Blockchain and the Internet of Things (IoT) are two separate technologies, but they have the potential to be used together in a number of ways.

Blockchain is a distributed ledger technology that allows multiple parties to share and access a tamper-proof record of transactions. It is the underlying technology for cryptocurrencies such as Bitcoin and has the potential to be used for a wide range of applications beyond financial services.

The "Internet of Things" (IoT) refers to the growing network of physical devices, such as smartphones, appliances, and industrial equipment, that are connected to the internet and can collect and share data. IoT devices generate a large amount of data, and this data can be used to improve efficiency, reduce costs, and create new business models.

How does IoT Work with Blockchain

1. Supply Chain Management: IoT devices, such as RFID tags, can be attached to products, and this data can be recorded on a blockchain ledger. This allows all parties in the supply chain to have access to a tamper-proof record of the movement of goods, which can improve transparency and reduce the risk of fraud.

2. Smart Contracts: IoT devices can be integrated with smart contracts, which are self-executing contracts with the terms of the agreement written directly into the code. Smart contracts can be used to automate the execution of transactions, and they can be implemented on a Blockchain, thus making them secure, transparent, and tamper-proof. 

3. Data Sharing and Monetization: IoT devices can be used to collect data, and this data can be shared and monetized through a Blockchain-based marketplace. 

4. Decentralized Identity: IoT devices can be used to provide a decentralized identity for physical objects, this way the objects can be identified, tracked, and authenticated on a blockchain network. 

5. Data Privacy and Security: IoT devices generate a large amount of data, and this data can be sensitive. Blockchain can be used to secure and protect the data generated by IoT devices, by encrypting the data and distributing it across a network of nodes. 

Benefits of IoT and Blockchain

1. Increased security: IoT devices can generate and transmit sensitive data, and this data can be vulnerable to hacking and other forms of cyber-attacks. Blockchain can be used to secure the data generated by IoT devices, by encrypting the data and distributing it across a network of nodes. This can make it more difficult for hackers to access the data.

2. Improved transparency: IoT devices can be used to collect data, and this data can be recorded on a blockchain ledger. This allows all parties in the ecosystem to have access to a tamper-proof record of the data, which can improve transparency and reduce the risk of fraud.

3. Automated processes: Smart contracts can be used to automate the execution of transactions, and they can be implemented on a blockchain. IoT devices can be integrated with smart contracts to trigger events, such as the delivery of goods, based on predefined conditions.

4. Monetization of data: IoT devices can be used to collect data, and this data can be shared and monetized through a blockchain-based marketplace.

5. Decentralized identity: IoT devices can be used to provide a decentralized identity for physical objects, this way the objects can be identified, tracked, and authenticated on a blockchain network.

6. Interoperability: The combination of IoT and blockchain can enable the creation of decentralized networks that can work together seamlessly, this way it can break down silos and create new opportunities for collaboration.

7. Decentralization: By using blockchain, the control of the networks is distributed among the participants, rather than being controlled by a central authority. This can lead to increased security, as well as reduced costs and improved scalability.

Applicication of IoT and Blockchain

1. Supply Chain Management: IoT devices, such as RFID tags, can be attached to products, and this data can be recorded on a blockchain ledger. This allows all parties in the supply chain to have access to a tamper-proof record of the movement of goods, which can improve transparency and reduce the risk of fraud.

2. Predictive Maintenance: IoT devices can be used to collect data on the performance of industrial equipment, and this data can be analysed to predict when maintenance is needed. Smart contracts can be used to automate the scheduling and execution of maintenance, based on the data collected by the IoT devices.

3. Smart Energy: IoT devices can be used to monitor and control the consumption of energy in buildings and industrial facilities, and this data can be recorded on a blockchain ledger. Smart contracts can be used to automate the buying and selling of energy, based on the data collected by the IoT devices.

4. Healthcare: IoT devices can be used to collect data on the health of patients, and this data can be recorded on a blockchain ledger. Smart contracts can be used to automate the sharing of medical records, based on the data collected by the IoT devices.

5. Automotive: IoT devices can be used to collect data on the performance of vehicles, and this data can be recorded on a blockchain ledger. Smart contracts can be used to automate the buying and selling of vehicles, based on the data collected by the IoT devices.

6. Identity and Access Management: IoT devices can be used to provide a decentralized identity for physical objects, this way the objects can be identified, tracked, and authenticated on a blockchain network. 

7. Public Administration: IoT devices can be used to collect data on the performance of public services and infrastructure, and this data can be recorded on a blockchain ledger. This can be used to improve transparency, reduce the risk of fraud, and automate the delivery of services.

Conclusion: The combination of Internet of Things (IoT) and blockchain has the potential to offer a wide range of benefits. IoT devices can be used to collect data and this data can be recorded on a blockchain ledger, allowing all parties in the ecosystem to have access to a tamper-proof record of the data. Smart contracts can be used to automate the execution of transactions based on the data collected by the IoT devices. The combination of IoT and blockchain can be used in a wide range of applications such as supply chain management, predictive maintenance, smart energy, healthcare, automotive, identity and access management, and public administration. However, it's worth noting that the integration of IoT and blockchain can be technically challenging and require significant resources and expertise. Also, it's an emerging field, and many of the potential use cases are still being developed and tested.