Blockchain and IoT (Internet of Things) are two of the most rapidly evolving technologies today, and they have the potential to significantly transform the business landscape.
When combined, they can provide unparalleled security for businesses looking to protect their data and systems from potential threats.
According to a recent report by MarketsandMarkets, the global blockchain IoT market is expected to grow from USD 258.6 million in 2020 to USD 2,409.2 million by 2026, at a compound annual growth rate (CAGR) of 45.1% during the forecast period.
The report also highlights that the increasing need for transparency and security in IoT-based transactions and the growing demand for enhanced operational efficiency are key factors driving the market growth.
But the central question is how Blockchain IoT security is becoming necessary for businesses. Let’s get to know it in detail here…
Blockchain IoT Security- Understanding the Basic Philosophy
Blockchain is a decentralized network, unlike IoT that believes in centralized control mechanism. The security protocol based on such a platform is more scalable. The security and protection mechanism of Blockchain IoT security is strong enough to prevent transmission of false information over connected devices ecosystem.
Such high-end security and protection mechanism of Blockchain is attracting users, especially the ones that worry about addressing the pressing challenge of IoT security. As per IDC, 10% of blockchain ledgers could be used for IoT by 2020. IoT models of today may not be able to support the rising security needs of customers of tomorrow, if not accompanied with Blockchain IoT security network protection.
The Blockchain of Things
This term is the combination of two concepts ‘Internet of Things’ and ‘Blockchain’. Important benefits of the Blockchain of Things or Blockchain IoT security are enhanced speed and improved security, which results in building trust and cutting overall cost. Startups have already started exploring the implementation possibilities of blockchain-protected security platform for the Industrial Internet of Things.
The main aim of creating Blockchain of Things ecosystem is to allow Industrial Internet to rely on the legacy operational technology in order to secure as isolated industrial systems. This system creates a secured and reliable layer for communication, authentication and trust that ensures security at higher scale.
In case of IoT connected system, smart devices are not allowed to make security decisions on their own outside the central authority. On the other hand, the Blockchain IoT security model allows for the replication of data set and stores it in each device. For the addition of any bit of data to the network, a process of verification and approval is needed. This prevents hackers from gathering resources for a DNS attack.
It is becoming risky to compromise with the single node of IoT. It allows figuring out how to take over a majority of the network all at once. Taking example of Mirai botnet attack, this threat would have detected and quarantined the malware before it could consume enough of the network to take control.
Read More: How to Use IoT in Retail Industry for Maximum Returns?
How Does Blockchain IoT Security Is Becoming Necessary For Businesses?
Blockchain IoT security is becoming a necessary measure for businesses due to several reasons. If you are still in a dilemma that how blockchain IOT security is impacting businesses, then you need to read below.
Minimize the Risk of Fraud and Enhancing Security
According to a report by MarketsandMarkets, the global blockchain IoT market is expected to grow from $258.6 million in 2019 to $2.3 billion by 2024, at a CAGR of 55.5% during the forecast period.
With the integration of blockchain technology in IoT devices, businesses can ensure the security of their data and prevent cyber-attacks. Blockchain’s decentralized ledger technology ensures that data is stored on multiple nodes, making it nearly impossible for hackers to manipulate or steal data.
Minimizing the Operational Costs
According to a report by Deloitte, blockchain technology can reduce costs in financial services by up to 50%.
Blockchain IoT security can help businesses reduce operational costs by eliminating the need for intermediaries and third-party authentication. The technology enables secure, peer-to-peer communication between devices, which can streamline business processes and reduce costs.
Bring Transparency to Transactions
According to a report by Transparency Market Research, the global blockchain IoT market is expected to reach a valuation of $5.8 billion by the end of 2026.
Unlike manual records, with Blockchain IoT security businesses can access transparency and traceability of data. Every transaction is recorded on the blockchain, and once recorded, it cannot be modified or deleted further. This ensures data integrity and enables businesses to track the movement of goods and services in real time.
Build Customer Trust and Enhance Data Exchange
According to a survey by Deloitte, 83% of consumers are concerned about the security of their personal information online.
With the increasing number of cyber-attacks and data breaches, customers are becoming more concerned about the security of their personal information. That’s where Blockchain IoT security can help businesses enhance customer trust by providing a secure platform for data exchange.
On a Concluding Note…
The internet came into existence long ago and it was not configured considering the volume and complexities of modern businesses. We are relying on this old technology for sufficing our needs, no wonder that there is high number of security breaches occurring quite often.
Integrating Blockchain IoT security to connected ecosystem is a good choice to avoid the risk and overhead of hackers. No sort of glitch can be afforded while addressing the security holes as it may cause severe damage to your business in the future.
Hidden Brains is a leading IoT app development company helping enterprises establish Blockchain of Things as per their organization needs and preferences. We have a proven experience of building highly secured IoT apps that connect smart devices and offer complete automation. We perceive your business operations to build IoT strategy and develop prototype for the architecture defined as a proof of concept.
FAQs
How can blockchain IoT security help my business save costs?
Blockchain IoT security can help your business save costs by eliminating the need for intermediaries and third-party authentication. The technology enables secure, peer-to-peer communication between devices, which can streamline business processes and reduce costs.
What are some benefits of using blockchain IoT security in the supply chain industry?
Using blockchain IoT security in the supply chain industry can provide benefits such as real-time tracking of goods, prevention of counterfeit products, increased transparency and accountability, and reduced costs.
How can blockchain IoT security help businesses maintain the security of their sensitive data?
Blockchain IoT security can help businesses maintain the security of their sensitive data by using a decentralized ledger to store data on multiple nodes, making it nearly impossible for hackers to manipulate or steal data. It also enables secure, peer-to-peer communication between devices, eliminating the need for intermediaries and third-party authentication.
Can blockchain IoT security help businesses comply with data privacy regulations?
Yes, blockchain IoT security can help businesses comply with data privacy regulations by ensuring the security and integrity of data. With blockchain IoT security, data is stored on a decentralized ledger, and once recorded, it cannot be modified or deleted, ensuring data integrity and compliance with regulations.
How can blockchain IoT security enhance customer trust in my business?
Blockchain IoT security can enhance customer trust in your business by providing a secure platform for data exchange. With the increasing number of cyber-attacks and data breaches, customers are becoming more concerned about the security of their personal information. By implementing blockchain IoT security, you can provide a secure and trustworthy platform for your customers.
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