Integration of the internet of things and blockchain technology
In a world where more and more processes are being digitized and automated in order to make life easier for people, blockchain and IoT technologies are attracting considerable attention.
The Internet of Things is a technology that allows different physical devices to be interconnected through communication networks. They can exchange data with each other and carry out the tasks assigned to them.
So, with the help of the Internet of Things, it is possible to combine “smart” microwave ovens, multicooker, refrigerators, which will exchange data with each other and facilitate everyday tasks.
Research firm Gartner notes that the number of devices that can be connected using the Internet of Things could exceed 20 billion by the end of 2020. In 2030, it will reach 500 billion.
Blockchain and its use in the Internet of Things
A number of companies are now working to integrate the Internet of Things with blockchain technology. The International Data Corporation company, based on research, has come to the conclusion that in 2020 the basic levels of blockchain-based services will be implemented in more than 20% of the carriers of the Internet of Things.
According to Forbes, the use of blockchain technologies for the Internet of Things will bring a number of benefits to this area.
- Solving the problem of control. Blockchain assumes transparency of records. This means that everyone with access to this system will be able to track physical goods and data.
If the networks are managed by different organizations, the use of blockchain will help build trust between the participants in the process and the devices themselves. In this case, coordination between the parties will improve, and the need for a centralized intermediary will disappear.
- Improving the security of the Internet of Things. If the Internet of Things fails, it will affect all the links in the chain. Personal data, supply chain partners, and even damage to public safety can be harmed.
The use of blockchain to control access to IoT devices will provide a new level of security for the entire chain.
- Reducing financial costs and reducing time. The introduction of smart contracts instead of legal contracts will make transactions cheaper and faster.
