Why is the blockchain Internet of Things being revisited so often?

The widespread use of IoT technology has made people’s lives more convenient.

Internet of Things

The Internet of Things (IoT) refers to connected devices or objects that are capable of exchanging data and commands over the wireless network of the Internet.

Modern computers, smart speakers, smart watches and smart phones can be considered as the basis of IoT. With the increasing modernization, the use cases of IoT devices in various fields are increasing. The widespread use of IoT technology has made people’s lives easier.

For example, IoT devices are used in healthcare systems, cryptocurrency mining, machine learning technologies, agricultural product analysis, gaming, manufacturing, trade, and more.

Despite the rapid growth of IoT technology in today’s world, IoT is currently facing some major challenges.

Researchers have tried to find some solutions, but most of the challenges remain unresolved. IoT security, privacy and scalability have been the most notable challenges that must be addressed to accelerate the mass adoption of IoT devices.

Challenges facing the IoT:

Security and Privacy

Regulation

Cloud Attacks

Consumer Perception

Bandwidth

Lack of logging system

If so many IoT devices with security vulnerabilities are connected to a central server, hackers can easily exploit the weakest security layer to launch DDoS attacks and users should be forced to lose their very sensitive data.

Another challenge facing IoT technology in centralized systems is scalability. If so many nodes are connected to a central server, it must exchange very large amounts of information and data with all connected IoT devices, which, depending on the growing number of devices, will result in overloading the central server and thus lead to failures.

Therefore, it is necessary to put a lot of resources and investments to manage the central server, otherwise the whole IoT devices (connected to the central server) will be affected once the central server goes offline.

Another groundbreaking technology based on computers, blockchain was developed by introducing bitcoin into this world.

Bitcoin was created to allow users to send, hold and receive bitcoins based on a peer-to-peer (Peer-to-Peer) network, without the need for a central server or entity.

The Bitcoin blockchain network inspired the development of another blockchain, Ether, which was the first blockchain to introduce smart contract functionality. The following features of blockchain technology are even game changers for IoT technology.

Why is the blockchain Internet of Things being revisited so often?

Blockchain as distributed ledger technology (DLT), where information and data are verified before being included in a block and then connected to all participating nodes of a P2P network.

Blockchain based on Proof of Work (PoW) has a system of consensus based on more than 50% of validation, which is the beauty of decentralized blockchain network, it can also be the best feature to protect IoT devices as attackers cannot use the limited resources to compromise all participating nodes.

There are five generations of blockchain technology, and the first three generations of blockchain are able to do the following things to address the most commonly discussed challenges of security, trust, and scalability (in a manner of speaking)

In a decentralized Internet connection, the distributed architecture of blockchain technology can be very effective in tracking, storing and monitoring sensor data by preventing duplicate data. The tamper-evident feature is key to prevent users from maliciously modifying and deleting the data stored in the blockchain.

Different sensors of IoT devices can communicate with the blockchain to exchange data and information, which will eventually eliminate the same trust issues as centralized systems.

DLT is the best choice for IoT device authentication, record keeping and device identification by securely transmitting data and is also transparent in a decentralized system.

No matter how many nodes are connected in the blockchain, there is no single source of failure like a server downtime in a centralized system.

Since there is no intermediary in blockchain technology, deployment and operational costs are reduced.

Blockchain makes the troubleshooting process easier for IoT devices, and the smart contract feature of blockchain is the best option here, where an immutable history is readily visible in the blockchain.

The work done by the algorithm in the larger blockchain network is impossible to reverse, so attackers cannot break the encryption to steal so much sensitive data.

These are some of the applications of the first three generations of blockchains, but in reality, they are not enough to solve the main challenges of IoT technology, which are hindering the mass adoption of IoT technology due to the following limitations of the first three generations of blockchains:

In general, these blockchains are computationally very expensive and they exhibit high bandwidth overhead and latency, which are not the most suitable for IoT devices and their applications.

Arbitrary data sharing across these blockchains is not possible and integrating so many real-world applications for IoT devices is very complex. There is Cardano, a third generation blockchain based on PoS, which is still not enough to solve this problem.

In fact, many IoT devices expect low latency, but these blockchain networks are PoW-based and they take time to mine blocks.

Low scalability is an issue with these PoW-based blockchain networks, so it also creates problems for IoT networks that contain clusters of nodes.

The large amount of overhead traffic from these blockchain networks is not desirable due to limited bandwidth and many IoT devices that may not contribute to mass adoption of IoT.

Some small PoW-based blockchains may be subject to 51% majority attack, so it will create another worse scenario that prevents blockchain adoption in IoT.

The figure below shows the challenges that were not addressed by the first three generations of blockchain technology:

Why is the blockchain Internet of Things being revisited so often?

Fourth-generation blockchains, such as Polkadot and EOS, have helped the adoption of IoT technologies due to their following features:

Blockchain EOS provides free and scalable transaction processing capabilities. These key features are also needed for IoT.

Blockchain is resistant to SYBIL, DDoS and most attacks.

Easy to use manufacturing and business related applications.

Hasgraph technology is introduced in the fourth generation of blockchain technology and this feature is very helpful for the fairness of the blockchain network.

Polkadot blockchain has multi-chain feature that maximizes the use cases of IoT devices.

Although fourth generation blockchain technologies have many interesting features, they still cannot properly address the main challenges of IoT technologies.

They cannot provide the required scalability and flexibility to integrate IoT networks with blockchains. As a result, they still have limitations in assisting the trend towards mass adoption of IoT.

So the fifth generation of blockchain technology evolved with the creation of the Free TON blockchain network. Free TON has a lightweight blockchain architecture that is useful for the IoT to eliminate the overhead of blockchain while maintaining security and privacy solutions.

How fifth-generation blockchain technology has the potential to accelerate the mass adoption of IoT technologies:

Multi-chain blockchains introduce game-changing features such as dynamic sharding, instant hypercube routing, and self-healing vertical blockchain mechanisms that provide tremendous scalability, so it can be very beneficial for IoT applications in the P2P ecosystem to handle massive overloads of big data and commands.

Providing the ultimate computation through smart contracts, IoT applications can process everything quickly without any third party if they aim to process payments.

Technologies with the ability to produce high-quality sensors and smart chips are advancing.

With low latency and high throughput efficiency features

Transactions are processed by paying very low costs, just a few cents per transaction.

There is greater transparency and tamper-proof data distributed throughout the ledger.

So the fifth generation blockchain technology can meet all the following objectives of blockchain networks in IoT applications:

Why is the blockchain Internet of Things being revisited so often?

Conclusion.
The combination of advanced and next-generation blockchain technologies with the IoT space has great potential to create global markets and applications. Blockchain technology can meet the needs of a wider range of IoT applications such as smart cities, healthcare systems, identity management, voting, smart homes, and more. Blockchain technology can help in large-scale adoption of IoT by overcoming numerous challenges.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/why-is-the-blockchain-internet-of-things-being-revisited-so-often/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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