Prospects For Blockchain Technology In The Internet of Things
Allowing digital information to be distributed, but not copied, the technology of Blockchain has created the basis for a new kind of Internet. The technology was originally developed for the digital currency, a Bitcoin, but now the technical community is looking for other potential uses for this technology.
Today we will talk about Blockchain and the Internet of Things (the IoT). At first glance, these two technologies have little in common. But in the hi-tech field, nothing is impossible. Let’s try to find all the insights here.
What is the Internet of Things
The Internet of Things redefined — from connecting devices to creating value.
A term “the Internet of Things” has recently arisen due to the forces of marketers. However, this technology is rapidly gaining momentum and is being firmly introduced into the life of mankind, actively spreading to its commercial part.
The IOT is the concept of a space in which everything from the analog and digital worlds can be combined. It will redefine our relationships with objects, as well as the properties and essence of the objects.
The first thing associated with the use of Blockchain in the field of the Internet of Things is the security and integrity of the data. In fact, the possibilities of using distributed registry technology in the IoT are much wider and deeper, and therefore the combination of these two technologies can potentially have a large synergistic effect.
According to John Wilms of the American non-profit association of telecommunication companies TM Forum, there are a number of applications where Blockchain can support the growth and development of the IoT. Among them: countering fraud, identity management, conducting transactions, verifying the status of the elements of various systems, ensuring data integrity, and so on.
One of the most significant advantages which Blockchain gives to the IoT is:
Security
Many companies and experts consider Blockchain as a powerful way to ensure the security of the IoT devices by combining them into a decentralized, scalable environment.
Recently, IBM studied the using of Blockchain for the Internet of Things. The integration of technologies will allow the users to reliably track and record the history of changes to individual network elements and their groups, creating audit logs and allowing to specify a system of smart contracts.
This applies to all types of transactions, including those related to the IoT. And the level of necessary control over each device in the Internet of Things can be weakened. In the long term, the introduction of Blockchain into the IoT network can reduce the risks of hacker attacks, reduce the percentage of successful attacks of this kind.
A member of Dell, Jason Compton, regards Blockchain as an “intriguing alternative” to traditional security systems on the Internet of Things. He suggests that solving security problems in the IoT networks will become a more severe problem than, for example, in the bitcoin network.
Simplicity
Blockchain can provide a simple infrastructure for two devices to directly transfer part of the property, such as money or data, through a secure and reliable version of transactions with a timestamp.
The company IBM conducted research in which buyers and experts were offered to evaluate the use of the detachment as a public, decentralized, autonomous technology. It can become a fundamental element of supporting the IoT-based solutions.
One of the survey participants, consultant of MIT Digital Currency Initiative, a partner of the company Agentic Group, Michael Casey, called Blockchain “a machine of truth.” While the economist at the Massachusetts Institute of Technology and Professor, Christian Catalini, spoke more restrainedly, saying that Blockchain system allows the IoT’s ecosystem to reduce commissions for the verification of transactions and the use of the network.
Process monitoring
The use of distributed registry technologies for Internet devices of things allows not only to solve security issues but also to add new functions, to reduce the costs of their operation. Blockchain is a technology that works with transactions, provides interaction in the network. It is great for monitoring processes in the IoT.
For example, on the basis of Blockchain, it is possible to maintain identification and detection of devices, facilitate microtransactions between them, provide proof of payment.
Ways to use Blockchain in the Internet of Things
Actually, vendors have long been working on building connections between devices in the IoT network based on Blockchain. Here are the most interesting and commonly used cases of using Blockchain in the IoT:
Creating a trusted environment
The second name of Blockchain is a security. Blockchain technology can provide a simple infrastructure for interaction with the IoT, transferring part of the information safely and reliably. That is why using this platform means to create a trusted area for dealing with the IoT. This advantage was the fundamental decision for the Korean industrial giant Hyundai supports a start-up to build the IoT on the basis of a Blockchain called HDAC (Hyundai Digital Asset Currency). Within the company, technology is adapted specifically for the Internet of Things.
Cost reduction
Specialists in financial and investment consulting say that Blockchain will allow the companies to cut costs. Being decentralized, completely transparent registry, Blockchain provides safe and secure storage, distribution and control of transactions without intermediaries. That is, it allows not only to speed up but also to reduce the cost of processing.
Accelerate the exchange of data
Innovative company Filament announced the development of a chip for industrial the IoT devices. The essence of it will be that it will automatically encode the sensory data of the devices and translate them into a form suitable for Blockchain. This function will greatly accelerate the data exchange. The company’s goal is to provide a reliable basis for decentralized interaction and data tracking.
Scaling security
Today this kind of usage of Blockchain technology is at the initial stage of development. And a number of security problems remain unresolved. In particular, it will be necessary to work out the legal basis for such innovations. But if we take into account the speed with which both markets develop, what potential is available from their synergy, we can expect that the Internet of Things built on the basis of a blockbuster is a matter for the near future.
As the Internet of Things keeps expanding, the need for interoperability and sharing of resources become a necessity. Due to the successful implementation of Blockchain technology into the IoT, a new cryptocurrency has been developed.
The IOTA — the cryptocurrency, the mechanism of which is designed for the use of the Internet of Things, is currently the leader in capitalization among similar currencies. The IOTA enables companies to explore new B2B models by making every technological resource a potential service to be traded on an open market in real time, with no fees.
Modern companies which launch the startups, deal with finance and investments must necessarily use a Blockchain platform. Blocking is an eternal digital distributed log of economic transactions, which can be programmed to record not only financial transactions but virtually everything that has value.
The further development of the Internet of Things and Blockchain technology will make the various spheres of life, and in particular everyday objects more interconnected.
That is why SMICHRISSOFT develops best decisions and awesome products based on Blockchain. We believe in the future where Blockchain will be the king of the technologies with all its security, reliability and transparency.
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