A new horizon in the framework of data exchange

Blockchain is a shared distributed database for peer-to-peer transactions. The core of this technology is bitcoin, a digitally encrypted wallet to control transactions and payment systems that was introduced in 2009. This transaction management system is decentralized and generally works without any intermediary. These transactions are backed by a set of network nodes and documented in a communal ledger known as a blockchain.

The Internet of Things (IoT) is a cyber-physical network of interconnected computing devices, digital objects, and individuals with unique system IDs. The goal of the IoT space is to provide a single point of integration and transfer data online without the need for human or computer interference.

There is an intricate relationship between blockchain and IoT. IoT provider business entities can find solutions using blockchain technology. The joint system may develop and record a cryptographically secured data set. Such database and records are protected from tampering and theft, provided they are highly secure and protected against malware. The duo can build transparency and accountability while moderating business development mechanisms. Blockchain itself can help reduce workplace mismanagement, overhead, and business unpredictability through its interconnected servers. The digital ledger can develop a profitable trading and management system where anything can be effectively traded, properly monitored and tracked. This process eliminates the need for a central administration system, essentially eliminating a lot of red tape and streamlining business processes. Commercial adoption of this innovation offers an immersive platform into the IoT domain and within commercial enterprises.

Blockchain essentially allows interconnected IoT devices to engage in secure data exchanges. Businesses and business entities can use blockchain to manage and process data from peripheral devices, such as RFID (Radio Frequency Identification)-based assets, machine-readable barcodes and QR codes, Infrared Bluster (IR Bluster), or device information. If integrated into the business setup, IoT edge devices will be able to transfer the blockchain-based records to update contracts or validate the communication network. For example, if an RFID-tagged and IoT-enabled asset with sensitive geo-location and sensitive information is moved to another undesignated point, the information will be automatically stored and updated in a blockchain ledger and necessary action will be taken if the system is assigned. As the product progresses to different locations, the system allows interested parties to know the status of the whereabouts of the package.

To enjoy the fruit of the blockchain-enabled IoT framework, business organizations must have four basic principles:

1. cost Reduction

Edge devices must decrease the processing time of the operation and eliminate IoT gateways or Internet intermediaries within the system. Since data exchange and information are communicated within the system, the elimination of additional protocols, programs, hardware, channels, nodes, or communications reduces overall costs.

2. Acceleration of data exchange

Blockchain-enabled IoT can remove the IoT gateway or any filtering devices needed to establish a network between the cloud, the manager, the sensors, and the devices. Kicking out that ‘middleman’ can enable peer-to-peer contracts and data sharing. In this process, the digital ledger eliminates the additional time required to synchronize the device and process and collect information. However, IoT gateway removal provides conduits for rogue malware and security breach. The blockchain-enabled IoT network can address this by installing features like malware detection and encryption engines.

3. trust building

Through the blockchain-enabled IoT space, gadgets and devices can transact and communicate virtually and physically as trusted parties. Unlike a conventional business where transactions require endorsement and verification, blockchain does not need any central authentication or peer recommendation. As long as the network is protected and the trusted parties are technologically savvy, the IoT space requires no more documents. For example, Team A may not know Team B, have not met physically, or may not verifiably trust each other, but the sealed record of online transactions and information sharing within the blockchain ledger confirms the trustworthiness of the business. This allows people, organizations, and devices to build mutual trust, which is vital to establishing a rotating business setup and eliminating administrative clutter.

4. Strengthening security for IoT

Blockchain provides space for decentralized networks and technologies that promise to store, manage, and retrieve information from its billions of connected devices. This system has to provide a strongly protected network that is encrypted and easy to use. The decentralized network must provide high throughput, permissions, low latency, and queries. The installation of blockchain in the IoT network can regulate and moderate the exchange of data across the edge devices while maintaining the same secure transaction and information exchange of the connected devices.

Eliminating points of failure in the IoT space

Blockchain enabled IoT can upgrade the supply chain network by tracking tagged items as they move through various points in a store or import warehouse, while authorizing safe and accurate product delivery. The Blockchain facility provides accurate and detailed product confirmation and strong traceability of relevant data throughout supply chains. Instead of finding paper traces to identify the country of origin (COO), IoT can validate the physical confirmation of each product through a virtual “visa” that provides relevant information, such as the authenticity and origin of the product. Blockchain can also make auditable records of products and help organizations track or generate a history of records. It can also provide secure access to the data network for administrative records or alternative plans.

Blockchain-enabled IoT is not limited to business failures or use cases. Any business entity with an IoT footprint can increase business productivity by marginalizing costs, eliminating bottlenecks, extra cycles, and single points of failure in the system by upgrading process innovation. It is in the self interest of such organizations to understand, adopt and implement blockchain in their business solutions.

More to come…

Preceded by the fourth industrial revolution (4IR), the blockchain-enabled IoT now constitutes the most dominant innovation after the integration of transistors and computer systems. It is the disruption that welcomes the ‘second machine age’ in terms of digitization and advanced artificial intelligence (AI). Business-oriented organizations are the favorites to enjoy the fruit of this revolution. It will be unfortunate if these organizations don’t realize the business potential of this mega-integration that can bring intelligence to systems anywhere and everywhere. Along with the new integration, this system also accompanies critical resiliency issues related to the distributed network, such as data network and privacy preservation, security apparatus coordination, and intellectual property management. While many technology developers are building an open source foundation to address these issues, organizations and business entities must embrace and proliferate this technology to increase mobility and improve product and service integration.