How IoT and Blockchain Are Making Our Future Better?
How IoT and Blockchain Are Making Our Future Better?

How IoT and Blockchain Are Making Our Future Better?

Blockchain and IoT are both often mentioned as important digital transformation technologies. But what about the combination of both? Blockchain adoption in combination with IoT adoption was called a DX sweet spot by Gartner at the end of 2019, especially in the US. And that hasn’t changed. An overview of blockchain and IoT is given below:

What Is IoT?

The technical definition of The Internet of Things (IoT) is the network of physical objects accessed through the Internet. These objects contain embedded technology to interact with internal states or the external environment.

The Internet of Things (IoT) is a concept that describes a totally interconnected world. It is a world where devices of every shape and size are manufactured with “smart” capabilities that allow them to communicate and interact with other devices, exchange data, make autonomous decisions, and perform useful tasks based on preset conditions. It is a world where technology will make life richer, easier, safer, and more comfortable.

Key Characteristics of IoT:

IoT is much more than connecting devices the IoT key attributes are as under:

  • Connectivity?
  • Data
  • Identity Of Things
  • Data Driven?
  • Data Collection

Do You Know What Is the Reason Behind This Combination?

IoT allows the virtual world to interact with the physical world and that brings big safety issues. Without a solid bottom-top structure, we will create more threats with every device added to the IoT. What we need is a secure and safe IoT with privacy-protected, tough trade-off but not impossible. Blockchain is an ‘information game changer’ due to its unique capabilities and benefits.

The adoption of IoT and blockchain is limited due to operational and technical challenges. Data storage in blockchain and limited computing power for smart devices are also some big issues. But if rules and security measures are put in place, then more businesses will start using both technologies together. Always remember that there is always room for growth with blockchain and IoT.

What Is The Role Of Security And Privacy Concern In IoT?

Security and privacy are major concerns - and addressing these concerns is a top priority. These are legitimate concerns. New technology often carries the potential for misuse and mischief, and it is vital to address the problem before it hinders personal privacy & security, innovation, or economic growth. New technology Manufacturers, standard organizations, and policymakers are working to address these issues.?

They're focusing on protecting devices from hacking and making sure data is encrypted and authenticated across networks, as well as ensuring overall system security.

What Is Blockchain?

Blockchain is a database that maintains a continuously growing set of data records. It is distributed in nature, meaning that there is no master computer holding the entire chain. Rather, the participating nodes have a copy of the chain.

What Are Some Advantages Of Blockchain?

There are three main advantages of blockchain which are as follows:

  • Public: Blockchain has a major benefit: it's public. This means that everyone involved can view the blocks and transactions stored in them. However, it doesn't mean that everyone can see the details of your transaction. Your private key keeps that information protected.

  • Secure: The database is secure because it can only be added to, not changed. If someone tries to change previous records, it would be very difficult and costly.

  • Decentralized: Blockchain is decentralized, meaning there isn't one person or group in charge of approving transactions or making rules for them. Instead, everyone in the network has to agree on transactions, which requires a lot of trust among participants.

How Does Blockchain Work?

When someone wants to add a transaction to the chain, all the participants in the network will validate it. They do this by applying an algorithm to the transaction to verify its validity. What exactly is understood by “valid” is defined by the Blockchain system and can differ between systems. Then, it is up to a majority of the participants to agree that the transaction is valid. A set of approved transactions is then bundled in a block, which is then sent to all the nodes in the network. They, in turn, validate the new block. Each successive block contains a hash, which is a unique fingerprint, of the previous block.

Do You Know About The Types Of Blockchain?

There are two main types of Blockchain:

? In a public Blockchain, everyone can read or write data. Some public Blockchains limit the access to just reading or writing. Bitcoin, for example, uses an approach where anyone can write.

?? In a private Blockchain, all the participants are known and trusted. This is useful when the Blockchain is used between companies that belong to the same legal mother entity.

Do You Know Why We Need Blockchain In IoT?

Let's discuss a real-life example through this example we can easily understand?

Why we need Blockchain in IoT!

