Technological powerhouses bitcoin and blockchain offer the potential to collaborate with the Internet of Things (IoT), resulting in simplified connections within the industrial IoT. Through advanced implementation of blockchain and bitcoin, technology promotes a simpler way to experience life itself.
Blockchain is the underlying technology in bitcoin and other cryptocurrencies. Information contained and stored within a blockchain will exist as a shared, and continually reconciled, database. These databases aren’t stored on a single computer and therefore are easily accessible to the public and are even more easily verifiable.
In a recent interview with CNBC, Steve Chiavarone, VP at financial services firm Federated Investors said, “When you think about it from an enterprise perspective, blockchain has the ability to replace reconciliation, which is expensive and requires back office, and time, and paperwork — with more instantaneous verification.”
With this advanced technology and innovative transparency level, the impact when applied to the large industry would be incredible.
Fueling the Industrial IoT
It’s important to remember that the impact on the industrial IoT won’t happen overnight. Rather, enhanced after a large scale overhaul of systems and software programs. Keep in mind that these platforms build trust with transparency and accountability measures.
Blockchain has the ability to disrupt the industrial industry in countless ways, but perhaps the most impressive, a necessary cutting-edge level of transparency. A wide-scale adoption of blockchain would create significantly more transparency at all levels.
“Blockchain for IoT can transform the way business transactions are conducted globally through a trustworthy environment to automate and encode business transactions while preserving enterprise level privacy and security for all parties in the transaction.” – Chris O’Conner, Head of Sales, IBM Watson Internet of Things
In the oil and gas industry, numerous companies transact with one another across the supply chain. Collaborative solutions leveraging blockchain technology will provide transparency for all parties and reduce disputes and the effort involved in managing them. From the security of blockchain and a secure point of information; companies will build trust, reduce costs, and accelerate their transactions.
Another upside and intriguing factor is the machine-to-machine (M2M) communication. Blockchain cryptocurrencies are relatively secure, and feature an ability for machines to function at a level of efficiency never seen before.
Blockchain is a monumental technology designed for the protection of data in a public infrastructure. With different applications embedded within machines, blockchain facilitates a streamlined way for interaction directly with each other. This proves that blockchain promotes endless opportunities for information communication.
Blockchain features the major advantage of data storage. Once connected through the IoT, blockchain will track and manage every transaction that has been conducted. It can help establish trust, accountability and transparency while streamlining business processes.
Blockchain can be used to register, certify, and track goods shipped between parties along a supply chain, with transactions verified and time-stamped in an encrypted process. The capabilities to reduce risk will drive manufacturers to adopt this technology.
The ability for devices connected to the IoT to operate autonomously through blockchain technology has endless uses. With the accumulation of cutting-edge data storage and M2M communication, the industrial IoT industry will be truly transformed forever.
However, the question now is not if it will happen, but when will it happen?