What is IoT?
The IoT market has been on an upward trend for the last few years and started to grow exponentially in 2017 and there are IoT projects ongoing from “Smart Agriculture” to “Smart Cities”
Gartner research estimates 20.4 billion internet-connected devices in use by 2020 which raises many questions regarding the shortcomings that come with conventional implementations of IoT networks as well as the major issue of security.
Controlling an Army of connected Machines
The sudden influx of smart devices poses new problems related to security and reliability, especially for items previously networkless. If, for instance, every household appliance relies on a connection to the internet, it would take no more than an ordinary hack to render most of them useless.
Eavesdropping by attackers is another issue. If companies can be incompetent enough to lack proper encryption for passwords, putting private data in their hands can be a recipe for disaster.
Furthermore, traditional IoT implementations not only lack essential security considerations, they also suffer from the problem of centralization which can create a single point of failure. In the case of a single point of failure for any large-scale IoT infrastructure, this could also spell disaster for the functionality of all the devices connected to this infrastructure.
If a server would fail an entire army of smart devices could immediately be crippled.
In recent years many organisations/website have suffered (DDoS) attacks is against a central server with a crippling effect.
Just imagine your self-driving car under control of a hacker!
How can the Blockchain help?
Blockchain technology relies on peer-to-peer validation instead of a central, authoritative trust and the data on a blockchain is also cryptographically encrypted.
In the IoT space, where every device communicates with each other, using a blockchain essentially negates all of the problems listed above.
The advantages of blockchain:
- Exponentially enhanced security
- Public / Private Key Encryption
- Time stamping of transactions
Although its financial applications are well known, the advantages outside of the cryptocurrency territory are relatively unturned.
We look at a few of these.
Bitcoin’s release in 2009 was the first practical application of a blockchain. In the case of digital currencies similar to bitcoin, blockchains are used as a public, decentralized ledger to record transactions in a secure, immutable manner.
Bitcoin is thus the first FinTech / Blockchain innovation.
Currently, Fintech applications include banking, lending, trade finance, insurance and many others.
for example BitVault®
Smart Cities, Smart Applications
It is possible, after all, that the marriage of the blockchain and IoT has already begun at several companies. But as we inch closer to a future where everything is connected to the internet, it is now clear that blockchain technology will play a pivotal role in achieving increased security, reliability and trust in IoT networks.
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