Surely by now you have heard of Blockchain, or even just applications of it such as the cryptocurrency Bitcoin. Blockchain allows Bitcoin to be a decentralized network of secure digital currency transfers. Every node on the network maintains an approved ledger of all historic transactions that become permanent and cannot be altered.
This promotes a transparent, auditable and efficient peer-to-peer environment that cannot be matched by the current closed or centralized currency systems. Though Blockchain is making headlines in the cryptocurrency market, it could also prove to be a necessary technology across many systems.
Growing Number of Devices in IoT
The Internet of Things market is growing every day as seen in the decreasing prices in connected devices and increasing need for enterprises to automate processes to stay competitive. Perhaps one of the most uncertain aspects of the future of IoT is device management and scalability.
Gartner has projected that the number of connected devices by 2020 can grow to over 20 Billion. The current centralized cloud format is not ideal for scaling these types of numbers, so we will need to look into another type of architecture. This is where Blockchain technology can really help to streamline scalability while not compromising security, reliability and trust. The last thing IoT needs is another DDoS Attack where hundreds of IoT devices and servers are hacked and used maliciously.
Decentralized Network and IoT
Taking the approach of Blockchain and decentralizing the network will allow for devices to register as nodes and not only manage themselves, but manage each other through transparent identification and authentication methods. Devices will no longer need to go through a centralized source, but rather can be automatically added to the network. Not only does an IoT Blockchain network such as this save on computing resources, it also increases scalability and prevents device imitation threats that could compromise the entire network.
There are many challenges to the future of the Internet of Things, but applying technology and system architecture already in place in Blockchain could in fact help alleviate some of these challenges. IoT will surely increase quality of life for consumers and automate processes for enterprises like never before, but to reach its full potential, the entire approach must be well thought out.
Read here about How Blockchain Can Protect User Data
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