Five worthy reads is a regular column on five noteworthy items we’ve discovered while researching trending and timeless topics. This week, we delve into the leading-edge integration of Blockchain with IoT across industries to achieve increased security in data transfer and processing.
We can all agree that heaps of data are collected from every digital transaction, but how secure are these transfers, and how much of this data is actually being leveraged effectively to provide business value? This is where the combination of the Internet of Things (IoT) and blockchain technology can do wonders.
Blockchain was invented as encrypted real-time multi-ledger technology for Bitcoin. IoT, on the other hand, is defined as a network of connected objects that can exchange information and share data seamlessly. Now, IoT and blockchain can benefit each other, and we’ll explain at how it would work.
Let’s take an example of a valuable electronic device that’s being shipped. While blockchain, which is essentially a distributed digital record that has a built-in chain of command, can help you track the package, IoT keeps you informed about the condition of the shipment, so you know whether it’s been tampered with throughout the shipping process. Adding to this, blockchain’s cryptographic algorithms not only help with tracking packages, but they also help protect information on the delivery of the device and validate data transfers.
Combining blockchain’s capabilities with IoT’s undeniably provides an extra layer of security to data transfers in the cloud and boosts efficiency by increasing transparency of workflow processes, which makes backtracking processes and finding errors easier and creates a more dependable IoT environment.
That said, here are five interesting reads from across the internet highlighting the growing significance of combining these technologies.
Both these path-breaking technologies are slowly making their way into mainstream functions across industries, but effectively integrating these technologies will require some research and development before businesses can dive in.
One of the main issues with the adoption of IoT is the security concerns that it presents; IoT combined with blockchain can benefit a plethora of industries and simplify workflow processes considerably, especially in supply chain, logistics, and insurance industries.
While most companies are grappling with the implementation of full-fledged IoT and blockchain, it’s unrealistic to expect organizations across industries to put the combination to use right away. Though the concept appears to provide a clear advantage, businesses need to correlate the benefits that come with this implementation to make the most of this integration.
Introducing blockchain technology to IoT can eliminate the need to trust multiple touchpoints. This, in turn, reduces oversight errors and helps IT professionals concentrate on other important tasks.
The biggest issue is that the devices currently designed to fit IoT requirements are not necessarily ready for blockchain. It will take time for vendors of common IoT-friendly consumer products like smartwatches and security systems to develop devices that can process the huge amounts of data at a high speed required for blockchain. Right now, this is one of the greatest limitations to rolling out blockchain to more of the industries that have come to rely on the IoT.
Although it’s clear that there’s still plenty of research and experimentation ahead for effective integration of blockchain and IoT, the very possibility of cryptographically linking data blocks to record IoT transactions is phenomenal in terms of the increased security, efficiency, and economic value it could create.