IoT and Blockchain Integration: Opportunities and Challenges
IoT and blockchain integration is the future but, what are the challenges that still exist in parallel with benefits?
Internet of Things (IoT) is an invention that has made wireless communication possible. From providing wireless controls for appliances like Smart TVs, Smartphones, and more to making security methods more secure, IoT has pushed the efficiency of technology to a new level.
On the other hand, blockchain technology has come out as a trusted virtual network that is usually used for enhanced transaction processing speed, better security, and more. Paired with IoT, Blockchain has become a key to automating processes with a better efficiency level.
Moving forward, in this blog, we are throwing some light on IoT with blockchain opportunities and their challenges. From the perspective of various industries, we will figure out how blockchain and IoT integration can influence the present and the future.
Blockchain integration is now one of the most common technologies businesses are using around the world. A Statista report says global solutions are projected to reach a value of $19 billion by 2024. Blockchain security protocols are the reason why organizations love this technology. For each transaction processed through blockchain servers, a tamperproof entry is stored. These tamperproof entries can be reviewed by users who got access to the server.
However, in any case, no user is allowed to erase or modify these entries. To make changes in the data, a new entry is added to the blockchain server. So, if we take the pros and cons of blockchain technology into consideration, then blockchain’s pros are that it offers the best server to enhance cybersecurity and speed of transactions. However, its cons are that it does not offer many data privacy protocols much. Your data modifications can be reviewed by anyone with access.
With modern revolutions such as Smart Contracts, blockchain is also making it possible to eliminate third parties in order to speed up settlement processes. Smart contracts have helped insurance companies in verifying the validities of claims filed by users to approve them.
Internet of Things (IoT)
A network made of multiple devices to control them remotely, IoT is designed to make lives more comfortable. From better security protocols for cars to better healthcare technologies, IoT is now becoming a part of our everyday lives, if it has not already been. As per a Statista report, the supposed global spending on IoT technologies is expected to grow up to $1.1 trillion by 2023. However, due to the pandemic, these numbers can be impacted as the 2020 data did not do well as expected. Now, if you are wondering- what are the requirements to IoT, you can refer to data security, remote monitoring, troubleshooting, command dispatching, operation control, and supported servers.
Benefits of the IoT and blockchain integration
Proceeding further, let’s throw some light on the fact that how IoT and blockchain technology can work together to benefit organizations.
1. Enhanced cybersecurity
Blockchain development companies are making it possible to create impenetrable servers for IoT devices to work between them as bridges that transfer data. In other words, the major application of blockchain in IoT is to create a secured network that is almost impossible for hackers to crack and makes it easier to find if there are any authorized or unauthorized data modifications that have been made on the server by participating users.
2. Better transparency
Blockchain and IoT integration ensure better transparency of the server. As mentioned above, blockchain mandates that each modification made on the server data has a separate entry. These entries are not editable, thus, to make any modifications in the overall program, new entries will have to be added. With each and every detail like the time of the entry when it was made, the user who made the entry, and more, it is quite easy to find out the cause if there are any problems or attack attempts on the server. These IoT opportunities can also be used to identify source devices from where the targeted attack was initiated.
3. Elimination of third parties
Major IoT challenges that you get rid of by adapting blockchain technology are the elimination of third-party approvals. For instance, transactions via blockchain servers can be done between one peer to another without having to involve an approval authority. Transactions such as ones made for payments can be processed faster and easily with smart contracts even if payments are international.
Challenges of IoT integration with blockchain
Even though IoT app development on blockchain servers can be really revolutionary, there are challenges that accompany both technologies. Let’s have a look at them.
1. Data privacy
One of the major blockchain challenges is that they store every single piece of information processed through servers. The IoT technology integrated with blockchain every single record on servers, which if exposed to the wrong people, can expose every vulnerability. Hence, IoT technology is prone to cyber-attacks.
2. Cyber threats
One of the major IoT implications that you can find common is that IoT devices are connected to each other. Thus, one connected compromised device can open access to other devices. Until new IoT solutions are not coming into existence to target these IoT implications, it is still risky to create networks with multiple devices even on blockchain servers.
3. Storage space
Another IoT cybersecurity issue is the space that blockchain servers use. As the data on blockchain servers will keep growing, the requirement for space will increase simultaneously. Increasing the requirement of space by blockchain can reduce the performance of hardware, especially if the space capacity keeps decreasing. Thus, the fast synchronization of data will become quite impossible for the network to achieve.
To conclude, any application of blockchain in IoT is still at the experimental stage. There are benefits and drawbacks both. So, experts are continuously occupied in making these technologies more efficient. However, blockchain will surely revolutionize the IoT opportunities for better and make wireless communication among devices much more secure and reliable. So, with hopes that we will witness the full potential of IoT and blockchain integration soon, we are winding up this blog.
Until next time, Godspeed!