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 using blockchain technologies can mean a 20,000 million-dollar saving for the sector by 2022. And some go further and dare to compare this invention with that of the steam engine or the combustion engine.
What can the everyday use of the two hottest trends in the technology world give mankind? We are discussing the blockchain and the Internet of things (IoT). Both technologies have huge potential, 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. Quite a few ambitious, intelligent people in fast-growing fields are willing to work overtime and around the clock 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 restrainedly, saying that the blockchain allows the Internet of Things ecosystem 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 hacker attacks.
Dell employee Jason Compton considers blockchain an intriguing alternative IoT conventional security system. He suggests that addressing security issues in IoT networks will become a more formidable problem than, for example, a Bitcoin network. The combination of blockchain technology and IoT has great potential for your business to take advantage of.
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 solves security issues, adds new functions, and reduces costs for their operation. Blockchain is a technology that works with transactions and provides interaction in the network. It is excellent for monitoring processes in IoT.
For example, based on 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 for your business to take advantage of.
Ways to use the Blockchain on the Internet of Things
Vendors have long been working to build connections between devices on the blockchain-based IoT network. Four directions 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 secures essential data that can only be shared between devices using blockchain technology.
Of course, many developments are at an early stage. Several security issues remain unresolved. In particular, it is necessary to work out the legal basis for such innovations. But if you consider the speed with which both markets are developing and the potential of their synergy, we can expect that the IoT, built based on blockchain, will be a matter of the near future. The combination of blockchain technology and IoT has great potential for your business to take advantage of. You should meet with app development companies to hire blockchain developers. You should integrate these technologies into your business today.
