When you first think about the terms “Blockchain” and the “Internet of Things” (IoT), you realize that both Blockchain and IoT are revolutionary technologies that are changing the world around us, one step at a time.
While Blockchain refers to an encrypted, distributed, decentralized computer filing system designed to facilitate the creation of tamper-proof, real-time records; IoT is a term used to describe the interconnection of computing devices embedded in everyday objects via the Internet that allows them to send and receive data.
Internet of Things (IoT) opens up countless opportunities for businesses to run smart operations. Blockchain empowers the IoT devices to enhance security and bring transparency in IoT ecosystems. It offers a scalable and decentralized environment to IoT devices, platforms, and applications.
Every device around us is now equipped with sensors, sending data to the cloud. Therefore, combining these two technologies, IOT’s and Blockchain can make the systems efficient.
The following are some major benefits of integrating blockchain and IoT.
• Enhanced security: Blockchain technology incorporates security with the ability to verify and allow transactions originated by a trusted party as well as encryption while data is being transmitted and stored. Blockchain technology provides transparency about who has access, who is transacting and a record of all of the interactions. Plus, blockchain adds a security layer in terms of encryption, the removal of single point of failure and the ability to quickly identify the weak link in the entire network.
• Reduced costs: By automating the transaction validation and processing steps on blockchain, the entire ecosystem can be made proactive at a reduced cost.
• Speed of transactions: This is especially true for supply chain transactions with multiple suppliers, producers, distributors and consumers. With the blockchain serving as a shared ledger to a degree, untrusted parties can exchange data directly with one another, eliminating the manual processes and increasing the speed of transactions.
Here are a few examples of how the combination of Blockchain and IoT can positively impact multiple industries:
1. Supply Chain & Logistics
A supply chain network involves numerous stakeholders, and this is primarily the reason why delivery delay becomes one of the biggest challenges in the supply chain and logistics industry. This is where Blockchain and IoT enter.
While IoT-enabled devices will allow companies to track shipment movement at every stage, Blockchain will provide transparency to the entire transaction. Together, Blockchain and IoT can help improve the reliability and traceability of the supply chain network.
For maximum customer satisfaction, it is essential to grow more food for the increased population while minimizing environmental footprints along with ensuring transparency across the supply chain.
Blockchain, coupled with IoT, has the potential to reshape the food production industry- from farm to grocery to home. Installing IoT sensors in the farms and sending its data directly to the blockchain can help enhance the food supply chain to a greater extent.
3. Smart Homes
IoT-enabled devices have provided the ideal foundation for encouraging the concept of smart homes. With the help of IoT blockchain, smart homes could find better ways for managing home security systems remotely from smartphones. Blockchain removes the concerns associated with the conventional centralized approach for exchanging information generated through IoT devices.
One of the best IoT examples in the field of smart homes refers to Telstra which offers smart home solutions powered by blockchain and biometric security. The smart home solutions offered by Telstra ensure the storage of sensitive user data on the blockchain related to, Facial recognition, Biometrics & Voice recognition.
4. Automotive Sector
The impact of digitalization has resulted in the prolific growth of its competitive demand. Automotive industries have been successfully utilizing IoT-enabled sensors for the development of completely automated vehicles. One of the most prolific uses of blockchain IoT can be identified in the automotive sector for connecting blockchain with industrial IoT solutions. As a result, it can empower multiple users for easier and faster exchange of crucial information.
5. Pharmacy Industry
One of the biggest challenges of the pharmaceutical sector is the increasing incidence of counterfeit medicines. Thanks to Blockchain IoT, the pharmacy industry is now capable of countering this issue. Blockchain IoT allows all the stakeholders involved in the drug manufacturing process to be responsible and update the Blockchain network with relevant information in real-time.