The Internet of Things (IoT) has gained popularity within the industry, owing to its vast capabilities to monitor, track, and manage objects and processes. Although there is little confusion regarding IoT’s capabilities and implementations, managing a large number of IoT-connected devices safely from a single platform is a challenge that has not been adequately addressed to date. Blockchain technology, which forms the backbone of cryptocurrency, is being proposed as a solution to IoT-related security issues.
Blockchain can be implemented to improve data protection and privacy in the IoT device ecosystem, removing the need for a centralized authoritative mechanism to control the devices safely. In this context, let’s discuss the IoT and Blockchain integration framework and various Blockchain applications in the IoT ecosystem.
Improving Security While Reducing Costs
Blockchain’s security features have made it an essential addition to the IoT. One of Blockchain’s main advantages is its immutability, which makes it impossible to change the data after it has reached the blocks. This not only helps improve data protection but also increases the trust factor. It increases security at the device level as well as at the enterprise level, paving ways for more cooperative and trustworthy business operations.
In combination with IoT, Blockchain also removes the middleware framework in the network by allowing peer-to-peer data exchange, reducing costs associated with external protocols and middleware systems. One of the leading procurement challenges is monitoring compliance and obligations. A blockchain network and its smart contract technology, combined with IoT and AI, will help make enforcement and obligation management more effective. Blockchains are unchangeable, and thus the need for electronic signature can be removed shortly.
Integration is still in the Budding Phase
But it is not an easy task to integrate IoT devices with many design constraints in terms of speed, scalability, energy usage, etc. and Blockchain, which is actually machine and software-specific technology. Therefore attempts to implement Blockchain in the IoT are still in the budding process. Some of the companies that operate on IoT and Blockchain integration include IBM, Everledger, Healthbank, Filament, etc.