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Will Blockchain technology find a Productive Place in the world of Internet of Things (IoT)?

Emerging technologies like the Internet of Things (IoT) and Blockchain Technologies are in huge demand. Experts have been doing research on these technologies to find the best implementation in various sectors.  These technologies are being adopted and implemented, of late.


In order to make our lives smoother and simple, IoT is being used in many areas. The best examples could be interacting devices, smart sensors, driver-less cars, chips, etc. The main motto of implementing IoT in devices is to get the data in real-time. And, this will help to make smarter decisions. On the other hand, blockchain technology is considered as the complex thing, and after vast research, it could be implemented in diversified fields.


 Let’s have a look at some interesting aspects of these technologies and real examples to understand.


What is the Internet of Things of IoT?


The concept of the Internet of Things (IoT) is to connect all devices, appliance, tool, vehicle, machine, whatever–contains a computer with the internet and make them Smarter. It is an interrelated system of software, electronics, sensors, machines, and more. The devices can be connected by assigning an IP address and data can be transferred.


It is expected that 20 billion devices will be plugged into it by 2020.  According to Gartner, a leading research firm, the IoT product and service suppliers will generate more than $300 billion in receipts. Global spend on IoT Technology Products and Services by enterprises is expected to grow at 18% CAGR to reach USD 322 billion in 2022. While IoT Services to grow USD 78 Billion in 2017 to USD 190 Billion in 2022. 


Example of IoT Implementation: Smart City


IoT will make things Smarter. The best example of the IoT implementation could be the Smart City. The concept is to make life simpler by using the technology in the Smart City Project - Smart surveillance, smarter energy management systems, automated transportation, water distribution, environmental monitoring and urban security.


 The vision is to solve the day-to-day problems and challenges in the city and to make the city smarter. It will help to check issues like traffic, shortage of energy and pollution.  IoT will be used through sensors and devices to automate and get the real-time data.


So, what is Blockchain Technology?


Blockchain originated as a decentralized technology, which makes the transaction more secure and safe. A blockchain, originally blockchain, is a growing list of records, called blocks, which are linked using cryptography. Blockchains which are readable by the public are widely used by cryptocurrencies.


According to World Economic Forum, more than 25 countries are investing in blockchain technology, filing more than 2500 patents and investing $1.3 billion. It shows that the adoption of the technology is on rising. Big financial companies like JPMorgan Chase, Goldman Sachs, and Credit Suisse, have formed a consortium to investigate the blockchain for speedier and more secure transactions.


A few differences between IoT and Blockchain:


Network:


The basic difference between IoT and Blockchain technology is network – IoT gravitates towards centralization whereas Blockchain technology is the decentralized network. Both the technologies have their own features, and the combination of these technologies could bring a major transformation and deliver best results.


Awareness:


Of late, IoT is steadily growing in popularity and capability to become one of the most ubiquitous technologies. The blockchain is one of the most secure technologies in the financial domain today. And the advantages of blockchain technology are secure, decentralized data, user empowerment, and transparency. Despite the adoption and scalability of the technology is much slower compared to IoT, as experts believe.


Security:


Blockchain technology is considered as much secured due to the process of decentralization. This technology enforces security through asymmetric cryptography. For example, digital signatures are core in order to authenticate an ownership of assets on the blockchain. If another person has access to the digital signature, then he or she could become the owner. But it is not the same case with the IoT connected devices, there won’t be human intervention between the device and network. IoT devices own their private keys to connect and interact with the network, which hackers could crack to access the device.  


Despite the difference in these technologies, in some scenarios, these technologies benefit each other and deliver the best solutions. There could be many examples in the future which will narrate the perfect harmony between blockchain and IoT. Both the technologies are evolving in their respective realms, it would be interesting to see if the blockchain technology finds a productive place in the world of IoT.