How can Blockchain resolve IoT protection and Scalability Challenges?

IoT networks can process data transactions across multiple devices owned and administered by different organizations, making it difficult to pinpoint the source of any data leak in case of an attack by cybercriminals. Additionally, IoT generates vast amounts of data, and with so many stakeholders involved, the ownership of the data is not always clear.

• The distributed ledger in the blockchain system is tamper-proof and removes the need for trust between the parties involved.
• Blockchain provides a much stronger level of encryption that makes it nearly impossible to overwrite existing data records.
• This can provide a reliable way to identify the specific source of any data leak and take prompt remedial action.
• Blockchain can enable rapid processing of transactions and coordination between billions of connected devices.

Advantages of Decentralized IoT Network

When a blockchain is used to decentralize data on an IoT network, it provides a number of benefits, including the following:

Distributed computation and storage across devices: With decentralized networks, data is stored in multiple locations, providing additional security and functionality for IoT devices.

Minimum maintenance and infrastructure cost: When data is stored in multiple locations, there is not a large infrastructure that must be maintained and which redistributes the network cost to the different nodes of the chain.

Protected from network crashes: A decentralized network does not rely on a single location to keep data secure. If one node crashes, the entire network will not collapse because data is stored in multiple locations.

Disadvantages of Blockchain Integration

While decentralized networks have their advantages, blockchain integration has disadvantages, which include the following:

Learning curve for integration: Finding the most efficient and useful way to integrate blockchain technology can be challenging. Even people with extensive education in data science should analyze all the options before this type of implementation.

High privacy and security standards: Blockchain is known for its transparency so the implementation of security standards is important. Aggressive authentication steps and identity verification are critical to keeping the network secure.

Setting up the verification mechanism: While blockchain attempts to make data storage and IoT networks more secure, spoofing can still be a threat. The network must establish a verification and consensus mechanism so that the system agrees on a data value.

Final Thoughts

Blockchain and IoT are both emerging technologies that have great potential, but still lack widespread adoption due to technical and protection concerns. Huge companies in the market are already working on use cases combining the two technologies, as they simultaneously provide a way to protect and mitigate business risks.