IoT is reshaping enterprise operations through the deployment of sensors, edge devices, and other IoT infrastructure components. Enterprises face a major challenge in protecting information at all tiers of the IoT ecosystem, which presents a significant risk. Data security has become more difficult as the number of connected devices rises year after year.
IoT security vulnerabilities can be prevented with the use of blockchain. The Internet of Things (IoT) makes it possible for Internet-connected devices to transmit data to private blockchain networks, resulting in secure records of shared transactions.
Using IoT and blockchain, it’s now possible to conduct transactions between machines. There are numerous advantages to combining IoT and blockchain, and a smart device can operate autonomously with no need for a centralized authority. Banking, automotive, financial services, and agriculture all use Blockchain in conjunction with IoT.
Smart homes, logistics, supply chains, and a new process called “smart contracts” have all been implemented with IoT. When certain conditions are met, a smart contract can be automatically executed using blockchain technology in an IoT ecosystem. A smart device’s ability to operate independently of a central authority is attributable to this mechanism.
Advantages of the Internet of Things with Blockchain
There are numerous advantages to the Internet of Things blockchain technology.
Build trust in your IoT data
Each transaction is documented, stored in a data block, and then added to an unalterable data chain that can not be tampered with.
Add an extra layer of security
Decentralized, distributed ledgers are used to authenticate and authorize encrypted data generated by devices. Using a distributed ledger, data computation and storage are distributed amongst a plethora of computers. As a result, unlike in the traditional model, the failure of a single server, device, or network will not have an impact on the entire IoT ecosystem. It is not uncommon for the blockchain network’s resilience to be near fault-tolerance, meaning that even if a node is taken offline, the network can still function.
Obtain higher flexibility
Your multi-cloud world will benefit from the IBM Blockchain Platform’s openness, interoperability, as well as Red Hat® OpenShift-optimized Hyperledger Fabric platform.
Achieve a new level of efficiency
The use of blockchain technology in edge devices in an Internet of Things system reduces the costs associated with IoT device management and data transfer. Since there is no centralized data repository and the ledger is not susceptible to attacks, it reduces the risks associated with data management. It eliminates the need for an IoT gateway and other intermediaries in the data exchange process, resulting in significant time savings.
Blockchain and Internet of Things (IoT) Use Cases
Transportation of goods
Freight transport is a complicated process that involves multiple parties with varying interests. Position, temperatures, arrival times, and the current status of shipping containers can all be recorded on a blockchain that is connected to the Internet of Things. Because blockchain transactions are immutable, all parties can rely on the data and begin taking action to move goods swiftly and efficiently.
Tracking and compliance of components
Component tracking is essential for both product safety and regulatory compliance on anything from airplanes to automobiles. The provenance of a product’s components can be tracked by all parties using shared blockchain ledgers for IoT data. Providing this data to regulatory agencies, manufacturers, and shippers is secure, simple, and cost-effective.
Log operational maintenance data
IoT devices monitor critical machine safety and maintenance. For everything from engines to lifts, blockchain ensures the integrity of operational data, and the corresponding maintenance is protected from tampering. The blockchain can be monitored by third-party repair partners for preventive maintenance, and their work can be recorded on the blockchain. Government agencies can also access operational records to verify compliance.
One or two of the world’s largest technology companies have already begun exploring the IoT-blockchain market which is still in its early phase. For example, the IBM Blockchain Platform enables businesses to extend blockchain into cognitive IoT, a set of technologies that integrates IoT and cognitive computing.
Challenges of IoT with Blockchain
Technical and operational issues are holding back the widespread adoption of Internet of Things blockchain technology. Since smart devices at the edge cannot yet store large volumes of data or handle relatively large amounts of computational power, blockchain systems that maintain a large, centralized ledger face significant scalability and storage issues. These are some of the current challenges of moving IoT networks to the blockchain.
In spite of its infancy, the concept is expected to have a significant impact in the years ahead. To encourage the use of Internet of Things blockchain technology, standard security rules and regulations should be implemented. Blockchain technology can provide a new level of security for the internet by bringing new standards of data transparency and peer-to-peer communication.