6 Benefits of Blockchain and IoT to Drive Market Growth
The blockchain-IoT market is a blend of blockchain technology and IoT. It has gained popularity due to the rapid development of technology and communication networks. In addition, blockchain, powered by cryptographic encryption and decentralized network, uses IoT platform using peer-to-peer network to ensure transparency and security.
The growing number of IoT devices and connections vulnerable to cybercriminals have spurred the development of blockchain technology. The benefits of blockchain IoT include lower data change rates and costs, improved privacy and logistics, efficient supply chain and insurance.
The Internet of Things (IoT) connects people, places, and products. In doing so, it provides the ability to create and capture value. IoT analytics leverage these data points to turn insights into action, impact business processes, and lead to innovative ways of working.
Powerful Combination of Blockchain and IoT
According to ISG, Blockchain is a distributed ledger technology that allows machine-to-machine transactions to become possible when combined with IoT. Using a set of transactions stored in a database, they are verified by multiple sources before being entered into a shared ledger distributed to every node. Combining IoT and blockchain allows smart devices to work independently without a central authority, offering many advantages. It can also monitor the ways in which devices communicate with each other.
While the decentralized aspect of blockchain technology is a design advantage, it can pose problems for IoT as these platforms are based on hub-and-speak or client-server architectures. central agency. An IoT platform designed to be decentralized can help ensure that it is compatible with blockchain networks; however, it is not possible to easily set up IoT sensors to manage their own data storage and computation because they depend on central computing and storage resources.
Blockchain and IoT integration will drive the market in the coming years
While blockchain and IoT are both strongly combined, the combination of these two technologies can be used by businesses. A study done by Aftrex Market Research in 2018 found that the total Blockchain and IoT market could grow to $254.31 billion by 2026. Here are 5 advantages of IoT and blockchain technology will drive the expansion of the market in the coming years.
Blockchain for accelerated data change
Based on Aftrex Market Research, one of the key benefits of combining IoT and blockchain is faster data changes. However, according to reports, the current implementation of blockchain is not without its drawbacks in this respect as it limits the number of transactions performed per second. Therefore, a more enterprise-grade solution, such as a permission-based blockchain, is needed to handle the volume of data required, the devices that are part of the IoT, and the speed of transactions between the two.
A blockchain that reduces the time required to validate transactions using trusted nodes is critical to dealing with IoT performance requirements and being able to manage the fast exchange of IoT information. speed of IoT.
Improve Security with Blockchain
Security is one of the main advantages of blockchain due to its ability to validate information and ensure that it comes from a trusted source. Due to the large number of devices that are part of IoT, this feature is especially beneficial. The combination of IoT and technology can help strengthen privacy agreements and improve communication security.
This isn’t just for devices – it’s also person-to-person, device-to-device, and device-to-human. This trusted ledger easily shows who can access the account and who is making transactions. A record of every transaction is an important advantage. Businesses that currently use a mixture of blockchain and IoT often rely on security measures like device authentication, but this is just the beginning of the iceberg.
More efficient supply chain
One of the main goals of many businesses is to make supply chains more efficient. But, many problems in the global economy hinder this process. Eliminate middle blockchain and IoT can enhance supply chain efficiency and speed, speeding up transactions while reducing costs. Since the blockchain acts as a validator, to some extent, untrusted parties can share data directly, eliminating the cost associated with each hop.
Room for growth with Blockchainn
The use of IoT-based blockchain technology is still not widely used due to operational issues and technical issues. For example, scalability and storability are two big problems with blockchain systems that keep a large central ledger. Ledger storage on edge nodes is inefficient because smart devices at the edge are not capable of handling large amounts of computing power or storing large amounts of data.
While the concept of IoT-blockchain technology is still in its infancy, it will be a staple for the next few years. The implementation of security standards and regulations and guidelines will help encourage the use of IoT blockchain technology. In addition, with new standards of peer-to-peer communication and data transparency, blockchain can provide a higher level of security for the web.
The most prized benefit for companies is the ability to cut operating costs. Blockchain allows data to be transmitted on a peer-to-peer basis, with no centralized control, which reduces the cost of doing business. Building a highly reliable centralized infrastructure can be very costly. Decentralization is an effective way to eliminate single sources of error and address the scale of IoT.
Accounting is one of the key parts of an organization that can immediately benefit from the enhanced transparency provided by blockchain and IoT. First, companies must understand what they are sharing/exchanging data/money on on a linear, time-stamped chain.
How Blockchain is Accelerating the Potential of IoT?
Blockchain is an amazing technology with huge potential to accelerate IoT performance. Because security is the main concern of IoT has prevented widespread adoption of IoT. IoT devices are often plagued by security flaws, making them prime targets for distributed denial of service (DDoS) attacks. These are the main concerns of blockchain-related IoT devices:
The distributed ledger used in the blockchain system is secured against tampering. It eliminates the need to trust stakeholders and provides the necessary security for devices or platforms, improving user experience and reducing workload.
Through the integration between IoT and blockchain networks, utilities will be able to exchange information without having to use multiple servers. In addition, it will ensure that no problems occur in any node in the network, which can lead to the shutdown of the entire network.
Strong encryption level
Using blockchain to store IoT data adds an extra layer of protection that hackers require changes in all blocks of the chain to break into the network. In addition, blockchain provides a higher level of security. As a result, it becomes difficult and even harder to modify existing data records.
Due to the Decentralized approach, using the network of things will help solve many problems. Such as peer-to-peer communication models to process billions of transactions between devices. It also drastically reduces the cost of setting up and maintaining a massive data center.
Trusted and guaranteed
By creating trust among stakeholders, blockchain can help IoT businesses cut costs. Thus, eliminating the processing costs associated with IoT gateways (e.g., traditional protocols, hardware or communication costs).
Pull out key
According to a Twitter survey in August 2018, 57% of participants said they would never use blockchain technology. In contrast, only 12% of survey respondents used distributed ledger technology.
Based on Leone’s analysis, Blockchain and IoT could be a great combination. However, we have some time to go before this innovative business tool becomes ubiquitous in enterprise technology. Therefore, you should start planning for this now.
Featured image credit: Photo by Anna Nekrashevich; Bark; Thank you!