Blockchain for IoT in Business

A new horizon in the data sharing framework

Blockchain is a shared distributed database for peer-to-peer transactions. The core of this technology is bitcoin – a digitally encrypted wallet for controlling transactions and payment system that was introduced in 2009. This transaction management system is decentralized and generally works without any intermediary. These transactions are confirmed by a set of network nodes and documented in a shared ledger known as the blockchain.

The Internet of Things (IoT) is a cyber-physical network of interconnected computing devices, digital objects, and individuals with unique system IDs. The goal of the IoT space is to serve a single point of integration and transfer data online without the need for human or computer interference.

There is an intricate relationship between blockchain and IoT. Businesses providing IoT can find solutions using blockchain technology. A shared system can develop and record a cryptographically protected data set. Such database and records are protected from alteration and theft, provided they are highly protected and protected from malware. The duo can build transparency and accountability while moderating business development mechanisms. Blockchain itself can help reduce workplace mismanagement, overhead, and business unpredictability through its interconnected servers. A digital ledger can develop a cost-effective business and management system where everything can be efficiently exchanged, properly tracked and tracked. This process eliminates the need for a central management system, which essentially eliminates many bureaucratic red tapes and simplifies business processes. The commercial adoption of this innovation offers an immersive platform in the IoT domain and within business enterprises.

Blockchain essentially empowers interconnected IoT devices to participate in secure data exchange. Companies and business entities can use blockchain to manage and process data from edge devices, such as RFID (radio frequency identification) based means, machine readable barcode and QR code, infrared bluster (IR Bluster) or device information . If integrated into a business setup, IoT edge devices will be able to transmit blockchain-based records to update contracts or validate a communication network. For example, if an IoT-enabled and RFID-tagged asset with sensitive geographic location and confidential information is moved to another untagged point, the information will be automatically stored and updated in the blockchain ledger and necessary actions will be taken if the system is assigned. As the product progresses to different locations, the system allows interested parties to get the status of where the package is.

To enjoy the fruits of a blockchain-enabled IoT framework, business organizations must have four basic principles in place:

1. Expenses Reduction

Edge devices must reduce the processing time of operations and eliminate IoT gateways or internet intermediaries within the system. Because data is shared and information is transferred within the system, eliminating an additional protocol, program, hardware, channel, node, or communication reduces overhead.

2. Acceleration of data exchange

Blockchain-enabled IoT can eliminate the IoT gateway or any filtering device needed to establish a network between the cloud, administrators, sensors, and devices. Cutting out such a ‘middle man’ can enable peer-to-peer contracts and data sharing. In this process, the digital ledger eliminates the additional time required to synchronize devices and process and collect information. However, eliminating the IoT gateway provides channels for malicious malware and security breaches. A blockchain-enabled IoT network can handle this by installing features such as malware detection and encryption engines.

3. Trust Building

Through the blockchain-enabled IoT space, devices and appliances can virtually and physically transact and communicate as trusted parties. Unlike conventional business where transactions require approval and verification, blockchain does not need any central authentication or peer recommendation. As long as the network is secured and the trusted parties are technologically savvy, the IoT space requires no additional documents. For example, Team A may not know Team B, may not have physically met or trusted, but a stamped record of online transactions and information exchange within the blockchain ledger confirms business trustworthiness. This enables individuals, organizations, and devices to gain mutual trust that is vital to establishing a revolving business setup and eliminating administrative clutter.

4. Strengthening security for IoT

Blockchain provides space for a decentralized network and technology that promises to store, handle and retrieve information from its billions of connected devices. This system must provide a well-secured network that is both encrypted and easy to use. A decentralized network must provide high throughput, permission, low latency and queries. Installing blockchain in an IoT network can regulate and moderate the exchange of data across edge devices while maintaining the same secure transaction and information exchange of connected devices.

Eliminating points of failure in the IoT space

Blockchain-enabled IoT can upgrade the supply chain network by tracking tagged items as they move along different points in an import store or warehouse, while allowing safe and accurate product delivery. Blockchain installation provides precise and detailed product confirmation and solid traceability of relevant data along supply chains. Instead of finding paper trails to identify the country of origin (COO), the IoT can confirm the physical confirmation of each product through a virtual ‘visa’ that provides relevant information such as the product’s authenticity and origin. Blockchain can also create auditable product records and help organizations trace or produce a history of records. It can also provide secure access to network data for administrative records or alternative plans.

Blockchain-enabled IoT isn’t limited to enterprise bugs or use cases. Any business entity with an IoT space can increase business productivity by marginalizing costs, eliminating bottlenecks, additional cycles and single points of failure in the system by actualizing process innovation. It is in the interest of such organizations to understand, adopt and implement blockchain into their business solutions.

More to come…

Driven by the fourth industrial revolution (4IR), IoT-enabled blockchain is now the most dominant innovation after the integration of transistors and computing systems. It is a disruption that welcomes the ‘second machine age’ in terms of digitization and advanced artificial intelligence (AI). Business-facing organizations are at the forefront of enjoying the fruits of this revolution. It will be unfortunate if these organizations fail to realize the business potential of this mega integration that can bring intelligence to systems anywhere and everywhere. In addition to the new integration, this system also monitors the critical adaptability issues concerning the distributed network such as the preservation of privacy and network data, the coordination of security apparatus and the management of intellectual property. While many technology builders are building an open source foundation to address these issues, organizations and businesses should embrace and expand this technology for greater mobility and improved integration of products and services.