Blockchain is a distributed ledger, cryptographically secured that allows safe transfer of information between two parties. That’s a powerful security technique and the data protected by that blockchain can’t be forged or otherwise fiddled with. So it becomes obvious why the use of blockchain is an attractive option for some companies.
Part of the reason for that, over and above the bare fact of blockchain’s ability to securely distribute trusted information across a network, is its place in the technology stack, according to Jay Fallah, CTO and co-founder of NXMLabs, an IoT security startup.
“Blockchain stands at a very interesting intersection. Computing has accelerated in the last 15 years in terms of storage, CPU, etc, but networking hasn’t changed that much until recently,” he said. “Blockchain’s not a network technology, it’s not a data technology, it’s both.”
Is it effective to use blockchain with IoT effective?
Different vendors sell different blockchain-based products for different use cases, which use different implementations of blockchain technology, some of which aren’t similar to the linear, mined-transaction blockchain used in cryptocurrency.
That means it’s a capability that you’d buy from a vendor for a specific use case, at this point. Few client organizations have the in-house expertise to implement a blockchain security system, according to 451 Research senior analyst Csilla Zsigri. The idea with any intelligent application of blockchain technology is to play to its strengths, she said, creating a trusted platform for critical information.
“That’s where I see it really adding value, just in adding a layer of trust and validation,” said Zsigri. Yet while the basic idea of blockchain-enabled IoT…