How blockchain can be used in IoT?
Though blockchain is made for transmitting the bitcoin transactions, its main focus is to share data across a closed network. The most notable benefits of blockchain are, any data on blockchain will be tamper-proof, secure, and authentic too. In another side, the success of IoT depends on securing their processed data and keep it confidential. Industry leaders believed that blockchain is the remedy for making the IoT industry and network more robust. So, sure, the presence of blockchain can overcome many of the issues and risks faced by IoT industry.
source : ibm
Risks and Challenges in IoT
- Centralized Storage
Every data in current IOT model is passed through the common cloud storage, and this data transmission often needs to happen with the help of the central cloud server. The truth here is, the centralized cloud storage is not that much tamper-proof and secured to store digitally processed data.
- Easy to Hack
As discussed above IOT networks constantly share information back and forth across the internet. Hacking could be easy as it relies on a centralized server, and there may be a chance of occurring DDoS Attacks( Distributed Denial of Service ) Attacks.
- High Infrastructure and Maintenance Cost.
As we discussed above, IoT networks are dependent on cloud servers, large server farms, and other networking equipment, it will require a high-level infrastructure and also requires maintenance cost. In the future, there will be a lot of IoT devices implementation and there will be a lot of communications could be shared between the nodes. This kind of increasing data on the server could exploit the entire IoT Networks and this will be the major problem in current traditional IOT communication model.
- Current System is Not Sustainable for Future Growth of IoT Devices
The current IoT Model is not fully supportive to expand the IoT devices connected network. There expected, billions of devices to join IoT networks in the future. Since the entire current IoT model depends on a centralized cloud server, it will compromise some of the weak points like scalability, security, and maintenance cost.
- Slow Data Processing
The centralized cloud data communication model is just similar to a general server/client data model. So, there will be a chance of slow data processing when the server got dumped with huge data.
Blockchain Use Cases in IoT
The current IoT Communication model fully relies on centralized data storing. So there will be a lot of chances of a single point of failure may affect the entire network. But with a peer to peer communication model with blockchain we can mitigate those single points of failures. Integrating blockchain and peer to peer data communication with IoT can help us to distribute the data communication and storage across all nodes. Blockchain enables the distributed file sharing, so, every node will have a copy of the data. So, in the blockchain, it is impossible to hack the entire network, even if there is a point of failure in a single node.
Since blockchain provides the feasibility to connect billions of devices and provides, it will stand unique from the traditional server/client model. So blockchain provides a promising future for IoT with sustainable scalability.
- Smart Contracts Enabled Data Transfers
Smart contracts enable all devices to function securely and also autonomously since it creates agreements which are generated only after the completion of some specific requirements.
Decentralization ensures the computation and storage are spread across the millions of connected nodes. So, therefore, there will be no server failure to exist.
Blockchain uses cryptographic algorithms, this ensures the system data, and consumer data to be secured and also confidential too.
Blockchain with IoT can enable cross-chain methodology to secure, and trackable communication between the connected devices.