Blockchain - the missing link in the rise of the Internet of Things

Economies have invested heavily in infrastructure. However, much of it sits idle and underutilized. Large industrial machinery, medical equipment, and even ports and airports are mostly unused or not fully utilized.

What if we could find a way to maximize the capabilities of our assets? It turns out that the answer might be: using blockchain technology .

Blockchain is the same technology that powers Bitcoin and is essentially a distributed ledger that can move information around on anything of value. Blockchain operates as a secure peer-to-peer network and does not require an intermediary to keep itself functioning.

Blockchain can open a chain of possibilities

Blockchain combined with the Internet of Things (IoT) has the potential to change the way we utilize infrastructure across industries. Forbes recently published an article by Alex Tapscott (co-author of the book Blockchain Revolution).

Tapscott said:

“A blockchain is a massive, globally distributed ledger or database that runs on millions of devices and is open to everyone. Not only information but also all kinds of valuable things—such as currency and energy units—can be moved and stored securely and privately from point to point on the blockchain. Trust in the blockchain is established not by intermediaries (such as banks, governments and technology companies) but through public cooperation and intelligent code.”

Is blockchain the most important invention since the internet or sliced ​​bread?

In an April report published by Ernst & Young (EY), Marc Andreessen, a well-known venture capitalist, was quoted as saying that blockchain is the most important invention since the Internet.

EY described the blockchain implementation, saying:

“Both incumbents and startups are actively seeking to apply blockchain technology to reduce costs or improve efficiency. The technology has the potential to revolutionize financial services and other industries because of its ability to make ledgers more transparent, trustworthy and efficient.”

Save an IoT record

Blockchain can be used in a variety of different ways across a variety of industries. EY listed a few use cases for blockchain in its report, and they also captured the use case of blockchain in conjunction with the Internet of Things.

They offer an example of how blockchain and the Internet of Things (IoT) can be used together in manufacturing:

“An IoT based on a distributed infrastructure can facilitate efficient product data retention. All product information, from the moment it is manufactured to the moment it reaches the end user, can be stored on a distributed ledger. This information can include product history, revisions, warranty information and expiration dates (if applicable), making the ledger a trusted source of product data. By accessing maintenance schedules on the ledger, service requests can be triggered when a product requires maintenance.”

If ovens could talk, what would they say?

There is also the possibility that in the future, home appliances like ovens, refrigerators, etc. will be able to talk to each other. This is a seriously scary prospect, at least for me. Imagine a future where if an oven breaks down, it can call a service center on its own, and you might find a repairman standing at your door. The refrigerator can sense that you are out of eggs and place an order for them through an online shopping website. Of course, the egg seller and the repair company can use the blockchain to verify that it was indeed your oven or refrigerator that made the call.

But the oven doesn't fly.

We have to remember that blockchain technology is still in its infancy though. To be sure, Bitcoin is in many ways a proven blockchain scenario that has withstood the vagaries of time, but when it comes to using blockchain technology in areas like banking and insurance, we still have a long way to go.

As for the Internet of Things (IoT), the field itself is still underdeveloped, but one thing is certain: blockchain can help make IoT more secure and sustainable.

As EY states in the report:

“Blockchain and distributed infrastructure technologies are exciting advances that show promise for the financial services industry. While there are many potential benefits to the application of this technology, there are also challenges to achieving success. By fully considering how this technology can meet business needs and the role of other external and internal factors, companies can significantly increase the likelihood of success for their distributed ledger initiatives.”