Blockchain in IoT: What It Means Exactly And How To Embrace It By Bhupinder Kour

Internet of Things (IoT), the technology behind the idea of Smart City, Smart Car, and Smart Home, has represented itself as one of the most disruptive technologies of the era.

It has evolved itself as the technology of connecting anything and everything from our daily lives. An outcome of which is that the around 50 billion IoT connected devices are expected to be active in the market by in 2020, while the IoT tech market is projected to hit $6.2 trillion by 2025.

While these numbers give a clear indication that IoT is proposing a definitive and profitable future in the business world, it is also found to be plagued by various challenges.

Wondering what these IoT challenges are? And how will the technology overcome these challenges to reach its optimal market strength? Let’s dig out in this article.

Challenges Prevailing in the IoT market

Being an ecosystem where multiple devices can connect to each other at any point of time and share data, IoT is gaining a proliferation in the marketplace. But, at the same time, it is suffering from various privacy and security concerns, a few of which are:-

Attack on User Privacy

With a plethora of devices connected in an IoT network, the amount of data generated and shared across a network is too high. As per FTC’s report, titled: “Internet of Things: Privacy and Security in a Connected World”, around 150 million individual data points are generated by less than 10,000 household devices on a daily basis.

This signifies the cyber attackers can gain a heap of data by invading a single connected device. They can reprogram these devices and command them whatever they want. For example, they can hack a smart meter device to find out what you are watching on TV right now. They can also target your home security cameras and get your pictures while resting or totally ‘naked’ at home to further use those images and data for money or another purpose. And in this way, use your privacy for making their fortune.

Unauthorized access of Devices

Since a myriad of devices are connected to each other in an IoT-enabled network and there is no effective way to determine what data is stored where and in what extent, it is again practically impossible for the organizations to keep a watch on all the devices in real-time and find out if someone has gained an authorized access to any of the connected devices and has been using it for stealing sensitive information, and thus, take the right preventive measures.

Encryption Attacks

Since IoT environment involves least to no human interactions (relies completely on Machine-to-Machine communication mechanism), weak encryption or accidental credential key can make it easier for hackers to become a part of the network and use the data for their benefit – which is again a challenge for organizations working in IoT-based ecosystem.

Trust and Ownership Issues

Again, there is no definite method to verify the identities of devices on the Internet. You cannot determine which device is collecting your information and where on the IoT ecosystem it is using or sharing. This raises the trustability and ownership issues within the environment.

Now while we have seen a few of the major issues faced in the IoT-enabled ecosystem, it is likely that you must be tensed and wondering how to deal with them.

So, without ado, let’s look into how Blockchain of Things, aka, Blockchain in IoT can be the right solution to these challenges:-

Smart Contracts

One of the prime ways Blockchain technology is solving the issues of the Internet of Things is Smart Contracts. Based on a particular set of protocols, the Smart Contract eradicate the need for the involvement of third parties in the network and ensures that every entity entering into a transaction follows the certain preassigned regulations – resulting into higher reliability, speed and irreversibility of the transactions.

This will enhance the future of IoT in different industries and foster its application – a glance of which is covered in this article: Different Use Cases Proving the Role of Blockchain in IoT

Decentralized Public Blockchain

In the case of blockchain, the data stored and employed within a network is decentralized. No single entity has a monopoly over the data. Because of this, the IoT environment experiences a lower effect even when a particular device is removed or detached from the network. Besides, transparency is maintained throughout the network that adds trust to the ecosystem.

Proof of Work

Blockchain works with ‘Proof of Work’ algorithm which authenticates every block or transaction related to the network to ensure the eligibility. If a block or transaction fails to fit into the eligibility criteria, it is not allowed to be a part of the network. And if it becomes a part of the blockchain, it is ensured that every transactional data remain constant; it can’t be changed at any point in time. This, as a whole, helps organizations and users to build a trust onto the network and thus, leverage the best advantages of IoT network.

So, as we have seen in this article, Blockchain is proving to be the right solution for the prime IoT challenges. It is creating an ecosystem where the IoT connected devices can interact with each other easily, securely, quickly, and effectively. An outcome of which is that by the end of 2019, around 20% of IoT deployments will involve Blockchain technology.

However, implementing Blockchain in IoT is not an easier task. Blockchain, being new in the market, has its own limitations in terms of performance and scalability, implying it is necessary for you to hire a Blockchain app development company. So, think about it and take the right step ahead in the Blockchain-powered IoT ecosystem.

Author Bio:

Bhupinder Kour

Holding a Bachelor’s degree in Technology and 2 years of work experience in a mobile app development company, Bhupinder is focused on making technology digestible to all. Being someone who stays updated with the latest tech trends, she’s always armed to write and spread the knowledge. When not found writing, you will find her answering on Quora while sipping coffee.

If you would like to have your company featured in the Irish Tech News Business Showcase, get in contact with us at Simon@IrishTechNews.ie or on Twitter: @SimonCocking