Blockchain technology can be described as a predominant technology for peer to peer network in the IoT industry where the blockchain technology can be used. Since the blockchain technology is decentralized and tamper-proof, this is the technology that IoT devices need. Moreover, blockchain technology offers a decentralized environment and scalability to IoT devices applications and platforms.
How can IoT make use of Blockchain?
- One of the important features of the blockchain technology is, it is decentralized and tamper-proof; it can help the IoT industry to track several billions of connected devices in the whole network.
- By using blockchain technology in IoT devices, it can reduce the cost of installing and managing servers for the IoT network. Besides, blockchain uses cryptographic algorithms that guarantee the security and confidentiality of the data in the IoT network.
- Blockchain integrated into IoT devices protects the network from cyber-attacks because it does not depend on a single form of communication. By using smart contracts, agreements can be developed and can be executed when specific conditions are met.
Blockchain Empowers the IoT Devices
To empower security and to bring in transparency in the IoT environment, blockchain technology provides a scalable and decentralized ecosystem for IoT devices, applications, and platforms. Below given are a few blockchain technology use cases on how we can combine IoT with blockchain technology, which can have a remarkable impact on several industries.
- Agriculture
An increase in population and the necessity to grow more food by lessening the environmental influence and assuring transparency across the supply chain sector is the key factor for customer satisfaction. Blockchain technology integrated with IoT sensors in the farming sector and sending the relevant data directly through the blockchain technology can help to improve the food supply chain to a maximum extent.
- Automotive Industry
Connecting IoT enhanced vehicles with the decentralized blockchain network helps several customers to exchange important information quickly and easily. Moreover, the automotive industry can be taken as an example of how blockchain combined with IoT technology can disrupt autonomous cars, automatic fuel payments, automatic traffic control, and smart parking.
- Supply Chain and Logistics
Because of the complications and the lack of transparency in the present supply chain and logistics sector, blockchain combined with IoT can increase the traceability and reliability of the network. Further, IoT sensors such as motion sensors, temperature sensors, GPS, vehicle information, and connected devices offer exact details about the status of the shipment. The sensor information can be stored in the blockchain. When the data is saved in the blockchain, individuals listed in the smart contracts get easy access to the information anytime. Accordingly, supply chain members can prepare transshipment and execute cross border transactions.
- Pharmacy Industry
In the pharmaceutical sector, the issues of fake medicine are increasing day by day. The pharmacy industry is responsible for manufacturing, developing, and distributing medicines; hence tracking the complete journey of the medicines is very difficult. The traceable and transparent nature of the blockchain technology can help to monitor the shipment of medicines starting from its origin to the destination through the blockchain.
- Smart Homes
Through the traditional centralized approach, the exchange of information developed by IoT devices does not offer the security standards and the ownership of the data. By using blockchain technology, it can transform the smart home by taking out the centralized infrastructure and by solving security issues.
Impact of Combining IoT & Blockchain
- The integration of IoT and the blockchain technology has vast potential to change several processes we currently depend on. When combined, it will have a greater impact.
- Companies using IoT and blockchain are welcoming the idea to use this technology because of its security and transparency which can be used immensely in different sectors.
- If IoT has issues with corruption and security, by using blockchain, it can help secure the data by using its immutable ledger. Meanwhile, if artificial intelligence is struggling with the recording of data, then distributed ledger technology can come to its rescue Too.
Wrap up
Blockchain technology is the answer to many issues of IoT which includes privacy, reliability, and scalability. Blockchain technology can be used to monitor and track billions of connected devices which enables the processing and sharing of transactions among connected devices. Being centralized can eliminate a single point of contact by creating an ecosystem for devices to run on. Blockchain, combined with IoT, can enhance the reliable and secure association between connected devices in an IoT framework.
