Cryptocurrencies and connected devices have brought radical changes in the way we work and transact in recent times. However, it is fair to mention that their parent technologies, blockchain and IoT respectively, are not relatively new. The first decentralized cryptocurrency was created back in 2009 as a bitcoin. Similarly, the term ‘Internet of Things’ was also coined by Kevin Ashton in the year 1999.
Today, both blockchain and IoT app development concepts are gaining ground in the corporate sector rapidly. As Gartner has predicted, we will have almost 20.4 billion connected devices by the end of 2020. Similarly, the banking and financial sector eyes on the blockchain technology to safeguard their customers’ confidential data and keep the online transactions secure. Let’s see how the convergence of the blockchain and IoT app development can secure our personal data.
Though highly popular and enterprise-oriented, the IoT concept battles with the vulnerability to possible threats and cyberattacks for a long time. The key reason behind the growing data security concerns for IoT devices is the IoT is a centralized technology. It deals with the data stored on centralized servers belonging to some of the Internet giants like Google, Amazon, Microsoft, and Facebook. This characteristic invites hackers to wreak havoc by breaching the personal and confidential data of the users and stakeholders.
Here is where the blockchain technology comes in. This decentralized technology is designed to address online security issues. It can help prevent the data duplication in every business process as it has been with cryptocurrencies since its arrival. Hundreds of thousands of servers that have stored the Bitcoin ledgers are impossible to attack even for the smartest hacker. What’s more, no one can alter the information stored in the chain of blocks as the name suggests!
Let’s take an imaginary scenario to understand the robustness and powerful security of the blockchain network. If attackers want to breach the data or alter the information in a server, they must alter the ledger of 51% of all the servers at once. Efforts and costs required for this attempt fairly outweigh the potential profits gained by the data breach. This is a miracle of a decentralized system. On the other hand, hackers need not put much effort to get or alter our information stored on centralized servers of Google or Amazon.
The advanced IoT app development process integrates blockchain-based features to establish trust in the IoT. The inclusion of the blockchain concept in IoT apps eliminates the need for a third-party to consider the app trustworthy. The blockchain technology ensures the safety of IoT apps by distributing corporate data. It prevents any possibility of data tampering by people with malicious intent. Also, blockchain technology can make device identification and authentication easier in apps as compared to other apps.
Though the cost of app development increases significantly after adding blockchain features, your business can get the benefits in the long run by winning the customer’s trust and saving valuable data of the app users.
Additionally, blockchain technology can prevent any data loss due to the loss of Internet connectivity. Smartphone users may lose valuable data or they have to do the entire process again even if the Internet connection is lost just for a few seconds. How about losing Internet connectivity in a self-driving car? It can lead to a big mishap or a fatal accident. Now the blockchain-powered IoT app development enables us to preserve the valuable data in chain, and we can get it back once the connectivity establishes again.
Big Benefits of Combining Blockchain with IoT
Here are five major business benefits of integrating blockchain features in the IoT devices and applications.
- Acceleration in the data change
This is one of the biggest benefits of integrating blockchain features into an IoT app. However, due to the limitation of blockchain in handling a certain number of transactions per hour, it is better to implement an enterprise-grade approach to handle the massive amount of data.
- Reduced costs
The blockchain can reduce the operational cost by eliminating the need for a middleman for any transaction. This technology enables users to transmit data on a peer-to-peer basis in a decentralized environment, thereby reducing business expenses. Decentralization provides a cost-effective way to IoT.
- Enhanced security
As mentioned above, the blockchain technology can offer a secure transaction. It legitimizes the data and makes it sure that it comes from a trusted source. Enterprises that implement a combination of blockchain and IoT depend on security measures like device authentication. Such measures can be effectively followed through a blockchain-based IoT app development.
- Streamlined accounting
This is the major reason for the growing popularity of blockchain technology in the BFSI sector. It enables users to streamline the accounting process. A time-stamped chain can help companies audit the entire transaction trail at any time.
- Supply chain efficiency
In many modern enterprises, IoT devices manage and maintain the entire supply chain. The combination of Blockchain and IoT can effectively improve the supply chain efficiency by eliminating the need for the middle man. It further increases the speed of transactions and reduces operational costs.
Simply put, when it comes to preventing personal data, the combination of blockchain and IoT will remain incredible across the workplace.
Data security has remained the top priority for the corporate sector in recent years. We can consider that the demand for secure data storage and access will continue to increase every year. Blockchain and IoT app development will also grow in line with it. Blockchain offers a powerful solution to security issues faced by IoT apps. It is advisable to consult a reputed IoT app development company to make the most of both these futuristic technologies.
Robert Jackson is a content cum digital marketer at Solution Analyst, a leading mobile app development company. He is an avid reader and likes to remain updated for technological advancements in the domains of web, mobility, IoT, and emerging technologies. His articles are informative and interesting at the same time as he expresses insightful thoughts clearly.