The way we connect things in the world has rapidly evolved via the use of the Internet of Things (IoT).

Data and information have become much more accessible than they used to be, with very little or no need for human intervention. IoT is more like a wave that came around and changed the way information is accessed.

IoT can be qualified as one of the giants of evolution that have come into the world because it is part of our everyday life.

While IoT is changing the course of things in our individual and business lives, there is a force on the other side of the earth that seems to be unstoppable. It is known as Blockchain technology.

What happens when these two forces (IoT and Blockchain technology) unite?

In this article, we will talk about the benefit of merging blockchain technology with Internet of Things (IoT). We will begin with a brief overview of IoT and blockchain technology. For clarity, Internet of Things and IoT will be used interchangeably.

What is IoT?

IoT can be defined as the network of devices, computers, objects and even living things, which can transmit and receive information over the internet in real-time, using embedded systems, or sensors.

Each point in the network has unique identifiers (UIDs) and can exchange information without requiring human intervention.

The “thing” referred to in the term Internet of Things is anything with an in-built sensor that can transmit data and receive information from the internet. These could be in-built sensors in home automation that allow you to control your light switches anywhere you are.

Sending and receiving information in IoT technology goes beyond connecting computers and phones to the internet to connect a lot of other things that previously were not internet-enabled.

Today you can stream any movie you like, not because that movie is stored in your device but because your device is connected to a storehouse (cloud) where that movie can be accessed via an IoT gateway.

Imagine if devices were to contain all the information we need storing inside them, they would require a great deal of computing power and will probably not be able to be lifted by a normal person

Why is IoT important?

IoT makes living and working smart. It provides people with complete control over their lives or businesses.

This can be seen in smart homes, where we can control appliances in our homes remotely. If your outdoor surveillance camera is IoT enabled, you can easily monitor activities in your home and trace intrusion from anywhere.

In business, IoT helps to provide real-time insight into operations, automate processes and reduce labor costs.

Another importance of IoT is seen in the health with fitness bands and stress detectors.

What is Blockchain technology?

Blockchain can be defined as a decentralized ledger format that uniquely records transactions, by distributing across many individual databases as a flat file — a filing system where every file has a unique name or ID.

This distribution method is what makes blockchain technology a secure way of recording transactions.

Data is stored in a record known as a block. These records are related through an encrypted communication channel.

A computerized algorithm known as a hash function is used to identify individual blocks. Each block contains its hash function and a reference to the previous block, thereby forming a continuous chain of blocks, hence blockchain.

Generating blocks takes a great deal of computing power and hardware resources. Once a block is generated or written, it cannot be changed because every other block carries a reference to it.

Therefore tampering with a transaction recorded on a blockchain will require changing the entire blocks in the chain.

Blockchain technology is decentralized and therefore does not need an arbitrator and does not have a single point of failure. Before a transaction is verified and recorded on a blockchain, it has to meet a programmed set of conditions.

Blockchain technology was initially created for cryptocurrency projects to eliminate the need for government and banks and make it decentralized.

Why Should We Combine IoT and Blockchain Technology?

Securing data transmitted by Internet of Things has been a huge challenge for a long time. So many resources are put into cybersecurity yearly but it is never enough to cover the security needs of IoT.

The amount of IoT-enabled devices is growing rapidly but these devices are prone to cyber-attacks because centralized security is inefficient and extremely expensive.

Centralized modes of security have a single point of failure which means a cyber attack on the center means the whole security system will crumble and users will be at the mercy of hackers and malicious agents.

Although businesses are legally required to protect their data, the truth remains that with growth in size, there will be difficulty in effective security using centralized methods.

Let’s bring this issue back home, imagine if you had an IoT-enabled outdoor surveillance camera in your home and you catch an intruder and charge the person to court.

If the intruder finds a way to destroy the video evidence of the crime which is in central storage, you will have no evidence against the person and you risk being attacked again.

Now let’s imagine a scenario where your outdoor surveillance camera has been integrated with blockchain technology. Any attempt to destroy the evidence will fail because references to that file have been copied throughout the entire chain.

Tampering with that file will require a lot of computing power and expensive hardware.

How can Blockchain Be Used in IoT?

Blockchain technology decentralizessecurity networks via a mesh network topology. This means that if one point of security, node, or station is down, it does not affect the whole network.

Once every IoT node data has been entered into the blockchain, receives a unique ID.

For the connection of any device with another to be successful, a set of programmed conditions need to be met.

Once those conditions are met and verified, then the transaction will self-execute without the need for intermediaries or arbitrators. This is called a smart contract.

Blockchain technology helps to improve data privacy among device users, especially in sensitive industries like health and finance.

Encryption is a method used in blockchain technology. This is a method in blockchain technology where data is encrypted and a key used in the encryption is created. The data is then transmitted in an encrypted format which makes it difficult to understand. The key used to encrypt the data is then provided to the receiving party to decrypt and read the data.

Integrating blockchain technology with IoT will eliminate the illegal harvesting of device users’ data from websites because that access has to be authenticated by a smart contract.

This has economic advantages for users because they can choose to monetize their data by selling it to companies instead of having it stolen.

Blockchain technology is open-source which means it is compatible with any type of business application.

This is helpful because there is no stated standard for the manufacture of IoT applications, therefore there are different types of IoT applications that are not compatible with each other.

Blockchain technology is a one size fits all security solution for IoT applications.

In conclusion, IoT allows us to access data easily and build previously impossible solutions to make life easier and smarter. While blockchain technology provides us with a tamper-proof way of securing transactions by severing ties with central systems and traditional networks like governments and banks to eliminate the need for intermediaries which are prone to corruption.

It is safe to say that the combination of these two forces will give birth to an ability to build solutions that are highly secure and tamper-proof.