Blockchain in the part of IoT Technology

When ARPANET pioneered the packet-switching network technology and the TCP/IP protocol, little would have been imagined that the Internet would transcend computers and mobile devices, and even encompass ‘things’. The Internet of Things, or IoT as it is commonly abbreviated, is real today and is working to transmit data from devices to the cloud.

IoT is one of the hottest hardware revolutions. Global industry leaders like Bosch have created their Cross Development Kit, a programmable sensor device and IoT prototyping platform. The number of IoT devices, at the least, as projected by Gartner, is a little above 20 billion by 2020. To garnish this data, IHS Markit has projected that the number will grow to 125 billion installed IoT devices in 2030.

IoT has surely revolutionized data-collection, process-automation, enhancing customer service and productivity-optimization. However, one aspect that the IoT has to catch up on, is in terms of security.

Introducing blockchain — the distributed, immutable and transparent digital ledger, will help address this issue. One of the demands of converging blockchain and IoT is high transaction processing speed.

Why Blockchain for IoT?

The possibilities with IoT are close to infinite. The communication devices or sensors can be attached or embedded in everyday objects like phones and air conditioners and even industrial equipment. The devices can be programmed to react in a specific way to an objective inference from the collected data. An issue on an air conditioner, like inadequate cooling, detected by the IoT device, can automatically notify or contact customer support.

This seems like a straightforward process on the surface with no threats of security. However, using IoT to transmit sensitive data like health-data raises questions on security. IoT devices are constantly sending and receiving critical data over the Internet, and it is at this point that the data becomes vulnerable! IoTs generally operate on a centralized architecture with limitations on scalability and multiple points of vulnerability. The constant need for authentication by third parties to ensure security slows down the transaction-speed and increased the costs.

There have been instances where IoT launched the Mirai Botnet DDoS attack that affected the whole of the Atlantic Coast of the USA. FDA had recalled about half a million IoT connected pacemakers, as security loopholes were discovered. With the ‘Internet’ being a constant here, the vulnerability of the data is apparently proportional to the sensitivity.

But not with blockchain technology!

Blockchain is cryptographically secured and it facilitates a secure transfer of data between the parties. The smart contracts in the blockchain would ensure that the data-transfer happens only after a set of conditions are met. This smart contract eliminated the need for third-party authentication and brings in the bliss of automation and cost-efficiency. The cryptographic security would mean that any intercepted data will not even be remotely useful.

Above everything, blockchain brings along with it, the benefit of decentralization. In a centralized system, even a single point of vulnerability can result in security-compromise. In a decentralized system, the peer to peer data transfer and the individual nodes ensure smooth functioning of the IoT network.

Has The Confluence Happened Already?

Remember the Bosch’s XDK (Cross Development Kit)? It was developed over a blockchain called IOTA — an exclusive blockchain for IoT devices. IOTA has created the Tangle platform — the blockless blockchain — which is touted the be the future of blockchain. Tangle brings the advantages of scalability and also eliminates the need to pay transaction fees to miners. IOTA has entered into partnerships with Bosch, Fujitsu, Den Norske Bank, and Volkswagen, and the names of the companies is a testimony to the awesomeness of IOTA.

The Points To Optimize

Before blockchain and IoT take their relationship to the next level, there are a few aspects to be addressed.

One of the aspects is scalability. IoT is expected to bring massive volumes of data, and the technology must be poised to handle the volumes.

While the blockchain is secure, the security of the IoT devices needs to be questioned. There are chances that the device might be the weakest link that that might be vulnerable to a security compromise.

Cross-chain interoperability has to be addressed if we have to reap the fullest benefits of all the data collected all the devices.

To top all of these, the legal framework of who will bear the responsibility for the ‘actions’ of the devices based on data has to be addressed.

The Future:

IoT is still in its infancy, and so is blockchain. Both of these technologies hold great potential when it comes to practical applications in various fields. If the minor flaws are patched up, the tag team of blockchain and IoT can work its wonders!