Imagine sitting on the couch and watching TV with the kids. A commercial comes up and your youngest son sees a toy he has been wanting. You press on your smart TV’s remote and the order is sent to your phone’s amazon app with an applicable coupon due to your last purchase.
Before you finalize the order, your smart phone or your home assistant like Google Home or Alexa asks you if the toy is for your daughter because her birthday is coming up in 3 weeks. At this point, you add another toy to the list recommended by your phone based on the latest videos she has been watching on her tablet.
Shortly after confirming the order, you receive an expected date of delivery for your item which gets automatically rescheduled because your agenda showed that you were away for 2 days on that day.
On the day of delivery, while you are in a meeting, your smart watch informs you that there is motion detected in front of your house door due to the security cam or the door bell cam. You excuse yourself and step out to ask the delivery person to set the item in your garage while you open it with your smart watch. Once all is good, you close the garage door and reset the alarm.
This is a sample of an IoT scenario where most of the above examples are applicable today. The possible applications of IoT are limitless, they have valuable usage in literally every aspect of human life. From countries, governments, cities, municipalities to companies and individuals, the benefits and data generated by IoT are game-changing. However, there are 2 major drawbacks with IoT today:
IoT devices are subject to cyber attacks compromising the data on the devices or the network. Today, most of the IoT devices are designed to operate on low power networks thus utilizing their power for connectivity while disregarding cyber security protocols. A breach of one device on the network can jeopardize the whole network.
Moreover, IoT devices are expected to exceed 31 billion by 2020 and 74 billion by 2025 (ref: Statista). With such numbers and the colossal amounts of data expected to be generated by these devices, our current infrastructures will crash and crumble thus eliminating all the potential value IoT promises.
Blockchain, can leverage cryptography to secure the IoT devices and allow secure exchange between all the devices on the network. With the security benefits of Blockchain and consensus algorithms, any cyber threat will be managed.
Blockchain can also help render IoT scalable by allocating permissions and power through the nodes based on needs. Thus a blockchain-powered IoT network can benefit from the democratizing nature of Blockchain to manage the nodes’ permissions and resources, thus making IoT scalable.
Blockchain and IoT form a deadly pair that promise wonders we can’t even imagine at this point. With smart contracts, automation of IoT devices will go beyond any imaginable level. In the above scenario, all data will remain secure with Blockchain while adding an added level of automation through smart contracts.
Blockchain will create a highly-efficient and scalable IoT model that is far superior to any possible alternative such as Edge/Fog cloud-based computing.
This is just one of the reasons why Blockchain is the technology that is changing the world.