A glance at Blockchain in IoT
In simple words, Blockchain is a system of recording information that is cryptographically secure. It enables the duplication of digital transactions and their distribution across the computer network. Internet of blockchain simply means that the information is sent from the device to the cloud where the data is processed using analytics and then sent back to the IoT devices. The Internet of Things (IoT) facilitates value creation by connecting people, places, and products. Sophisticated chips, sensors, and actuators transmit data to the IoT network. IoT usesanalytics capabilities to convert insights into action; however the technical security concerns still remain.
The main advantage of blockchain in IoT is that it allows secure transfer of data between parties.Smart contracts in blockchain networks allow devices to function securely and autonomously. This enables greater automation, scalability and cheaper transfers. A decentralized blockchain network mitigates the risks associated with millions of individual nodes that transfer data on a peer-to-peer basis in order to run theIoT network smoothly.
A glance at some of the use cases of Blockchain in IoT
Residential - Smart home refers to a technologically connected home that sends and receives data in real-time. It provides automated and intelligent services through various home appliances and devicesthatare part of the home-based communication system between devices and environments, thereby minimizing human intervention. The IoT and network environment of these smart homes are emerging as important factors as government around the world are focusing on smart home and smart city projects. A blockchain-based smart home gateway network architecture mitigates the challenges in existing centralized security network architecture and counters possible attacks on the gateway of smart homes and also protects their confidentiality with an encryption algorithm.
Industrial- The emerging Internet of Blockchain technology shows promising potential to enhance industrial systems by providing applications with redundancy, immutable storage, and encryption. Industrial Internet of Things (IIoT) is opening up new revenue streams for industrial applications and social IoT environments. Sectors such as BFSI, manufacturing, transportation, healthcare, energy, government, and real estate have witnessed an increase in the utilization of IoT solutions in the last few years. The IIoT integrates emerging technologies, such as smart sensors, robots, machine-to-machine (M2M), big data analytics, and artificial intelligence into traditional industrial procedures. This helps industries in achieving extraordinary economic growth through digital transformation and creation of next-generation smart systems
Logistics- There is a demand of cryptographic tagging solutions for blockchain in smart logistics and supply chain management. For an effective supply chain management, logistic companies need an integration between IoT devices and distributed ledger networks that can enable secure and trusted interaction with machinesby giving machines and any physical device a ‘trusted digital identity’.
Recently StraitsResearch published a report on the blockchain IoT market is expected to grow from USD 102.9 million in the year 2017 to USD 4.7 billion in the year 2029, with a CAGR of 53%. (https://straitsresearch.com/report/blockchain-iot-market/)