The Possible Synergy between IoT and Blockchain
The transformation of enterprise ecosystems has become synonymous with the deployment of technologies such as AR, VR, AI, and IoT. The latest entrant to the league is blockchain. While the gamut of possibilities unleashed synergistically by next-generation technologies is being extensively investigated, an area that has generated unprecedented interest is the benefit that a combination of IoT and blockchain can bring.
Numerous surveys predict a substantial increase in the number of IoT devices in the world over the next few years. However, there is a hitch. Currently, IoT systems are modeled using the client-server paradigm, wherein a centralized cloud-based server initiates appropriate tasks based on the data inputs received through the network, which makes the centralized system vulnerable to cyberattacks. A way of addressing the issue is to eliminate the single hub for data and decentralize the data flow; this is exactly how blockchain works.
Blockchain derives its name from the arrangement pattern of data repositories; multiple blocks of limited data storing capacity, connected to each other, constituting a network. Each block has a unique identifier and points to the location of the next block in sequence. As the access to data in each block is governed by a private key, security is not compromised in the blockchain. Furthermore, as the data tends to be spread out in different blocks of the ledger that blockchain is, the primary concern of IoT, emanating from the attempts of malicious actors to breach into the central data hub, is addressed. The decentralized pattern of storing data, enabled by blockchain’s cryptographic algorithm, prevents hackers and phishers from accessing data related to IoT, thereby enhancing the security of confidential data. IoT powered by blockchain is the way forward for the industry.