It is a little-considered fact that almost every development on the Blockchain network hinges on the Internet of Things (IoT). The IoT creates an environment such as a smart home or office where various devices equipped with sensors, which are closely interconnected using a private blockchain, can be configured to operate more safely and reliably in accordance with each other’s conditions. A secure private blockchain can be configured to perform not only user authentication but also mutual authentication between devices. This will help in generating and securely recording operation details and scenario-based IoT contracts.
Hdac creates a reliable ecosystem where unlimited micropayment services run securely across the general protocol space through multiple private, purpose-built objective blockchain. The system also performs the secondary function of configuring the private and public blockchain so they are infinitely interconnected. It is only practical to use private blockchain if they are able to interact with an operational public blockchain. This is where the Hdac protocol comes in. The platform and cryptocurrency-enabled public blockchain can be effectively used with multiple private blockchains. This makes an unlimited number of micropayments possible beyond the P2P settlement of the public blockchain with the Hdac blockchain-by-use. By using a controlled private blockchain network, they can securely implement Machine Currency for mutual contracts and payment between IoT devices, thereby enabling more accessible, reliable, and secure consumption and payment processes.
Integrating Public and Private Blockchain
Private Blockchain networks can also be called permissioned blockchain and it is a type of blockchain with limited access privileges. By configuration, private blockchain networks cannot be accessed by every node freely unlike a public blockchain. To access a private blockchain an authenticated bridge node or a relaying intermediary is required from a public blockchain. This bridge cannot be hacked or manipulated as each node must have all of the configuration information of that private blockchain. This gives the right person the same level of access as its private equivalent whilst allowing them to post to the public chain. Consequently, the private blockchain can only be accessed when the administrator of the private blockchain grants special access through pre-authentication and registration.
Also, the administrator can grant a separate privilege in the case of a specific transaction, and send it to the node or device. To have access to a private blockchain, all users must be registered using the same authentication with that private blockchain. During financial transactions between public Bitcoin blockchain and Hdac private blockchain tokens all transaction values remain constant as Hdac only provides a secure and easy to use platform. All tokens generated can be configured for various uses, whether within a specific enterprise or for a specific purpose. For this to work, the exchange ratio between the two currencies can be determined/exchanged through the internal exchange platform.
Is Hdac Truly Needed?
To effectively deal with transactions generated by large-scale IoT devices, the Hdac team have investigated the IOTA’s transaction processing structure/speed and Ethereum’s next generation network. During their network tests, the team discovered that when faced with large transactions of tens of thousands, to hundreds of thousands of transactions per second, only a limited number of these transactions were processed. The number of transactions being processed at any one moment depended on the physical network speed/physical computing performance. They came to the conclusion that the best solution for managing high levels of instantaneous transactions is by processing with multiple, separate private blockchain and integrating this information through a separate dedicated root blockchain.
So far, public blockchain in the global environment have very limited transaction speeds. Bitcoin boasts of about 2 tx/sec and Ethereum rates higher with about 5 tx/sec, these numbers can still be affected by network problems and block synchronization problems for many nodes. Hdac plans to solve this problem by developing a large transaction processing blockchain using a network of blockchain of a hierarchical or distributed structure composed of multiple private blockchains for each purpose. The system is currently ongoing and promises to continue researching and working to implement an entire blockchain ecosystem by sharing it online as the results are available.