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Blockchain Use Cases: The Internet Of Things (IoT)

BitForex Editor
Dec 11, 2020

Blockchain technology, which is a form of distributed ledger technology, has not only been successful in the crypto world, it has also gained a great deal of attention in various filed beyond cryptocurrency. While IoT or the “internet of things” continues to change the way enterprises operate through the implementation of cutting-edge devices amongst other innovations, we can, however, not deny that this also gives room for several challenges for enterprises, especially in the area of data security. On the other hand, blockchain not only combat security breaches in an IoT system but also works hand in hand with IoT to facilitate machine to machine transactions.

As earlier implied, blockchain serves the purpose of bringing transparency and enhancing security to the internet of things (IoT) ecosystems. It also provides a decentralized and scalable environment for IoT applications, platforms, and devices. IoT, on the other hand, creates new opportunities as well as provides an advantage for businesses in the new and current markets. While we can dwell on the numerous benefits that IoT offers, it is also necessary to understand what the “internet of things” means and what it entails.

What Is The Internet Of Things?

The beginning of the Digital Revolution, as far back as the 1950s, saw the creation of numerous innovative and groundbreaking technology. Irrespective of initially only been restricted to a few persons, the industry flourished and developed in a short space of time as some of the earliest and original technologies became easily accessible and increasingly widespread.

The coming together of numerous types of innovative devices like sensors, RFID Chips, and the internet, and also on account of their increased accessibility, eventually gave rise to the concept of IoT or, better yet, “the internet of things.” The advent of IoT brought about a major change in the age of computers, which currently allows devices beyond computers to be connected through the internet.

Brief History Of The Internet Of Things (IoT)

The first recorded use of the “internet of things” was at MIT, where the university students made use of an inexpensive sensor to observe and replenish their cola dispenser machine. In 1994, The IoT saw significant progress and improvement, and in 1990, Microsoft and various other companies began working and experimenting with similar ideas. From 2002, numerous media outlets began debating on IoT breakthroughs like in the area of smart devices being connected while still being joined to a monitoring information system. Among many, 2008 is often referred to as the official year that IoT came into being as there were fewer people and more devices connected to the internet.

How Does The Internet Of Things (IoT) Work?

The internet of things (IoT), as earlier stated, refers to the internetworking of numerous physical objects and devices, and what’s more, is it basically consists of a network of non-computing devices and network which communicate and also sends information to devices and computers through the internet.  This may include the use of home security systems, thermostats, sprinklers, heart rate monitors, amongst numerous others. The internet of things (IoT) technological innovations allow for the remote control, status checking, automation, and monitoring of a wide range of sensors and devices which can be used on self-driving cars and smart homes.

Areas Of Use For The “Internet Of Things (IoT)

As earlier implied, IoT serves various purposes and can be implemented in different ways. Some of the most notable use cases of IoT includes;

IoT for personal and domestic uses

IoT technology can be used in different ways in the area of domestic and personal use. Some of the most common examples can be seen in the concept of home automation, where various devices can be deployed to control and monitor the use of air conditioners, security systems, heaters, and lights. These devices can also be linked to personal items like smartphones, smartwatches amongst others.

IoT For Commercial And Industrial Use

The internet of things (IoT) technology also shows its usefulness in the commercial and industrial field, and some examples of industrial use cases include the use of sensors to monitor environmental conditions like air pressure, humidity, as well as temperature. Farmers can also make use of IoT technology to keep track of when an important product is going to finish plus; they could also set up automated machines to order more of the aid product when it shows signs of depletion.

IoT In Cryptocurrencies

A lot of IoT systems will most likely rely on financial micro-transactions between digital objects and as such will require that IoT devices will be linked in a way that supports m the machine-to-machine economy, which, as earlier explained, is the exchange of money between non-human devices. Nowadays, people are demanding IoT -compatible currencies. It is safe to say that IoT and blockchain can work together to offer numerous potential benefits as well as allow a smart device to operate autonomously without requiring a centralized authority.

Blockchain As The Solution To IoT Challenges

While IoT promises numerous benefits, it too has its challenges, especially in the area of security. The use of blockchain technology promises to be the bridge that enables peer-peer contractual behavior without the need for a third party to validate the IoT transaction while still providing security. It proffers solutions to challenges relating to time stamping, scalability, privacy, reliability, single point of failure, and trust in a very consistent way.

The use of blockchain technology could also offer an essential infrastructure for two devices to transfer money or data directly amongst one another with a reliable and secured time-stamped contractual validation. To facilitate message exchanges, IoT devices can leverage smart contracts that model the agreement amongst the two parties involved. This feature helps to facilitate and ensure the autonomous running of smart devices without the interference or need of a centralized authority.

The influence of the internet of things (IoT) is one that will eventually enable control, automation as well as supervision of devices on a large scale, which will, in turn, improve the efficiency of various industries as well as the daily lives of people. With time, we are also bound to see various innovations through the combination of cryptocurrencies and IoT technology, especially as we have seen the possible benefits of the convergence of blockchain and IoT. Technology continues to advance daily at a fast pace, and we are sure to see more innovations in IoT.

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