The blockchain-IoT marketplace is a blend of blockchain and IoT technology. It has grown in popularity due to the rapid development of technology and communication network. In addition, the blockchain, powered by cryptographic encryption and decentralized networks, uses the IoT platform by using a peer-to-peer network to ensure transparency and security.
The increasing quantity of IoT devices and connections susceptible to cybercrimes has prompted the development of blockchain technology. The benefits of blockchain IoT include the speed of data changes and lower costs, enhanced privacy, and efficient logistics, supply chain, and insurance.
The Internet of Things (IoT) connects people, locations, and products. In doing so, it provides the possibility of value creation and capture. The IoT’s analytics capabilities make use of these data points to translate insights into actions, impacting the business process and resulting in innovative ways of working.
The Powerful Combination of Blockchain and IoT
As per ISG, Blockchain is a distributed ledger technology that allows machine-to-machine transactions to be feasible when combined with IoT. Using a collection of transactions stored in databases, they are verified by multiple sources before being entered into a shared ledger that is distributed to every node. Combining IoT and blockchain enables smart devices to function independently without a central authority, bringing numerous advantages. It can also monitor the ways that devices communicate with each other.
While the decentralization aspect of blockchain technology is an advantage in the design, it could pose problems for IoT because these platforms are based on a hub-and-spoke or client-server architecture that is a central authority. An IoT platform designed to be decentralized can help ensure that it is compatible with blockchain networks; however, it could not be easy to set up IoT sensors to manage their own data storage and computing as they depend on storage resources and central computing.
Integration of Blockchain and IoT Will Propel the Market in Coming Years
Although blockchain and IoT are both strong combined, the combination of these two technologies can be used by businesses. A study conducted by Aftrex Market Research in 2018 discovered that the total Blockchain and IoT market could grow to $254.31 billion in 2026. Below are five advantages of IoT and blockchain technology that will boost the market’s expansion in the years ahead.