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How Blockchain Tech can benefit the IoT in 2021?
How Blockchain Tech can benefit the IoT in 2021?

June 24, 2021

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Introduction 

Blockchain Technology has gained a lot of hype since the pandemic. Although the technology has been around for quite some time but has recently gained attention with the increase in the value of Bitcoin, a blockchain-based cryptocurrency. Blockchain has already passed its hype and will again touch its peak, once the full potential of the technology is unleashed.

As of now, Blockchain is heavily used in the financial sector to transfer money digitally. One of the key features provided by this technology is that it generates irrefutable data which cannot be mutated once generated. Indeed, There are a lot of perks to using this new-age technology but let’s first understand the technology and how it works

  • How blockchain works
  • Benefits of Blockchain and IoT
  • Use cases of Blockchain in IoT
  • Conclusions

Blockchain seems complicated, and it definitely can be, but its core concept is really quite simple. A blockchain is a type of database. Blockchain, as a data structure has three fundamental properties i.e., Distribution, immutability, and decentralization. These three properties can be very beneficial to the Internet of Things(IoT) as the data stored remains safe, easily accessible, and cannot be changed by anybody.
 

The Benefits of Blockchain and IoT

Blockchain’s distributed mechanism of storing data makes it secure and immutable, and if in any case the data is changed over one of the distributed ledgers a log is entered indicating the same, hence making the data tamper-proof. This eliminates any sort of blind faith mechanism between multiple parties handling the data, thus making relationships more trustful. When the data generated by IoT devices is stored using Blockchain technology, no single party will have control over the massive data generated by the IoT device. Block comes with encryption, thus making it impossible to mutate the data. This prevents any malicious attack on the IoT network.
 

One of the main challenges with IoT devices is to protect and secure the data processed through IoT devices as there are a lot of security vulnerabilities in the general-normally present IoT devices.

The integration of blockchain in IoT opens an entryway for many additional opportunities that characteristically decrease failures, upgrade security and improve transparency between every single device included in the system, while at the same time empowering machine-to-machine data exchanges. The coupling of these technologies permits the tracking of an item right from the raw materials to the end of the supply chain.

Advantages of Integrating Blockchain in IoT

Enhanced security. 

Blockchain enables the ability to cross-check the item's authenticity with various levels of the processing chain and allow transactions to be originated from authentic places.

Blockchain provides knowledge about all the invested parties in the chain thus increasing the transparency of the process. Not just that, It also adds a layer of security by using encryption while storing data. Also as the data is not stored in a single locating, losing data can hence be prevented easily.

Reduced operational cost - Blockchain greatly reduces the cost of an operation by automating transaction validation and processing steps, thus making the entire process proactive.

Speed of exchanges. This is particularly valid for store network transactions with different providers, makers, merchants, and purchasers. With the blockchain filling in as a common record distributed ledger information between one another, it enables disposing of the manual cycles and speeding up exchanges. 

There are numerous difficulties in IoT technology, including costs, security, protection, and data transfer. While these are discrete issues, there are numerous conditions to them.

Blockchain is scrambled and secure by plan with numerous autonomous hubs confirming updates to the chain preceding updates to keep away from accursed activities, Rossman said. This is secure by the plan. The blockchain can be investigated and confirmed by all gatherings, assisting with improving both access and trust to the information without oppressive and expensive regulatory layers. This significantly improves access, trust, and cost.
 

Use Cases for Blockchain and IoT

The use cases for blockchain and IoT include the following:

IoT and blockchain can play a crucial role in tracking items in a supply chain. Let’s understand its utility with the help of an example.

In the fight against Coronavirus, Vaccines are playing a very crucial and detrimental role. But recently there has been a lot of news about the wastage of vaccines. Using IoT to monitor temperatures subjected to the vaccines and where are they stored at each level of transportation i.e, from manufacturing to the vaccination centers. IoT paired up with blockchain can help track the loopholes and thus enabling better less wastage of the vaccines.

Vehicle renting - IoT sensors can be installed on vehicles that can record key occasions on a blockchain to help oversee the whereabouts and whether the vehicle is taken off-limits during the drive or not. This could be of great help for vehicle leasing companies.

Oil transportation and field administration. IoT sensors on oil and water wells can empower oil organizations to manage the performance of the companies that transport oil and water from the wells and transport them to different locations,  

The IoT sensors on the wells help the oil organizations plan truck pickups and permit them to measure the amount of material transported, and to stop frauds related to misrepresentation of weight conveyed.

Challenges of Integrating Blockchain Technology With IoT

There is a wide range of opportunities generated by the coupling of IoT and Blockchain, but there are some constraints to it. One of the biggest constraints is the battery issue. Although some of the IoT device and Wifi are directly connected to the vehicle battery which pretty much solves the issue, as of now there are very less of these devices, and the majority of devices uses their own batteries which ought to run out of battery at some time. The process used in Blockchain is highly energy consuming and devices with their own batteries will en dup being off, hence creating a problem to the system. One solution to this is using a distant server that will do all the processing while the IoT device will just sare info to that server. 

Conclusion

IoT and Blockchain bear great potential and it is inevitable to see them working together in near future. Also, both the technologies are still evolving and more efficient and low-powered solutions will come up at some point.
 


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Ashish is a seasoned industry veteran and holds strong experience in Technology PreSales Customer Service and People Management

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