Blockchain, soon has become a leading Technology and is gaining enormous user attention especially in cryptocurrency. And in coming years, it is expected to change all the key aspects of emerging and digital business. Nowadays, even Blockchain have become a bigger trend than Internet. And if we can successfully combine blockchain and IoT, amazing results could be seen. A lot of companies have even already adopted the duo Blockchain and Internet of Things or are planning to have the flawless implementations, solutions and initiatives of these two.
According to Forrester, basically there are 3 key challenges for Internet of Things and Blockchain ecosystems that need to be addresses. Let’s take a look at them:
Technology: For IoT, Security comes in picture. If we talk in the context of Internet of Things, security has been always a challenge. So you need to be clear that security should not be overlooked. Here, Blockchain comes in, as it a secure medium to the Internet of Things.
Operational challenges: The business model and other key practical aspects require a lot of operations like agreements.
Legal and compliance issues: A lot of responsibility issues are there, if we talk in terms of case of actions that are majorly taken by devices.
Is Blockchain the solution to IoT challenges?
In short span of time, Blockchain technology has become a flawless source, which could provide an efficient and simple infrastructure. It enables an effective and safe transfer between two devices, be it a piece of property or data. The key reason behind its popularity is – it’s highly secure and reliable. And to efficiently enable the exchange of these messages, IoT devices need smart contracts which have the capability to model the agreement between the two key potential parties. And this feature will enable the independent functioning of potential and smart devices that too without the need for key and centralized authority. So this peer-to-peer and exceptional transaction has proved highly efficient and reliable digital infrastructure.
One of the key advantages of having Blockchain is – it’s public. And the best part is everyone is participating and could clearly see the reliable blocks and flawless transactions, which are stored in them. But everyone here doesn’t mean that anyone can see the private content of your transactions because it is secured by your confidential key.
Since a Blockchain is decentralized, so not everyone or any single authority is not authorized to approve the transactions or set a specific set of rules in order to have transactions acknowledged. So that proves that only reliable sources are added in the chain or network as a failure would make everyone face the consensus in order to accept the transactions. So most importantly, Blockchain is secure. And the database is only allowed to be extended and previous records could not be manipulated or changed.
In a nutshell, the key benefits of leveraging the Blockchain technology in getting completely securing IoT that could be shortened in just three points: earning trust, dropping costs and accelerating transactions.