Blockchain-based IoT systems can greatly improve the efficiency of a supply chain by eliminating the need for intermediaries. They can also reduce costs by making transactions faster and more secure. A typical supply chain transaction requires four or more hops, and blockchain-based IoT systems can eliminate those hops. Another benefit of a blockchain-based IoT system is data security. Security is a major concern for the IoT ecosystem because millions of connected devices are an open target for hackers. Cybercriminals can exploit this weakness by targeting unsecured IoT devices, which are often vulnerable to DDoS attacks.
A trusted ledger allows organisations to know exactly who is accessing IoT data and making transactions. The ledger can include multiple security layers to prevent unauthorized access. Blockchain-based IoT systems also minimize the time needed to validate transactions. They can also speed up the exchange of IoT data and streamline business processes.
Blockchain-based IoT systems can also be decentralized, which can pose a challenge. Currently, IoT systems rely on hub-and-spoke architectures, which depend on a central authority. To ensure compatibility with blockchain networks, IoT developers must implement a decentralized IoT platform. IoT sensors also need to be configured to meet computing requirements.
Blockchain-based IoT solutions can eliminate many of the security concerns associated with a centralized approach. For instance, blockchain-based IoT solutions can make supply chain tracking easier and more reliable. For example, a smart-home system could track the freshness of leafy greens, which could prevent outbreaks of foodborne diseases. Furthermore, embedded devices could automate irrigation systems, and adjust watering based on moisture detected by sensors.
Blockchain-based IoT solutions can also significantly reduce the operational costs of enterprise solutions. They enable peer-to-peer data submission, which lowers business expenses. It is also possible to share operational records with government agencies and third-party repair partners. Furthermore, blockchain-enabled IoT systems can store information about shipping containers in transit.
Blockchain-based IoT solutions can handle high volumes of data and multiple devices at high speed. Moreover, the distributed nature of blockchain enables faster processing of transactions, enabling machine-to-machine transactions. This is a major advantage for large-scale IoT deployments, which could have thousands of connected devices.
Blockchain-based IoT solutions can also provide greater security and transparency. This technology is highly scalable and decentralized, making it the perfect solution for IoT ecosystems. A variety of financial institutions are already using blockchain IoT examples, and a large number of other companies are looking to take advantage of its potential.
Blockchain-based IoT systems can also make use of smart chips and sensors. The decentralized nature of these solutions can drastically cut costs and increase efficiency. In addition to cutting costs, decentralized IoT networks can also reduce the time needed for data updates. Moreover, they can improve security, increase tracing and communication security, and automate workflows. But these technologies will require significant modifications to existing processes.