The blockchain technology has paved the way for various leaps in different sectors. One of these sectors is the Internet of Things (IoT) segment of the market.
What is IoT?
In a nutshell, IoT refers to the network of different physical devices that can store and exchange information with other linked machines.
Usually, IoT security flaws center around three keywords: authentication, connection, and transaction. Errors happen when the device improperly or incorrectly verify, connects, or spends across any information to peripheral devices.
With the blockchain technology, you can easily lessen the severity of these concerns. Here are the benefits.
Benefits of Blockchain/IoT Team-Up
Consensus protocol from the blockchain network guards the IoT network from huge malicious attacks.
One of the most important objectives of IotT is to follow and verify the IoT network components. The immutable nature of the blockchain makes these records highly reliable.
Smart contracts on the blockchain can also contribute big time to the efficiency of the IoT network. When it comes to monitoring and handling transactions, smart contracts ensure appropriate coordination.
Transactions are also very helpful for the IoT network. Specifically, micro-transactions play a key role in ensuring financial viability and optimality of a machine-to-machine connection .
A huge number of proposed IoT securities revolve around complex encryption conventions. A preliminary correspondence check is initiated against the known device registrations for other devices to exchange information with each other and improve the communication.
These registries serve as the perfect focus for hacks and blockchain technology aims to be an extraordinary option for following these registrations and updating their framework.
Barriers to the Bitcoin-IoT Partnership
The Question of Scalability
The future of the blockchain technology totally centers on the problem of scalability. As the size of the blockchain network increases, the authority gets restricted to smaller group with no management of records. This typically ends with a loss of data reliability and authenticity.
Handle Power and Time
Since it requires encryption calculation for every single item involved in the blockchain network-based IoT network, the IoT network is extremely distinct and contains devices that sport very different computing abilities. Not every one of them will be fit for running a similar encryption calculations at the proper speed.
The Problem of Storage Capacity
The blockchain network gets rid of the need for a central server to store transactions and device IDs. On the other hand, the ledger has to be stored on the computers themselves, and as the time passes, the size of the ledger will also grow. This growth and its implications can go beyond the abilities of a wide variety of devices like sensors, which have very low storage limits.
Bottom Line
The blockchain technology and IoT concept are both still relatively young at this stage. There are still a lot of room for improvements for each of the technologies, with also a number of risks and dangers that may blue their continued tie up in the future.
Meanwhile, it’s safe to say that different parties and groups directly involved with each technology are doing their best to improve the cooperation between the two technologies.
