past few years we have the internet for information. Over this network when we are sending an email
or a PowerPoint file or a file then we are actually not sending the original, we share a copy.
But when it comes to assets things like money, financial assets like stocks and bonds, and other assets
we have to rely on big intermediaries and middlemen like banks, government, credit card companies
and many others to establish the trustworthiness. These intermediaries perform all the functions from
authentication, identification of people, to clearing, settling and record keeping.
With the emergence of new technologies and BIG DATA on move, the SECURITY is fast emerging as one
of the major areas of concern across the globe.
The centralized systems are prone to hacking and we have witnessed to such crimes in the past.
Financial Intermediaries and other agencies operate on centralized database mechanism and that means
they can be hacked, and are thus increasingly more vulnerable.
Bitcoin and Blockchain have the potential of transforming internet of information to internet of value
that is created and distributed globally running on millions of computers and available to everybody
where every kind of asset could be stored, moved, transacted, exchanged and managed, all without
any centralized intermediaries.
So for the first time with bitcoin people everywhere can trust each other and transact peer to peer and
this trust is established, not by intermediaries, but by collaboration and by cryptography "
How does this thing work?
Digital assets are not stored in a central place rather are distributed across a global ledger, using the
highest level of cryptography. When a transaction is conducted, it's posted globally, across millions and
millions of computers.
Across this global distributed network there is a group of people called "miners” also referred as Bitcoin
miners. These miners do a lot of work. They have massive computing power. At every 10 minutes, a
block gets created that has all the transactions from the previous 10 minutes. The first miner to find out
the truth and to validate the block is rewarded in digital currency, in the case of the Bitcoin blockchain,
with Bitcoin. Once the block is validated by a bitcoin miner them that block gets linked to the previous
block and the previous block to create a chain of blocks. In other words, everyone in the Bitcoin network
is time-stamped, kind of seal.
So if a hacker wants to hack a block then he has to hack not only a particular block but all the preceding
blocks that are the entire history of commerce on that blockchain which is located not just on one

3. computer but across millions of computers and that makes blockchain more secure. So the Bitcoin
blockchain is not just one. There are many.
Bitcoin and Blockchain creating the Intenet of Value.
1. Transferring of Funds
It can take a second for an email to go around the world, but it can take days or weeks for
money to move through the banking system across a city. And they take a big piece of the
action 10 to 20 percent just to send money to another country.
2. Cocreation by aggregation of Services
3. Data Monetization
4. Content Selling (Intellectual Property Rights)
With the transition from Internet of Information to Internet of things (IoT) to Internet of Value the
technological transformation is amazing and is going to disrupt many industries.
CA Vinod Kr Sharma