An intro to IoT and Blockchain
“The Internet of Things has the potential to change the world, just as the internet did. May even more so.” — Kevin Ashton
If you think that the internet has changed your life, think again. The Internet of Things is about to change it all over again. The Internet of things is not a concept-it is a network. IoT is everywhere. Almost everything today has a virtual, digital representation. And that representation is usually obtained by collecting data from an IoT Device, an IoT sensor that allows us to display features, to measure that real-world object. Blockchain helps IoT in many ways. And IoT enables devices across the Internet to send data to private blockchain networks to create uninterrupted records of shared tasks.
Okh! let me first give some basic introduction to IoT and Blockchain.
Internet of Things (IoT)
Internet of things is a network of mobile devices, cars, household appliances and other embedded objects and appliances, software, sensors, actuators, and communications that allow these devices to connect and exchange data. It is a system of related computer systems, electronic and digital devices, objects or people with unique identifiers (UIDs) and the ability to transmit data over a network without the need for human-human or computer communication. The addition of IoT devices to everyday objects allows them to connect to the Internet without personal involvement. This gives these devices an extra level of digital intelligence as they are able to collect and exchange data with other devices connected to the Internet.
The IoT ecosystem contains intelligent web-enabled devices that use embedded systems, such as processors, sensors, and computer networks, to collect, transmit and process data from their locations. IoT devices share the sensory data they collect by connecting to an IoT gateway or other peripheral device where data is sent to the cloud for analysis or localization.
The Internet of Things connects us as individuals and organizations in a way that has never been done before. It has a huge impact on internet connectivity and everyday objects. But this new connection brings opportunity and danger. Although IoT has a lot of positive slant applications, there are a few risks that also need to be addressed.
Blockchain
Because of its unique capabilities and benefits, Blockchain is an ‘information game changer’. Blockchain technology is easily described as a decentralized, distributed ledger that records the provenance of a digital asset.
It is a distributed database that is shared among the nodes of a computer network. As a database, a blockchain stores information electronically in digital format. The goal of the blockchain is to allow digital information to be recorded and distributed, but not edited. In this way, the blockchain is the basis of non-convertible, or records of transactions that cannot be changed, deleted, or destroyed. That is why blockchains are also known as distributed ledger technology (DLT).
The innovation of blockchain is that it ensures the integrity and security of the data record and creates trust without the need for a trusted third party. Blockchains are best known for their important role in cryptocurrency systems, such as Bitcoin, by keeping a secure and separate record of transactions.
Why Blockchain and IoT?
There are many advantages of combining Blockchain and IoT. As we know IoT is everywhere, and there is a big list of IoT devices. The benefits of blockchain are myriad and it plays a big role in IoT devices.
Blockchain combines with IoT to make machine-to-machine transactions possible. The combination allows a smart device to function autonomously without the need for a centralized authority. It can also track how devices communicate with each other. Smart contractors use the blockchain to automatically contract when certain conditions are met. This is what allows a smart device to operate on its own without the need for a central authority.
Blockchain also allows businesses to manage data on end-to-end devices in the IoT system, reducing costs associated with IoT device storage and data transfer. Reduce the risk of data handling, because of no centralized data repository and the ledger is not vulnerable to cyber-attacks. It reduces the time required to process data by removing any other central data exchange devices. If something goes wrong, breakages occur, then the blockchain record makes it simple to identify the weak link and take action accordingly.
Blockchain is been used with IoT in all industries, including banks, Financial Services, Automotive and Agriculture. It has also been used with IoT in smart homes, supply chains, equipment, etc.
Conclusion
Both technologies have their own advantages and combining them bring great outcome with benefits like enhanced data integrity and security, better flexibility, improved efficiency, full transparency.
Both these technologies are being used widely and are adopted by industries, banks, the agriculture sector, automotive and other public sectors. These technologies together can bring great changes and opportunities.
