Blockchain and Internet of Things
IoT connections need to scale up to secure billions of interactions among machines and sensors. This results in network slowdowns and higher costs. The integrity of the data exchanged among billions of IoT devices is ensured using blockchain’s decentralised approach.
Blockchain has begun to have a significant influence on IoT by enhancing security, empowering the incorporation of an increasing number of devices into the ecosystem.
Both the IoT and blockchain technology are based on “decentralised, distributed approaches”. The decentralised and autonomously operating systems in the (industrial) internet of things (IIoT) need direct mutual communication and interaction rather than via existing centralised models. In the development of the IIoT, a blockchain can help secure audit-level tracking of IoT data transactions, eliminating the need for a central, trusted intermediary between communicating devices.
Blockchain can help alleviate the security and scalability concerns associated with IoT in the following ways:
1, The distributed ledger in a blockchain system is tamper-proof and this removes the need for trust among the involved parties.
2. Blockchain provides a much more robust level of encryption that makes it virtually impossible to overwrite existing data records.
3. Blockchain provides transparency, by allowing anyone who is authorised to access the network to track the transactions that happened in the past.
4. Blockchain can enable fast processing of transactions and coordination among billions of connected devices.
5. blockchain can allow IoT companies to reduce their costs by eliminating the processing overheads related to IoT gateways
In combination with IoT, Blockchain technology can enable a broad range of diﬀerent application scenarios to enhance value chain transparency and to increase B2B trust. When combined, IoT and Blockchain technology have the potential to increase the eﬀectiveness and eﬃciency of modern supply chains.