Over the past decade, there have been an increasing amount of connected devices making up the internet of things (IoT). This network provides increasing benefits by connecting devices and people around the world and collecting data which can be used to personalize products and services. The lack of transparency in current IoT platforms brings into question data security and privacy, which continue to be significant issues in light of GDPR laws enacted across Europe. As increasing amounts of data are collected on centralized platforms, data storage costs will increase and ultimately become inefficient to handle.
In today’s world, almost all devices with a Wi-Fi connection are part of the internet of things. Consumer-facing devices such as the Amazon Alexa and Google Home are the most obvious IoT devices currently on the market, while smart forklifts and other machinery are part of the business IoT ecosystem.
The use of smart contracts and decentralized public networks allows for full transparency of IoT data and creates security barriers which can identify data breaches and attacks. Decentralized data storage allows for higher data storage capacity across the network while also providing a more secure storage structure. Even private, centralized blockchains still provide added value over their previous counterparts with an immutable ledger that cannot be altered at any time without the knowledge of all parties in the ledger system.
The largest blockchain-based IoT solution is IOTA, which touts feeless transactions on its distributed ledger powering the future internet of things. IOTA’s Tangle is different than traditional blockchains and operates as a directed acyclic graph (DAG), like CyberVein’s, which connects transactions in a unidirectional stream.
IBM has partnered with Hyperledger to provide a blockchain solution for sending IoT data to private blockchains in a secure way. This will bring businesses together to verify transactions and prevent disputes.
Dan is a freelance cryptocurrency and blockchain content writer. He has written content for startups, ICOs, financial planners, venture capital firms, and more. Previously he founded an e-commerce company that grew to $1 million in revenue and profitability in less than 3 years. Dan has a degree in Economics and Finance from Bentley University.