Exclusive: The blockchain will ensure an ubiquitous implementation of the IoT

The IoT network, consisting of uniquely identifiable items, has become a revolutionary discovery of the 21st century. It’s about objects interacting with each other without human involvement. The Internet of Things is more industrial: according to the preliminary calculations, the main part of the network will spread to entrepreneurship, and one-third — to ordinary consumers.

The optimization of the work processes is necessary in order to maximally simplify and automate control over the actions that are difficult to track physically. This requires many industries: logistics, the operation of machinery, construction, food production. For example, with the help of a sensor system, it is possible to locate the shipments that are sent to any point or organize high-quality service of expensive industrial equipment.

Now companies are renting modern power systems equipped with a fuel tank that has ultrasonic sensors as an additional service. Thanks to them, employees of the organization can easily control how much fuel is consumed in average, its current level and other necessary parameters.

The result is: the IoT makes it possible to accurately predict the further development of any events, to carry out detailed monitoring of processes, to make the work of the enterprise more rapid and well-coordinated. The widespread of technology is hindered by the slow development of technologies for fast data exchange in real time and the safety of storing data like that. Some experts say that, with the introduction of Internet technologies, things will get a new impetus in development. Using the blockchain on top of the IoT, companies can implement accounting methodology for any incoming or outgoing request from the IoT device and verifying the correctness of its performed actions by the type of accounting statements. The blockchain is critically important here, as it is very difficult to deceive, and it provides a method for verifying transactions. So far, the use of the blockchain is widespread, due to high commissions and low transaction speed.

The classic Bitcoin blockchain is not suitable for these purposes, but new projects have appeared on the market ready to provide their sites for fast transactions while maintaining a high level of security. One such project is CREDITS  blockchain, whose developers were able to achieve unprecedented technical indicators, that are so necessary for the Internet of Things. The platform promises over 1 million transactions per second and a minimum commission as low as 0.001 US dollars. Perhaps very soon many developments in the field of the IoT will be introduced into our daily life.

Typically, the Internet of things consists of three elements: sensors, networks and platforms for data transfer. Some manufacturers already have ready-made solutions, but they cannot always fully satisfy all of the customer requests. Some suppliers make the equipment under an order, giving it the characteristics specified by the client on an individual basis. When this or that IOT project is being developed, all the details that are relevant to the case are discussed with the customer in detail. Specifying the characteristics of equipment and machinery that will be used; issues relating to the security of information are addressed; the need to create applications that facilitate the process of managing the system.

Such prototyping needs serious investments. It costs about 25-50 thousand dollars, depending on the wishes of the client. Plus, one should take into account that one prototype is not enough. As a rule, to start the project you need at least two, and in some cases, three units. Therefore, at the moment, all of the customers, both in Europe and in Russia, are united by a common problem: the need to purchase high-quality industrial sensors at an affordable price.

The IoT in Europe

Just recently, information from devices could be read by European organizations only under the condition of having sim cards. Communication services cost about $15-$18 a month, not counting the cost of the equipment itself, which was about $ 350.

Today, the costs have been significantly reduced thanks to the LPWAN technologies that connect controllers and sensors to the Internet without the use of mobile communication and wi-fi. In this direction the Sigfox and LoRa networks are most actively developing. Their base stations cover a huge area and are characterized by a good penetrating ability of a radio signal. The cost of the equipment and services for such networks are two times cheaper.

In addition to LoRa and Sigfox in the European market, 3G / 4G, LTE and other networks are in demand. An option, that would be able to meet all the needs of all the clients, is hard to find. Before you start a specific project, it’s important to think about:

● Communication security. Most experts argue that data transmission over wired and wireless sensor systems is more securely protected in cellular connections than in LPWAN.

● The service life of the solution. An effective project must operate for at least 10 years from the date of launch.

● Network view. The operation of the communication service can be extended to one locality, and there are also universal networks that have the possibility to move devices.

The functionality of the communication function between equipment is affected by the coverage, speed and amount of data transmission. For example, speaking of Sigfox and LoRa, the amount of information that can be transferred from one device to another is limited. A team of professionals in the field of IT technologies is working on eliminating this problem, studying all of the points and facets of the work of these networks. As for the widespread types of 3G and 4G communication, they function independently in the circumstances.

Analyst forecasts say that LPWAN has good potential. LoRa copes perfectly with the inquiries of private networks, public — NB-IoT. LPWAN technologies are widely used for asset control, resource accounting, building management, etc. In the future, it is planned to optimize operating costs, reduce the cost of equipment in general.

Security issues

The Internet of things is increasingly breaking into everyday life. It carries not only impressive prospects for business and ordinary users, but also a serious risk for vulnerability of important data. This is confirmed by specialists working in the field of information security. Smart technology often becomes an object of attacks for cybercriminals and hackers.

Two years ago in America, a study was conducted, during which it was proved that it is possible to gain access to the control of the machine and even the airborne system of the aircraft remotely. This fact indicates that before the launch of the IoT project, it is necessary to assess the risks and try to prevent them. The solution to these problems can be the use of the blockchain platforms that can guarantee security and consistency of data.

According to Kyle Wang, the CREDITS advisor, unfortunately, today there are not that many offers like that on the market. An example is the CREDITS platform, which can be applied due to high data processing speeds and minimal commissions for conducting transactions. For the convenience of third-party developers, there is a set of tools for creating your own applications and integrating them with other databases.

Implemented the IoT-solutions are built on the principles of cardinal reorganization of management and organization of the company’s work. Their system affects the activities of the enterprise. The most effective models of the projects are introduced by joint efforts of experts of different directions: security, technology, optimization of business processes. The main desire of enterprises is to get the maximum number of devices all in one platform. Apparently, such platforms will be minimal, but they can solve the acute problems of social spheres and traditional businesses.

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