This article was first published on Chainlink
With the number of Internet of Things (IoT) devices expected to reach over 25 billion in 2021 and smart contract innovation now in full thrust, blockchain IoT applications have emerged as a compelling use case for combining the growing web of Internet-connected sensors with the secure automation of blockchain networks. IoT devices are physical objects with embedded technology that enables them to send and receive data over the Internet without any human interaction. Today, IoT devices span from everyday consumer products like smartwatches, WiFi-enabled appliances, and wireless headphones, to the intelligent infrastructure powering smart cities, autonomous vehicles, and smart factories.
The introduction of IoT devices to various industries like supply chain management and energy production has greatly improved the efficiency of business workflows, enabling real-time monitoring of performance and resource consumption. By leveraging blockchain technology, enterprises can take advantage of smart contracts, math-based and tamper-proof contractual agreements that provide a single source of truth to all parties and automate transactions based on predefined business logic. Smart contracts are deterministic, which means that they will automatically execute according to set parameters defined by computer code. Thus, no party can breach their contractual obligations—issues like late payments, pricing differences, and refusals to pay can all be eliminated with smart contracts.
By combining the real-world inputs of IoT devices with the robust execution framework of blockchains, enterprises have an opportunity to build increasingly data-driven processes backed by cryptographic guarantees, as well as unlock new products and markets around on-chain datasets.
The Benefits of Blockchain Technology for IoT
By connecting existing IoT devices to blockchains, enterprises can instantly improve device security, automate business workflows, and achieve end-to-end transparency around previously fragmented and opaque systems.
While their connection to the Internet is what gives IoT devices their rich set of functions, features, ...
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