[vc_row][vc_column][vc_column_text]Blockchain and IoT (Internet of Things) have been singled out as the perfect combination of technologies. On the one hand, the Internet of Things is creating new opportunities and providing competitive advantage for companies in new and old markets. On the other hand, blockchain helps solve scalability and security issues.
IoT is not only about data itself but also how, when, where and why you collect it. Since generating and assessing confidential information are essential parts of this process, it is important to embrace data protection throughout its cycle. And that’s where the partnership between blockchain and IoT comes into play.
First of all, what is IoT?
In 1982, the Internet was still something unknown to most people. This was the year the first IoT device came into being. It was a Coca-Cola vending machine, which could tell the office how many products were still available and whether they were cold or not.
In short, the Internet of Things is just an electronic system that has the ability to exchange data with other electronic systems via internet, just that. Current examples of IoT “things” are smart coolers, intelligent lighting systems, and security cameras.
Why do companies invest in IoT?
Among other things, the data provided by connected equipment can help companies improve performance, increase competitiveness and optimize costs. In industries, for example, it is possible to monitor the machine status, in real time, or carry out preventive maintenance, etc.
In addition, considering a broader perspective, it is possible to collect customer data that allows, for example, to offer unique and customized solutions. Moreover, it is possible to assess market trends, consumer behavior, etc. All of these factors enable companies to create a better shopping experience.
What is Blockchain?
Blockchain is a transparent, secure information storage and transmission technology that works without a “control center”. That is, there is no “master” computer that contains the entire data chain. On the contrary, all participants have a copy of it. This decentralization actually adds more security, since all network participants need to reach a consensus to perform the transactions.
Besides, blockchain is a database that contains the history of all exchanges made between its users since its inception.
Why should safety be a concern for IoT?
IoT is an irresistible temptation for hackers. Connected devices, in addition to providing relevant and valuable information to businesses, can be easily exploited. For example, a hacker can buy a smart device and spend months reverse-engineering a hardware to look for failures that will serve their purposes.
Is it possible to use blockchain and IoT together?
Blockchain technology is often associated with bitcoin cryptocurrency. However, it can be used in different transactions and applications. In fact, it is the missing link to solve problems of scalability, privacy, and reliability on the Internet of Things.
By using blockchain and IoT together, it becomes possible to safety track billions of connected devices, process transactions, and coordinate communication. This combination allows significant savings for manufacturers in the IoT industry.
The decentralized approach would eliminate single points of failure. Creating, that way, a much less vulnerable ecosystem for the devices. That is, the cryptographic algorithms used by blockchains make consumer data much more private.
How does IoT benefit from blockchain technology?
A blockchain is tamper-proof and can not be manipulated by malicious agents since it does not exist in one place. Likewise, data interception attacks are not effective because there is no single chaining that can be intercepted. This made blockchain and IoT into a very likely “couple”.
So it’s no surprise that IoT technologies have quickly become one of the first to adopt blockchain in their transactions. Decentralized, autonomous and reliable resources are ideal components to provide security for the collection, transmission, and data management process.
In an IoT network, blockchains can keep an unchanging record. This feature enables the autonomous operation of smart devices without the need for centralized authority. As a result, blockchain solutions open the door to a series of IoT scenarios that were remarkably difficult or even impossible to implement until then.
By using blockchain and IoT technologies to perform a secure message exchange between devices on a network, companies will be able to collect maximum data with the required security.
And, speaking of technology and protection, click here and discover how Artificial Intelligence can be a tool that works for your safety.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][ultimate_icons][/ultimate_icons][/vc_column][/vc_row]
