A new horizon in the framework of data sharing
Blockchain is a shared distributed database for a peer-to-peer transaction. The core of this technology is Bitcoin – a digitally encrypted wallet for transaction control and payment system that was introduced in 2009. This transaction management system is decentralized and generally works without any intermediary. These transactions are authorized by a group of network nodes and documented in a common ledger known as the blockchain.
The Internet of Things (IoT) is a physical electronic network of interconnected computing devices, digital objects, and individuals with unique system identifiers. The goal of the IoT space is to serve a single integration point and transfer data over the Internet without the need for human or computer intervention.
There is a complex relationship between blockchain and IoT. Business entities providing IoT may find solutions using blockchain technology. A shared system can develop and record a secure encrypted data set. This database and records are protected from change and theft, as long as it is highly secure and protected from malware. The two can build transparency and accountability while adjusting business development mechanisms. Blockchain itself can help reduce workplace mismanagement, overheads and business unpredictability through its interconnected servers. The digital ledger can develop a cost-effective business management and administration system where anything can be effectively exchanged, monitored, and properly tracked. This process eliminates the need for a centralized management system, which basically removes many red bars of red tape and simplifies business processes. Commercial adoption of this innovation provides an immersive platform in the IoT space and within businesses.
Essentially, Blockchain technology enables IoT devices to participate in secure data exchanges. Companies and business entities can use the blockchain to manage and process data from high-end devices, such as assets based on RFID (Radio Frequency Identification), machine-readable barcodes and QR code, infrared (IR Bluster) or device information. If integrated into a business setup, IoT edge devices will be able to transfer blockchain-based records for contract update or network validation. For example, if IoT is enabled and an RFID tagged asset with geo-sensitive is enabled and confidential information is transferred to another unspecified point, the information will be stored and updated automatically in the blockchain ledger and necessary actions will be taken if the system is set. As the product progresses to different locations, the system allows stakeholders to obtain the status of where the package is located.
To enjoy the fruits of the blockchain-enabled IoT framework, business organizations need to assume four basic principles:
1. cost discount
High-end devices need to reduce process processing time and eliminate IoT portals or internet middlemen within the system. Because the sharing of data and information is communicated within the system, eliminating the plug-in protocol, software, hardware, channel, node, or connection reduces overhead costs.
2. Speed up data exchange
Blockchain enabled IoT can do away with IoT gateway or any filtering device required to create a network between the cloud, the administrator, sensors, and devices. Expelling such a “middle man” could enable peer-to-peer contracts and data sharing. In this process, the digital ledger eliminates the extra time required to synchronize the device, process and collect information. However, getting rid of the IoT gateway provides channels for malicious malware and security breaches. A blockchain enabled IoT network can address it by installing features like malware detection and cryptographic engines.
3. Building confidence
With the blockchain-enabled IoT space, devices and devices can interact and communicate physically and physically as trusted parties. Unlike traditional businesses where transactions require authentication and verification, blockchain does not require any centralized authentication or peer recommendation. As long as the network is secured and trusted parties are technologically adept, the IoT space does not require more documents. For example, Team A may not know Team B, and may not physically meet or distrust the trust, but a sealed record of online transactions and information sharing within the ledger of the blockchain confirms business credibility. This enables individuals, organizations, and devices to gain mutual trust which is vital to creating a revolving business setup and eliminating administrative clutter.
4. Escalating security for the Internet of Things
Blockchain provides space for network and decentralized technology that promises to store, process, and retrieve information from billions of connected devices. This system should provide a highly secured, encrypted, and easy-to-use network. The decentralized network should provide high throughput, low permission and low latency and query. Installing a blockchain in the IoT network can regulate and modify data exchange by endpoint devices while maintaining the same secure transaction and information exchange for the connected devices.
Eliminate failure points in the Internet of Things
Blockchain-enabled IoT can upgrade the supply chain network by tracking tagged items as they move along various points in an import store or warehouse, while allowing for safe and accurate product delivery. Blockchain installation provides accurate and detailed product validation, and robust traceability of relevant data along supply chains. Instead of finding paper paths to determine the country of origin (COO), IoT can validate the physical confirmation of each product via 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 track or produce history of records. It can also provide secure access to the data network for administrative record or backup plans.
Blockchain-enabled IoT is not limited to enterprise glitches or use cases. Any business entity with an IoT space can increase business productivity by marginalizing costs, eliminating bottlenecks, overtime, and individual points of failure in the system by triggering process innovation. It is in the interest of these organizations to understand, adopt, and implement blockchain solutions for their organizations.
More is coming…
Usher in the Fourth Industrial Revolution (4IR), blockchain-enabled IoT technology is now the most dominant innovation after the integration of transistors and computing systems. It is the turmoil that welcomes the “second machine age” in terms of digitization and advanced artificial intelligence (AI). Organizations facing business are the first to enjoy the fruits of this revolution. It would be a pity if these organizations failed to realize the business facing the potential of this massive integration that could bring intelligence to systems anywhere and everywhere. Besides the new integration, this system also keeps pace with critical adaptation issues related to the distributed network such as maintaining privacy and data network, coordinating security devices and managing intellectual property. While many technology makers are building an open source foundation to address these issues, organizations and commercial entities must embrace and spread this technology to increase mobility and improve product and service integration.