The concept of blockchain is becoming more famous day by day. It is so popular these days that many industries have started showing interest in this technology and as a result, blockchain has found its way into the IoT industry.
The platform was made for settling transactions related to the financial terms and are now not just limited to these terms only but now possess a completely new definition.
Blockchain platforms are considered able to enable a trail of IoT applications and the transactions made over this platform are secure and safe. This is the major reason that the trial of IoT applications is possible.
Right from its invention, blockchain has always been on the back foot. But, if we talk about its role and use in the present as well as in the future concerns, it holds a very important aspect to perform.
Every asset present in the real world can be linked to this platform and thus it can act like a missing link. Addressing the environmental issues raised by Bitcoin mining could be done by taking into account alternate energy sources or consensus processes.
How blockchains can act as a missing link?
The IoT industry needs a special entity to act as its support and blockchain can successfully be the same. It can act like magic for the platform. The technology can be used to access the historical data of various devices and that too on some individual scale.
This technology can help maintain the anonymity and autonomous behavior of these technologies. The data transferred between different devices can be stored in some digital ledger and that ledger can be referred to as this blockchain.
Every IoT platform has around a million devices connected simultaneously and similar can be handled very effectively using this platform. The devices can thus be coordinated and various manufacturing expenses can be cut to some extent.
As the blockchain platform is multidimensional and the data stored is not just limited to a single node but a network of nodes, this can help to avoid the single point failure and thus a more flexible ecosystem can be developed to program different devices. According to some studies, it is predicted that by the year 2030, the blockchain industry will add around $3.1 trillion in business terms.
The concerns related to security
Every digital entity is very concerned about its security and similarly applies to the IoT platform. As the nature of blockchain is open-sourced so similarities can be said about these platforms as well.
The devices that are connected over the network are exposed and being on a server always are prone to be accessed remotely from various users many of those are not legit and can pose a serious threat to the entire infrastructure.
Thus, a huge amount of user databases and sensitive information can be leaked and the system can be changed. Blockchain can help to create a secure environment both for the data and information of sensitive levels.
Advantages of adopting blockchain in IoT
To prevent duplication and to prevent the repetition of data over the platforms, blockchain can prove to be a very useful tool, and similar can be applied in different platforms as well.
Blockchain has established itself as a distributive ledger in the market already and thus the distribution of IoT technology over the network can be easy. The data transfer can be made simple. Secure and tamper less technology can be maintained using blockchain platforms.
The nature of blockchain helps to maintain anonymity and thus privacy is maintained. The absence of media helps to create a more transparent and reliable platform for the distribution of both data and storage over different platforms easily and effectively.