People across the globe are experiencing the benefits of IoT in their lives. Significant amount of information is traveling via the airwaves as various devices communicate with each other daily. But one of the biggest issues that an IoT active environment offers is a secure ecosystem. Security has become a major issue because of a lot of information going back and forth. Here are advantages and challenges of Blockchain and IoT shared by ICO consulting experts.
Benefits of blockchain and IoT
Blockchain’s trustless, autonomous, and decentralized capabilities make it a perfect component to become a foundational element of the Internet of Things (IoT) solutions. Enterprise IoT technologies have fast become one of the early blockchain technology adopters.
Blockchain technology is the missing link to settle issues in the IOT with regards to reliability and privacy. Blockchain technology could probably be the silver bullet required by the Internet of Things industry. It can be used in keeping track of billions of linked devices, allowing the processing of coordination and transactions between devices. This enables considerable savings for the Internet of Things industry manufacturers.
This decentralized strategy would get rid of single points of failure, generating a more resilient environment for devices to run on. Consumer data will be more private, thanks to the cryptographic algorithms used by blockchains.
Malicious actors cannot manipulate the tamper-proof ledger since it does not exist in any single location. Attacks also cannot be staged, since there’s no single thread of communication which can be intercepted.
Blockchain technology enables trustless, peer-to-peer messaging. Blockchain has already established its worth in the financial services world of cryptocurrencies, like bitcoin, offering peer-to-peer payment services that are guaranteed without the need for third-party brokers.
Speed up transaction
Blockchain can keep a record of smart devices’ history in an Internet of Things network. The feature allows for the autonomous working of smart devices without the need for centralized authority. Because of this, the blockchain clears the way to a series of IoT scenarios, which would be remarkably hard, or even unachievable to implement without it.
For instance, by leveraging the blockchain, the Internet of Things solutions can allow for trustless, secure messaging between devices in an IoT network. In such a model, the blockchain will address message exchanges between devices, much like financial transactions in a bitcoin network.
It’s important to know that blockchain can maintain a trusted, decentralized ledger of every transaction taking place in a network. This capability is important to allow the many regulatory requirements and compliances of industrial IoT ( IIoT ) uses without the need to depend on a centralized model.
The challenges of integrating Blockchain with IoT
Unfortunately, in spite of the benefits that blockchain might offer, there are specific shortcomings and flaws present.
Processing time and power
The amount of processing time and power required to encrypt all the data in a blockchain-based system is enormous. Internet of Things systems are diverse and comprise of several devices with different computing abilities. Most of these devices might not be able to run the encryption algorithms at the preferred speed.
While blockchain gets rid of the need for device IDs and transactions to be stored in a central server, that data should still be stored in the nodes themselves. In the long run, this data grows in size as more device IDs and transactions are added. This is beyond the capabilities of most smart devices, like cameras and sensors.
Not enough skills
As of now, there aren’t enough specialists who know blockchain technology well, and when it comes to the Internet of Things technology, the figures get even smaller.
More Legal Problems
It’s a new territory without compliance or legal code to adhere to, which is a serious issue for service providers and manufacturers. New legal codes should be created before implementing the technology.