Change is the only constant. Do you feel and see how technology has completely transformed our lives in the last few years. If you go back about ten years, you will find that your life involved a lot less technology back then, due to which performing even simple tasks took a lot more time and effort. Most of the changes that have come about are owed to the internet. However, if you think that the internet revolution is over, then you are wrong. The combination of technologies like Blockchain and Internet of Things (IoT) has immense potential. These technologies have already entered our lives, and it is set to bring about futuristic changes in almost all the sectors.
The impact of such technology is set to be of massive magnitude as it is estimated that the installed base of IoT will reach approximately 26 million units by 2020. This means that it will hold a market worth of about $3 trillion within a couple of years’ time. Further, by 2026, it is expected to reach an astronomical figure of $6.2 billion, with the manufacturing and health-care sectors feeling the most substantial impact. All these things point to the fact that you will see quicker and more significant changes in your life in the next few years. Some of the potential changes may well be beyond your imagination.
What is IoT?
Internet of Things is nothing but a network of inter-related physical objects which can be easily accessed through the use of the internet. It involves the collection of data, controlling of devices and remote monitoring. There are many other technologies which have played a crucial role in the growth and development of IoT, none more so than the breakthrough in the value of sensors, and bandwidth apart from that low-cost processing of IPv6. This technology has the power to improve the quality of your life manifolds. The impact of it will not just be restricted to your house, office or mobile phones, but it will also help you to interact with offline devices by creating an environment with the help of a network of interconnected online and offline devices. This would result in better decision making without any human intervention. IoT surely helps the crowd in millions of ways. There are several ways in which one can get started on IoT. One of the ways is through Arduino. There are several Arduino tutorials online that can get you started with IoT.
Influence on Sectors
IoT will impact all the major sectors like manufacturing, transportation, healthcare, retail, energy, agriculture, and electronics among others. Innovations like real-time data analysis and aid, automation of tasks due to intelligent machines, better customer experience, increased jobs in more flexible and open organizations, complete elimination of waste in supply chain and reduced time to market will benefit not one or two, but the majority of the industries. A boom in investments in IoT seems imminent in the next few years in retail, as it can help attain more transparency to operations in the supply chain. This will further help in reducing out of stock products and improved selection based on consumer preferences. Additionally, CRM, ERP, and other premium enterprise organizational systems are also utilizing IoT to make their business processes more rational. Due to this, massive level data transfer is now possible from different devices.
All these innovations have the capacity to can help industries keep a record of inventory, increase efficiency, control mechanism, reduce cost and in many cases even save lives. Hence, it could prove to be a massive asset in the very near future.
Blockchain and IoT Convergence
For IoT to continually grow and prosper the use of Blockchain is essential. IoT is bound to find a few hurdles on its way to ensure widespread adoption. Some of the most significant challenges at present seem to be issues related to connection, identification, management, and security of a massive number of devices. Moreover, threats like DDoS attacks mean that many IoT deployments may look to enable at least the basic levels of blockchain services.
- Security Issues: The most critical reason why the IoT and blockchain convergence is essential is the issue of security and privacy. Manipulation and falsification of the collected data need to be prevented for us to benefit from the latest technologies. Blockchain can create a democratized secure platform which is independent of all the parties. The risk is almost eliminated by the distribution of data across a variety of sources. As a result of which hacker attack damage is limited. Not only will access be denied under such circumstances but the culprit will also be caught publicly.
- Responsibility Issues: Another area of concern relating to the adoption of IoT are the issues pertaining to the creation of various enforceable commercial relationships among the humans and their devices. This is where responsibility issues come into play. In this case, it can be particularly risky as machines regularly take action on the basis of operations which are automatically taken by an application, triggered by another. Therein lies the challenge of interactions and making devices which act more like a human.
The smart contract is the answer to this. Humans, internet, and machines together can interact in respecting deliverables and contractual obligations. Smart contracts help to eliminate confusion, violations, and frauds among devices. Moreover, it will also save the time and energy that you need to spend on the audit.
Many companies have already realized the advantages and have started using blockchain based solutions for powering IoT. It is expected that more large companies will follow suit as the features of it are too good to be resisted.