“Blockchain and IoT are the world-changing technologies, together they will create the secure smart world”
The Internet of Things (IoT) is changing our lifestyle and the way we live and work. Nowadays, IoT help us in capturing data and interact with connected devices to enlarge our business processes and daily lives.
The IoT market is on its boom as per the analytics. It is expected that the combined markets of the Internet of Things (IoT) will grow to about $520 Billion in 2021, more than double the $235 Billion spent in 2017. Data center and analytics will be the fastest growing IoT segment, it’s reaching a 50% Compound Annual Growth Rate (CAGR) from 2017 to 2021. Overall, the growth of the market is expected to $6.5 trillion in 2024.
It’s obvious to say in few years that the Internet of Things will make the world smarter, rapid inventions of smart devices will interconnect the physical world. However, the security will be the biggest concern because IoT devices are astoundingly insecure and easily hackable. The hacker can manipulate the actions and manage the control of smart devices, remotely switch off the cars, and end up with the largest DDoS attack.
How About Decentralizing IoT Networks?
The questions raised to IoT network can be solve by the decentralized approach. Embracing a standardized peer-to-peer communication model to process the thousands of millions of transactions between devices will undoubtedly reduce the costs associated with installing and maintaining large data centers and will distribute the computation and storage needed to the billions of devices participated in IoT networks. This will prevent the network collapse caused by failure of any single node in a network.
Despite, building peer-to-peer communications will end up with its own set of challenges, leading among them the issue of security. We all know, IoT security is far more than protecting sensitive data. The expected solution will have to maintain the privacy and security in giant IoT networks and to prevent spoofing and theft they must offer some form of validation and consensus for transactions.
The Blockchain with IoT
Blockchain technology is the lost link to determine reliability, privacy, and, scalability concerns in the Internet of Things (IoT). Blockchain technologies could perhaps be the magic bullet needed by the IoT industry. Blockchain technology can be used in tracking hundreds of millions of connected devices, enable the processing of transactions and coordination between devices; allow for significant savings to IoT industry manufacturers. This decentralized approach would defeat single points of failure, creating a more volatile ecosystem for devices to run on. With blockchain cryptographic algorithms, the data will become more private.
In the short range, blockchain will complement existing IoT solutions by providing trusted data to inform decision-making and optimize processes. In the mid-term, new IoT applications leveraging blockchain-specific features will emerge and challenge traditional offerings. In the long-race, blockchain will unlock trillions of dollars in market value and enable true interoperability across composite IoT devices, companies, and industries.
Also Read: How IoT is Reshaping Our Children’s Learning Experience