How blockchain can help with IoT security and scaleability
Gartner’s Forecast predicts that IoT is expected to grow approximately 32 per cent anually from 2016 through 2021, reaching an installed base of 25.1 billion units. Since IoT is expected to become a huge part of our daily lives, we must question how secure will it be. Some of the challenges of such wide spread application can be adressed by using blockchain technology. ‚…blockchain or distributed ledger technology (DLT), has the potential to help address some of the IoT security and scalability challenges. Blockchain is an ‘information game changer’ due to its unique capabilities and benefits….
How can blockchain solve IoT security and scalability challenges?
The IoT network can process data transactions across multiple devices that are owned and administered by different organisations, making it difficult to pinpoint the source of any data leakages in case of an attack by cyber-criminals. Additionally, the IoT generates a vast amount of data, and with multiple stakeholders involved, the ownership of the data is not always clear. Blockchain can help alleviate the security and scalability concerns associated with IoT in the following ways:
- The distributed ledger in a blockchain system is tamper-proof and this removes the need for trust among the involved parties. No single organisation has control over the vast amount of data generated by IoT devices.
- Using blockchain to store IoT data would add another layer of security that hackers would need to bypass in order to get access to the network. Blockchain provides a much more robust level of encryption that makes it virtually impossible to overwrite existing data records.
- Blockchain provides transparency, byallowing anyone who is authorised to access the network to track the transactions that happened in the past. This can provide a reliable way to identify a specific source of any data leakages and take quick remedial action.
- Blockchain can enable fast processing of transactions and coordination among billions of connected devices. As the number of interconnected devices grows, the distributed ledger technology provides a viable solution to support the processing of the large number of transactions.
- By providing a way to enable trust among the stakeholders, blockchain can allow IoT companies to reduce their costs by eliminating the processing overheads related to IoT gateways (for e.g. traditional protocol, hardware, or communication overhead costs).
Find out if „Blockchain can accelerate Internet of Things (IoT) adoption?“ a perspective published by Deloitte; here https://www2.deloitte.com/ch/en/pages/innovation/articles/blockchain-accelerate-iot-adoption.html