The Internet of Things (IoT) and Blockchain are two technologies that have become increasingly prevalent in our daily lives, particularly in our professional spaces. At first glance, these two technologies may seem contradictory, but in reality, they are closely intertwined, especially when it comes to the issue of data.
The IoT refers to a wide range of connected objects whose purpose is to simplify, measure, or assist the user through the data they transmit. It contributes to the development of Big Data. With the massive amount of data being generated, concerns about data protection arise, and this is where Blockchain comes into play.
Blockchain is not solely intended for cryptocurrency exchanges. Its main purpose is to secure various types of transactions, including data transactions. The rise of Big Data has brought about new concerns, particularly regarding data protection. Individuals and businesses are afraid of having their personal data exposed to the public.
Blockchain promises maximum data protection, particularly during its transfer. With the IoT and the proliferation of data, Blockchain appears to be the most suitable solution for safeguarding data.
The question then arises: will IoT and Blockchain evolve together?
Internet of Things in a Nutshell
The Internet of Things, also known as the Internet of Connected Objects, refers to the integration of internet flows into everyday objects. In more practical terms, IoT can be found in various connected devices, such as fitness trackers, cars, household appliances, and heating systems.
IoT enables remote control of objects through an online application, such as controlling an air conditioner. This allows users to program actions remotely to save energy. Brands strive to provide users with a cost-effective and personalized experience that aligns with their consumption needs.
IoT is also present in Smart Grid technologies used by electricity providers. In the industrial sector, IoT is utilized in the production chain, mainly through automation. The data sent by IoT devices allows machines to function and calibrate each action and working time.
Furthermore, IoT is evolving thanks to artificial intelligence, which can assist individuals in making personal and professional choices.
The market for connected devices in France is currently valued at 230 million euros and continues to grow. According to Statistica, the market is projected to double in value by 2020, reaching 7 billion dollars from the current 3.7 billion dollars. The market for connected devices spans across all sectors, including both B2B and B2C, with B2B representing 38.09% of the market share and B2C accounting for 61.91%.
This market evolution raises the question of personal data transmitted by connected devices. Securing data transmission would help prevent the exposure of sensitive information, eliminating errors that military personnel, for example, experienced during their training.
Blockchain in a Nutshell
The concept of Blockchain emerged after the subprime crisis and the collapse of traditional banking institutions in 2008. Its main objective is to restore trust in data transmission and commercial exchanges.
The subprime crisis created mistrust towards conventional financial institutions. Their poor investments resulted in the downfall of numerous companies. To prevent such a situation from recurring, some companies aim to regain control over their financial capital.
With the digital age, the volume of Big Data and the associated skepticism surrounding data processing have increased. Blockchain can play a role in securing data in this context.
One of the purposes of Blockchain is to secure data by eliminating intermediaries. Due to its functioning, Blockchain encrypts data and ensures that only the intended recipient can access it. For example, some companies already use Blockchain for data transmission and committee voting.
While Blockchain is primarily known for its role in cryptocurrency creation, its primary purpose can serve as a means to secure data emitted by connected objects.
IoT and Blockchain: An Inevitable Union?
Are IoT and Blockchain fated to be interconnected? Let’s explore this question based on the definitions provided above. IoT and Blockchain are two technologies that are inherently linked because they both play a role in data processing.
IoT generates data through connected devices, while Blockchain is involved in the processing of this data.
Today, we are all concerned about the protection of our data. Blockchain protocols allow us to protect our data by encrypting it. This means that only you and the manufacturer of your device can access this data, preventing others from intercepting your information.
Furthermore, companies in the realm of connected devices aim to secure personal data to alleviate customer concerns. By addressing issues of trust, privacy, and confidentiality, IoT and Blockchain can enhance the overall customer experience.
Data security and protection have become crucial focal points for businesses, especially with the implementation of GDPR regulations. Therefore, IoT and Blockchain must unite to dispel skepticism surrounding data processing and the credibility of companies.
If you enjoyed this article, we invite you to read our piece on IoT and customer relations. If you need assistance in increasing your leads, please don’t hesitate to contact our team for more information.