Crypto Academy / Season 4 / Week 1 - Homework Post for @yohan2on

INTERNET OF THINGS (IOT)


Internet of things refers to a system that comprises a network of related internet-connected devices which are interconnected via a wireless network.

These devices have unique identifiers and can interact with each other within the network without being controlled by human-to-human or human-to-computer interaction.

Such interactions are possible as these devices are embedded with communication hardware. They are also embedded with sensors and processors to enable them interact with their environment and process the information the receive.

Typical examples of IoT applications are

A light bulb that can be switched off and on using a smart phone

A smart waste bin that be opened and closed via a smart phone

A water pump that can be turned off and on when the water tank it fills gets filled to a certain level.

A driverless truck that can navigate it's way on the street.

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THE FUTURE OF IoT
In the past, development of IoT was impeded due to the unavailability of the relevant technology and cost. Presently, these challenges are history. With the evolution of computer chips into smaller and affordable chips has made it possible for IoT to become rampant, gaining massive adoption by the day.

As advancement in and evolution of technology continues, the future of IoT will see more and more people come to adopt IoT and more and more applications of IoT devices. But as IoT scales, so will it's challenges. These challenges includes

Security: The information shared by this devices are susceptible to hack. This is because unlike blockchain which boasts of encryption, data sent between IoT devices are plain and don't require decryption. A hacker can thus potentially steal confidential information.

Scalability: The number of IoT devices will definitely raise the challenge of scalability. As this number increases, the inability of the system to accommodate the increase while retaining efficiency will become a serious drawback especially for enterprise grade applications.

Compatibility: IoT has no general standards, there are different standards for different manufacturers. As more and more IoT devices are produced, the challenge of compactibility will become more pronounced. There will be lots of IoT devices that can't connect to each other and this can impede the efficiency of some of IoT's applications.

Single point of failure: In most cases, the data received by the IoT devices are aggregated in a central location. This means that if there's a breach in that central location, all the data will be compromised.

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WHY THE FUTURE OF IOT WILL DEPEND ON BLOCKCHAIN
When the chips are down, and the adoption of IoT must have skyrocketed, these challenges of IoT will have to be addressed else, they will definitely pose a major drawback to the continuation of the IoT. One technology that can address these challenges is blockchain technology

Blockchain technology involves transferring data in encrypted format over a decentralized network and storing the encrypted data on a distributed ledger. When this encrypted data is transferred, it can only be decrypted by the receiver using a specific key.

HOW BLOCKCHAIN RESOLVES IoT CHALLENGES
Single Point Of Failure
With blockchain technology, the challenges of Single point of failure is done away with, as there is no aggregation of data in a central location. There is also no central controlling point for the IoT devices.

Compatibility
The challenges of compatibility is also dealt with as blockchain technology involves a pre-defined mode of operation called consensus algorithm. This will take care of compatibility as the consensus will defined the required standards of component devices to ensure compatibility.

Security
Blockchain technology secures data with encryption and decryption. This means that the data is encrypted by the sender and can only be decrypted by the intended receiver. This is done using a combination of cryptographic keys.

Scalability
With the introduction of Proof of Stake blockchains, blockchain technology has seen massive advancements in the area of scalability. With this improvement, blockchain can resolve the scalability challenges posed by the ever increasing adoption of IoT.

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FILAMENT

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Filament is a tech company based in Reno, a city in the US state of Nevada. They specialize in building enterprise grade blockchain powered solutions for IoT.

The company, which was founded in 2012 by Allison Clift-Jennings, designs elaborate blockchain systems for IoT applications in different industries including construction, manufacturing, transportation and energy.

IoT BLOCKCHAIN USE CASE
Design Of Blockchain Based IoT Compatible Products
Filament designs blockchain based products that are compatible with IoT products including hardware and software.

Enhanced Security
Filament's blockchain solutions enhances the security of data shared amongst IoT devices. These blockchain solutions are in the form of tools and technology.

This enhanced security is further boosted by the other components in filament's ecosystem which expands as the company continues to expand and integrate with institutions like the University of Nevada and the Mobility Open Blockchain Initiative.

Scalability
Filament also provides scalability to industrial IoT users as it's Distributed Ledger Technology (DLT) ecosystem also comprises of product that enhances speedy communication like the Blocklet chip which enables edge-devices in the IoT network to act independently.

Blockchain Backed Sales Solutions
Filament furthermore helps is selling IoT products. IoT devices cannot be one-off sales as they are internet connected and will need to have their firmware updated from time to time. The cost of this is one thing most enterprises are not willing to incur as most customers are not willing to pay for recurring expenses for a normal day-to-day item.

Filament's DLT ecosystem which includes hyperledger, is designed to enable businesses to shift away from offering their IoT products as a one-off sale to offering them as a service which demands recurring payments. Consumer are also enabled to pay using tokens.

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CONCLUSION
There's a lot of hype about IoT but just like blockchain, it is still in it's infant stage. It's future however, if it will be, will be dependent on a technology like blockchain for reasons relating to security, compatibility, and scalability.

Cc:
@richmondgodwin

#yohan2on-s4week1 #cryptoacademy #nigeria #krsuccess