About 20% of all IoT enabled devices shall have basic level Blockchain services enabled in them in 2019. That said, there would be more devices that will be will be able to send data to private ledgers. This is an obvious hint at how the two most futuristic technologies have started converging, and most importantly, heralding a new world where companies are introducing new blockchain-based initiatives left, right and center!
With the help of some use-cases, let’s understand how blockchain has already begun disrupting industries that are using IoT.
Be Prepared for Sensing As a Service
The earliest and the most practical application of a blockchain was to create the cryptocurrency Bitcoin. Today, it has gone beyond finance with some great applications in the offing. Recently, Nokia launched a blockchain-powered IoT sensing as a service for smart cities, paving the way for mobile network operators to monetize their existing infrastructure. These operators already use Nokia cell site equipment and will be able to sell the infrastructure such as towers. This can be done by selling the live environmental sensor data.
Make Way for Security
Take the instance of IBM’s Watson IoT Platform. It has a “built-in capability that lets users add selected IoT data to a private blockchain.” Moreover, this secure data is shared only with the partners who are involved in the transaction. Ergo, by using blockchain, devices will be able to send data to private ledgers giving rise to transactions with tamper-resistant records.
For those who were in the search for a more secure IoT system are in for a pleasant surprise. If IBM can make this possible, so can other firms. For example, a Taiwanese company known as OwlTing has taken food safety up many notches by integrating blockchain technology in its supply chain infrastructure. In an unprecedented move, the Ethereum-based technology called OwlChain will come up with a tamper-resistant system, which will offer consumers information on each step of the production and distribution process. This will introduce better transparency in the food supply chains and push for enhanced food control.
No More Flawed Systems
At present, the IoT solutions are expensive because of the cost of the tools, networking equipment and maintenance of centralized clouds. When the devices expand, the cost will also shoot up drastically. Moreover, IoT devices will get smaller and have limited computing power, which will limit the encryption capabilities. Less storage and the need for immense power consumption is another roadblock, which can restrict the entire blockchain mechanism that largely depends on authenticity and transferring, storing the information in real-time. When a device will function as a node, it should have the copies of all the transactions, starting from the first block.
A solution to this lies in DAG or Direct Acyclic Graph, a concept brought forth by SPECTRE. It builds the blockchain from the bottom and aims to correct the flaws of blockchain development. According to the concept, 10 blocks are created per second and are referenced in a DAG. As a result, several threads of blocks arise, which are entwined together. Post this, the most valid transaction history is chosen by the miners (most inter-referential block graph). Transaction storage will be temporary, which will be removed once it has been validated.
Supporting Transactions with High-Quality Wallets
The Hdac Technology AG is doing great on the IoT front. It is in the middle of organizing the release of Hdac token and that’s going to be a major step for the future of IoT. The platform is a group of Blockchain projects that involve the Hyundai Corporation via Hyundai Pay.
A section of the website content states that “Our goal is to harness that opportunity to help you go “Beyond the Human Pay”. Through secure Blockchain technology, Hdac can assign contracts to all your smart devices to fit your life pattern. In layman’s terms, we make your life easier.” They are basically addressing privacy, which is a leading challenge IoT faces. By configuring unique Hybrid Blockchain Networks for its users, the platform aims to support several transactions with high-quality wallets that are not vulnerable to security flaws.
Conclusion
As we move towards a future that’s more connected than ever, blockchain and IoT will play a massive role in offering speedier tasks, trust and reliability. Together, they will form a definitive solution for various problems and it will not be long before they evolve into a ubiquitous technology.
About the Author
Harsh Agrawal is passionate about blogging and Blockchain technology. His belief is, Blockchain technology can bring much needed social change. He shares his learning on CoinSutra (A crypto community), whose mission is to help individuals master Blockchain technology and cryptocurrency economics.
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Hey Harsh! you have covered a complete and nice article of block chain!.. and cleared explanation how was it created! & facts ,so thanks of this beautiful article!