Internet of Things and Blockchain the ideal couple?
The Internet of Things (IoT) is based on the concept of networking the things.
In a nutshell, Internet of Things may be defined as a "rapid development of the Internet in a way that every object have the ability to instantiate network connection allowing to send and receive data".
We may say, that the most important fact in the definition is connectivity among object.
As we are at the half-way point of networking objects, we must stop and reach for some interesting data provided by Gartner . Gartner predicted "26 Billion Units By 2020" well I think they go wrong, they will be more than 30 Billion of Units.
This revolution, of course, brings to us some complex issues that must be solved - and, one of the key ones is security.
And here we meet Blockchain.
Why the combination of Blockchain and IoT is so important?
Security management will be a big issue for a complex net in the IoT solution, here the Blockchain comes into play.
Blockchain blocks are by nature transparent - activity can be tracked and analyzed by anyone authorized to connect to the network.
If something goes wrong, then the blockchain record makes it simple to identify the weak point and of course take some remedial action.
The use of encryption and distributed storage means that data can be trusted by all parties involved in the processing chain.
Write-access to the Blockchain records are protected by private keys which are held by machines so no human will be able to overwrite the records.
Decentralized vs Centralized
The Blockchain is a decentralized system where data storage network is duplicated across the hundreds of computers and devices which make up the network.
This big advantage over centralized solution which is usually a bottleneck in some aspects.
We can assume that also latency to data access is not a problem anymore.
This amount of redundancy means data will always be close, eliminating transfer times and single server failure.
Both technologies are very promising and widely adopted in industry and other sectors.
Combination of both can significantly reduce infrastructure costs and business risks that usually follows by technology change.