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What is Blockchain of Things (BoT)?
Blockchain is a newly popular technology widely used for the secure storage and sharing of information. It is a shared ledger that improves the ability to store data and information virtually about transactions or assets. Using this technology, the data assets can be stored digitally and the data will stay unaltered. Also, this works without any third−party intervention, which makes it even better in terms of security. And as the truth in the data is equal for all, it creates greater confidence and trust. This technology is widely used in the cryptographic industry as a public network and is very popular in big organizations for managing data.\
The Internet of Things (IoT) is a collective network of connected devices and digital objects which facilitates the transfer of data between devices to the cloud or devices to another connected device on the network in real−time, and that too without any human intervention. As now we have high bandwidth telecommunication, billions of devices can stay connected all over the internet. This means all the systems and machines can use the collected data from the same shared source and react to that information intelligently to users. One example where IoT comes in use is in smart cities where it has made urban planning and maintenance more efficient.
Well, now you have basic idea about what is blockchain and IoT. In this article, we will discuss more about Blockchain of Things (BoT). Let’s start.
What is Blockchain of Things
This new technology named Blockchain of Things Is a combination of IoT into blockchain technology. By merging blockchain technology with an already existing technology we can get the maximum privileges out of it. As the world has already seen the impact of merging blockchain with AI and how it was successful in building greater trust and a more secure database. Similarly, the Blockchain of Things has everyone looking forward to the decentralization of the data and is well expected to create more disruptive advancements in this era of the Internet.
Applications of BoT
Here are few applications of BoT:
Smart homes: Many smart home organizations are collaborating with blockchain and IoT technology to provide the users of the network with shared access and a secure transfer of information in all the connected devices in the home. For example, a permission−based ledger can be used while Google Alexa is connected to the network and it can only share information with the persons with the permission to access it.
Component Tracking and Compliance: Keeping track of the components that go into an aircraft, shipment, or any other automobile is crucial for safety and security.
IoT data when combined with blockchain ledgers allows all the participating networks to see through all the processes carried out inside it throughout the product’s life. This way the sharing of information becomes cost−effective and secure.
Sharing Economy: BoT can eliminate third−party invasion during the selling or leasing of each property and device like car, land, and rent. Removing the central platform can simplify the sharing management more accurately. It can improve mutual trust in sharing economy
Advantages of BoT
Below are few advantages of BoT:
Tamper proof: Blockchain uses hash functions which makes it difficult for anyone to tamper with data generated by IoT devices. Hash functions link the blocks of the blockchain together in a chain, which makes it difficult to add any block of data prior to or after any existing block of the chain. Also, it prevents from any data block getting inserted between two block pieces in the blockchain. Blockchain also uses consensus algorithms providing this technology with more accuracy and integrity of data. Consensus algorithms add blocks to the chains.
Decentralized: Devices connected in the network of IoT contain a huge amount of data that needs to be stored securely and by using blockchain technology we can manage to do so. By decentralizing the network, data is not controlled by any single service provider, unlike centralized cloud networks. By decentralizing, the information in the network can be kept protected from cyberattacks and data losses.
Reliability: IoT devices contain a vast number of devices connected to them which increases the risk of failure of one or more nodes of a network. By using blockchain technology in this we can build a fault−tolerant structure for IoT which will allow the work to be performed in a streamlined manner even after the failure of one or more nodes. Additionally, with the usage of blockchain with IoT we can create multiple backups of the existing data which further ensures greater reliability of the data.
Disadvantages of BoT
Below are few disadvantages of BoT:
Scalability Issue: The most important challenge faced by the convergence of blockchain and IoT is the ability to scale up the requirement to a higher extent due to its higher latency. Higher latency increases the time taken for the transaction to be processed which eventually leads to the decreased performance level of IoT devices.
Higher Storage Requirement: IoT devices often have low storage and limited computing abilities as it is specifically designed to stay small, low powered and to connect the devices. Whereas blockchain applications demand a large amount of data and require a huge amount of computing power to perform complex mathematical calculations required for the storage, because in a blockchain network, each note of the network maintains a copy of the entire blockchain.
Legal Issues: Since the integration of Blockchain and IoT is still a new technology in the market, IoT manufacturers need to follow the updated legal rules related to the operation of IoT in the state. These strict laws often make various businesses repel the idea of merging blockchain into their IoT systems.
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