The ideas written in this post were presented by Avinash Kaushik- Founder of Revvx Hardware/IOT Accelerator, at the PwC Blockchain Technology Conference 2016.
While the Internet of Things (IoT) itself is yet to reach the mainstream, a parallel Technology, Blockchain is gaining grounds for a major overhaul across sectors. Blockchain/distributed ledger approaches, architectures and platforms are moving from the skunk works to the business mainstream. Companies large and small are trying to figure out the convergence of Blockchain and IoT, and understanding on how the phenomenon of Distributed Ledger of Things (DLT) will be the driving force behind improving efficiencies, driving revenue opportunities and solving business problems across multiple industries and all business functional areas.
Blockchain is the underlying protocol technology. By eliminating intermediaries or the Central Trusted parties, Distributed ledger transactions hold the promise of immediate clearance, immediate settlement, and bring about a dramatic increase in efficiency and speed and an increase in commercial transactions.
Blockchain consists of :-
- A ledger that can’t be changed
- A consensus algorithm, a way for groups to agree, (Eliminates intermediaries)
- A means for performing transactions on that ledger or how to make changes to that information in that ledger (Cheaper & Faster)
Distributed ledger or database, provides an online facility for tracking and recording transactions between systems or between people. Blockchain Builds Trust in Transactions with accountability and transparency. The implications are staggering, not just for the financial-services industry but also right across virtually every aspect of society.With over 50 Billion IOT devices talking to each other and taking decisions on Actions, security and traceability are paramount necessities. According to Mckinsey Global Institute Analysis, Potential economic impact of IOT is over 3 Trillion USD by 2015.
Also Read: Revvx Hardware Accelerator launches Batch 2
Blockchain+IOT is a great enabler for Auto sector innovations.Distributed ledgers can stop self-driving cars from being hacked and having their internal systems exploited by protecting against compromise of the sensors. Imagine the damage if Olli – the Autonomous passenger bus or Uber’s Otto Trucks or cars being controlled remotely by hackers. These ledgers can also manage access to shared assets like Cars2Go and track Auto components and supply chain for vehicle Manufacturers like being implemented for Toyota. Pharma and Healthcare is another strong sector implementing blockchain in its supply chain to reduce counterfeit medicines to controlling medical devices from being hacked.The decentralized, autonomous and trust capabilities of the blockchain make it an ideal component to become a foundational element of industrial IoT solutions.
IOT technologists are exploring Ethereum, Hyperledger and Ripple for enabling Blockchain solutions. Ethereum is a fully-functioning, publicly-accessible, uncensorable smart contract network. Hyperledger is a newly initiated Open project of the Linux Foundation that was spun out of Digital Asset following the acquisition of Hyperledger, inc. back in 2015. Filament is startup that develops ad-hoc mesh networks of smart sensors for industrial applications, operating on the blockchain. Filament’s wireless sensor devices, or Taps, can cover industrial areas with low-power autonomous mesh networks for data collection and asset monitoring. By leveraging the blockchain, devices in a network can accept bitcoin payments to enable access to specific data.
Also Read: Top accelerators for IoT startups in India
Blockchain ecosystem is gradually evolving. It needs to be seen how the infrastructure pans out for young IoT startups to venture into implementing solutions. Device manufacturers will need to put a strong identity into the devices. Chip manufacturers for the devices must improve so they can run blockchain on the devices. While we are still in the early stages of the evolution of the blockchain technologies, the possibilities in the IoT space are nothing short of remarkable. Exciting times indeed.
Avinash is the Founder of Revvx Hardware/IOT Accelerator ( www.revvx.com ) with access to Manufacturing factories in China and Taiwan, Distributors and Retail Buyers in US and Asia and Innovation labs of Fortune 500 Corporates. He Heads US based Venture Capital firm Innoventure Partners in India and is an Advisor at Italy based Foodtech Accelerator. Avinash also backs a Retail store ‘Pre-launcher’ that showcases yet to launch Electronics gadgets from Makers and Brands. (www.pre-launcher.com).