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Digital transformation is empowering organizations to expand their target markets and take on challenges with better capabilities. Businesses around the world are using digital strategies to improve their conversions, competitiveness, market outreach, and the quality of customer assistance.Ā
The popularity of Digital transformation among businesses can be measured using this report by Statista. According to this report, spending on digital transformation technologies and services across the globe can cross $3.4 trillion. The calculation is done on an approximate Compound Annual Growth Rate (CAGR) of 16.4%.
Among the most prominent digital transformation technologies, the Internet of Things (IoT) and blockchain are quite popular. And some additional data from Statista can prove this point. By the end of 2023, the estimated IoT spending can cross $1.1 trillion. As for the blockchain industry, global spending on technology is expected to cross $19 billion by 2024.
The Internet of Things (IoT) is connecting the world without making it reliable on wires. IoT devices can be controlled, synced, and monitored remotely using signals. The technology has gained a lot of traction due to its ability to leverage sensors for data transmission. For instance, IoT cameras that you can use and control to keep an eye on the weather, traffic, home security, etc.Ā
However, IoT is prone to cyber threats that can be hazardous to its data security, privacy, and trust building. To counter these threats, blockchain was adopted by IoT developers due to its amazing features.Ā
Advantages of mixing IoT and blockchain
Combining IoT and blockchain technologies helps in building safer wireless ecosystems. However, apart from digital security, there are additional benefits of this fusion. Letās list them down one by one for better understanding.
1. Safer data transmission
IoT networks are usually dependent on several devices connected to a server which makes all devices prone to cyber attacks if a virus infiltrates. Blockchain, getting integrated with IoT builds a safer data network and helps improve the quality of data transmission. Blockchain stores data in encrypted forms in multiple chains of blocks.Ā
As more data is added to the server, the number of blocks increases. To enter the server, even if a hacker infiltrates using a connected device, the hacker will have to decode blocks and decrypt the massive data.
2. Improved performance
Blockchain influences the performance of IoT devices positively. The technology is capable of processing a massive amount of data faster than traditional cloud storage platforms. For instance, IoT-based payment systems use blockchain technology to make the processing of payments faster. Blockchain speeds up payments by processing transactions faster.Ā
Depending on the kind of blockchain used the transaction processing speed (TPS) varies. For instance, Ethereum can process 7 transactions per second while Ripple, one of the new blockchain technologies, can process 1,500 transactions every second.
Apart from a fast TPS speed, blockchain also eliminates the need for third-party approvals to process payments by using smart contracts. Smart contracts are sets of conditions that are used to approve transactions or settlements.Ā
Using programs, these smart contracts are uploaded to the blockchain server to automate an approval process. Fintech companies are using smart contracts to process financial transactions, international settlements, insurance settlements, etc.Ā
3. Efficient supply chain management
A supply chain involves phases like sourcing raw materials, manufacturing, delivery, and returns. Blockchain can keep track of these phases in real time and maintain an accurate record of every modification made to the supply chain process.Ā
Blockchain has the ability to keep a record of every modification made in the data saved on the server. It also keeps track of the timestamp and the user stamp of the person that made the changes. For businesses, to provide an exact status of the process, blockchain is a perfect tool.
4. Decentralized data control and sharing
Data shared on blockchain servers is of decentralized nature meaning that data stored on popular blockchain servers like IBM Blockchain, Ethereum, etc remains private and can only be shared when given permission by the data owner. Additionally, connected IoT devices that have authorization to exchange data can automatically exchange it without any manual or repeated approval.Ā
Examples of IoT and blockchain
The global tech ecosystem has key players already leveraging IoT and blockchain. To know how these are some popular examples of blockchain development companies and their products that mix capabilities of IoT and blockchain.
- Helium- The company uses a decentralized network of devices like low-powered microchips and routers to connect them to the internet. The blockchain-powered radio tech-based wireless internet infrastructure of Helium reduces the power consumption of these connected chips.
- Grid Plus- The company manufactures hardware for cryptocurrencies and digital assets. Its hardware wallets leverage the capabilities of IoT and blockchain to prepare a safer payment system. The payment system also uses a smart contract written in human-readable signing.Ā
- IOTA- The company has a network of its own called Tangle which is designed as a ābackbone of IoTā. The network combines capabilities of blockchain technology and IoT app development services to offer feeless micro-transactions and tamper-proof data and reduces the requirement of resources. IOTA is also known for delivering distributed ledgers to industries like supply chain, customs, and border management among others.
Wrapping up
IoT and blockchain combined are transforming wireless telecommunication and making adopters of these technologies feel safer. In a world where data is massively increasing every second, these technologies help safeguard it from unauthorized access or possible misuse.Ā
There are several real-world applications as well that can be taken as examples of these technologies. For example securely saving the biometric data of people, building safer autonomous cars that canāt be hacked, building smart parking systems, building stronger storage systems for defense sectors, etc.Ā
Well, now that blockchain is getting more accessible for the common people, there are more possibilities rising. Some governments are using it to build safer payment systems while others are trying to virtualize their real-estate processes. To put it in perspective, blockchain technology combined with the possibilities of IoT will keep revealing new possibilities and innovations as it gets smarter.
Author Bio
Xavier Lewis is a Senior Content Writer at MobileAppDaily, a leading tech news portal that covers all the latest happenings in the digital world. He loves to write articles in the niche of technology and companies associated with it blockchain application development and other IT industry. He also works as a freelancer providing valuable content to multiple clients across different domains.
Disclaimer
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