Blockchain is a part of the Internet of Things (IoT). Notably, the blockchain part of IoT is the future of information technology. Distributed Ledger Technology (DLT) is expected to take over the world.
Since the launch of web 2.0, most are now wondering what the next generation of innovations would be. It is gradually shaping up to be proven that DLTs are powering the next wave of innovation in information technology. The age of smart devices has come in.
The vision and plan of the Java language inventors are coming to pass. Smartphones, for instance, have taken over the functions of several devices simultaneously. In turn, several industries have become extinct. The digital camera, alarm clocks, the PDA, and the pager have disappeared since the smartphones handle all of them.
Different types of data are available from these smartphones that need to be stored in databases. Legacy systems have various challenges. They are expensive to maintain, insecure, have scalability issues, and much more. These are among the many problems that legacy systems bring about.
The surge of web3 technologies has altered things to perform in a better manner. Having a distributed ledger offers a new paradigm. That makes blockchain a part of IoT. Blockchain technology is recognized as the first of the DLTs. Thus, it offers the first proof of concept that indicates that DLTs can work.
It is now evident that the storage required to be decentralized. Every user can have individual ledgers and still keep the stored information intact and secure. IoT has a lot of potentials as it has already proven. Intuitive services, ease of access, and smart devices are some of the advantages that come with the new technology.
A Lot Of Data Must Be Stored In This Digital Era
The development of mobile devices has increased exponentially and the amount of data has also increased in the IoT. Many members of the IoT ecosystem exist. Most of these widespread troves of data are stored in legacy databases currently.
This exposes data to exploitation by hackers and many other nefarious groups. Incorporating blockchain in the IoT will send hackers and criminals in another direction. That is not the only benefit of making blockchain a part of the Internet of Things. Real-time updating of ledgers without any human interference is another benefit of incorporating blockchain with IoT.
Conventional systems include human access to information as a part of their security infrastructure. Recent hacks reveal that human beings err in some cases. On the other hand, information stored on the blockchains is immutable. Therefore, blockchain supports the permanence and accuracy of the raw datasets.
It is one major benefit that blockchains have over the traditional systems. For the Internet of Things ecosystem to thrive, the integrity and accuracy of the data stored cannot be altered.
Blockchains Enhance IoT Accuracy
Blockchain makes IoT more accurate and to some degree, the IoT infrastructure has a margin of error that can be eliminated when the system creators make blockchain part of the IoT.
Another major benefit of this integration is that the IoT sector will not need many upgrades in the future. So far, blockchains have proven to be scalable since cryptography is the foundation on which they operate. The strong foundation places blockchain ahead of competitors due to its scalability characteristics.
The new generation of blockchains can handle a lot of data influx. It also puts them at a strategic advantage over the legacy systems. As a lot of information gets captured within the Internet of Things ecosystem, a strong foundation for data storage is necessary.
Traditional systems do not have this foundation apart from the custom enterprise solutions. But, they are quite expensive to create and also implement. Nonetheless, making blockchain a part of the IoT mitigates the issue considerably. Multiple ecosystems can exist on the same blockchain. The inclusion of data oracles currently allows blockchains and apps to communicate with each other.
IoT And Bitcoin Integration Will Increase In Coming Years
DLTs and blockchains continue to evolve and it is expected that there will be a considerable surge in adoption by the IoT ecosystem. The good thing is that the DLT space is significantly new with the industry being around ten years old. There is some space for the inclusion of the technologies that can introduce new concepts and paradigms.
Some people have postulated that IoT is a fading concept but with blockchain coming in, it will benefit IoT. However, IoT has not yet reached its limits. Its limitation is the legacy systems that store all the datasets created in the Internet of Things.
Blockchains can be forked to support new limits without the cost and challenges that the legacy systems bring. Interestingly, there are successful Blockchain IoT companies currently in operation including Helium, Chronicled, ARCTouch, NETObjex, and Filament.
The firms are a part of a new bridge of companies that have made blockchain a part of the IoT. They have been quite successful on a practical basis and will offer a template for institutions of the future.
