What Is Internet of Things, Blockchain and Its Business Benefits?

The concept of Internet of Things is increasing rapidly, and is becoming more and more significant for professionals to understand. Many people are unaware of the fact what exactly is IoT (Internet of Things), what is IoT platform, how is can be used to improve business strategies. So what exactlyis Internet of things?

Internet of things is an ecosystem of connected hardware devices that are easily accessed using the internet. The ‘thing’ in IoT could be an individual wearing a smartwatch or a machine with built-in-sensors, i.e. interlinked computing devices which have to ability to collect and move data across a network without manual assistance or intervention. The technology integrated into the devices helps them to interact with internal states or the external environment, which in turn affects the decisions taken. Let’s take a look at how IoT works?

A internet of things system integrates four components: sensors/devices, connectivity, data processing, a user interface.

• Sensors: Collects external data from the devices and forwards the data to the cloud.
• Connectivity: All the devices needs to be connected to cloud by using various methods like Wi-Fi, Bluetooth, internet, Ethernet etc. Selecting which method to connect depends on specific applications.
• Data Processing: After receiving the data from the specific devices to the cloud, software processes the data and take an action to automatically send alerts and adjust the devices without the need for the user.
• User Interface: The alert sent by the device will help users take a look at the system and make any adjustments the information is sent to cloud and back to the device.

IoT platform enables cloud-based application and services:

An IoT platform is a multifaceted technology that facilitates uncomplicated delivery, execution, and automation of linked devices within the Internet of Things universe. It specifically connects your hardware, however different, to the cloud by using supple connectivity choices, enterprise-grade security methodologies, and large data processing powers. IoT platform can also be referred as the middleware that connects the remote devices to user applications and handles all the interaction between hardware and the application layers. IoT platform recognize its main business value, that is enabling standard devices with cloud-based applications and services.

As the number of smart and wearable devices are progressively increasing across the globe, IoT are expanding. Even though it’s progress is excites and guarantees change that will influence the world in many ways but, it’s not without its flaws and has caused some suspicions regarding its security. The answer to this security concern could be another upcoming technology, Blockchain.

Blockchain is nothing but a distributed ledger technology, which can be touted as the solutions to security challenges. Blockchain technology makes it possible to cut out the middleman and make transactions directly; it records those transactions cryptographically, so they cannot be changed or altered once recorded. Blockchain technology has spread its wings across every industry and has an endless number of applications. With the security breach happening in IoT, blockchain could be the solution for several pain areas. But, why does IoT needs blockchain technology to secure its data flow?

• IoT can be secured using blockchain:

All the devices in IoT are connected to the internet which makes them vulnerable targets to hacks or victims of cyber attack. Devices such as smart watches, smart devices, Smart Light bulbs, thermostats, etc. are developed and updated regularly making them highly susceptible. With the advancement in technology, the risk of attack will continue to rise but without blockchain. Blockchain integrated IoT can be secured and able to ward off any cyber attacks. Because, blockchain records transactions, stores the information in decentralized locations, and cannot be altered or deleted, it is a viable solution for secured devices.

• Blockchain is cost effective:

The security makes it the perfect architecture for the IoT. It reduces single points of malfunction, building a more durable ecosystem for devices to run on. Blockchain can keep a certain, totally secure record of messages sent between IoT smart devices, thereby enabling the autonomous functioning of smart devices without the need for centralized authority. Blockchain automates the processes. It is decentralized, there’s no mediator. That means blockchain technology can cut down costs by managing operations directly. There’s no need for third-parties to get involved, and the money saved can be used for other significant business matters.

But this is just the beginning, and the Internet of things is the medium for hyper-connectivity in the business world. With the Internet of Things, you can observe, evaluate, and automate in ways that will greatly improve processes and create new business models. As you have seen why blockchain is needed for IoT, now let’s understand the benefits of IoT for an organization below:

1. Data driven decisions: The more the data, the simple it is to take the right decision. Understanding which component is required and which parts you have run out of, without having to check on it, not only saves time but is useful as well.
2. Saving time and money: Due to monitoring, the time wasted on the number of trips is saved. It is economical, because, this technology could easily substitute humans who are in charge of monitoring and maintaining supplies.
3. Increase business prospects: IoT creates new business prospects and helps companies profit from new revenue streams developed by sophisticated business models and services. IoT helps innovate, decrease time to market and boost ROI.
4. Enhances organizational productivity: Productive outcomes plays a key role in the success of any business. IoT offers just-in-time training for employees, enhance labor skills, and decrease mismatch of skills while increasing organizational productivity.
5. Improvise customer experience: Detailed consumer insights can help you take informed decisions on whom to target when to target them and what amount of budget to back it with. IoT technologies replace quantitative data with qualitative data, helping you to better understand the customer at the end of your buyer’s cycle.