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The Combined Power of Blockchain and IoT
Blockchain is a decentralized ledger that allows multiple parties to record transactions in a digital financial ledger efficiently, securely and permanently, but it is much more than that. It acts as a medium of records for transactions without involving any kind of third party validation and verification. Thus, blockchain can prove to be the “missing link” that enables IoT deployments to achieve their full potential. Blockchain combined with the Internet of Things (IoT), can drive new value propositions and new business models, while effectively addressing transparency, complexity, and security challenges that surround the data transactions.
IoT data travels across organizational boundaries and even multiple enterprises—giving practitioners the entire view of their operations, but the challenge it entails is in ensuring that this data is accurate, trustworthy and most importantly, secure. Further, manually reconciling such data is a time-consuming process while involving data sets from disparate sources that often do not match. Blockchain facilitates the continuous, permanent, and decentralized recording of IoT data transactions across devices and entire organizations.
To meet the enterprise requirements, the industry needs to develop solutions based on established frameworks that can create interconnectivity between disparate blockchain networks. These solutions should be highly scalable and provide deployment flexibility, fine-grained information confidentiality, and strong security with predictive threat analytics and collusion control. Additionally, IoT practitioners need to explore how blockchain can apply to their data flows to determine whether blockchain is the right tool to solve their problems.