When Blockchain Collaborates with IoT

When Blockchain Collaborates with IoT

Blockchain
May 31, 2019 Editor's Desk
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Implementing Blockchain and IoT in Supply Chain

Blockchain and IoT are disruptive technologies that have the power to change the future. These technologies are proliferating, and their convergence will boom the tech world. Let’s understand how.

Role of Blockchain in IoT

IoT is a massive network of data-gathering devices to make timely decisions. Currently, managing these devices is a technical challenge. Although many access management technologies are available at present, instead of placing the database at a centralized server, IoT solutions require peer-to-peer (P2P) networks to become widespread. However, privacy and security are the major concerns pertaining to these P2P networks. Blockchain technology plays a vital role in ensuring the smooth performance of sophisticated IoT devices and safe storage of critical, immutable information on a distributed network of devices in its decentralized system. If the information is hacked, the distributed storage and encryption help authenticate this information, and in case of a data breach, the blockchain record enables the weak identification links of the network, aiding in taking corrective actions.  

Currently, any failure of an IoT system exposes multiple devices, large volumes of personal information, supply chain partners, and the community as a whole. Such security flaws typically revolve around three areas: authentication, connection, and transaction. Blockchain technology can enhance IoT networks by offering high security, reduced operational and infrastructure cost, quick transactions, and enhanced customer engagement. The combination of these two technologies can strengthen supply chain management. Complicated encryption standards in blockchain technology keep hackers out of the system as attackers are well aware of the fact that they have to crack an extra layer of security. 

Blockchain helps in Simplifying Business Processes and Affording Transparency and Immutability

Integration of blockchain technology into existing business models helps prevent data manipulation, which is expected to be one of the most important factors boosting the growth of the blockchain IoT market. The game-changing technology could disrupt everything in the near future. This distributed ledger technology offers transparency by recording every information about each transaction on the blockchain. All changes to the blockchain can be publicly viewed by all parties, thereby creating transparency in operations. All transactions are immutable and cannot be altered or deleted. Thus, it is beneficial for auditors. Blockchain technology is also designed for financial transactions as it offers enhanced data security. The feature of immutability helps create real-time tamperproof records. 

Security is an Irresistible Reason to Merge Blockchain Technology with IoT

MarketsandMarkets has identified a few of the critical applications for which the convergence of blockchain and IoT is inevitable, which is expected to have a significant impact on various applications by 2019 onward. These applications include data security, data sharing/communication, asset tracking and management, and real-time workforce tracking and management. Among all these applications, security is the major application for which blockchain technology is adopted because it allows to record and secure each transaction in the system. The global blockchain IoTmarketis projected to be valued at USD 3.02 billion by 2024, growing at a CAGR of 92.92% during 2019–2024.

Note:”Others” includes real-time workforce tracking and workforce management applications.

Source: MarketsandMarkets Report Repository

Blockchain IoT Plays Major Role in Asset Tracking and Management

Asset management solutions are primarily used for tracking and monitoring the condition of enterprise assets in real time. Integration of blockchain into asset management software provides several advantages. Along with security, blockchain asset management software offers an immutable database of all transactions. Tracking real-time performance of assets using blockchain helps decision makers to take remedial actions in the case of data drift. Further, this technology allows participants to exchange information instantly, thereby helping streamlining operations. Portfolios structured with blockchain technology have the benefit of highly organized data, thus making re-structuring of product offerings simpler.

Blockchain IoT Is Revolutionizing Smart CityProjectsTransportation and LogisticsIndustry, and Manufacturing Sector

In recent years, the concept of a smart city has become one of the dominant topics in technology discourse. Smart cities integrate IoT with almost every aspect of life; with recent developments, smart cities will become a reality in the near future. Smart city leaders are embracing blockchain technology to make cities more secure and efficient. The technology allows citizens to digitalize their identification and tax reports, and track the assets they own. Further, it facilitates transparent voting, paperless documentation, etc.

Nowadays, customers are inclined toward online shopping. A same-day or on-demand delivery is preferred. In transportation and logistics, the use of blockchain technology avoids the requirement to rely on third parties to authenticate data; it implies better freight tracking, secure documentation throughout the shipping process, more efficient and cost-saving business operations.

Blockchain enables manufacturing organizations to access plant-floor data in real time. Real-time data analysis helps manufacturers centralize their business data and multi-plant operations in real time. Manufacturers, being able to access and analyze the operational data in real time, adapt to changing production demands and maintain operational efficiency without any downtime. Manufacturers these days also strive for proactive maintenance capabilities that can help them avoid unplanned downtime and production wastes that cause huge losses. Blockchain enables users in identifying possible machinery failures in advance to initiate corrective measures. 

Key Players in Blockchain IoTMarket

IBM Corporation (US), Microsoft Corporation (US), Intel Corporation (US), Amazon.com, Inc. (US), Cisco Systems (US), Ethereum Foundation (Switzerland), The Linux Foundation(US), R3 (US), Filament (Nevada), KrypC(India), IoTeX(Singapore), Factom (US), IOTA (Germany), Xage, Inc. (US)are a few major companies who focus on investing heavily in blockchain and capture leading position in the blockchain IoT market.

ConclusionAccordingto Mayuri Kulkarni, Research Analyst at MarketsAndMarkets, Blockchain IoT is being fully discovered as of now. Blockchain is still a relatively new technology, and major companies are just started to understand and invest in blockchain. Several giant companies such as IBM, Google, Intel, and Microsoft have already invested heavily in the blockchain technology. Blockchain IoT is built to maintain a continuously growing list of cryptographically secured data records protected against alteration and modification. It sets up trust, accountability, and transparency while streamlining business processes. Blockchain can help reduce expense and unpredictability of working-edge devices or connecting servers. Also, it simplifies the development of cost-effective business systems where anything can be tracked and exchanged without requiring an essential central control.

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