Blockchain technology with its bunch of features has presented a number of merits before the IoT industry. Outside the FinTech domain, blockchain has a number of other implementations as well where the IoT stands one in the list. Here we’ll mainly focus on the revolutions that blockchain has made in the IoT industry.
Before we dig deep into the applications of blockchain in IoT, let’s first understand what IoT is?
What is IoT?
According to Wikipedia:
“The Internet of Things (IoT) is the extension of Internet connectivity into physical devices and everyday objects. Embedded with electronics, Internet connectivity, and other forms of hardware (such as sensors), these devices can communicate and interact with others over the Internet, and they can be remotely monitored and controlled.”
In simple words, the Internet of Things (IoT) is an ecosystem of connected devices. In this ecosystem, all the devices are connected to the Internet and hence can be operated from remote locations. But, what about a hacker who creeps into this system and gains access to these devices? Well, the first thought that comes to one’s mind is obviously devastating. Here, in this scenario, blockchain technology is proving its worth.
As technology enhances, its security is of foremost concern. Any intentional or unintentional interference with the technology is mostly devastating (well in some cases it is constructive too). And, in the IoT, as there are a number of devices connected through the Internet, so it gets even crucial to implement aggressive security.
Blockchain eliminates the need for a third-party to verify a transaction. When a “certified” user requests access to a connected device, it is only request that will be granted the necessary permission, and as per the integrity of the blockchain, no other person would be granted access to the connected device. With a secure and reliable time-stamped contractual handshake, blockchain provides a simple infrastructure for communication between two entity.
Blockchain aims at improving trust between devices and also reduces the cost of infrastructure by eliminating the need for a third-party. Blockchain stands as a technology that enables peer-to-peer contractual behavior. When there are no middlemen in any IoT transaction, the communication takes place very smoothly and quickly.
In some of the other benefits, Blockchain is helping in easy and accurate tracking of devices. With effective implementation, you can get highly accurate real-time status of the device. For example, if you are not at home, you can accurately know whether any electronic device is switched on or not. In the case of vehicles, you can exactly track the location of your car when someone is out with your car!
Easy to Manage & Use
In business processes, IoT devices are generally controlled by a central system. But with the implementation of Blockchain, any complex and centralized system is no longer required. With predefined patterns, most of the business processes can be made smooth while maintaining good customer relationships and improving the overall efficiency. Here again, the security feature of the blockchain ensures that there is no flaw in any of the process.
In the retail sector, blockchain technology is helping in the monitoring of the processes in the supply chain. In the case of perishable items, the convergence of IoT and Blockchain is proving to be of great worth like monitoring and maintaining a record of temperature, items consumed, etc.
The final note
The modern world is getting automated day by day. As more number of devices are getting connected to the Internet, the so formed IoT ecosystem is no doubt easing the life of the common people, but their security stands as one of the topmost concerns. Blockchain technology, which is very popular for its security and reliability is seen as the perfect technology for high-level security implementation in the IoT devices. Whenever and wherever automation is involved, usability and security are considered above all.