In a smart home, a person uses a smart AC. Thanks to IoT, the room temperature is adjustable via the devices. In the structure of IoT, all data is transferred to a central processor/unit. This central unit is secured by encrypted code. If an unauthorized person or attacker attempts to hack the data, they just need to track that encrypted code. If the attackers continuously try to crack the code, one day they may succeed, gaining access to the data then the attackers could potentially intercept, read, or change the data and be able to adjust the AC's temperature to extreme levels, which could be harmful to the human body and may even lead to death.?

In this example, if we use IoT with Blockchain, the decentralized method is used and the data is distributed to many nodes, countless nodes come into existence, and each node has a unique hash number, which is also stored in the next node. Or we can say that each successive block contains a hash, which is a unique fingerprint, of the previous block. Therefore, in this case, it is impossible for the hacker to crack every hash of every node, and the data will remain secure from unauthorized access. This is how blockchain helps IoT make its data more secure and reliable."

In short, we can say that we use blockchain to enhance IoT data security.

Benefits Of Blockchain:

  • Blockchain technology is a powerful force in the realm of data security.

  • It would make data more secure and improve supply chain management by giving everyone access to reliable documentation when needed.?

  • It provides a decentralized ledger that is near-impossible to hack or get tamper with.

  • Blockchain technology can provide enhanced data privacy and security to IoT devices.

  • The decentralized nature of blockchain technology makes it difficult for cybercriminals to target a single point of vulnerability.

  • IoT and blockchain technology can provide unparalleled security for connected devices and networks.

  • It helps in building a stronger working relationship with your partners.

  • Blockchain could also help with "smart contracts", which let devices work together without a central authority.?

  • It would also make industries like insurance and supply chain logistics more connected and efficient.

Benefits of Blockchain In IoT:?

  • Build trust in your IoT data
  • Rely on added security
  • Gain greater flexibility
  • Generate new efficiencies
  • Lower costs
  • Improved security
  • Quick data change
  • Streamlined finances
  • Efficient supply chain

Applications of IoT and blockchain:

  • On-Demand Asset Sharing Networks
  • Improve Smart City Infrastructure
  • Healthcare
  • Supply Chain Management
  • Component Tracking And Compliance
  • Log Operational Maintenance Data

Challenges encountered while implementing blockchain in IoT:

  • Scalability
  • Security risks
  • Sensor reliability
  • Network privacy and transaction confidentiality
  • Computing power and time required
  • Complex IoT and blockchain projects

Why Does The Future of IoT Depends on Blockchain?

The IoT connects devices through a cloud system. In the future, it could help create efficient smart cities. However, a big problem with IoT is that it mainly uses centralized systems, which can put data at risk from hackers. Blockchain technology might solve this problem. Blockchain is a secure way of recording transactions that can't be hacked or changed. It duplicates transactions and spreads them across a network of computers called "nodes". The future of IoT depends on blockchain because it can keep a record of each transaction mode on IoT. It can also make transactions secure in such a way that data cannot be altered.

Final Thoughts:

According to my thoughts, the fusion between blockchain and the Internet of Things presents an exciting opportunity to revolutionize various industries. By combining their unique features, such as transparency, decentralization, and interconnectivity, we can unlock new levels of scalability and security in IoT applications.

For now, we are working on the sha 256 algorithm but in the coming years, Quantum computers will come into existence. They have the potential to break some of the encryption methods that rely on SHA-256.

But the good news is that large-scale quantum computers capable of exploiting these vulnerabilities are still far off. However, it's important to be prepared for the future. Cryptographers are already researching alternative algorithms, known as quantum-resistant algorithms, to ensure continued security in the age of quantum computing.

How IoT and Blockchain Are Making Our Future Better


What are your thoughts regarding this ?

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If you're interested in how blockchain can help your business with IoT apps, you're in the right place. We're skilled in developing applications that use IoT and blockchain, and we're happy to show you how it works. Get in touch with us to learn more.

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And contact us at

https://www.digitalux.pk

Writer Riffat Hussain

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