3 Advantages of Blockchain and Internet of Things

Blockchain and internet of things (IoT) are two game-changing technologies. Blockchain simply involves the secure recording of transactions on virtual ledgers. With this technology, any information gathered by a system has to be recorded at the time it is collected. Changing any information on this ledger is close to impossible since it will require a very high amount of computing power. The technology is primarily used to track payments made using cryptocurrencies. The internet of things, on the other hand, involves the use of the internet to create objects that can communicate with each other. These two technologies are combined to create a virtual ledger that tracks all information gathered by smart objects.

So, how can the internet of things benefit from blockchain technology? Here are some notable advantages of this revolutionary merge:

Decentralised Data

Blockchain technology can allow smart objects to store information without having to use large data centres. This way, smart items will be able to interconnect and communicate remotely. Also, it presently a more reliable and secure way of storing data. Centralised databases have a risk of loss of information since all the information is stored in a single place.

Easier Tracking

The technology records all interactions made between smart objects. In case of an error in the information, you can easily track the source of the leak and possibly remedy the situation. Blockchain technology is also highly trustable since altering previous transactions is very difficult. The machines will simply record all their interactions without requiring any human involvement. Without the private keys, no one can overwrite the data with inaccurate information since they will not be granted write-access to the ledger.

Security

Security is a key concern in the internet of things technology. This is because smart items need to gather personal information in order to function optimally. In case a system is hacked, a lot of your private information will be lost to malicious parties. Smart objects have been developed to detect and recover from malicious attacks, but there is still a risk of losing information to the wrong people. Blockchain technology can raise your security significantly since it uses some of the most robust encryption standards.

Conclusion

Blockchain and internet of things can be combined to create highly secure smart objects. This merge will allow your machines to communicate remotely since the information will not be stored in centralised databases. Also, it is easy to detect errors in this system since all the interactions between your machines are recorded on a virtual ledger. The technology is already being used in some smart machines, and it will soon become the standard since the number of smart machines is rapidly increasing. Storing too much information in a centralised database will eventually lead to bloating, and this is why we need to store data in decentralised systems. The merge of these two technologies is likely to be a key point of discussion in the Iots World Congress event that will be held in Barcelona from 16th to 18th of October, 2018.