Blockchain is one technology that has been gaining enormous attention in areas beyond its cryptocurrency roots. Getting associated with several fields like security, finance and logistics IoT is now moving ahead to mingle with IOT (Internet of Things). Internet of Things is the network of physical devices, vehicles, home appliances and other items embedded with electronics, software, sensors, actuators and connectivity which enables these things to connect and exchange data.
The definition of Internet of Things has evolved due to convergence of multiple technologies. Despite of the hype and vast amount of resource in IoT’s growth has largely gone unchecked. The IoT will cause a huge explosion of data and security of this is still not being considered to the extent it should be. Popular websites like Netflix and Twitter were temporarily taken down as a result of a distributed denial of service (DDoS) attack in which hackers uploaded malware to webcams. According to a recent survey 90% of developers said they believe that IoT products do not have the necessary security in place, while 85% admitted that they felt pressured to rush an IoT application
to market despite security concerns.These challenges could well be overcome with another equally hyped technology: blockchain.
The current IoT system is based on the server/Client model which is centralized and has all the devices identified, authenticated and connected through cloud servers. This infrastructure will simply not able to cope as these ecosystems scale up. Blockchain has this ability as it is fully transparent, permission less, proof-of-work, peer-to-peer distributed ledger that securely allows multiple kinds of transactions to take place directly between different participants.
Smart sensors continuously capture data from the surrounding environment and send it over the internet. It is usually paired with cloud services which perform analytics on the obtained data and remote storage. The misconception regarding the blockchain is that the devices will store the data on-chain but the typical procedure is actually storing a hash of the data on the blockchain.
The trustworthiness of Blockchain makes it a perfect architecture for IoT. It eliminates single points of failure, creating a resilient ecosystem for devices to run on. Blockchain can keep an indisputable, totally secure record of messages sent between IoT smart devices, enabling the autonomous functioning of smart devices without the need for a centralized authority. Blockchain presents many promises for the future of IoT. Challenges still remain, such as consensus models and the computational costs of verifying transactions. But in the long run Blockchain holds the remedy to the loopholes of IoT.