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With emerging technology systems, such as blockchain, IoT, and AI, becoming increasingly popular, merging technologies is an opportunity to improve performance. One is merging the Internet of Things (IoT) and blockchain.
IoT is a system of interconnected and interrelated physical objects that can collect and transfer data over a network without human intervention. Its function is to connect people, devices, places, and technologies to create value for individuals and organisations.
IoT products can fall victim to cyber security issues and hackers. For instance, affected components of the IoT system can be disconnected from the network, or a set of compromised keys can be revoked. The bigger the IoT network grows, the more vulnerable users are to data theft and hacking.
Blockchains are part of distributed ledger technology (DLT), a decentralised database managed by multiple participants across multiple nodes, with the blockchain providing an immutable cryptographic signature called a hash. This technology has grown in popularity and adoption and is the ideal system to combat the vulnerabilities in IoT networks.
Integrating blockchain into the network will solve many problems for IoT users. Individuals and businesses will benefit from intelligent and interconnected systems. Data sharing, processes and storage will be free from disruption, and trust can be achieved from user to user without worrying about data theft and security issues.
Organisations must use a central server to store device IDs and transactions on the register of each node. Also, as the computing power varies between different systems, not all connected devices will maintain the desired speed level while running similar encryption algorithms. These issues may lead organisations to be unable to merge blockchain into their IoT network.
However, many sectors and use cases can benefit from combining IoT and blockchain technology, such as supply chains, food safety, and counterfeiting. As the blockchain can work to secure credentials, identities, devices, platforms, and digital rights, it will help authenticate connected devices and various networks, ensuring a better flow and protection of data.
Blockchain and IoT are changing the digital space. The world is beginning to realise the potential of these technologies and their benefits to business.
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