Blockchain and the Internet of Things: How Do They Complement Each Other?
Published on 14-Dec-2020
For every robotics buff out there, IoT is no longer news, while for most experts in the matter, the Internet of Things is beginning to look more and more like the future of the household industry. But we are only now starting to realize the solid bond between blockchain and IoT, and how each of them could massively boost the other’s progress.
This is why we have taken the time to analyze the whole blockchain IoT consortium, and much like 10 euro ohne einzahlung in a new Deutsche casino, we’re bringing you a free introspection on the main reasons for which blockchain and IoT are best friends.
What is the “Internet of Things”
In layman’s terms, the Internet of Things technology is actually the internal network of household devices and items. Newbies could look at IoT as some sort of messaging system for vacuum cleaners, washing machines, coffee makers, refrigerators, air conditioners, and even cars. It’s practically a network that links them altogether through software, sensors, and other technologies designed to allow communication and data exchange between these devices.
How is Blockchain and IoT Related
We are currently in a preemptive phase of the integration of blockchain and IoT. Thousands of experts from all over the world are working round-the-clock to figure out the most suitable language that will allow everyday objects to be aware of each other, and interact. At the same time, by the looks of all progress registered so far in the field, the difference between blockchain and IoT is not as big as one might have thought initially… to the contrary, actually!
Blockchain is a new type of technology designed for transactions. It facilitates interaction in the network, which makes it perfect for monitoring the processes in IoT. Out of all the huge web development companies nowadays, IBM, in particular, has been focusing on the similarities between the two, trying to show that when you combine them, blockchain and IoT are best friends!
3 of the major goals for combining blockchain and IoT:
- Tracking and recording all network changes
- Creating special storages that contain the whole history of changes
- Defining a smart data transfer contact system
Thus, the main benefit of blockchain for IoT would be that of uniting multiple devices into one single infrastructure. Naturally, this will allow devices to exchange either data or currency, in addition to which, the blockchain could also keep track of the exact time of any transactions at all times.
Real World Examples
One of the best examples showcasing the impact of blockchain on IoT was given by Hyundai, a well-known industrial corporation that supported a startup based on blockchain technology only. The project, called HDAC, managed to raise around $40 million by the end of November 2017, for development purposes, in an effort to adapt the blockchain technology to the IoT devices produced by Hyundai.
Another great example of how is blockchain and IoT related came from a company called Filament, which has been developing an industrial IoT chip that can encode sensor data automatically, subsequently adapting it for blockchain. This is basically how the information exchange from an external environment between multiple pieces of equipment can be achieved in a decentralized peer-to-peer network.
Lastly, there’s the IOTA project, which introduced Tangle, an innovative and unprecedented blockchain created particularly for IoT devices. If you’re still wondering why blockchain and IoT are best friends, this is one of the best study cases at the moment. MIOTA tokens are already up for trading on the crypto market, with quite an impressive capitalization that can only mean one thing for investors: value.
Granted, the full integration of blockchain and IoT is still far away at this point in time, but the current stages of development have shown very promising results. So, ‘what is the hold-up?’ many will ask. There are numerous security-related aspects that need to be covered before we can talk about a blockchain IoT consortium, as well as several legal issues that have not yet been addressed.
At the same time, one thing that all experts agree on is the infinite potential that could derive from the interaction of these two technologies. But we’re curious to learn your thoughts on the integration of blockchain and IoT, so feel free to share your take on it in the comment section below.
Ellen Royce is a finance and economics expert who likes documenting her thoughts in the form of articles to enlighten the masses. She is also interested in new technology, innovations, and inventions and how they transform our lives. Ellen does research and interacts with stakeholders to bring information to her audience.