While Bitcoin is the most popular application of Blockchain, the technology also has trustless, secured and decentralized capabilities that can redefine business solutions, including those that empower the Internet of Things.
What makes the Blockchain an essential element of industrial Internet of Things? The fact that the technology behind the Bitcoin is autonomous, trustless and decentralized makes it an ideal component of industrial IoT solutions. Thus, many enterprise IoT technologies have quickly become its early adopters.
In an IoT network, the Blockchain keeps an undisputable record of the history of smart devices. This enables the autonomous function of smart devices without the need for a centralized authority. This means that difficult or even impossible scenarios of the Internet of Things are now probable.
By leveraging the technology, industrial IoT solutions can enable secure communication between smart devices in a network. This means that the Blockchain will treat the exchange of data between devices like financial transactions in a Bitcoin network. To enable this trustless and secure data exchange, smart contracts are required between two parties.
The Blockchain also enables autonomous smart devices to exchange data without the need for centralized broker. It also maintains a suitably decentralized ledger, which allows regulatory and compliance requirements of industrial IoT to be applied without the need for a centralized model.
The promise of Blockchain in IoT solutions is more than just a theory. Many IoT solutions are already leveraging the technology, including IBM, Samsung, and Filament. IBM and Samsung collaborated to build decentralized IoT solutions. Filament develops wireless devices that accept Bitcoin payments. While these solutions are still in the early stages, they have garnered remarkable results.
How does the Blockcahin empower IoT solutions? It enables secure communication, keeps undisputable record of history, and enables data exchange without a centralized authority. In a word, it redefines business solutions. Sign up for our weekly blog summary and newsletter!