The nascent 4th Industrial Revolution is being propelled by massive technological advancements across a number of sectors, blurring the boundaries between the physical and virtual world. Technologies such as AI, Automation, Cloud Computing, and IoT are finding higher uses across multiple domains while upcoming innovations such as Web 3.0 and the metaverse are laying down foundations for the development of Augmented Social Reality. But, what is the bridge connecting all these, the adhesive gel that can also function as a shield, optimizing them? The answer is blockchain technology.
The IoT Revolution: More than just Smart Homes
The generic definition of IoT or the Internet of Things would refer to a technology that allows human beings to connect with and control electronic devices over a distance utilizing sensors, processing capacity, and data-sharing technology over the internet. The field has progressed rapidly with the amalgamation of several technologies such as machine learning, embedded systems, wireless sensor technology automation, and more.
While the most prominent examples of visible IoT applications would be “smart-home” devices(home security systems, smart speakers, lighting, cameras, and more), the true extent of IoT is much more diverse. IoT has untapped potential across multiple sectors, including hospitals, transport, energy sectors, manufacturing industries, and more. Industrial use of cases of IoT, commonly denoted as IIoT, has already disrupted the current landscape, and will further continue to do so in the upcoming future. However, there are some limitations. Before we go into IIoT’s potential improvement areas, let us recapitulate a bit about blockchain. This will help us understand why blockchain is the potential solution to the major challenges faced by IIoT.
Also Read: Why Is IoT-Crypto A Game-Changer In The Blockchain Industry?
Blockchain: Steps Beyond Crypto
Global studies indicate that 60% of CTOs/CIOs are planning or actively considering the implementation of blockchain across their organization’s infrastructure. Everyone from governments to MNCs is finding potential areas of blockchain integration. The BFSI sector was the earliest adopter of blockchain technology, which appeared for the first time as the underlying technology behind bitcoin, the world’s first cryptocurrency. Anyhow, we are here to talk about blockchain.
Blockchain is a decentralized ledger that stores transactions across a network(say a business network). The data is encrypted, immutable, tamper-proof, and registered after achieving a consensus agreement. The recorded transactions may include an online bill, shipped product documentation, contractual transactions, or anything else. Unlike conventional IoT data storage mechanisms, blockchain data is not stored in centralized servers. The information is also visible across the entire network, in real-time. Despite being foundational in nature, blockchain can also be effectively integrated across previously-used as well as modern infrastructure such as AI, and IIoT. The primary merits blockchain offer in IIoT include Transparency and Security.
How Blockchain Solves Existing IIoT Challenges?
The total number of existing IoT devices in the world is more than 1 billion. The ability to connect devices from a distance marks a revolution across the electronics sector and several other areas. Industries have accumulated user data through these devices, gaining additional AI-based insight and help in decision-making. The question that remains is, should we trust the information without confirming the resources? What about traceability and provenance?
Combining blockchain technology with IIoT would result in the latter imbibing inherent blockchain traits. Blockchain secures the network. It also authenticates data instantly while ensuring the immutability of the data records visible across the entire network. Security is the primary advantage blockchain would add to an IIoT network. In addition, the technology would also facilitate automation, eliminating the need for intermediaries with the help of pre-programmed smart contracts.
Blockchain-powered IIoT Applications
The blockchain-IIoT merger is viable across multiple domains. A few prominent examples would include:
a) Manufacturing
The challenges that stem from poor supply chain visibility in the manufacturing sector can be greatly reduced using blockchain. Each stoppage can be potentially hazardous, right from the origin points of raw materials to the warehouse and then proceeding further to the consumers. IIoT enables efficient monitoring across the whole process. Blockchain adds another verification layer, requiring documentation of products processed which are visible to other members. This culminates in total supply chain visibility and a comprehensive understanding of each shipment aspect.
For constraints of time or other parameters(temperature, pressure, or others), sensors can be used further. A company can very well trace location, refrigeration, or even climate data during a shipment, and compile the data for ascertaining a product’s viability and intimate the same to the other blockchain-IIoT network members, in real-time as well.
b) Logistics and Transportation
It is easy to understand supply chains are essential for the logistics industry as well. The sector deals with the transportation of finished components, raw materials, or even electronic components and their effective storage methods. Experts in the industry attribute huge paperwork, loss of control during shipping, and payment settlement delays as the major challenges in the sector.
Blockchain keeps time-stamped transactions of records, and the same gets utilized in its combination with IIoT. Additional data parameters, such as container status while shipping and locations can also be easily recorded. The decentralized platform ensures the documentation is accurate and trustworthy, leading to quicker and more efficient shipments. Blockchain-powered IIoT has been a game changer for the food pharma sectors, including the storage of vaccines. The same technology has also been used for planning smart city transportation.
c) Smart Appliances
The IoT revolution became mainstream with the proliferation of smart appliances, devices, and even buildings that connect with each other over the internet. The centralized storage collecting data from all connected devices can be replaced by a decentralized blockchain storage mechanism. There are multiple merits, starting with the assurance of data integrity and safety. The process also reduces energy consumption and safeguards the user’s anonymity using cryptographic keys.
d) Healthcare
In terms of diagnosis and limiting hospital stays, IoT has been a significant contributor. IoT networks have been used throughout the world for patient health monitoring. The technology alerts medical personnel in case of an anomaly, helping in quickly deciding the most efficient path of treatment. The main challenge lies in preventing confidential patient data from falling into the wrong hands. Blockchain provides the optimal security needed for storing privileged classified information. The technology can also propagate beyond the hospital perimeters to insurance providers or 3rd party administrators with reliable and trustworthy data.
e) Energy Sector
IIoT has played a significant role in energy management. Blockchain-IoT devices can transmit data in real time and also helps in surplus energy distribution across the grid, decreasing wastage. The convergence of the two technologies has also been used to increase energy efficiency across US cities in Brooklyn. Microgrids have been used to connect neighbors to facilitate solar power trading. The grids consist of intercommunicating smart meters that form a P2P blockchain network to allow these transactions.
f) Insurance
Blockchain IoT will transform the insurance industry within a short time span. IoT-compatible smart-watches and fitness bands accumulate user telematic data including diet, activity, and vital statistics(BP, heart rate, pulse, etc). Blockchain-powered data storage in combination with IoT can address all the security concerns and address issues. They can also be used to prevent fraud.
Wrapping up
It is evident that blockchain bridges modern technologies, bringing forth the ‘trust’ factor that has been missing from IoT, AI, Big Data, and other upcoming innovations. The technology provides a sense of security, trust, and reliability even across blockchain-powered IIoT devices.
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