Blockchain: Securing The Future Of IoT
July 11, 2017

With 6.4 billion ‘connected’ things in operation last year and a Gartner prediction of almost 21 billion by 2020, the internet as we know it today simply doesn’t have the infrastructure to support the security demands of a revolution that is far outstripping the supply of cyber security innovations. 

With the rise of the 'connected' in the Internet of Things (IoT) comes an associated rise in transactional demands, all of which will overburden current server infrastructure, becoming an increasingly fragile entry point for cyber-attack and the kind of mass data breach that could bring the world’s banking institutions to their knees.

Interestingly, it’s not that counter-attack implementations are poorly designed or not-fit-for-purpose, but that the landscape is changing so fast that the way we approach and secure these new waves of data can’t adapt quick enough.

The most likely solution to this is a universal adoption of blockchain technology and cryptocurrency. Set to revolutionise the flow of transactional data across the globe, this technological break-through could be the internet of things’ insurance policy.

Blockchain, an incorruptible, encrypted public ledger of every bitcoin transaction that has ever been executed, has the potential to transform the way all industries do business. Featuring mutual consensus verification between transactors, the data record cannot be erased or overwritten, only added to in ‘blocks’. These blocks, much like bank statements, are linear and chronological, containing detail from the previous block, an overlapping of data if you will that forms the chain aspect to the records.

Every computer or ‘node’ with some participation in the chain (vendors, service providers, customers etc) receives a copy of the completed blockchain from the beginning to the very end of the transaction, including collective network updates making the digital information real-time in its truest form.

The full copy of the blockchain details every single Bitcoin transaction ever executed, thus providing 100% transparency about the whereabouts or address of the bitcoin(s) at any point. In short, a financial forensics tool. Cryptocurrency simply cannot be misappropriated through this method because the bitcoin’s address will be there in black in white with no way to conceal it.

How is this more secure than the way we track and record transactions today? The Blockchain digital registry isn’t just transparent in a way that makes the journey of the bitcoin accessible to all users, the fact it can’t be modified makes the task of hacking or intercepting a validated, authenticated exchange next to impossible. Then there’s the simple act of speed or time savings.

Take retail banking as an example, with a decentralisation of validation (bypassing the banking middlemen to be precise) Blockchain effectively cuts out the risks inherent in those vulnerable seconds where currency is passed from customer to bank, and bank to vendor. The challenge for banks will be how to revolutionise their offerings with loyalty programmes that directly connect their customers with products and services.

The era of blockchain coming upon us is certainly encouraging news, but it’s not quite there yet. Going back to the internet architectures and infrastructures of today, what needs to happen now is a robust programme of fintech disruption bringing to the fore an input model standardisation and upgrading of computational firepower from Public Sector bodies through Finance, Legal, Retail and more. The good news is that the necessary digital transformation has already begun. The Royal Mint have already input gold bullion reserves to block chain with each Royal Mint Gold token (RMG) equivalent to 1 gram of real-world gold.

Business growing? Want to discuss a digital transformation or are concerned about the security of your systems? Give us a call on 028 9087 2222 or drop us an email below.

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