Prospects Of Combining Blockchain Technology And Internet Of Things


iot

The technology behind bitcoin allows transactions to be carried
out reliably and securely, without the need for an intermediary.
These technologies have gone from being practically ignored to
becoming the focus of the innovation of the big banks. Experts
estimate that the use of blockchain technologies can mean a saving
of 20,000 million dollars for the sector by 2022. And some goes
further and dares to compare this invention with that of the steam
engine or the combustion engine.

What can the common use of the two hottest trends in the
technology world give mankind? We are talking about the blockchain
and the
Internet of things (IoT)
. Both technologies have huge
potentials and their combinations promise so much.

How is the IoT evolving?

At first glance, the two technologies have little in common. But
in the field of high technology, nothing is impossible. There are
quite a few ambitious, intelligent people in fast-growing fields
who are willing to work overtime and around the clock in order to
find interesting solutions at the junction of two innovations.

The first thing that comes to mind is security. Many experts and
companies believe blockchain can guarantee the IoT devices security
by joining them into a decentralized, scalable environment.

IBM recently became interested in using the blockchain for the
Internet of things. Combining technologies will allow you to
reliably track and record the change history of individual network
elements and their groups, creating audit trails and allowing you
to define a system of smart contracts.

The blockchain technology could provide a simple infrastructure
for two devices to directly transfer part of the property, such as
money or data, through a secure and reliable transaction variant
with a time stamp.

IBM has conducted research in which buyers and experts were
asked to evaluate the benefits of the blockchain as an autonomous,
decentralized, and public technology. It can be a fundamental
element of supporting solutions based on IoT.

Opinions of professionals

One of the survey participants, MIT Digital Currency Initiative
consultant, Agentic Group partner Michael Casey called the
blockchain a “truth machine”. The economist at MIT and
Professor Christian Catalini spoke out more restrained, saying that
the blockchain allows the ecosystem of the Internet of Things to
reduce commissions for verifying transactions and using the
network.

This applies to all types of transactions, including those
related to IoT. Moreover, the control level over each IoT device
can be relaxed. The combination of IoT and blockchain can minimize
the risks of attacks by hackers.

Dell employee Jason Compton considers blockchain as an
“intriguing alternative” IoT conventional security system. He
suggests that addressing security issues in IoT networks will
become a tougher problem than, for example, a Bitcoin network. The
combination of blockchain technology and IoT has great potential
that you may want to take advantage of in your business.

Blockchain is not only about security

Understanding blockchain and why it is considered so special is
very important. It is the underlying technology of bitcoin, the
fashionable cryptocurrency. The bitcoin, in itself, is interesting
but it is not a great revulsive for the business model of a
financial institution. The same is not true of the technology
behind bitcoin transactions.

The use of distributed registry technologies for IoT devices
allows not only solving security issues but also add new functions
and reduce costs for their operation. Blockchain is a technology
that works with transactions and provides interaction in the
network. It is great for monitoring processes in IoT.

For example, on the basis of the blockchain, it is possible to
support the identification of devices and make the interaction
between them a lot faster. The combination of blockchain technology
and IoT has great potential that you may want to take advantage of
in your business.

Ways to use the blockchain on the Internet of things

In fact, vendors have long been working to build connections
between devices on the blockchain-based IoT network. There are 4
directions that interest them more than others:

• Creating a trusted environment.
• Cost reduction.
• Accelerate data exchange.
• Scaling security.

The blockchain technology can provide a simple infrastructure
for two devices so that you can directly transfer part of the
property (information, money) safely and securely.

Examples of using the blockchain in the IoT network

Korean industrial giant Hyundai supports a blockchain-based IoT
startup called HDAC (Hyundai Digital Asset Currency). Within the
company, technology is adapted specifically for the IoT.

Innovative company Filament announced the development of a chip
for industrial IoT devices.

This is to secure important data that can only be shared between
devices on the blockchain technology.

Of course, many developments are at an early stage. A number of
security issues remain unresolved. In particular, it is necessary
to work out the legal basis for such innovations. But if you take
into account the speed with which both markets are developing, what
potential of their synergy exists, we can expect that the IoT,
built on the basis of the blockchain, is a matter of the near
future. The combination of blockchain technology and IoT has great
potential that you may want to take advantage of in your business.
You should meet with app
development companies
to hire blockchain developers. You should
integrate these technologies into your business today.

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Prospects Of Combining Blockchain Technology And Internet Of
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Prospects Of Combining Blockchain Technology And Internet Of Things