Blockchain of Things: Paving The Way For Digital Disruption
Posted By : Priyansha Singh | 06-Apr-2022
Blockchain of Things
A global pandemic that continues to raze the entire world has fundamentally changed almost everything – from the way we connect, the way we live, and the way we perceive the future. Needless to say, no industry exemplifies these transformations more than the blockchain sector. Over the past two years, it has witnessed significant growth in its adoption and publicity.
Meanwhile, in the other nook of the universe, the Internet of Things has also stirred new waves of innovations. IoT companies are essentially transfiguring the way we connect with things around us and extending promises that in the near future, the entire world will be more data-centric, interconnected, and more informed than it was ever before. But what happens when blockchain solutions – an inevitable transformation force – meet the IoT industry? The results would undoubtedly be fascinating!
In this blog, we will uncover the possibilities and the merits of blockchain and IoT mergers and evaluate some of the most sought-after Blockchain IoT use cases.
Why IoT and Blockchain Work Better in Combination?
Blockchain and the Internet of Things represent two core collections of technologies fostering remarkable potential to optimize and enhance business operations on a large scale. Innovators all across the globe are combining these separate groups of technologies into novel solutions, seeking new ways to improve existing capabilities and divining what enterprises and users might leverage in the future.
As IoT connectivity advances to support high bandwidth and long-range applications, IoT can untether tremendous waves of process optimization. While the Internet of Things is adjoining connectivity and identity to millions of devices, it is simultaneously making it easy to manage and measure functionalities, making them a bit vulnerable.
Here comes the role of blockchain technology. Well, in simple terms, blockchain can be imagined as a way to find agreements between strangers. Putting it in another way, blockchain is essentially a collection of technologies that secure value exchange without any central governance. It diminishes the capabilities of anyone behaving deceptively or maliciously in order to control the trusted chain. The entire goal of blockchain technology is to reach a consensus without any intervention from a single or central authority.
Subsequently, blockchain solutions can efficaciously complement IoT deployments by adding a secure layer of verifiable trust in order to exchange and record data whilst also securing IoT-enabled devices.
Integrating blockchain development services into multiparty or distributed systems can alleviate operational and security risks. It can be attained through device authentication, identity verification, and data transparency. Applications leveraging both blockchain and IoT solutions can significantly streamline business processes as well as transactions, automating and optimizing transactions and contracting terms with a highly-secure consensus record that does not essentially need any third-party approvals.
Why The Merging of Blockchain and IoT is Crucial?
Both IoT, as well as blockchain, have yet to reach widespread adoption and maturity, however, despite ongoing innovations, these two technologies have indubitably become so interrelated for a myriad of applications. Ultimately, this has given rise to a new tech term: Blockchain of Things (BCoT).
Blockchain in combination with the Internet of Things offers decentralization and autonomous attributes and has been proven to be able to able to function better in complement. Since one of the fragilities of IoT is data security, blockchain’s extensive usage of cryptography means that it offers higher innate levels of trust and security – extremely advantageous for IoT applications and devices. IoT data can be seamlessly sent and indelibly recorded on a blockchain ledger, furnishing a trusted and secure database that IoT needs for legitimacy. Moreover, both these technologies leverage distributed nodes for P2P networking and the transfer of data for support – which is also perceived as a prominent commercial opportunity.
Blockchain Services: The Technology That Unleashes The Prowess of the Internet of Things
Innovators and application development service providers are seeking to overcome the cost and availability of bandwidth limitations for supporting IoT networked services and products are embracing blockchain networks to offer a trusted means of logging IoT data transactions.
The early adopters of this new IoT market space are openly demonstrating the disruptive nature of these robust hybrid technologies which are heavily underpinned by performance and wireless networking equipment.
IoT-powered devices can now effectively transmit and share their data across the internet to private blockchain networks in order to construct tamper-resistant records of events and transactions pertaining to the device. Each and every IoT transaction is viably encoded in a data block and inculcated into chronological and sequential data blocks and chains that can not be altered and can be efficaciously increased. These data chains can then be reviewed and assessed by permitted parties.
Moreover, this decentralized approach to data storage offers impartial access to a myriad of stakeholders without concerns related to the data veracity as each data can be significantly verified. Blockchain extends a neoteric solution for managing the colossal volumes of data generated by IoT sensors and devices.
Some Prominent Examples of Blockchain IoT
Blockchain IoT has a wide range of applications and use cases across a host of industries ranging from agriculture to finance. It is essentially an attractive means of powering and running applications since it is not dependent on intermediaries, centralized authorities, or the validation of data.
- Blockchain-enabled IoT for Home Automation
Blockchain services are already being actively integrated with smart home networking to offer novel commercial solutions. A significant example is a startup that created novel locking mechanisms for property transactions such as vacation rentals. Their smart electronic locks are backed by the Ethereum blockchain, thereby offering controlled access to the property without the house owner having to directly communicate with tenants for providing key location or keycode. These smart home locks can be unlocked only by a device bearing the relevant token that is procured using an application carrying P2P communication protocols for payments.
- BCoT For Regulatory Compliance
IoT data storage backed by blockchain technology has significantly improved veracity. It means that the ledger can data-trail and it will be simple if IoT is used. By leveraging blockchain to manage and record data shared by sensors, a ledger of operational data from devices and any interventions or scheduled maintenance can be scheduled. This ledger can further be utilized to demonstrate compliance with the related and necessary regulatory body.
Moreover, tagged components within vehicles and aircraft can be continuously monitored for their performance and condition. Also, vehicle telemetry data can be effectively recorded with the help of blockchain transactional data transmitted to a cell tower or a network node through a vehicle antenna.
- BCoT For Transportation and Logistics
In IoT blockchain, decentralized networks are used, meaning that appropriate connectivity can be attained on the move for closely monitoring IoT-tagged road freights. IoT services are already heavily used for efficiently monitoring the conditions of vehicles and the condition of transported goods.
By inculcating the data storage capabilities of blockchain, data points such as location, speed, and temperature can be logged in real-time for cargo. The immutability, transparency, and trustworthiness of blockchain mean that all the data stored can be leveraged to keep good on the move efficiently.
- BCoT For Agriculture
The distributed database of blockchain has proved to be immensely beneficial in realizing the true power of IoT and in transforming the efficiency and agricultural productivity of food supply chains. Using blockchain, the data from various IoT devices can be leveraged to track and monitor the core agricultural processes.
Moreover, blockchain is highly favored by agronomists since it is traceable and garners real-time transactions across the supply chain whenever investigated.
It won’t be invalid if we say that both blockchain and IoT technologies have transformed our lives in unprecedented ways. Blockchain has disrupted our comprehension and relationship with traditional institutions such as banks, governments, and businesses. It empowers us to envisage a secure future where power is not centralized but distributed equally among many. Meanwhile, IoT has enabled us to reap data from anything surrounding us, empowering us to be more interconnected and build robust solutions that were earlier not possible. And the amalgamation of blockchain and IoT has opened new doors of opportunities and possibilities in the tech industry.
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