An integration of the hottest technologies – The Internet of Things (IoT) and Blockchain – has been proposed by a new report from research firm Kaleido Insights. The Internet of Things (IoT), a system that affords its users the ability to transfer data over a network without requiring neither human-to-human nor human-to-computer interaction. Basically, devices are connected to the internet and to each other. With wirelessly connected sensors built in almost everything. This means everything can be tracked, inventory-managed and made selectively accessible through a continual stream of signals.
Blockchain will play a great role in its relationship with IoT. It is a system of decentralized and distributed digital ledger used in recording transactions across many computers to avoid records being altered retroactively without the alteration of all subsequent block. This system will be used to track, make an inventory, manage and make selectively access through a continual stream of signals created from the interaction of one IoT devices with another. Transferring a piece of property such as data or money will be made possible through a simple infrastructure provided for two devices to interact. To enable this exchange, IoT will leverage smart contracts which will then model the agreement between the two parties. This way devices will function autonomously without the need for a centralised authority.
The report finds that the relationship between Blockchain and IoT is being used to create supporting machine integrity and product- level trust. It does this in three ways product identity, product transaction, product interaction. This means IoT and blockchain are conveying new ways to authenticate products, secure transactions or tokenise assets and centralise all interactions, events, and updates associated with a product.
The relationship between these technologies is now being employed by some companies the report reveals. Everledger is employing private and public blockchains, along with sensors and computer vision, to maintain permanent records for fine wines, fine arts and diamonds so that forgery is much more difficult. Another group of companies is developing CarPass to track cars’ digital records as they go from manufacturer to a succession of buyers. IBM/Walmart is also employing IoT sensors and Blockchain to its pilot project that tracks food safety by monitoring the supply chain. This way technology can improve IoT features and cost-efficiency as well as compliance in the IoT.
The feasibility of the relationship between IoT and Blockchain raises some questions; Would it be of use to large-scale and industrial systems? Would the point of sale systems work with the new currencies? Is the financial system is going to be ready to accept this as devices start to charge for services at a micro-level? The Kaleido report is for forward-thinking executives and innovation leaders who are interested in exploring how blockchain can support IoT and automation strategies.