The IoT and Blockchain: Finding Solutions and Opportunities

The IoT and Blockchain Finding Solutions and Opportunities

The IoT and Blockchain Finding Solutions and Opportunities

The Internet of Things (IoT) is something that provides a variety of ways for companies and consumers to improve efficiency, upgrade convenience, and do new and interesting things. However, as much as the IoT has been a buzzword in technology for the past decade or so, it has also presented a lot of significant problems. The complexity of IoT and threats when it comes to things like malicious bots and hacking means that it is an area that can cause a lot of headaches for those who need to rely on it. Yet, due to the benefits and the fact IoT has become so integral in some areas like logistics, it is pretty much something that companies can’t just opt out of using.

In looking for solutions that can make IoT more secure and reliable, a lot of people are coming to the conclusion that another rapidly growing technology can pair very well with it: blockchain.

Blockchain Outside of Cryptocurrency

Blockchain is perhaps best known to the average person as the technology behind Bitcoin and other cryptocurrencies like Ethereum. However, decentralized systems using blockchain technology are already in fairly wide use for plenty of purposes outside of financial technology (fintech). A look at this blockchain press release site can show just how many innovative and interesting projects are ongoing, launching, or currently proposed, and it is clear that the applications for blockchain are now far beyond the fairly niche crypto sector.

Decentralized systems allow for easier tracking, and present different security solutions to traditional systems. This makes then very well suited to things like HR, where personal data needs to be held securely and traceability is essential, and logistics, where the ability to track things to the most detailed level possible offers obvious benefits. It is these types of business applications for blockchain that allow it to work well with IoT.

Some of the Advantages Blockchain Offers in IoT

The challenges presented by IoT are extremely complex and do vary depending on the data held by the system. However, blockchain does provide options when it comes to many of them. Blockchain can, for instance, allow for the reporting of all logical decisions made within a network, making IoT networks a lot easier to manage and debug, as well as making regulatory compliance easier. Blockchain also makes installing secure software updates across an IoT network a lot easier, allowing updates to be pushed to devices as a URL and a cryptographic hash. Other security challenges can also be addressed by the intelligent use of blockchain technology, for instance secure micropayments.

More and More Blockchain Adoption in IoT

IDC predict that by the end of next year, 20% of all IoT implementations will be making use of blockchain in one way or another. This is fairly rapid growth, especially when you consider that both blockchain and IoT are still considered to be emerging technology spheres with quite low maturity. It is likely that as more and more blockchain solutions are worked on and provided to IoT technologies, both fields will become stronger.

Adoption in the IoT market is big news for those involved in the advancement of blockchain. IoT is certainly not going away, and will, if anything, only become more complex as security threats tend to evolve as quickly as any online technology. This could be one area where blockchain can really shine, and gain greater understanding as something that has huge potential for innovation outside of crypto.

It will be interesting to see how new opportunities that apply blockchain to IoT will emerge throughout 2019.

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