IoT economy will revolutionize the payment infrastructure, with limitless possibilities for the financial industry.
IoT is creating a new world where every internet connected device can accept and make payments. Leaving the non-secure and inefficient of traditional payment model by converting any kind of IoT device into a seamless payment center.
The Internet of Things (IoT) will change the way businesses and consumers to interact. It changes the very nature of communication from start to finish. More than 20 billion connected devices will reach the market by 2020 and more than ninety percent of cars are expected to be connected. It is important for technology companies and device manufacturers to offer secure and reliable payment solutions.
Major payment companies, like Visa & Mastercards, have plans to launch platforms with the initial objective of payment distribution hubs in IoT environments. However, we are still relying on centralized services & platform. By using the dominant networks of Visa and Mastercard, makes us dependent greatly on them. An example of how easy it is for big companies to block services on certain countries was happened to Russia, when Mastercard & Visa stopped processing payments from Russian bank customers as results of US sanction.
Visa or Mastercard still relies on payment-tokenization of customers credit card. Payment tokenization is the process of protecting sensitive data by replacing it with an algorithmically generated number that can be decrypted only by the receiver. But the main problem is the fact that tokenization systems have quickly become attractive targets to fraudsters since the middlemen companies no longer store valuable information, criminals are turning to the payment receivers, which make it vulnerable to hacking attempts.
Another issue is Trust & Security. In 2015, a hacker hijacked a connected Jeep through Sprint cellular network. The hacker then able to speed up or slow down the vehicle.
In 2016, the largest DDOS attack using an IoT botnet caused a huge portions of internet down, a few affected websites are Reddit, Twitter and Netflix. Earlier this year, a woman has spoken of her surprise when her smart meter quoted thousands of pounds for a day’s usage of gas and electricity, due to a system error.
With these vulnerabilities, can we trust our IoT devices with our money? Can we trust the machine to automatically make payments correctly and securely?
Using blockhain technology, Hdac allows device manufacturers to embed a high speed, secure and transparent payment solution into any connected device, enabling anything from a refrigerator to a TV to initiate payments. With just a touch of a button, consumers could pay for food or electricity without leaving their connected devices.
The key to blockchain’s security is its decentralized feature, a series of blocks that records data in hash functions with timestamps so that the data cannot be changed or overwritten, makes it impossible to be manipulated, hacked or even hijacked. With copies of the data in all users’ hands, the overall database remains safe even if some users are hacked. Devices in blockchain network settings can recognize and interact with each other in a peer-to-peer manner, without the need for a third-party authority.
Blockchain offers unprecedented security to the network structure.
Hdac private blockchain emphasizes the differencing from other platforms based on blockchains by optimizing the decentralized nature of blockchain into IoT payment transaction that verifies the integrity of the transactions and associated account balances, makes it mathematically impossible to be hacked or destroyed by any entity. Hdac also modified and supplemented several functions to distinguish itself from other platforms in terms of efficiency, security, functionality, and speed.
Hdac private blockchain can be applied to various service fields such as in finance, IoT, distribution, logistics, and public data management based on fast transaction processing speed and transaction scalability.
The beauty of Hdac Blockchain Networks is that it keeps user privacy since the virtual money can’t be accessed by a third party, while any confidential and highly sensitive data is never exposed. The technology makes it possible to implement anonymous payments. This is different from centralized platform, which still requires the use of personal credit card data.
To prevent a potential 51% attack on the blockchain, Hdac uses ePoW as a consensus algorithm for creating new blocks and connecting them to the blockchain. ePoW refers to PoW (Proof of Work) based on energy-saving and equitable chance. The ePoW consensus algorithm can prevent the number of participating nodes from reducing, motivating participation for many mining nodes. As a result, preventing energy waste due to excessive hashing power from mining competition and to distribute equitable mining opportunities.
IoT is not the end of civilization. Hdac tries to civilize the machine to improve human lives and enhancing environmental sustainability.