BAAB — Boiler as a Blockchain
Disclaimer: Intent is to keep it simple and intuitive to understand the underlying strength of blockchain and not go into technical details.
Important Components of Blockchain
4 of many important components in a blockchain are Multiple Parties, Connected to each other, Permission-less/Premissioned and Smart Contracts. Permission-less/Permissioned and Smart Contracts are not very intuitive for non-blockchain folks like me.
Central idea is all the parties transact with each other without an intermediate party or body and actions transactions are approved(through consensus) automatically through rules in the Smart Contracts.
Analogy with Boiler systems
Before we start the analogy with boiler, it is very important to mentioned that blockchain has tremendous potential in IoT applications/business as well. Taking cue from the same, trying to draw analogy with the installed heat exchanger or boiler systems.
Imagine a completely automated boiler installation, right from fuel feeding to steam throughput. There are multiple entities, who interact with each other such as Fuel Feeder system, Air Supply system (Fans/blowers), Combustion system, Convective heat exchange system, Heat Recovery System, Safety System, Electrical Control system etc.
All these systems are multiple parties, from Blockchain definition perspective, who are interacting with each other based with pre-defined rules of actions, which is a Smart Contract in case of Blockchain systems. So, what is the smart contract here? It is basically an Operating Manual or to be very specific a P&I (Piping and Instrumentation) diagram (Boiler folks will relate to it). P&I diagram very clearly lays down all the actions with respect to different scenarios and are carried out automatically with(out) the consensus of all the entities without any intermediary like boiler operator in this case. Any action carried out cannot be taken back as in the case of blockchain which is called immutability characteristic of a blockchain. System of records of each entity are stored as part of the IBR requirements.
Similar concept could be extended to any other industry where multiple parties are interacting or connected through a chain, and every scenario is recorded in the form of block, and every action is governed by pre-defined agreed rules (A smart contract).
You are either the one that creates automation or you are getting automated — Tom Presten Werner
Originally published at https://www.linkedin.com.