A new horizon in the data sharing framework
Blockchain is a shared distributed database for peer-to-peer transactions. The core of this technology is Bitcoin – a digitally encrypted wallet for controlling transactions and payments that was launched in 2009. This transaction management system is decentralized and usually runs without any intermediaries. These transactions are authorized by a set of network nodes and recorded in a communal ledger known as a blockchain.
The Internet of Things (IoT) is a cyber-physical network of individuals with interconnected computing devices, digital objects, and unique system IDs. The purpose of the IoT space is to integrate and transfer data online without the need for human or computer intervention.
There is a complex relationship between blockchain and IoT. IoT provider businesses can find solutions using blockchain technology. The combined system can develop and record a cryptographically secure dataset. Such databases and records are protected against alteration and theft, provided that it is highly secure and malware-protected. This pairing can create transparency and accountability while controlling the business development process. Blockchain itself, through its interconnected servers, can help reduce workplace mismanagement, overhead costs, and business uncertainties. Digital ledgers can build a cost-effective business and management system where anything can be effectively exchanged, accurately monitored and tracked. This process eliminates the need for a centralized management system, which basically eliminates many bureaucratic red tapes and streamlines business processes. The commercial adoption of this innovation is offering a platform immersed in the IoT domain and business ventures.
Blockchain essentially enables interconnected IoT devices to participate in secure data exchanges. Companies and businesses can use blockchain to manage and process data from end devices, such as RFID-based resources (radio-frequency identification), machine readable barcodes and QR codes, infrared blaster (IR blaster) or device data. Integrated into the business setup, IoT edge devices will be able to transfer agreements or transfer blockchain-based records to validate the communication network. For example, if an IoT is enabled and the RFID tagged resource with sensitive geographic location and confidential information moves to another undefined point, the data will be automatically saved and updated in a blockchain ledger and the necessary action will be taken when the system is assigned. As the product progresses to different locations, the system lets stakeholders know the status of the package.
To enjoy the benefits of a blockchain-enabled IoT framework, businesses need to adhere to four basic principles:
1. Cost Decrease
The operation of edge devices should reduce processing time and eliminate IoT gateways or Internet intermediaries within the system. Since data sharing, and communication between information systems, eliminates overhead costs by eliminating additional protocols, programs, hardware, channels, nodes, or communications.
2. Accelerate data exchange
Blockchain enabled IoT can eliminate the IoT gateway or any filtering device needed to establish a network between the cloud, administrators, sensors, and devices. The expulsion of such ‘middle men’ could enable peer-to-peer agreements and data sharing. In this process, digital laser devices eliminate the extra time needed to synchronize and process data and harvest. However, eliminating IoT gateways provides the flow for malicious malware and security breaches. Blockchain-enabled IoT networks can deal with this by installing features such as malware detection and encryption engines.
3. Trust building
Through the blockchain-enabled IoT space, devices and equipment can communicate virtually and physically as transactions and trusted parties. Unlike a conventional business where the transaction requires approval and verification, the blockchain does not require any central authentication or peer recommendation. As long as the network is secure and the trusted parties are technically proficient, IoT space no longer requires documentation. For example, Team A may not know, physically meet, or verifiably trust Team B, but the stamped record of online transactions and information sharing among blockchain ledgers confirms business fidelity. It enables individuals, organizations and devices to gain mutual trust which is vital for establishing a rolling business setup and overcoming administrative clutter.
4. Increasing security for IoT
Blockchain provides space for decentralized networks and technologies that promise to store, manage, and retrieve data from its billions of connected devices. This system needs to provide highly secure networks that are both encrypted and easy to use. Decentralized networks need to provide high throughput, permissions, low latency, and search. Blockchain installed on the IoT network can control and control data exchange through end devices while maintaining the same secure transactions and data exchange of connected devices.
Eliminate failure points in the IoT space
Blockchain-enabled IoT can upgrade the supply chain network by tracing tagged items as they move along different points in an import store or warehouse, while allowing safe and accurate product delivery. Blockchain installation provides precise and detailed product confirmation and relevant traceability of relevant data along the supply chain. Instead of looking for a paper path to identify the country of origin (COO), the IoT can verify the actual confirmation of each product through a virtual ‘visa’ that provides relevant information such as the authenticity and source of the product. Blockchain can also create auditable records of products and help companies find or create a history of records. It can also provide secure access to administrative records or data networks for alternative planning.
Blockchain enabled IoT Enterprise is not limited to glitch or use. Any business entity, including IoT Space, can increase business productivity by minimizing costs by implementing process innovation, eliminating obstacles, extra cycles and single points of system failure. It is in the best interests of such organizations to understand, accept and implement blockchain as their enterprise solution.
More to come …
Introduced by the Fourth Industrial Revolution (4IR), blockchain-enabled IoT now forms the most influential innovation since the integration of transistors and computing systems. This disruption welcomes the ‘second machine age’ in terms of digitization and advanced artificial intelligence (AI). Businesses are the ones to enjoy the fruits of this revolution. It would be unfortunate if these companies failed to realize the business facing the possibility of this mega integration that could bring intelligence to the system anywhere and everywhere. In addition to the new integration, the system deals with important adaptability issues related to distributed networks such as privacy and data network protection, integration of security equipment, and intellectual property management. While many technology-makers are creating an open source foundation to address these issues, organizations and business entities should embrace and expand this technology for increased mobility and improved product and service integration.