“The currency of the new economy is trust” is Hyundai’s new policy as the latter is holding an ICO to issue HDAC tokens. The countdown of Hyundai’s Token Generation Event began over a week ago. Backed by Hyundai BS&C, the goal is to bring blockchain with its potentials and safety into the world of smart homes and facilities of the IoT.
IoT may have a problem
The rising need to be connected along with the declining cost of connecting gave rise to IoT; where everything that can be connected will be connected. However, this “hyper-connectivity” comes with major security issues; once a hacker gains access to your ecosystem, they can control everything you gave your devices permission to control. And while you might not fret when your home temperature is not on point, you will be less tolerant when a hacker stacks orders on behalf of your ecosystem.
Hyundai defined three missing building blocks from the IoT environment and these are authentication, mapping and Machine to Machine transactions so that devices can identify one another, connect seamlessly and bill each other.
Blockchain is the answer
HDAC, the first IoT contract & M2M payment platform based on blockchain, will address these issues allowing for fast, low-cost, secure and effective communications amongst IoT devices.
It has a private blockchain: HDAC*T designed to manage mutual authentication among machines, generate and record operations details and scenario based IoT contracts and a public blockchain: HDAC without which the use of HDAC*T will not be practical to enable interaction with other public blockchains.
The link between the two blockchains is through a bridge node or a relaying intermediary that has all the configuration information of the private blockchain in order for it to obtain the same access level of a private correspondent whilst maintaining the ability to post on the public blockchain.
Example of Integration between public blockchains
The usage of hybrid blockchain and the IoT contracts means not only can you operate a service, pay its fees, stop it once it reaches a specified amount/cost/condition but also allows you to turn an HDAC token to act as the key to access your ecosystem of devices within home/facility. For example, you can turn the HDAC token to function as the unique key to start your car, thus your car will not start without this token even if a hacker gained access to it.
Apart from its IoT friendliness, HDAC has its own trust-based ePoW, A 3-minute block time, a dynamic block size that maxes at 8MB and a transaction speed that is roughly 16 times that of Bitcoin.
Two things define the future the way Hyundai sees it: IoT and blockchain. The exponential growth of IoT is only matched by the undeniable blockchain revolution; which makes us wonder how far technology will change when these two concepts are merged. Hyundai “is going crypto”, so it looks like we will find out soon.