With the number of connected devices growing exponentially every year, data security has become very complicated. But blockchain technology can come in handy.
Blockchain technology was initially introduced for cryptocurrency, especially Bitcoin. But the technology is gaining more popularity across other areas. Blockchain and IoT are currently being explored by researchers to find how the technology can be utilized.
It’s not only about finance service companies, but firms in other industries are gradually seeing the benefits of blockchain technology in their respective fields.
Blockchain viability with IoT
Blockchain provides a decentralized and scalable network for IoT applications, platforms, and devices.
Banks and other financial institutions are now validating the technology and other institutions are still experimenting to see blockchain’s viability with IoT.
Apart from banking institutions and finance firms, other companies from a wide range of industries have planned to experience the blockchain’s potential.
IoT also opens up endless opportunities for business organizations to run smart operations. Almost all types of newly manufactured devices have sensors that can send data to the cloud. And a fusion of both technologies can make the system very efficient.
There are several use cases where combining IoT with blockchain technology can have a heavy impact across multiple industries.
These include water management, Agriculture, pharmacy industry, sharing economy, smart homes, automotive industry, as well as supply chain and logistics.
The use of blockchain on IoT offers numerous benefits and enables a smart device to function automatically without the need for a centralized authority. It will also be useful for tracking how devices communicate with each other.
Moving from centralized to decentralized framework
IoT platforms depend on hub-and-spoke or client-server architecture, which is a centralized framework. But with Blockchain, an IoT platform with the decentralized feature will be possible. The only challenge would be to reset the IoT sensors to handle decentralized computing and storage.
Already, blockchain has been implemented with IoT across multiple industries. It has also been used in smart homes, and it has been discovered there are more possibilities for the use of both technologies in the future. It is believed that the combination of both technologies will improve efficiency and reduce costs associated with IoT device maintenance.