I’m a huge fan of artificial intelligence and the internet of things (IoT). It all started when I’ve attended the annual ConnectechAsia event in Singapore almost a year ago. To be honest, it’s one of the biggest events that I’ve attended in my life.
The event lasted for 3 days, in which they’ve occupied almost all of the function and event rooms in Marina Bay Sands and Suntec Singapore. I’m blown away after seeing these demo projects in action.
Since I’m in the cryptocurrency and blockchain industry, I love innovation. Cryptocurrency and blockchain technology is changing the way we do peer-to-peer transactions, securing our identities, delivering and tracking of products and services, voting and so on. As a result, we are entering the 4th industrial revolution where everything goes digital in a smart way.
The Growth of IoT Industry
According to MarketsAndMarkets.com, $170 billion was the expected growth of IoT industries last 2017, and it could even rise up to $560 billion in 2022. It means that the artificial intelligence and IoT industry never stops growing, and more companies are continuing to invest in this kind of industry.
We all know that there’s no way we could stop innovating. We are entering the digital era. Everything that we have keeps innovating from time to time. During the 2000s, GSM phones like Nokia 5110, 3210, 3310, 8210, etc., are the real deal. Instead of using telephones for voice calls, GSM phones are taking it to the next level by letting us send messages and calls anywhere we go.
As the years go by, almost all of the GSM phones have been phased out due to the smartphone takeover. Smartphones can do better than any other GSM phone. Not only it has the basic functions of a GSM phone, but we can use social media, messenger apps, listening to music, playing mobile games, browsing the internet, watching your favourite TV shows, and so on.
As of today, there are sunglasses with a headset function. There are light bulbs that can switch on and off by using its mobile app. There’s a video game console that switches from TV to handheld. Maybe in the next few years to a decade, there might robots who can be your home assistant for life.
This could be the reasons why the IoT industry’s growth cannot be stopped. There’s a huge potential for IoT to become expand in the next few years to a decade. I also believe that small to big investors are pouring their money to this industry.
Integrating blockchain and IoT
Is there a possibility that blockchain and IoT can be integrated? For me, anything is possible. I cannot say that it’s impossible because blockchain technology can give transparency to an IoT device’s activity.
IoT can cover areas like smart cities, global trade and transportation, camera & security, connected vehicles, retail industry, smart devices, pets and so on. They might expand to other areas in the next few years to a decade. I would be amazed if any of these IoT devices that I’ve encountered are integrated with the blockchain industry.
Like IoT, the blockchain industry is also growing. Right now, most of its use cases were on DApps (decentralised apps). There are some video games that are already utilized on DApps. One of the intriguing real use cases of the blockchain technology is a school ID with QR code. It uses the disruptive blockchain technology to scan the QR code. Once the scan is complete, it confirms the student’s attendance.
I also remembered of a then-Philippine senatorial candidate Ted Casino who is pushing for a blockchain-based voting system that would provide transparent results. With the combination of blockchain and IoT, there’s no stopping them from innovating or growing even more.
The key benefits of using blockchain with IoT
Do you think it’s a must-need for blockchain technology to be integrated with IoT? Without further ado, here are the three key benefits of using blockchain with IoT.
- Trust
One of the essential benefits that I’ve seen here is the trust between parties and devices.
When implementing blockchain technology in IoT devices, it creates trust due to transparency and decentralization. Since it’s running on the disruptive blockchain technology, it gives us greater opportunities to verify every activity that we’ve performed.
Like the NBA’s “Ball Don’t Lie”, blockchain doesn’t lie too. Why? It’s a distributed public ledger where all of us can see the transaction hash that cannot be tampered (unless if the quantum computer threats are real). Therefore, the IoT devices that are integrated with blockchain technology can ensure trust between parties.
- Cost reduction
Reducing costs is one of the essential key benefits of integrating IoT and blockchain. Overhead presence is one of the common issues for most customers. As a result, the transaction fees are high. Like in banks and remittance centres, we can’t save much from the transaction fees due to the presence of the overhead. The same thing goes to the centralised IoT devices, which they almost have the same functions as the banks and remittance centres.
With the disruptive blockchain technology, it cuts out the overhead from the game. As the intermediaries or middlemen are removed from the game, the transaction fees have reduced.
Here’s one real case on why blockchain can reduce transaction costs.
When you send large chunks of money from one bank account to another, it results in higher transaction fees. They’re not the same when you send small or big amounts. The bigger you send, the higher your fees are. Not only that, but the bank would also force you to explain your big-money transfer. Not only that, but they also require you to prepare necessary documents before approving the transaction. As a result, the banks have the power to approve or reject your transaction.
However, sending cryptocurrencies from one wallet to the other is a totally different story. There are real cases that it only cost them a few cents for sending millions worth of Bitcoin, Ethereum or other cryptocurrencies. The secret? Blockchain. If we integrate blockchain into IoT, there’s no doubt that it reduces transaction costs once and for all.
- Accelerating transactions
Lastly, a key benefit of integrating blockchain into IoT is through accelerating transactions in the form of settlements.
When we settle some certain stuff, it takes a few days to complete it. It’s a long-time problem that most customers are encountering nowadays. Disruptive blockchain technology can solve this issue for good. Instead of waiting for days to complete the settlement (especially in using IoT devices), the blockchain technology has the capability to hasten it.
Moving forward with IoT and blockchain
I can say that there is a bright future for both the blockchain and IoT industry. Although it’s cool to see these IoT devices in action, it gets better with the integration of the disruptive blockchain technology.
I’ve seen some IoT-related projects who are implementing blockchain technology in their products. There is no doubt that blockchain technology can take IoT products to the next level.
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