When Blockchain Collaborates with IoT
Blockchain and IoT are disruptive technologies that have the power to change the future. These technologies are increasing, and their convergence will boom the tech world. Let’s understand how.
Role of Blockchain in IoT
IoT is a massive network of data-gathering devices to make timely decisions. Currently, managing these devices is a technical challenge. Although many access management technologies are available, instead of placing the database at a centralized server, IoT solutions require peer-to-peer (P2P) networks to become widespread. However, privacy and security are the primary concerns about these P2P networks. Blockchain technology plays a vital role in ensuring the smooth performance of sophisticated IoT devices and safe storage of critical, immutable information on a distributed network of devices in its decentralized system. If the information is hacked, the distributed storage and encryption help authenticate this information. In case of a data breach, the blockchain record enables the weak identification links of the network, aiding in taking corrective actions.
Currently, any failure of an IoT system exposes multiple devices, large volumes of personal information, supply chain partners, and the community as a whole. Such security flaws typically revolve around three areas: authentication, connection, and transaction. Blockchain technology can enhance IoT networks by offering high security, reduced operational and infrastructure costs, quick transactions, and improved customer engagement. The combination of these two technologies can strengthen supply chain management. Complicated encryption standards in blockchain technology keep hackers out of the system as attackers are well aware that they have to crack an extra layer of security.
Blockchain helps in Simplifying Business Processes and Affording Transparency and Immutability.
Integration of blockchain technology into existing business models helps prevent data manipulation, which is expected to be one of the most important factors boosting the growth of the blockchain IoT market. The game-changing technology could disrupt everything shortly. This distributed ledger technology offers transparency by recording every piece of information about each transaction on the blockchain. All changes to the blockchain can be publicly viewed by all parties, thereby creating transparency in operations. All transactions are immutable and cannot be altered or deleted. Thus, it is beneficial for auditors. Blockchain technology is also designed for financial transactions as it offers enhanced data security. The feature of immutability helps create real-time tamperproof records.
Security is an Irresistible Reason to Merge Blockchain Technology with IoT
MarketsandMarkets has identified a few of the critical applications for which the convergence of blockchain and IoT is inevitable, which is expected to impact various applications by 2019 onward significantly. These applications include data security, sharing/communication, asset tracking and management, and real-time workforce tracking and management. Among all these applications, security is the primary application for which blockchain technology is adopted because it allows to record and secure each transaction in the system. The global blockchain IoT market is projected to be valued at USD 3.02 billion by 2024, growing at a CAGR of 92.92% during 2019–2024.
Note:” Others” includes real-time workforce tracking and workforce management applications.
Source: MarketsandMarkets Report Repository
Blockchain IoT Plays Major Role in Asset Tracking and Management
Asset management solutions are primarily used for tracking and monitoring the condition of enterprise assets in real-time. Integration of blockchain into asset management software provides several advantages. Along with security, blockchain asset management software offers an immutable database of all transactions. Tracking the real-time performance of assets using blockchain helps decision-makers take remedial actions in the case of data drift. Further, this technology allows participants to exchange information instantly, thereby helping streamline operations. Portfolios structured with blockchain technology benefit from highly organized data, thus making product offerings more straightforward.
Blockchain IoT Is Revolutionizing Smart CityProjects, Transportation and logistics industry, and Manufacturing Sector.
In recent years, the concept of a smart city has become one of the dominant topics in technology discourse. Smart cities integrate IoT with almost every aspect of life; with recent developments, smart cities will become a reality shortly. Smart city leaders embrace blockchain technology to make cities more secure and efficient. The technology allows citizens to digitalize their identification and tax reports and track their assets. Further, it facilitates transparent voting, paperless documentation, etc.
Nowadays, customers are inclined toward online shopping. A same-day or on-demand delivery is preferred. In transportation and logistics, the use of blockchain technology avoids the requirement to rely on third parties to authenticate data; it implies better freight tracking, secure documentation throughout the shipping process, more efficient and cost-saving business operations.
Blockchain enables manufacturing organizations to access plant-floor data in real-time. Real-time data analysis helps manufacturers centralize their business data and multi-plant operations in real-time. Manufacturers can access and analyze the operational data in real time, adapt to changing production demands, and maintain operational efficiency without any downtime. Manufacturers these days also strive for proactive maintenance capabilities that can help them avoid unplanned downtime and production wastes that cause huge losses. Blockchain enables users to identify possible machinery failures in advance to initiate corrective measures.
Key Players in Blockchain IoTMarket
IBM Corporation (US), Microsoft Corporation (US), Intel Corporation (US), Amazon.com, Inc. (the US), Cisco Systems (US), Ethereum Foundation (Switzerland), The Linux Foundation(US), R3 (US), Filament (Nevada), KrypC(India), IoTeX(Singapore), Factom (US), IOTA (Germany), Xage, Inc. (the US)are a few significant companies who focus on investing heavily in blockchain and capture a leading position in the blockchain IoT market.
ConclusionAccordingto Mayuri Kulkarni, Research Analyst at MarketsAndMarkets, Blockchain IoT is being fully discovered. Blockchain is still a relatively new technology, and major companies are just started to understand and invest in blockchain. Several giant companies such as IBM, Google, Intel, and Microsoft have already invested heavily in blockchain technology. Blockchain IoT is built to maintain a continuously growing list of cryptographically secured data records protected against alteration and modification. It sets up trust, accountability, and transparency while streamlining business processes. Blockchain can help reduce the expense and unpredictability of working-edge devices or connecting servers. Also, it simplifies the development of cost-effective business systems where anything can be tracked and exchanged without requiring an essential central control.