How Significant Is Blockchain in Internet of Things?
The spotlight was placed back on the Internet of Things (IoT) recently when Bosch, the multinational engineering and electronics company, tweeted on Nov. 12 about their Cross Domain Development Kit (XDK), a programmable sensor device and IoT prototyping platform, in partnership with IOTA.
A number of definitions for IoT exist, of which Ernst and Young (EY) describes it in the simplest terms:
“The Internet of Things (IoT) describes the connection of devices — any devices — to the internet using embedded software and sensors to communicate, collect and exchange data with one another.”
The industry has taken off significantly in recent years and estimations and predictions of its future growth and impact abound on the internet.
Research and advisory company Gartner estimates that the number of installed IoT devices will reach 20.4 billion by 2020, BI Intelligence predicts that it will be closer to 24 billion, while IDC, a global provider of market intelligence and advisory services, estimates there will be around 30 billion connected devices by 2020.
According to IHS Markit, a source of critical information consisting of 5,000 analysts, data scientists, financial experts and industry specialists, the figure will grow to 125 billion installed IoT devices by 2030.
IDC also projects that IoT revenue will hit $357 billion by the end of 2019 and Bain & Company, a management consulting firm, expects it to increase to $450 billion by the end of 2020. McKinsey & Company, another international management consulting firm, estimates that IoT will have an $11.1 trillion impact on the global economy by 2025.
It is clear that it is an already large industry set to grow exponentially over the next decade and beyond.
IoT refers to a network of connected devices that are capable of collecting and exchanging data. IoT-enabling platforms provide a common network for devices to dump their data and a common language for these devices to communicate with each other, allowing people to use it to their benefit.
Communication devices — or sensors — are embedded in everyday objects, such as phones, TVs, indoor climate systems, electrical appliances, cars, traffic lights and industrial equipment. These sensors continuously emit data about the working status of connected devices and allow them to send and receive data from each other via the cloud (internet).
IoT platforms will then analyze the data to extract valuable information and share it with other devices to initiate specific commands or actions. The result is a better human experience, greater automation and improved efficiencies.
In manufacturing, for example, all the different components and machines in the factory could be fitted with sensors that continuously transmit system health data back to the mobile apps of operators. Potential problems can then be identified and fixed before a breakdown happens, saving companies time and money.
If we look at a direct-to-consumer product, such as air conditioners, units can be embedded with a sensor that emits data regarding the system health and temperature. Data will be continuously downloaded and analyzed in an IoT network. If an issue comes up, customer support can then be contacted for repair work before you even know there is a problem.
The use cases of IoT are near enough endless, from keeping medical devices in patients in good working order to fighting rapid deforestation in rainforests across the globe.
But IoT networks are not perfect. Devices are constantly sharing critical information back and forth over the internet, which makes it a prime target for hackers. Privacy and security are therefore major concerns.
Some of the more infamous IoT attacks include the Mirai Botnet DDoS (distributed denial of service) attack that affected internet service for nearly the entire East Coast of America, including Twitter, Netflix and Reddit.
