A new report from Omdia shed light on the potential of blockchain in IoT and the current enterprise interest in the technology.
IoT and blockchain: a match made in heaven
The report, Blockchain’s Role in IoT, asked companies about their views of blockchain and its potential use cases. The results show that 40% of enterprises surveyed see blockchain as a “priority for the future” for their IoT deployments.
Blockchain tech is viewed as a valuable tool for a wide range of supply chain activities, including logistics and monitoring, maintaining tamper-proof records, facilitating smart contracts, and providing a platform for payment processing and money transfers.
The Internet of Things (IoT) is a network of connected devices and systems, allowing for the collection and sharing of data to facilitate communication and enable automation.
Blockchain is a distributed, encrypted technology that enables secure transactions and records to be maintained across multiple parties. When implemented together, blockchain and IoT have the potential to create a secure platform for transactions, data sharing, and the automation of processes.
IoT-blockchain technology is now in its initial stages, and a few major technology companies have begun to seek opportunities in this space. For example, the Brooklyn Microgrid in New York City is using blockchain to record solar energy output and allow the purchase of additional renewable energy credits.
In addition, IBM has been working on an IoT-blockchain project with Maersk, the world’s largest container shipping company, to streamline and secure supply chain operations.
The potential for blockchain technology to improve IoT projects is significant. Smart contracts can enable automated transactions and interactions, while device authentication and identity standards can boost security.
Furthermore, through its immutability, blockchain can provide a high level of trust and transparency for IoT-based projects. This is especially important for applications such as autonomous vehicles, smart homes, and smart cities, which require high trust and security. In the near future, we are likely to see even more innovative projects leveraging the power of blockchain in combination with IoT.
Although enterprises have a clear desire to adopt blockchain technology, Omdia believes that further technological advances are needed before it can be adopted quickly and widely for IoT applications, given the complicated nature of blockchain technology.
Overall, the report paints a promising picture of the convergence of blockchain and IoT. As blockchain technology continues to evolve and address inefficiencies, it is likely to see wider implementation in the IoT space in the near future.