3 Ways Blockchain Will Transform the Internet of Things
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There is no denying the power of the Internet of Things (IoT). IoT devices are already in 60 per cent of U.S. homes using a broadband connection, and an estimated 200 million vehicles will be connected to the internet by 2020, standing to transform entire industries for a good reason. By the end of 2019, approximately 26 billion devices are projected to be connected to the IoT. It is only going to expand as time moves on, as more data is created by these smart devices and as technology continues to advance. These numbers are expected to increase exponentially to 50 billion IoT devices communicating by 2020 and as many as 75.44 billion IoT devices by 2025. However, this also brings about some concerns that you should be aware of, including security concerns, reliability and the validity of transactions.
However, blockchain technology stands to cause a huge impact on the Internet of Things. The combination of data that cannot be altered but can be traced and verified from connected devices will drive the birth of transactions among connected devices. With the power of blockchain technology, connected devices will be able to network and conduct commerce in the form of microtransactions using a cryptocurrency. Blockchain technology will also enhance the security among connected devices. Here are a few key aspects you should consider when including blockchain as part of your IoT strategy.
1. Blockchain Will Enhance IoT Security
Security is important for any company these days as data breaches and ransomware become prevalent across industries. These incidents can cost companies as much as $4 million for each occurrence. Companies can improve the security of transactions that will occur among IoT devices by establishing online reputation systems.
For example, the automotive industry faces this issue with the proliferation of security vulnerabilities in connected devices, as IoT devices made from different manufacturers used with cars do not necessarily have the same security measures. Businesses and clients can verify the validity of the person or system trying to access the connected car via blockchain technology that establishes a reputation system online. A reputation system for connected devices helps to establish trust based on…
