If we talk about the biggest technological innovations of the decade, then Internet of Things and Blockchain Technology are to be considered at the top of the list.
IoT solutions are trending because of the immense potential and diversity that they offer with use cases in multiple industries. Not just that, the quality of fulfilling the dual purpose, i.e. commercial as well as lifestyle makes it worthy of all the hype that is created.
On the other hand, every tech maniac is now well versed with the blockchain technology and the extent of transparency and security that it offers.
Researchers and developers are innovating new ways to bind both the technologies together. There are multiple benefits of it that will be covered in this article. Moreover, the article will clear the concepts of Blockchain and Internet of Things to develop a better understanding of the subjects.
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Whenever someone refers to the Internet of Things, it means the cluster of physical devices that are connected together with the help of sensors, software and other technologies. All the devices that form the cluster functions individually to collect, process and transmit data using the internet.
The actual meaning of the Internet of Things has been improvised with time due to the emergence and evolution of many new as well as existing technologies. However, with the growth of the concept and its applications has risen the risk associated with it. The major risks that prevails is privacy and security of the sensitive data and hence to address the challenges both the private as well as the public organizations are working unitedly.
Read More: What is Edge Computing and How it Helps (Internet of Things) IoT?
One such major move to address the privacy and security concern is integrating blockchain development solutions in the IoT devices for enhancing the accountability as well as addressing security concerns.
Keep scrolling to know more about the concept of blockchain and how it plays a crucial role in creating advanced solutions when in sync with the IoT.
To have a better understanding about the IoT, let us have a look at some of its applications that are trending these days.
Wearables
The integration of IoT in wearable devices is one of the most initial implementations of the technology. Moreover, the major investment in creating smart devices is seen in the fitness and healthcare industries. Devices like heart rate monitors and smartwatches are the prime example of it.
Smart Cities
IoT has found its utilization in the rapidly evolving concept of smart cities as well. The growing urbanization has put up new challenges and the IoT can be optimized to target them. Smart cities are expected to flourish in the coming years making it an important technology.
Industrial Automation
Yet another important application of the Internet of things is in automating industrial processes. It is not only helpful in increasing the production output, but also enhances the quality of production. Not only is it helpful in reducing costs but also results in better customer experience.
Blockchain technology has been in existence from more than a decade now yet it has managed to keep up its popularity. The technology debuted 10 years back with its major application for the exchange of cryptocurrencies. However, over time the technology has evolved and has attracted a lot of investment and is still consistently expanding its horizon.
There are several things that make blockchain technology worthy to invest. It is a digital open-source distributed ledger that is constantly expanding by accommodating new transactions. This makes it a never ending ledger and capable of accommodating transactions with the help of cryptography.
Another important point that can not be neglected is that it features a high level of encryption. It makes it immune to random guesses and almost impossible for a third party to intrude in the process or peek and steal any relevant information.
The technology is playing a major role in revolutionizing the traditional financial systems that have put up the question of whether it is capable of replacing the latter and become the dominant decentralized financing system.
The journey started from the sole use of cryptocurrencies, the technology has now evolved into bigger dimensions that reflect its application in deriving new systems, technology and networks.
One such evolution is the evolution of the internet of things devices that are now powered by blockchain technology. There are many benefits of syncing the two technologies together that has been mentioned in the next section.
To have a better understanding about blockchain technology, let us have a look at some of its applications that are trending these days.
Real Estate
An effective implementation of blockchain technology is in real estate. As you are well aware of the fact that it is a decentralized network, it can simplify the process of title registry and transfer. Also, the platform can be used to sell or purchase properties using the cryptocurrencies.
Paying Royalties
A major challenge that the artist faces is the piracy of their content. In such cases, the artist can be assured that no user accesses the content without subscribing via the blockchain. Hence, it will lead in timely payments including the royalties, that is often not easy to track.
Money Transfer
There are various platforms that have emerged since the deployment of blockchain for carrying financial transactions. For a better understanding about those platforms, the basic purpose is to facilitate quick and convenient transfer of crypto funds to the friends, family or any other involved participant.
This section of the article tells about the implementation of Blockchain Technology with the Internet of things contributing to the reason behind all its hype.
Read More: How The Internet of Things (IoT) is Reshaping The High-Tech Industry
Security
One of the most prominent aspects is that blockchain technology is preferred as a security enhancement when paired with the IoT devices. It offers a tamper-proof environment and resists any unverified access making it resistant to manipulation.
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Moreover, blockchain has already earned the reputation by eliminating the need of third-party mediators and instead facilitating peer to peer transactions.
Data Encryption
Since the IoT deals with transferring of information from device to device via the internet, there are many suspected risks that are associated with the procedure.
Another strong point of using the blockchain is that it involves a high level of encryption that makes it almost next to impossible for an intervener to decode the critical information. This not only helps to preserve the integrity of the data but also builds trust amongst the users.
Communication
The concept of smart contracts is revolutionary in itself. It processes the information and transacts following the predefined patterns and rules. This is effective in bridging the communication gap and instead introduces the user new mechanics of communication.
Moreover, the concept of smart contracts is helpful where a high level of evaluation and execution is required, prime examples can be the ones involving huge finances.
Cost Reduction
There are many features of the blockchain that makes it a cost efficient alternative to sync with IoT. Firstly, the fact that no middlemen is required while transacting itself saves a lot of costs. Furthermore, it has the potential to form a single network and involve various associated parties within it. This eliminates the requirement of setting an individual environment eventually saving a lot of costs.
Also, the technology effectively automates the payments and transactions that not only ensures accuracy but also reduces the budget that otherwise would have been invested on hiring more and more employees.
Read More: Why Do You Need A Payment Gateway for An Online Marketplace?
Tracking
Most appealing factor or call it the USP of blockchain technology is its immutable nature. It means, one a transaction is recorded it can not be reversed.
Even in cases where the record needs to be updated or edited, it requires mutual consent of all the parties that are involved in the network. Hence, together with IoT, blockchain technology can open doors for new opportunities without any central authority.
The article clearly mentions the concept of IoT and Blockchain along with their use cases. As with the growing digitization, it has become necessary to deploy modern measures to safeguard the interest of customers that are accessing the online platform.
IoT is known for producing smart devices that are capable of transmitting data and interacting with machines. On the other hand, blockchain is the digital ledger that can be used to store data in a decentralized manner. Together the technologies have the capacity to wonders and is the reason behind it attracting major investments.
If you are also looking forward to hosting a software application or any other use case of blockchain and IoT, considering an experienced software development company like BR Softech Pvt. Ltd. is highly recommended.
