It has become readily apparent that consumers as well as enterprises are keen to invest in both blockchain and the IoT. A recent study conducted by Gartner found that blockchain is estimated to add $3.1 trillion in value to the business sector. Forbes also predicts that the IoT will be similarly influential with the total amount of its market value topping $450 billion by 2020. However, for successful implementation of IoT devices, security issues surrounding the billions of soon-to-be connected IoT end points must be addressed. In this regard, when combined, blockchain and IoT can offer powerful solutions to some of the most pressing issues surrounding device security and authentication.
By the year 2020, there will be as many as 30 billion new IoT devices online. This dramatic increase in the number of internet-connected devices will allow consumers and businesses alike to link together like never before. But with this new era of connectivity also comes some very real risks. Everything from patient monitoring devices and home security systems will become vulnerable to hacking and data breaches thanks to the backdoor security vulnerabilities that currently exist in nearly every IoT device. Likewise, the privacy and validity of any transactions that occur over IoT devices pose an additional area of concern for those interested in adopting this nascent technology.
However, a solution may already exist in the form of blockchain – the backbone of the popular cryptocurrency Bitcoin. According to Itransition company experts, applying blockchain to IoT could provide the affirmation of safety that consumers and businesses need.