Is Blockchain as big of a Thing as the Internet?
A type of distributed ledger technology, blockchain has been receiving gigantic attention beyond areas of its cryptocurrency roots, since 2014. As we know, blockchain technology can change all sectors of virtual business and it has been assumed that blockchain can prove to be a bigger thing than the Internet of Things (IoT) or somewhat equal. But what if blockchain and IoT are combined and we get to greater deals than each of them individually.
Blockchain has been defined as a rapidly increasing evolution beyond bi research forms and it is not just concentrated on financial companies. The amalgamation of both the distributed Internet of Things and Distributed Ledger Technology is on the strategy list for several small and large companies. So, does it mean that blockchain is really as being of a thing as the internet? Let’s find out.
Meeting of IoT and Blockchain
Frank Gens once stated that blockchain is gradually becoming significant in third-generation security systems. Since then blockchain has been increasingly looked upon in the context of IoT. Blockchain has several benefits although it might not be the answer to all challenges of the virtual economy, yet it will play a vital role in the IoT.
The Internet of Things is in itself distributed by definition. Therefore, it is normal that blockchain as a distributed ledger technology will be significant in establishing direct communication between devices.
When blockchain was first designed it was made for applications that are based on interactions and transactions. From smart contacts to smart applications (that are supported by internet processes), blockchain can be a useful technology; not just for improving compliance in IoT but also in cost efficiency and IoT features. Given these beneficial improvements, large technology companies are not waiting anymore to start implementing the amalgamation of blockchain and the internet.
Integration of blockchain and IoT in companies
For the companies that allow the extension of private blockchain into IoT, this merger will certainly be the ultimate combination of IoT, blockchain, and artificial intelligence like crypto trader, that will prove to have a myriad of benefits across various industries. Several digit evolutions that are powered by digital infrastructure and have impacted many sectors from security to analytics, blockchain can add to the benefits in a decentralized environment.
The benefits that come from converging blockchain and IoT, can be illustrated from the example of logistics and complex trade lanes where smart contracts can trace the individual packages and items. The particular benefits are accountability audit trails speed and new forms of contracts, to name a few. The fundamental advantages of blockchain technology for IoT are:
- To build trust among devices and parties.
- Reducing the risk of tampering and collusion.
- Reducing expenses by eliminating the overheads relating to intermediaries and middlemen.
- Acceleration of transactions by reducing settlement time from days to immediately.
The distributed ledger system is a game-changer for the Internet of Things. Implementing Blockchain in your IoT data would offer revamped ways to make business processes automatized among your partners, without the need to set up on expensive, centralized, and complex IT infrastructure.
Data protection that Blockchain offers fosters:
- More rigid working relationship among your partners, and,
- Improved efficiency, as your partners enjoy the benefits of the data provided.
- Enabling participation of IoT devices in blockchain technology transactions.
- Reimagining the fundamentals of business transactions and inventing new methods of virtual interactions.
- Reducing the complexity and cost of operating a sustainable business.
Blockchain seems to be the answer to all challenges related to IoT. It promises to be the lacunae, enabling contractual peer-to-peer behavior, without any certification from third parties for IoT transactions.
Therefore, many benefits can be derived from the convergence of blockchain and IoT. We can say that blockchain has the possibility of being the next big thing after the internet. It is obvious that IoT does not exist on its own and needs to be viewed in a broader context. This is where the possibilities of Blockchain come into the picture.