Blockchain Use-Case: Internet Of Things
By XcelToken on Altcoin Academy
IoT or Internet of Things is an interconnected network of smart devices that include everything from our phones, baby monitors, fridges, front door keys, etc. Increasingly, these devices are becoming integrated into our lives. According to Wikipedia, “The number of IoT devices increased 31% year-over-year to 8.4 billion in 2017 and it is estimated that there will be 30 billion devices by 2020. The global market value of IoT is projected to reach $7.1 trillion by 2020”. There are already lots of examples of IoT networks in use today. One welcomed example of an IoT smart device is the Petnet Smart Pet Feeder. This device allows us to automate the feeding of our pets. It is able to determine which is the best type of food for your dog or cat and order it via online stores.
The feeder will then automate the amount and times when your pet can eat according to what is best for it. This device can be controlled via any smartphone so owners can ensure that their pet is being fed even if they are halfway around the world on holiday.
Now that we have a clear understanding of what IoT and blockchain are all about, we can take a closer look at how these two technologies can be used in parallel to create exciting new software solutions.
Since the main selling point of blockchain is security, I will start by looking at how using blockchain to secure the internet of things will make many of the apps we use in the future safer and more secure from cyber-attacks.
Security
Using blockchain with IoT stands to benefit applications enormously. Current applications rely on the client-server model in order to function. In essence, this means that all devices are connected to one central authority that controls the network and data.
Time and time again, this central flaw to this model has allowed hackers to gain control of networks and steal data and even access webcams and speakerphones in people‘s homes.
The blockchain model would prevent such attacks from happening. Since a decentralized database would remove any one point of weakness attackers would have to target individual nodes on the network instead.
Any attack on an individual node on the network would also be futile as all the other nodes would resist any attempt to alter the data. Since data is held in a blockchain is secured by cryptography it is much safer than with a traditional client-server database.
Increased Speed of Transactions
Another advantage of employing blockchain solutions to IoT networks is the potential to increase the speed of transactions. This advantage is very specific to the use case to which it is applied. Bitcoin transactions, for example, takes longer than VISA because of limited network speeds. Since each participant on the network is required to validate transactions rather than one single entity, these kinds of straightforward transactions are faster with the client-server model.
It is when the transactions become more complex than an IoT application using blockchain technology can really shine. The implementation of smart contracts will allow multiple resulting actions to occur automatically.
A future version of the Petnet Smart Pet Feeder will be far more independent. The entire process of automating every aspect of feeding your pet could be done by the feeder.
While the current model can reorder food, a future version would be able to employ smart contracts to initiate payments to the online store without the need to involve the owner. Once the goods were received, the feeder could be refilled at which time the entire process would begin again.
Automation would allow more complex transactions to take place instantaneously. This has enormous benefits for IoT users.
Reduced Costs
While there is still much debate regarding the true cost of blockchain databases (in several countries the cost of mining a single Bitcoin currently exceeds $10,000), the overall consensus is that IoT networks costs would be reduced significantly.
The biggest reduction in costs will come from removing intermediaries and automating more complex transactions. Smart contracts only require relatively small “gas” fees to automate many of the processes that currently take a time-consuming human intervention.
