Blockchain and IoT are among the frontrunners for digital transformation that is currently surging worldwide. What if these technologies were to work together? Combined, these technologies can lend even more value as both distributed technologies can go hand in hand. This article covers how two of the most disruptive technologies can create more value.
The basics of Blockchain and IoT
Understanding the individual role of these technologies allows understanding how they can work together. IoT by concept is the communication between various distributed system elements. These different hardware or firmware system elements exchange data streams with each other for remote monitoring and control. On the other hand, the role of Blockchain complements these communications within network elements.
Blockchain essentially plays a role between transactions and interactions for intended applications. Similarly, Blockchain would support any such transaction and communication between connected system components. The introduction of Blockchain into IoT can make solutions compliant, secure, and cost-effective. Moreover, IoT solutions have been centralized so far, which can transform with the help of Blockchain.
Here’s how IoT and Blockchain can create value together
IoT solutions transform many different areas and impact industrial practices. With IoT, nodes and sensors can send transfer data through blockchain networks and can make transactions tamperproof. Blockchain can further empower these use cases that offer analytics, mobility, and security. In addition to these, there are other handfuls of benefits of Blockchain and IoT working together. It includes:
- Trust & safety:
Blockchain introduces a whole new level of safety and trust between any communication or interaction that takes place on any connected network. Through Blockchain, such contracts assure that devices and parties remain safe through any communication. Every data stream is recorded in a secure data chain as an invariable block.
- Instantaneous transactions:
Transactions generally take some time to conventionally process in the range of several seconds, minutes, or days. Blockchain can help there and make near-instantaneous transactions possible for connected systems. As a result, IoT systems would be even more helpful for their time-sensitive applications.
- Cost reduction:
Conventional IoT infrastructure relies on intermediaries and several communication mediators, reflecting an overhead cost. Such overhead costs can be cut down with the implementation of Blockchain in the Internet of Things infrastructure as it can eliminate any such parties in the middle.
- Generating value:
Blockchain can help streamline processes for the Internet of Things. It can leverage the data from IoT devices to create value for IoT ecosystems and applications.
Moreover, businesses can use Blockchain to exchange and use IoT data without each other without any central management and authority. Thus, IoT exchanges are always verified and reliable between the whole network.
The Best Applications Of Blockchain & IoT
Decentralization and secure data exchange through Blockchain are useful in various IoT applications. Here is a list of some several applications where they can create tremendous value together:
- Asset tracking and compliance:
Asset tracking is one of the most popular applications of the internet of things. Monitoring of these assets and components can be quite valuable if done correctly. For example, it can be used to track components in an aircraft or special utility vehicles apart from facilities. Most importantly, such applications must be safe and compliant with regulations.
IoT gateway data stored in Blockchain ledgers allows easy sharing of the data. Furthermore, it is the most cost-effective and accessible manner for all the end-users to access and exchange information at any point. These key aspects make both technologies a perfect pair for any asset or component tracking need.
- Transportation and logistics
Similar to component tracing, logistics and supply chains also involve various parties. Such an application can also benefit by using these technologies together. All the data associated with the product is safe, accessible, and trustworthy with the use of an IoT-enabled Blockchain ecosystem. Businesses can make the most out of logistics by tracking the tamper-proof product information safely and quickly.
- Industrial IoT data
Industrial IoT requires significant authenticity and efficiency in contrast to other applications. Data sensing and monitoring for industrial systems is a safety-critical operation. A proper IoT-enabled Blockchain ledger can allow effective analytics and predictive maintenance of machines. As a result, through these technologies, workers, supervisors, and maintenance crew can be on the same page. Similarly, regulatory bodies can also get the exact idea of industrial facilities.
The combined applications of IoT and Blockchain will grow over time in the next decade. The significant influencer here is the hike in distributed IoT systems applied between masses where Blockchain can offer added value. It is safe to say that Industrial, administrative, and smart city applications will benefit significantly from complementing qualities of IoT and Blockchain.