WaykiChain Looks into Future | Blockchain Application Scenarios in IoT

Internet of Things (IoT) is an important component of the new generation of information technology. As the name implies, IoT is the network of connected objects, which means the following:

Firstly, the core and basis of IoT is still internet, IoT is a network that extends and expands on the Internet;

Secondly, the user end of IoT extends and expands among any objects for information exchange and communication.

  1. How to understand the concept “Internet of Things”?

Simply put, all things are connected with the internet through information sensors to conduct information exchange and communication in order to achieve smart recognition and administration.

IoT does not exist independently. It is a new ecological model formed on the basis of deep integration with traditional industries in different sectors. IoT has broad application prospects in different fields.

Internet of Everything is the development trend in the future. In recent years, with the rapid development of technology, IoT has been accelerated. According to a recent statistical report published by International Data Corporation, the global IoT market will grow to $3 trillion by 2020, while global IoT devices will reach 30 billion units.

Whether it’s the tiniest sensor or the huge mechanical equipment, all can be connected to the huge Internet of Things.

IoT has a wide range of applications, including intelligent transportation, environmental protection, government work, public safety, smart city, smart home, environmental monitoring, industrial monitoring and food traceability.

2. Major problems in IoT

1) Massive data storage: The data generated by IoT encompasses all aspects of daily life such as clothing, food, housing, and transportation, as well as government management, manufacturing, and medical care. According to the current storage method, massive data will be collected for unified storage, which requires a large amount of infrastructure investment. Due to the high infrastructure and maintenance costs of centralized cloud servers, large servers, and network devices, the current IoT solutions are very expensive. When the number of IoT devices increases to tens of billions, a large amount of communication information is generated, which greatly increases the costs.

2) Data security: Another hidden danger brought by data aggregation to a single central control system is data security. Once the central node is attacked, the loss caused is incalculable.

3) Multi-agent coordination problem: Since IoT involves many sectors, different operators and self-organizing networks engage in it, which will result in the simultaneous existence of multi-center and multi-agent. If the mutual trust problem is not handled well, the system of IoT will be difficult to coordinate, and the benefits of the intelligent IoT era will be greatly reduced.

3. Blockchain solutions for IoT

Nowadays, blockchain technology is very hot, it can establish low-cost connections among devices in the Internet of Things, also can improve the security and privacy of the system through a decentralized consensus mechanism. At the same time, the combination of blockchain technology and smart contract can turn each smart device into a self-adjusting network node that can exchange information, verify identity, and trade with strangers on a pre-determined basis. The specific performance are as follows:

1) Reducing the operating costs of IoT

Blockchain technology can transmit data through a peer-to-peer direct interconnect of IoT, rather than a central processor, so that distributed computing can handle hundreds of millions of transactions. Meanwhile, the computing power, storage capacity and bandwidth of hundreds of millions of idle devices distributed in different areas can be made full use of for transaction processing, greatly reducing the costs of computing and storage.

2) Solving security risks and protect user privacy

The core flaw of IoT security: the lack of mutual trust among devices. All devices need to check with the data in IoT center. Once the database collapses, great damages will be caused to the entire Internet of Things. The distributed network structure of the blockchain keeps the devices in consensus and devices does not need to verify with the center, thus, even if one or more nodes are compromised, the overall network data is still reliable and secure.

Blockchain records every transaction for each participant. Cryptography is used to confirm transactions and to ensure the privacy of information on the blockchain. Participants confirm each transaction, provide a high-level verification, and gain a reward for their computing power. By using decentralized consensus to confirm transactions, blockchain eliminates the need for trust.

3) Efficient and intelligent network operation mechanism

Based on the multi-center and consensus mechanism of blockchain, the cross-system data transmission on the Internet of Things will “sink” to blockchain, which will greatly reduce the complexity of the application system. IoT will also evolve from a IoT (Internet of Things) era to a CoT (Chain of Things) era, building a new chain world.

4. Look into the future

Since blockchain forms a consensus mechanism run independently, blockchain technology can be applied to data processing and system maintenance of IoT. With blockchain technology, IoT device manufacturers can dramatically extend the lifecycle of their products and reduce the costs of IoT maintenance.

In a decentralized IoT, blockchain can facilitate the infrastructure of transaction processing and collaboration among interactive devices. Each chain behave itself and plays its part, thus forming a “decentralized autonomous Internet of Things” to achieve democracy in the digital world.

It is foreseeable that in the future, billions of people and hundreds of billions of machines on this planet will be connected to a blockchain network, and exchanges, transactions, and payments between humans and machines, machines and machines will become a reality. Humans are advancing toward an era where goods and services are almost free, and the world with blockchain + IoT is a world of decentralization and collaboration.

Website: https://www.waykichain.com/



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