Why are IoT and Blockchain a Great Match?

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Why are IoT and Blockchain a Great Match?

Why are IoT and blockchain a great match? – Why are IoT and blockchain a great match? IoT and blockchain are two major trends of last years, and there are so many IoT devices out there. Nearly every new car is a connected car, modern city infrastructure is based on IoT, people have lots of wearables that are all IoT devices and the world is full of different kinds of sensors measuring the environment.

Blockchain can provide to these IoT devices two major functions the first one is that the blockchain can provide identity to any IoT device this identity can be generated directly on the device in a trustless way and used by this device to identify itself towards others. Device like this can sign the data it generates with this identity and this identity can also be used to send and receive funds. Which brings us to point number 2 and that this:

Blockchain allows value exchange between IoT devices.

And this is super important. If you want to exchange “money” between devices you cannot do it with the bank accounts or credit cards because banks don’t issue these to devices and they issue is only to humans. Instead, you can use transaction on the blockchain to transfer value in form of a cryptocurrency from one device to another device.

This value transfer is a great motivation which enables creation of a machine-to-machine economy where machines can trade data and services with each other. Simple use cases can include selling measurements from sensors and selling electricity from connected solar panels or battery packs.

The whole edge focus approach where we see slow shift away from the cloud can benefit from this. So let me know which IoT devices do you see in need for this approach which OEMs know that are doing this already right now? and what do you think is the future? Let me know down in the comments below. Also if you found this article helpful please share it with your friends and colleagues. See you next time

 

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