Blockchain Applications in Internet of Things (IoT)
Blockchain Technology for Internet of Things (IoT)
Blockchain technology is the missing link to settle scalability, privacy, and reliability concerns in the Internet-of-Things.
According to Cisco, 50 billion devices are due to come online by 2020. With so many connected devices all sending, receiving and processing instructions to turn on, dial down and move up, the sheer amount of data due to come on-stream could come with unprecedented costs. Other issues include how exactly we can track and manage billions of connected devices, storing the metadata that these devices produce, and do it all reliably and securely. Before mainstream Internet-of-Things consumer adoption can really take hold, these issues will need to be resolved.
Blockchain technologies could perhaps be the silver bullet needed by the IoT industry. Blockchain technology can be used in tracking billions of connected devices, enable the processing of transactions and coordination between devices, allow for significant savings for IoT industry manufacturers. This decentralized approach would eliminate single points of failure, creating a more resilient ecosystem for devices to run on. The cryptographic algorithms used by blockchains, would also help to make consumer data more private. The benefits of decentralizing IoT are numerous and notably superior to current centralized systems.
However, blockchain is a newer invention and, similar to IoT, current applications sometimes fall short when it comes to scalability and integration. As tech professionals start to troubleshoot issues and further innovate applications and solutions that are blockchain-based or IoT industry they have quickly realized the potential for blockchain to support IoT and relieve many of the glaring pain-points current systems suffer from. Many tech professionals view blockchain and IoT as a perfect match.
This guide will help to discuss exactly why transferring centralized servers that support IoT devices to a decentralized infrastructure will help to revolutionize IoT. We will explore the following topics to address the overall need, benefits, and future of blockchain applications in IoT in the following sections:
- What is the Internet of Things (IoT)?
- Issues IoT Currently Faces
- How IoT Can Benefit from Decentralization
- Blockchain Internet of Things (IoT) Use Cases
- The Future of Blockchain Applications in IoT