A Study on Privacy- Preserving Models Using Blockchain Technology for loT
INTRODUCTION
Transactions cannot be costly and time-consuming. A report from Nielsen estimates that in 2016, the losses topped over $24.71 billion of credit card transactions, and the merchants were still responsible for 28% of those losses, making it a huge and very expensive way of managing their transactions. But based on blockchain technology, these transactions can happen much faster today, and on ramps and off ramps from the Bitcoin or the cryptocurrency to the real world are possible. So for example, you can buy an Amazon gift card or a Starbucks gift card with Bitcoin today. Another area we will see blockchain probably sooner than later is human resources. With blockchain technology, we can track verified credentials, like course completion, awards won, and training certification in an immutable way.
The impact of blockchain technology has on consumers, business models, marketing, and advertising [42]. Now-a-days, everyone can do transaction to every others, and add billions of people to the marketplace, where transactions can be any size. They can be cheap, and the charges imposed on performing such transactions can become zero. And they can be fast, where they are immutable, which means permanent with in-records. It allows new businesses marketing and advertisement opportunities. And it impacts every transaction step, from compliance and supply chain to advertisement, marketing, and sales. Blockchain technology [40,41] is revolutionizing the world economy [45]. Trust is established through peer-to-peer mass collaborations and sophisticated computer code rather than through a powerful central institution, like a bank or a government. Changing transactions and interactions and finance, business, international collaborations, and the government’s tool chest are enabled through blockchain technology.
Social media can enable people to manage their identity in the privacy of their data instead of having to rely on centralized entities, such as Google, Facebook, and Twitter when we combine them with blockchain technology. And that will move us from a centralized to decentralized social media, where tracking of customer behavior across websites becomes really hard. The move to blockchain-based social networks that preserve anonymity like Mastodon Systemic, decentralized versions basically of Twitter and Reddit, really change and show what’s possible in a world of disintermediation of Twitter and Facebook if they don’t disseminate themself first. The data ownership is going to change. Customers’ data will belong to organizations locked away in corporate databases today.
Blockchain offers a new opportunity to chain our customers to our brands and marketing. Loyalty programs have been a huge challenge to establish; a lot of people are dissatisfied. But blockchain technology creates the possibility of microtransaction very, very cost-efficient, and therefore, creates new opportunities, collect loyalty points, bringing different companies, different brands together, and really solving a lot of the problems loyalty programs see today and makes them possible even on a local or even on a regional level. In the near term, the transaction cost will get lower.
The increasing number of companies that accept cryptocurrency as payment as well as opportunity to use them at a lower cost. Japan is one of the good examples in 2017. They have yet estimated that 300,000 stores already accept Bitcoin by the end of the year 2017. There are more than 46,000 merchants worldwide that already accept Bitcoin via Coinbase, the American most popular on-ramp for the cryptocurrencies. And even the CEO of AirBnB branches said it was the most demanded feature from their community, that Bitcoin is one of the payments should be accepted.
The one area of marketing where we will see blockchain technology’s impact quickly is in advertising. The fundamental changes in it through blockchain technology is much earlier. Forrester analysts say that publishers who remove mediators can increase the cost per thousand impressions from one to five dollars for themselves. Today, we have a lack of transparency between you and your intended audiences. We now have this enough visibility and how advertising is performing. Blockchain, therefore, is one of the first key-technology that can transform advertising here. In which, A customized cryptographic proof of their identity is created to know the customer interest in a related product, and they respond in time. It will probably create a marketplace, where each person will set a price for their guaranteed attention, and advertisers then will choose to pay or not to pay that individual’s cost to deliver their message. If the advertisers decide they will pay, they get a response that is correct from that particular individual that we are trying to target.
The benefits of having a currency are outweighing the risks. Bitcoin, as the gold standard of cryptocurrency, started to have the first lousy reputation. But, if we begin to peel back the onion and look a little closer, every transaction is completely transparent. So governments start to see the upside of using Bitcoin and supporting the Bitcoin ecosystem. Criminals will have moved from the Bitcoin usage to other cryptocurrencies, that are providing a higher degree of anonymity. Currencies, like C-Cash or Monero, give much higher privacy protection than Bitcoin. From an economist perspective, every restriction and force inefficiency comes with a cost.
To identify industry groups and understand the appeal of blockchain technology for particular interest communities. It will help to leverage resources and best practices available from any industry to envision a new marketing approach for your targeted communities. The benefits for groups to use specific blockchain technologies are tremendous, and just starting to be explored.
The first community that formed around blockchain technology was the Bitcoin blockchain [47].
They have in common the interest of enabling trusted peer-to-peer transaction over the internet without an intermediary that binds them together. Bitcoin was an example of perfect marketing. The brand manager for the blockchain-based system, Satoshi Nakamoto, released the Bitcoin wipe out on and put the genesis block on January 3, 2009. The brand product’s vision was simple: To build a community with more believer in providing cryptographic proof rather than trust [48].
The first believer in the Bitcoin opportunity was healthy. Even argued for the value that the Bitcoin network could create in the financial systems. The first that stipulated the cost of a Bitcoin could go into the millions. That attracted enthusiasts and protocols for new believers. The system grew and increased the values of the initial coins at the newly created coins, and stimulated the innovation around the newly formed technology. The second example in the blockchain environment is Ethereum. The founder of Ethereum, VitalikButerin, a Russian-Canadian programmer, created the concept and founded the Swiss-based non-profit Ethereum Foundation to drive that mission forwarded to the other industry organizations called the Hyperledger. The big company behind Hyperledger you probably have heard about is IBM. Another group that has been going to the news over the last years is called r3. Ethereum as a larger and more involved environment. They focused on refining enterprise-grade software capable of having the most complex and highly demanding applications [49]. Their key focus is to learn together and build upon the only smart contract supporting blockchain currently running in the real world, which is Ethereum. Governments themselves are starting to understand and embrace technology speed that you haven’t seen not even since the internet. In 2016, the delegates from APEC improved the potential of blockchain technology, and you could see that countries like Singapore or China are already going down this route of trying to embrace it. Japan is moving very much forward as an accepted payment method as well [50]. One exciting thing we saw in 2017, governments can only influence so much. The moment individuals have entered the cryptocurrency of the blockchain world, it is much, much harder for a government. Not easy to control the on-ramp and the off-ramp of the cryptocurrency world [51-53].
