Blockchain Tech Will Ensure an Ubiquitous Implementation of the Internet of Things

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by Maria Konash · 6 min read
Blockchain Tech Will Ensure an Ubiquitous Implementation of the Internet of Things

Meet CREDITS, an open blockchain platform, designed to create services for blockchain systems using self-executing smart contracts and public data registry.

The IoT network, consisting of uniquely identifiable items, has become a revolutionary discovery of the 21st century. It’s about objects interacting with each other without human involvement. The Internet of Things is more industrial: according to the preliminary calculations, the main part of the network spreads to entrepreneurship, and one-third – to ordinary consumers.

The optimization of the work processes is necessary to maximally simplify and automate control over the actions that are difficult to track physically. This touches many industries: logistics, the operation of machinery, construction, food production. For example, with the help of a sensor system, it is possible to locate the shipments that are sent to any point or organize high-quality service of expensive industrial equipment.

Now companies are renting modern power systems equipped with a fuel tank that has ultrasonic sensors as an additional service. They enable employees easily control how much fuel is consumed in average, its current level and other necessary parameters.

The result is: the IoT makes it possible to accurately predict further unfold of any events, carry out detailed monitoring of processes, make the work of the enterprise more rapid and well-coordinated. However, wide adoption of technology is hindered by the slow development of technologies for real-time data exchange and for data protection.

Using the blockchain on top of the IoT, companies can implement accounting methodology for any incoming or outgoing request from the IoT device and verify the correctness of the performed actions basing on the accounting statements. Being extremely difficult to deceive, while providing a method for verifying transactions, blockchain is indeed critically important here.

Undoubtedly, many developments in the field of the IoT will eventually be introduced into our daily life. Today market has already welcomed new projects, which work to provide fast transaction speeds while maintaining high levels of security. One such project is CREDITS, developers of which were able to achieve unprecedented technical indicators, so necessary for the Internet of Things. The platform promises over 1 million transactions per second and a minimum commission as low as 0.001 US dollars.

Typically, the Internet of things consists of three elements: sensors, networks and platforms for data transfer. Some manufacturers already have ready-made solutions, but they cannot always fully satisfy all of the customer needs. Some suppliers make the equipment by order, giving it the characteristics specified by the client on an individual basis. When this or that IOT project is being developed, all the details that are relevant to the case are discussed with the customer in detail.

Such prototyping needs serious investments. It costs about 25-50 thousand dollars, depending on the wishes of the client. Plus, one should take into account that one prototype is not enough. As a rule, to start the project you need at least two, and in some cases, three units. Therefore, at the moment, all of the customers, both in Europe and in Russia, are united by a common problem: the need to purchase high-quality industrial sensors at an affordable price.

The IoT in Europe

Just recently, information from devices could be read by European organizations only under the condition of having sim cards. Communication services cost about $15-$18 a month, not counting the cost of the equipment itself, which was about $ 350.

Today, the costs have been significantly reduced owing to the LPWAN technologies that connect controllers and sensors to the Internet without the use of mobile communication and wi-fi. In this direction the Sigfox and LoRa networks are most actively developing. Their base stations cover a huge area and are characterized by a good penetrating ability of a radio signal. The cost of the equipment and services for such networks are two times cheaper.

In addition to LoRa and Sigfox in the European market, 3G / 4G, LTE and other networks are in demand. An option, that would be able to meet all the needs of all the clients, is hard to find. Before you start a specific project, it’s important to think about:

  • Communication security. Most experts argue that data transmission over wired and wireless sensor systems is more securely protected in cellular connections than in LPWAN.
  • The service life of the solution. An effective project must operate for at least 10 years from the date of launch.
  • Network view. The operation of the communication service can be extended to one location, and there are also universal networks that have the possibility to move devices.

The performance of the communication function between equipment is affected by the coverage, speed and amount of data transmission. For example, speaking of Sigfox and LoRa, the amount of information that can be transferred from one device to another is limited. A team of professionals in the field of IT technologies is working to eliminate this problem, studying all of the points and facets of these networks’ work. As for the widespread types of 3G and 4G communication, they function independently in the circumstances.

Analyst forecasts say that LPWAN has good potential. LoRa copes perfectly with the inquiries of private networks, public – NB-IoT. LPWAN technologies are widely used for asset control, resource accounting, building management, etc. In the future, it is planned to optimize operating costs and reduce the cost of equipment in general.

Security Issues

The Internet of things is breaking into everyday life. It carries not only impressive prospects for business and ordinary users, but also a serious risk for vulnerability of important data. This is confirmed by specialists working in the field of information security. Smart technology often becomes an object of attacks for cybercriminals and hackers.

Two years there was a study conducted in America, which proved that it is possible to gain access to the control of the machine and even the airborne system of the aircraft remotely. This fact indicates that before the launch of the IoT project, it is necessary to assess the risks and work out the scenarios to prevent them. The solution to these problems can be the use of the blockchain platforms that can guarantee security and consistency of data.

According to Kyle Wang, the CREDITS adviser, unfortunately, today there are not that many offers like that on the market. An example is the CREDITS platform, which can become widely adopted due to high data processing speeds and minimal commissions for conducting transactions. For the convenience of third-party developers, there is a set of tools for creating your own applications and integrating them with other databases.

All in all, The IoT-solutions are built on the principles of cardinal reorganization of management and organization of the company’s work. The most effective models of the projects are introduced by joint efforts of experts of different directions: security, technology, optimization of business processes. The main desire of enterprises is to get the maximum number of devices all in one platform. Apparently, such platforms will be minimal, but they can solve the acute problems of social spheres and traditional businesses.

Blockchain News, Guest Posts, Internet of Things News, News, Token Sales
Maria Konash
Editor-in-Chief Maria Konash

Being a successful graduate of Belarusian State Economic University (BSEU), Maria has acquired competencies in economic and social studies. Given Maria’s previous research working experience, and desire to explore what's really shaping the future, the main research focus is placed on FinTech and Blockchain Technology.

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