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IoT And Blockchain – The Bigger Picture

| Blockchain, Velix.ID

IoT Blockchain

Moving towards a world of connectivity and networks, we have a new technology emerging – Internet of things (IoT).

During the older days, the computer systems used a more mechanized standalone device or network, where the user was responsible for maintaining the system and its functionalities. With the introduction of the Information age, the paradigm shifted from an isolated individual system to systems where technologies are interconnected into larger networks with each device communicating and interacting as per user’s need.

 

Internet of things (IoT)

To understand the internet of things (IoT) in a better way, we can say that it is an arrangement of interrelated computing, digital devices, objects or people with the internet. They are provided with unique identifiers (UIDs) and the ability to transmit data over a network without requiring direct interaction with each other, good to go right?.

The journey of IoT has just begun. In coming years, we will encounter a revolutionary increase in the use of the internet. There will be a massive increase in the amount of data that the Internet is about to handle. There is a need to expand the IT infrastructure that will be dealing with such an enormous amount of secure data and communication between systems.

Though, it is hard to argue that the internet is big or will be even bigger in the near future. I will keep my eyes on the devices being built around it (It’s IoT after all).

This is what the next evolutionary internet has to deal with. In fact, the era has already begun, where there are millions of devices connected to the internet, constantly streaming and making connections.

 

IoT and the Centralized Architecture

When talking about the Internet of things, security is already a challenge. The more we are connecting to the network, more are the security vulnerabilities growing. Taking the centralized architecture into the picture, where all the information is sent to the cloud database from the individual IoT devices. In the central cloud, the processing of that information is done using analytics and sent back to the individual devices.

Since the networks are already growing very complex, there is a need that the devices using the IoT be connected peer to peer. Rather than processing, sharing and making decisions in a centralized manner, it can all be done locally, thus avoiding the centralized security vulnerabilities.

 

IoT and Blockchain

IOT Blockchain 4

A blockchain is a form of distributed ledger technology that uses a decentralized approach in making transactions and handling issues. It has been gaining popularity in areas beyond its use in cryptocurrencies: Blockchain and Internet of things (IoT), Blockchain and security etc.

The blockchain is basically a more secure way of making transactions as it adopts a peer to peer communication model i.e. one can easily make the online transaction to another authority seamlessly, without needing a third-party validator, ensuring that the data is legitimate and the process of transactions is well defined.

As it uses a decentralized approach to solve current issues, the cost of installing and maintaining large centralized systems is reduced, thus preventing the failure in the single node from shutting down the entire system. The blockchain promises the same security to the IoT network as that of the cryptocurrencies. It provides assurance that the data is secure and legitimate and well-defined processes are used.

As the definition suggests, the applications in the Internet of things network is distributed, so using a distributed ledger technology for handling transactions is a normal approach, for the devices to directly communicate with one another.

According to IBM, there are 3 key benefits of Blockchain for IoT:

  • Build Trust: There is a reduced risk of collision and tampering thus building trust in the network.
  • Reduce Costs: Since there is no need for maintaining intermediaries or middlemen, so the costs associated with it is reduced.
  • Accelerate Transactions: Peer to peer transactions ensure that the settlement time of transactions is reduced from days to almost instantaneous. 

Blockchain- A game changer for IoT

Blockchain for IoT offers ways to automate business processes without setting up a complex and expensive centralized IT infrastructure. It ensures:

  • A stronger working relationship with your partner.
  • Greater efficiency

Blockchain IoT solution could enable a more secure trusted connection between devices on the IoT network. It could provide a robust and decentralized system for handling issues of individual machines, without having to wait for a third party to authenticate the transactions. It answers the challenge of scalability, single point of failure, time stamping, record, privacy, trust and reliability in a very consistent way.

Micropayment model of Blockchain IoT

Blockchain network could provide a robust and decentralized system for handling issues on a micro level of individual machines. In the coming days, the IoT is going to need a micropayment system where devices can automatically pay based on the devices they consume. This would not require a centralized third party to authenticate each transaction.

Our Integration of IoT with blockchain

Velix.ID aims at solving the problems of privacy, and security concerns in the identity verification domain by introducing a decentralized ecosystem for identity verification. Our platform is user-optimized, decentralized, transparent and secure.

Our objective is to provide seamless identity verification all around the globe. The idea is to access user information digitally through IoT devices installed in various outlets and store them in a decentralized public ledger i.e. blockchain, which can be used for smooth identity verification, without breaking a sweat.

The amalgam of blockchain and IoT have a great potential, which can revolutionize the technological advancements of the modern world. Velix.ID is looking forward to utilizing this composition to solve the problems in identity verification space.

 

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