Combination of Blockchain and IoT
In its most basic form, the term "Internet of Things" refers to any technology that makes it possible for two smart devices to connect with one another. The Internet of Things (IoT) sector has advanced to the point where it can raise objects to a higher level. Today's IoT already includes more than a billion intelligent, interlinked gadgets.
Technological revolutions are impacting many industries; with advancements in IoT applications, now industries collect data to get insights for making informed decisions based on real-time data. Thus, there is a great deal of "confidence" in the knowledge acquired. The question is, do we know where this data originated from, and should we really be making choices and doing business based on information we cannot verify?
Blockchain and IoT can provide data that has been collected with valid TRUST. The fundamental idea is to give devices an identity at the point of creation so that identification can be recognized and verified using blockchain throughout the device's existence at every step. Blockchain technology capabilities that rely on device identity standards and reputation systems have a lot of potential for IoT systems. A device identification protocol ensures a device maintains control over its identity by allowing each device to have its blockchain public key and transmit encrypted challenge and response messages to other devices. A blockchain can also track the reputation or history of a device with an identity. In this blog post, let us understand the major use cases of blockchain and IoT combinations and a few examples of IoT companies using blockchain to make the world a better-connected place.
Use Cases of Blockchain IoT
Blockchain technology has the potential to give IoT devices greater security and transparency inside IoT ecosystems. It offers a decentralized and scalable IoT platform, app, and device ecosystem. Therefore, blockchain IoT applications have recently spread to several industries. Here is how blockchain and IoT may bring corporate value across sectors.
Supply Chain and Logistics
In a worldwide supply chain network, many parties are involved, including brokers, raw material suppliers, etc., which makes end-to-end visibility more challenging. The supply chain fulfillment may span several months and include numerous payments and invoices. The main issue now is a delay in delivery due to multiple stakeholders involvement.
In order to track the movement throughout the shipment process, businesses are using IoT-enabled vehicles. The combination of blockchain with IoT can improve the network's dependability and traceability due to the need for more transparency and complexity in the current supply chain and logistics.
IoT sensors can give information such as motion sensors, GPS, temperature sensors, vehicle information, connected devices, etc., and the blockchain is then used to store this data. Stakeholders mentioned in the smart contracts get real-time information once it has been recorded on the blockchain. Participants in the supply chain can then set up trans-shipment and conduct global trade and automatic settlements without delay.
The current example is Golden State Foods (GSF), a well-known manufacturer and distributor of food goods and a multifaceted supplier. The goal of GSF, which supplies more than 125,000 restaurants, is to create and provide high-quality products. GSF collaborated with IBM to use blockchain and IoT to improve business processes.
Automotive Industry
Digitalization is a competitive requirement today. The automotive industry is using IoT-enabled sensors to create fully automated vehicles. The decentralized network can connect Industrial IoT solutions in the automotive industry, allowing different users to swiftly and conveniently exchange vital information. The blockchain and the IoT have exciting applications in the automotive sector, including automated vehicle ownership management, vehicle tracking, gasoline payment, autonomous vehicles, smart parking, automated traffic control, etc.
A recent example is the smart parking system that has been shown by NetObjex using blockchain and IoT. Finding a free spot in the parking lot is made more accessible by the connection, which also automates payments made with cryptocurrency wallets.
To identify vehicles in real-time and determine whether a parking space is available, the company has partnered with the parking sensor company "PNI." IoT sensors calculate parking time fees, making payments immediately through the cryptocurrency wallet.
Smart Homes
Smart IoT-enabled gadgets are essential in our daily lives. The home security system may be remotely controlled from a smartphone when the centralized method of exchanging data created by IoT devices lacks data ownership and security criteria. Blockchain has the potential to advance the smart home by addressing security concerns and dismantling centralized infrastructure.
For example, Australian communications and media corporation Telstra offer smart home solutions with blockchain and biometric security to ensure that no one can tamper with the data collected from smart devices. Biometrics, voice recognition, and facial recognition are examples of sensitive user data stored on the blockchain for increased security and only accessible to authorized users.
Pharmaceuticals
The problem of fake medications in the pharmaceutical industry is one of the most significant threats the industry has recently faced. The pharmacy sector is in charge of producing and distributing medicines. It is challenging to follow the entire course of the product movement since blockchain technology is transparent and tradable, it may be used to track drug shipments from their origin to their final destination in the supply chain.
An example of this is Mediledger, a blockchain IoT use case that tracks when the ownership of prescription drugs changes legally. It is a blockchain platform for the healthcare sector that implements tools for immediate rule enforcement, real-time alignment, and direct transaction settlement.
While the use case of this blockchain with IoT combo comes with interesting usages, there exists a threat with every emerging technology. Some of the main threats include
- Identity-based attacks
- Manipulation based attacks
- Cryptanalytic attacks
- Reputation-based attacks
- Service-based attacks
Recently, various security solutions for blockchain-based IoT have been put forth, each intended to address various security concerns and threat models. The blockchain security products and solutions from BlockChainSentry provide an all-encompassing security solution that can withstand several attacks while considering the IoT architecture.
Undoubtedly, blockchain can add trust to IoT, AI, and cloud technologies. The trust in the data is dramatically boosted when AI, IoT, and Cloud employ blockchain to track provenance, proofs, and permissions connected with data used and coming from these systems. This confidence will enable the deployment of IoT, AI, and cloud services without concern for security breaches, ushering in a new era of application and adoption of these technologies.