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How will Blockchain get applied with IoT?Dec. 29, 2017, 1:07 p.m. GMT
What is IoT?
Internet of Things is a network of Internet-connected objects able to collect and exchange data using embedded sensors.
Internet of Things can connect devices embedded in various systems to the internet. When devices can represent themselves digitally, they can be controlled from anywhere. The connectivity then helps us capture more data from more places, ensuring more ways of increasing efficiency and improving safety and IoT security.
IoT is a transformational force that can help companies improve performance through IoT analytics and IoT Security to deliver better results. Businesses in the utilities, oil & gas, insurance, manufacturing, transportation, infrastructure and retail sectors can reap the benefits of IoT by making more informed decisions, aided by the torrent of interactional and transactional data at their disposal.
IoT in blockchain- IOT has sometimes had questions raised on the aspect of security and privacy especially in the context of its reliance on the traditional centralized technology systems. Blockchain is now emerging as the missing link to settle privacy and reliability concerns with IOT. It can be used to track billions of connected devices, enabling the processing of transactions and coordination between devices; this allows for significant savings for IoT industry manufacturers. This decentralized approach would eliminate single points of failure, creating a more resilient ecosystem for devices to run on. And, last but not the least, the cryptographic algorithms used by blockchains would make consumer data more private.
By now we know that the blockchain ledger is tamper-proof and cannot be manipulated by malicious actors because of its innate design, and man-in-the-middle attacks cannot be staged because there is no single thread of communication that can be intercepted. Blockchain makes trustless, peer-to-peer messaging possible and has already proven its worth in the world of financial services through cryptocurrencies such as Bitcoin, providing guaranteed peer-to-peer payment services without the need for third-party brokers.
In an IoT network, the blockchain can keep an immutable record of the history of smart devices. This feature enables the autonomous functioning of smart devices without the need for centralized authority overseeing the network of connected IOT devices. As a result, the blockchain opens the door to a series of IoT scenarios that were remarkably difficult, or even impossible to implement without it.
For example, by leveraging blockchain, IoT solutions can enable secure, trustless messaging between devices in an IoT network. In this model, the blockchain will treat message exchanges between devices similar to financial transactions in a Bitcoin network. To enable message exchanges, devices will leverage smart contracts which then model the agreement between the two parties.
To learn more about use-cases of blockchain in IoT and in other sectors, pls visit Blockchain and Bitcoin Certification by Blockchain Semantics.