IoT devices are on the rise, with the number of companies using them rising to 40 percent in 2020. IoT technology has clearly become a key tool for companies, but it still faces challenges in ensuring the widespread adoption of IoT devices. There are challenges that it must overcome to ensure transparency in the supply chain, as well as in terms of security and data protection.
Blockchain is designed to speed up the roll-out of IoT and open up new opportunities for businesses and consumers. The security and transparency that blockchain provides is the solution to a lot of the problems that IoT currently faces, and therefore they are inherently complementary. IoT devices and connected networks connected to the Internet of Things (IoT), such as smart homes, smart cars and smart grids.
It can be integrated with existing technologies like Smart Grid Networks which enables all sorts a real-time data acquisition – from water meters and energy generation management systems, to GPS locations by using it over WiFi, or even through a 4G mobile broadband network in areas where internet access isn’t available at present; these features are not yet feasible on an industrial scale but will get easier once distributed digital storage becomes common across enterprises’ corporate buildings.
Fortunately, new technological developments mean that the industry is finally in a position to address these problems. Blockchain technology is maturing, as it matures and is now reaching a point where it is working with IoT to create an incredibly secure, scalable and efficient network that underpins all IoT devices and addresses many of the challenges that come with it. IoT and blockchain are intertwined when it comes to the technology that will support society in the future.
The question then becomes: how do we get there? By adopting the following:
- Eliminating a single point of failure
Smart cities use connected sensors to collect and analyse data, and this data enables us to improve the quality of life for residents, businesses, workers and other citizens in their communities. By 2030, there will be more than 1.5 billion connected devices in the US, a development that is expected to have a significant impact on the growth of smart cities.
Blockchain and IoT come into play here, and the technology is a decentralised network, which means that information about the blockchain is stored at each node on the network, not in a central location, which means that the risk of data compromises is eliminated, and a malicious attack would have to damage the encrypted data held by the majority of nodes on the network at the same time, this is almost impossible. IoT networks in a Smart City that use a secure blockchain base would be significantly more secure and resilient, meaning they are more resilient than a centralised network.
- Streamlining a mobile payment system
The number of people using car-sharing services facilitated by IoT technologies is growing and is expected to reach 18 million by 2025. IoT technology, but there are still a lot of systems that support them and their vulnerabilities. A study of 13 car-sharing apps found that each had a security problem.
In addition to increased security, blockchain technology is also being used by the mobility industry to offer customers additional benefits and a better experience. Blockchain technology has been used to ensure that IoT-enabled vehicles are provided with a more reliable and secure network base.
- Providing parts manufacturing integrity
IoT has become a staple of manufacturing in recent years and is a key component for the future of transport infrastructure.
Many manufacturers use IoT sensors to monitor the condition of machines and the manufacturing process and to identify and resolve problems before they occur. However, this means that manufacturers must take a more proactive approach to monitoring and managing their data. They have turned to blockchain to ensure that diagnostic data is reliable through invariable digital ledgers, and share tamper-proof records with maintenance partners to avoid unplanned downtime and associated costs. Blockchain is one of the challenges facing the IoT industry due to its consensus-driven approach and ease of use.
- Offering an immutable supply chain platform
As supply chains become even larger and more complex, companies need to learn to work with more agile parts to maintain a consistent and acceptable level of efficiency. However, the combination of IoT sensors and blockchain technology enables a more secure exchange of information across the entire ecosystem, providing accurate information to all relevant parties in the supply chain through a fixed, immutable (hack-proof) ledger. In some industries, companies use IoT sensors to track goods to ensure they meet certain requirements, such as being in a particular location at the required time. This leads to greater efficiency and fewer delays, which is particularly important when the supply chain includes large volumes of goods where visibility is crucial. This will improve the company’s ability to identify problems in transit and take preventive measures.
As the use of IoT devices will only increase in the coming years, IoT will become an integral part of our daily lives. As it becomes more widespread, it could be integrated into everything from production to car sharing, too shopping, making the experience more seamless. In this context, it is important that the IoT industry ensures that technological gaps are addressed and that there are no gaps between the technology and the real use cases of its products and services.
The decentralised nature of technology means that the safe Internet of Things will become increasingly important as smart cities grow and become more widespread in our everyday lives. Blockchain for IoT is the missing piece of the puzzle, but it is not the only solution to this problem.