We understand the blockchain as a form of Distributed Ledger Technology that is intrinsic to the cryptocurrency existence, but recently the blockchain has been gaining enormous attention in areas beyond its cryptocurrency roots, such as blockchain and the Internet of Things (IoT) applications: - blockchain and security, blockchain and finance, blockchain and machines automation, blockchain and logistics, etc.
Internet of Things (IoT) represents the interconnection via the Internet of computers and processors embedded in smart machines, enabling them to transmit data between each other. The world is already full of connected devices and more and more networks are evolving every day.
In this article we look at the IoT blockchain applications, evolutions and challenges.
The evolution of the blockchain/ IoT technology is about to revolutionise the digital business and automation industries as we know them today. Blockchain technology will play a critical role in mass automation.
In fact, the convergence of blockchain and the Internet of Things (IoT) is on the agenda for many companies and already there are existing implementations, solutions and initiatives in several industries, such as automotive, banking and finance, insurance, stock market and cryptocurrency exchanges, manufacturing, gaming, you name it.
It is still early days, but at the same time big tech companies are not waiting, as they are already investing in the integration of blockchain(s) and the Internet of Things applications. With the combination of IoT and blockchain we have already entered a space of pretty unlimited possibilities.
There are many benefits and challenges in IoT and Blockchain integration, but also there are many advantages in creating more innovation through machines that create safe and secure communications via integration of Blockchain and IoT technology.
The security issue is one of the most compelling reasons for utilising blockchain in the operation of the IoT devices. Blockchain creates security within IoT applications and therefore the Blockchain technology can reduce risk on many different levels within IoT applications. By utilising blockchain to manage data transfer between IoT devices a new smart system is created with an additional layer of security that is underpinned by some of the most robust encryption standards available today.
In a nutshell the key challenges for IoT and blockchain ecosystems participants are technology, operational challenges and the legal and regulatory issues.
But the main issue is the relatively slow processing speed, and scalability for mass applications.
However, one thing is guaranteed for sure, the Blockchain/ IoT technology is developing with a rapid pace, and new smart devices and operational networks are evolving every day. In my opinion the Blockchain/ IoT integration will become a necessity in the near future.
What Blockchain/ IoT projects are you excited about? Let me know in the comments.