Where do IoT and blockchain intersect?

In the next few years, the Internet of Things will become one of the largest and most exciting application areas of blockchain technology.

—Ryan Selkis, Investment Director at Digital Currency Group

Blockchain has been very popular since its inception, with a lot of investment, startups, and applications bursting in this field. The future of blockchain is bright, and LTP has been at the forefront, covering all the news in this field and recent events. In our previous article, we mentioned the application of blockchain in the financial field and non-financial fields. Currently, there has been a huge increase in the number of ways that real-world assets are combined with blockchain and the number of digital transactions. One of the most important non-financial applications is the Internet of Things.

According to the concept proposed by IBM,

“Blockchain technology offers a fascinating possibility for the world of the Internet of Things. When a product is finally assembled, it can be registered by the manufacturer into a universal blockchain, marking the beginning of its life cycle. Once the product is sold, the dealer can register it on a regional blockchain (community, city or country). By creating tangible assets and matching supply and demand, the Internet of Things will create a new market.”

There are various blockchain applications for IoT and smart systems. When applied to IoT, the concept of blockchain opens up unlimited possibilities for innovation. Blockchain technology can be used to track the usage history of devices. It can coordinate transactions between devices. This technology will make IoT devices independent by providing data transactions between devices and between devices and people.

Various established technology companies and startups have been exploring these applications. They have invested in and researched a lot of solutions that may use this technology. The main purpose of these applications is to connect the home network to the cloud and surrounding electronic devices (home automation). The following are some of the companies in this direction:

1. IBM

IBM was one of the first companies to announce their plans for blockchain development, and it has established multiple partnerships at different levels and demonstrated its love for blockchain technology. It has published a report stating that blockchain can be the best solution for the Internet of Things. In January 2015, IBM announced a project - the ADEPT project, a research project that uses peer-to-peer blockchain technology. IBM has also built a proof-of-concept system with Samsung for the next generation of IoT systems, based on IBM's ADEPT (Autonomous Decentralized Peer-to-Peer Telemetry), which consists of three elements: Ethereum, Telehash and BitTorrent. Using this platform, both companies hope to bring about a device that can automatically detect problems and automatically update without any human intervention. These devices will also be able to communicate with other nearby devices to power batteries and save energy.

2.Filament

Filament has proposed their sensor device, which allows a secure, full-range wireless network to be deployed quickly in seconds. The device can communicate directly with other TAP devices within 10 miles and can be connected directly through a mobile phone, tablet or computer. The company operates using a blockchain-based technology stack, which enables Filament devices to independently process payments and allows smart contracts to ensure that transactions are credible. The company was founded in 2012 and recently received $5 million in joint investment from Bullpen Capital, Verizon Ventures and Samsung Ventures.

3. Ken Code – e plug

ePlug is a product of Ken Code. According to Ken Code's white paper, ePlug is a small circuit board with an "ePlug certified" power socket and light switch inside. For security and reliability, the product provides optional Meshnet, distributed computing, end-to-end data encryption, wireless connectivity, timers, USB ports, temperature sensors, tactile sensors, light and motion sensors, and LED lights to provide reminders. The product uses a blockchain-based login method to ensure security. Once the correct network address and URL are entered, the ePlug owner will see a login interface. Initially, blockchain platforms like OneName.io and KeyBase.io will be used to authenticate logins to ePlug.

4. Tilepay

Tilepay: Provides a human-to-machine or machine-to-machine payment solution for the existing IoT industry. The company has developed a micropayment platform. Tilepay is a decentralized payment system based on the Bitcoin blockchain and can be downloaded and installed on a personal computer, laptop, tablet or mobile phone. All IoT designs will have a unique token and are used to receive payments through blockchain technology. Tilepay will also establish an IoT data trading market so that everyone can purchase data from various devices and sensors in the IoT. And it will ensure the secure transmission of data and payments in a P2P manner.

Note: Kate is a full-time writer at LetsTalkPayments.com. She likes to write about mobile payments and mobile commerce.