What is the Internet of Things, Blockchain and its business benefits?

The concept of the Internet of Things is growing rapidly and becoming increasingly important for professionals to understand. Many people are not aware of what IoT (Internet of Things) is, what IoT platform is, how it can be used to improve business strategies. Thus what exactlyis it the Internet of Things?

The Internet of Things is an ecosystem of connected hardware devices that are easily accessed over the Internet. A “thing” in IoT can be a person wearing a smart watch or a machine with built-in sensors, ie. interconnected computing devices that have the ability to collect and move data across a network without manual assistance or intervention. Technology integrated into devices helps them interact with internal states or the external environment, which in turn influences the decisions that are made. Let’s see how does IoT work?

The Internet of Things system combines four components: sensors/devices, communication, data processing, and user interface.

  • Sensors: Collects external data from devices and transmits it to the cloud.
  • Connection: All devices must be connected to the cloud using various methods such as Wi-Fi, Bluetooth, Internet, Ethernet, etc. The choice of connection method depends on the specific applications.
  • Data processing: After receiving data from certain devices in the cloud, the software processes the data and takes steps to automatically send alerts and configure the devices without the need of the user.
  • User interface: The alert sent by the device will help users take a look at the system and make any adjustments, the information is sent to the cloud and back to the device.

The IoT platform enables the use of cloud applications and services:

The IoT platform is a multifaceted technology that facilitates the seamless delivery, execution, and automation of connected devices in the Internet of Things universe. It specifically connects your equipment, whatever it may be, to the cloud using flexible connectivity options, enterprise-grade security methodologies, and big data processing capabilities. An IoT platform can also be called a middleware that connects remote devices with user applications and handles all interactions between hardware and application layers. The IoT platform recognizes its core business value, namely providing cloud-based applications and services to off-the-shelf devices.

As the number of smart and wearable devices around the world is gradually increasing, the IoT is expanding. Although progress excites and guarantees changes that will affect the world in many ways, but it is not without flaws and raises some doubts about its safety. The answer to this security concern may be another upcoming technology, Blockchain.

Blockchain is nothing more than a distributed ledger technology that can be touted as a solution to security problems. Blockchain technology makes it possible to get rid of intermediaries and make transactions directly; it records these transactions cryptographically so that they cannot be modified or altered once recorded. Blockchain technology has spread its wings across all industries and has an endless number of applications. With the security breach happening in the IoT, blockchain can be a solution to several problem areas. But why does IoT need blockchain technology to secure data flow?

  • IoT can be secured with blockchain:

All devices in the IoT are connected to the Internet, making them vulnerable targets for hacking or cyber-attacks. Devices like smart watches, smart devices, smart bulbs, thermostats, etc. are being developed and updated regularly, making them highly sensitive. As technology advances, the risk of attack will continue to grow, but without blockchain. The Internet of Things integrated into the blockchain can be protected and able to repel any cyber attack. Because blockchain records transactions, stores information in decentralized locations, and cannot be altered or deleted, it is a viable solution for secure devices.

  • Blockchain there is cost effective:

Security makes it an ideal architecture for IoT. This reduces single points of failure, creating a more robust ecosystem for devices to operate. Blockchain can keep a definitive, completely secure record of messages sent between smart IoT devices, thereby allowing smart devices to function autonomously without the need for centralized control. Blockchain automates processes. It is decentralized, there is no intermediary. This means that blockchain technology can reduce costs by directly managing transactions. There is no need for third parties to be involved, and the money saved can be used for other important business matters.

But this is just the beginning, and the Internet of Things is a hyper-connected environment in the business world. With the Internet of Things, you can observe, evaluate and automate in ways that will dramatically improve processes and create new business models. Now that you understand why blockchain is needed for IoT, now let’s take a look at the benefits of IoT for an organization below:

  1. data managed solutions: The more data, the easier it is to make the right decision. Knowing which component is required and which parts you’re out of without having to check it out is not only time-saving, it’s also helpful.
  2. Saving time and money: Due to the monitoring, the time spent on the number of trips is saved. It is economical because this technology can easily replace the people responsible for monitoring and maintaining the supply.
  3. Increase your business prospects: IoT is creating new business opportunities and helping companies to profit from new revenue streams developed through sophisticated business models and services. IoT helps drive innovation, reduce time to market, and improve ROI.
  4. Increases organizational productivity: Performance results play a key role in the success of any business. IoT offers just-in-time employee training, upskilling and reducing skills mismatches while increasing organizational productivity.
  5. Improvise the customer experience: Detailed consumer information can help you make informed decisions about who to target, when to target them, and what budget to support. IoT technologies replace quantitative data with qualitative data, helping you better understand the customer at the end of the buying cycle.