UK Government Chief Scientific Advisor Report: Blockchain Technology Defends IoT Security and Makes Driverless Transport a Reality (Download the Full Report)

The use of blockchain technology is not limited to cryptocurrencies - it can also be used for many government services - and the technology can also play an important role in ensuring the security of the Internet of Things.

The potential use cases for blockchain are becoming more and more numerous. For example, this technology can be used to enable driverless transportation - cars, buses, planes, etc., which are all important components of the intelligent future of the Internet of Things.

The inherent potential of blockchain technology can make autonomous transportation systems immune to cyber attacks.

It all comes down to how blockchain is used. Blockchain is a decentralized electronic ledger technology. This ledger of encrypted transactions is public and can be distributed around the world.

Mark Walport, the UK government’s chief scientific adviser, said that a successful attack on a blockchain ledger would require tampering with all instances of the ledger at the same time, which is basically impossible. Walport wrote a report on distributed ledger technology (download the full report) that combines global case studies on blockchain in terms of trust and interoperability.

Government use of blockchain

Walport wrote in his report that although blockchain was born in the field of currency, it can also be used for many other types of transactions, from real estate to government records. Blockchain can be used to collect taxes, record land and property registries, and more.

The beauty of blockchain is that there are copies of this ledger on computers around the world - it is actually this feature that allows cryptocurrency assets to be transferred and recorded without the need for external verification.

In fact, some of the world’s largest banks are working together to explore how blockchain can improve transaction auditing, increase efficiency and reduce costs.

According to the Walport Report, Estonia’s largest independent bank, LHV Pank, has issued cryptocurrency securities.

Blockchain and the Internet of Things

If every self-driving car is an autonomous device—part of an overall system—centralized failures are essentially eliminated. Blockchain can then improve the security of implementing individual autonomy-enabling devices.

Walport said:

“Autonomous vehicles are becoming a reality — cars are becoming part of the Internet of Things… and you don’t want your IoT-connected car to be tampered with. So blockchain distributed ledgers have the potential to monitor the car’s operating system, sensors, and doors. You can baseline a known state of the device configuration and then check to see if it has been tampered with.”

While blockchain may not yet be available to ride-hailing companies, which must check drivers and perform some tasks guided by human judgment, it is already being tested for other transportation uses.

Plex.AI, a Canadian auto insurance technology startup founded in 2015 and based in an Ontario incubator, has developed a car telematics platform that is reportedly able to provide real-time remote diagnostics about a car to insurers. The technology uses the Ethereum blockchain, machine learning, and artificial intelligence to generate information about customers who get quotes and register through the Rover app.

Amos Meiri, co-founder of Israeli blockchain technology company Colu, said:

“This isn’t just a new way to think about making money — it’s a new way to think about trust.”