In a world full of connected devices with more and more devices creating massive quantities of data, security and accountability are the significant hurdles companies aim to get rid of by securing IoT with blockchain technology. For data security and making sure that the devices are accurately registering and reporting information, the incorporation of blockchain databases into IoT solutions is a necessity in today’s world. The most significant benefits of blockchain technology and IoT include faster transactions, cost reduction, and building trust. Blockchain technology is the “silver bullet” or the “missing link” for security, privacy and reliability concerns in the Internet of things. The technology enables a wholly enhanced security environment, which helps overcome people apprehensions while considering the increasing number of smart devices in daily life.
In addition, blockchain technology’s use as a distributed recording system allows writing permanent records by using strong cryptography and replication that too securely. The cryptographic algorithms used by blockchains make consumer data more private. To enable many compliance and regulatory requirements of industrial IoT applications without the need to rely on a centralized model, blockchain’s ability to maintain a duly decentralized, trusted ledger of all transactions occurring in a network is essential.
Using the blockchain will enable true autonomous smart devices that can exchange data, or even execute financial transactions, without any centralized broker. The transformation of the entire business models for a smart grid is possible by recording the autonomous, machine-to-machine electricity usage transactions with the blockchain. In coming years, blockchain will be a useful integral tool to protect IoT security and privacy.