Combining blockchain technology and the Internet of Things (IoT)

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There are two technologies discussed a lot in recent years, blockchain technology and the Internet of Things (IoT). Both have been promising to revolutionize the way people live, making the world convenient, safe and  decentralized. The possibility of combining blockchain technology and IoT to extract the benefits from both at the same time is really notable.
The Internet of Things has been rolled out to both businesses and consumers. Such as smart home devices like internet-connected thermostats and light. While businesses usually use IoT devices to monitor the efficiency of processes in production and logistics.
The most widespread example of blockchain technology are cryptocurrencies. These digital alternatives to traditional currencies take some of the qualities of gold and combine it with a decentralized mechanism for governing and policing its operations.
With no central bank, cryptocurrencies like Bitcoin, Ethererum and Litecoin have a public ledger listed on the “blockchain”. Instead, computers, or ‘nodes’ operate around the world processing and verifying transactions.
These cryptocurrencies can be used in a growing number of places for daily commerce. Enthusiasm for crypto is beginning to gather pace, with many blogs and crypto news sites reporting on the latest developments.
But the possibility of combining blockchain technology and the Internet of Things (IoT) to extract the benefits from both at the same time is really notable.Market Research estimates the two could be worth $254 billion by 2026.
The IoT has been held back by the inherent security issues that come with having many devices connected to a network. They’re attractive targets for computer criminals who want to launch Distributed Denial of Service (DDoS) attacks since they can launch many simultaneous attacks when infiltrating a single network. IoT devices have been harder to secure than other devices.
Smart refrigerators, WiFi routers and connected thermostats are all common targets for this kind of attack, particularly when they are left with their default password.
Blockchain technology can be used to answer this security challenge. Firstly, the distributed ledger is immutable, as in tamper-proof, meaning trust between each device doesn’t need to be established in the same way. Moreover data leaks can be more easily identified since they are recorded permanently in the ledger.
Additionally, blockchain technology provides better encryption and an additional layer of security in network of IoT, making it harder for hackers to infiltrate a network.
In addition, as networks of IoT devices grow, it can be difficult to authenticate and authorize each device on a centralized network due to the high levels of resources required. Traditionally, this would mean you need enormous numbers of powerful services to meet the demands.
Combining the Internet of Things (IoT) with blockchain technology, these issues can be addressed by allowing all the devices on the network to undertake authentication. This means other IoT devices could perform some of this role.They spread the workload over the entire network and remove the need for huge gateway devices.
Third issue is speed. A decentralized network spread out across many IoT devices would also allow blockchain systems to be faster. Blockchain technology, particularly cryptocurrencies, are currently held back by the slow speed at which they process transactions.
By utilizing the IoT, this could be addressed by adding significantly more decentralized processing power to the network.
In tandem with improved speeds, decentralized blockchain processing on the IoT could help to reduce costs. Large number-crunching computers can be prohibitively expensive but could be cheaper when spread out over many smaller devices.
Current IoT networks usually have a central gateway that devices communicate with. This creates a single point of failure vulnerability that could be attacked, resulting in the entire network being taken down. While you can use backup and redundancy limits to prevent or limit downtime, they can be costly.
Using a blockchain technology can distribute both authorization and authentication over a network, thus removing the single point of failure.

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