As we are preparing to let IoT take over our lives, Blockchain has already entered the picture — the distributed ledger technology used in cryptocurrencies.
Today’s disruptive technological innovations rely on existing infrastructure for mobile devices that puts companies trying to reach consumers just a few clicks away. One such technology is the Internet of things (IoT), which involves embedding smart sensors to connected devices that enables users to do things like asking digital assistant like Amazon Alexa to order things they want online or get any other kind of assistant.
But blockchain, one of the underlying technologies running the cryptocurrency bitcoin, can make IoT devices much more useful than these. This creates a digital record across a vast network of computers, reducing the risk of hacking in a huge way.
Combining IoT with blockchain —or BIoT as it is called—ushers in a host of new services and businesses. For example, BIoT can be used to maximize the potential of industrial applications or reinventing shipping and logistics and to create smart cities in which connected systems better control energy use in a secure way.
The three benefits of blockchain for IoT, according to us are building trust, cost reduction and the acceleration of transactions.
Yet, not everything is perfect. Of course, there are many challenges to solve like technology, operational challenges, legal and compliance issues.
Blockchain holds the potential to securely unlock the business and operational value of IoT to support tasks, such as sensing, processing, storing information, and communicating, building new levels of trust.
In 2018, companies will begin to use software or APIs (Application Programming Interfaces) for connecting different databases and computer services. Combined with BIoT, it will be way easier to access data from sensors in a big warehouse as accessing websites on mobile phones. When companies have this real-time data from sensors embedded in products, machinery as well as devices, everyone in the distribution chain can benefit from insights that were previously beyond our reach. With BIoT, companies and consumers can also be assured that their most valuable data on the blockchain will be secure and cannot be hacked.
As blockchain is rising in popularity, with IoT being one of them, the question now is, how IoT and blockchain technology merge to give us some great results.
Leveraging blockchain for IoT is bound to have many takers as it offers many new ways to automate business processes without setting up a complex and expensive centralized IT infrastructure, by breaking free of a central cloud server.
Blockchain's data protection fosters:
- Stronger working relationship with your partners
- Greater efficiency as partners take advantage of the information provided
- Bring trust to a product and application level
Both, IoT and blockchain in their nascent stages, promise a future where machine-to-machine communication will be effortless. Currently, most companies are in the stage of putting efforts into merging the two technologies together. Once combined, IoT and blockchain technology (BIoT) will let several industries thrive by easily monitoring, tracking and securing data. The possibilities are endless, and you never know what’s next!