Adaptation of the blockchain to the Internet of things: the main problems
About ten years ago, the number of devices connected to the Internet exceeded the number of network users. It was a turning point in the history of mankind - the Internet of people turned into the Internet of things. In this article we will consider the main problems of this phenomenon, as well as the possibilities of their solution using the blockchain technology.
The concept of IoT (internet of things) was formed in 1999, but at that time few could imagine how difficult it would be to integrate smart devices into everyday life.
As the capabilities of our machines, gadgets and other equipment increase, the requirements for its operation also increase - we expect them to create networks themselves, exchange information and coordinate with the user.
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For example, when ordering clothes through an online store, we automatically launch a complex process in which a fashion designer, a raw material supplier, a logistics company, customs, a bank and dozens of other participants are involved. If each of them could receive information about the purchase in real time, then they could maximally optimize their work and provide the consumer with better products and services.
Unfortunately, the formation of such networks is replete with problems, among which there is an inconsistency in the quality and availability of information - the devices are made by different manufacturers, use different software and operate with different protocols. In addition, do not forget that the Internet of things is very vulnerable, and network participants may have different intentions.
Many experts believe that the blockchain technology can be a solution. A decentralized network could establish the accuracy of the incoming information, regulate access and ensure autonomous operation using smart contracts.
At the same time, the blockchain technology must meet a number of technical and economic requirements, as well as take into account the legal context that is outside the network.
Information created by the Internet of things is outside the blockchain - it is ambiguous and non-deterministic. This imposes a number of new requirements for blockchain technology.
Many blockchains, such as Bitcoin, do not reveal the identity of the participants and are anonymous - at least they try to be so. However, if we are talking about the Internet of things, then the origin of the information, including the identity and reputation of the source, is crucial.
For example, the blockchain can transfer the rights to the part of the information that claims that the container with the goods was sent, but it will not be able to confirm the accuracy of the GPS readings recorded in the shipping record.
Many experts consider the “allowed blockchains” to be an oxymoron, but the fact is that the Internet of Things requires some form of verification of the identity of the participants so that they can trust the information entered.
Some believe that the solution lies in the creation of a special system of certification of devices. In their opinion, such a hybrid blockchain model will allow participants to identify themselves, but at the same time will not limit them.
One of the main advantages of the blockchain technology is the transparency of all transactions - any member of the network can check them. At the same time, this creates a potential vulnerability for the disclosure of confidential information.
The growth of the Internet of Things creates a problem of over-computing and storing information — every network participant needs to process all transactions, while most smart devices have extremely limited memory and computing power.
Thus, blockchains will have to recognize devices and their capabilities, as well as use a variety of consensus mechanisms that do not require significant computational power.
Until now, the main task of the Internet of Things was a continuous connection, but now you can see a confident tendency to search for compromises between connectivity and battery life, transmission costs, infrastructure costs, etc. This is quite logical, because many devices participating in the network receive and send data very rarely and in small quantities.
The blockchain's immutability can be very convenient when transferring property rights and similar operations, however, when it comes to the Internet of things, things are not so simple.
Malfunctioning devices or hacker attacks can have serious consequences. For example, a faulty RFID reader may report the existence of a cargo that has not actually arrived at the warehouse and initiate an incorrect transfer of funds.
This problem is not only characteristic of IoT - immutability can play a cruel joke when personal data, child pornography and the like get into the blockchain.
The introduction of blockchain into the world of IoT is hampered not only by technical problems, but also by a number of economic obstacles. Most large enterprises are accustomed to using centralized systems - they are time-tested and work well. At the same time, they have no economically justified reasons for decentralization.
Despite the obvious advantages of the blockchain (for example, in the field of micro-transactions), its implementation in IoT will be very slow - at least until a clear and convincing business model appears.
We used to talk about the blockchain as a complete replacement for intermediaries and regulators. However, when we talk about the Internet of things, the blockchain is in a wider context, including institutional relations, legal requirements and regulatory control. Thus, the role of the blockchain is gradually reduced to a magazine of “decisions and actions”, which may need to be adjusted in the future.
The concept of IoT (internet of things) was formed in 1999, but at that time few could imagine how difficult it would be to integrate smart devices into everyday life.
As the capabilities of our machines, gadgets and other equipment increase, the requirements for its operation also increase - we expect them to create networks themselves, exchange information and coordinate with the user.
')
For example, when ordering clothes through an online store, we automatically launch a complex process in which a fashion designer, a raw material supplier, a logistics company, customs, a bank and dozens of other participants are involved. If each of them could receive information about the purchase in real time, then they could maximally optimize their work and provide the consumer with better products and services.
Unfortunately, the formation of such networks is replete with problems, among which there is an inconsistency in the quality and availability of information - the devices are made by different manufacturers, use different software and operate with different protocols. In addition, do not forget that the Internet of things is very vulnerable, and network participants may have different intentions.
Many experts believe that the blockchain technology can be a solution. A decentralized network could establish the accuracy of the incoming information, regulate access and ensure autonomous operation using smart contracts.
At the same time, the blockchain technology must meet a number of technical and economic requirements, as well as take into account the legal context that is outside the network.
Technological requirements
Information created by the Internet of things is outside the blockchain - it is ambiguous and non-deterministic. This imposes a number of new requirements for blockchain technology.
Requirement # 1: no anonymity
Many blockchains, such as Bitcoin, do not reveal the identity of the participants and are anonymous - at least they try to be so. However, if we are talking about the Internet of things, then the origin of the information, including the identity and reputation of the source, is crucial.
For example, the blockchain can transfer the rights to the part of the information that claims that the container with the goods was sent, but it will not be able to confirm the accuracy of the GPS readings recorded in the shipping record.
Many experts consider the “allowed blockchains” to be an oxymoron, but the fact is that the Internet of Things requires some form of verification of the identity of the participants so that they can trust the information entered.
Some believe that the solution lies in the creation of a special system of certification of devices. In their opinion, such a hybrid blockchain model will allow participants to identify themselves, but at the same time will not limit them.
Requirement number 2: controlled access to information
One of the main advantages of the blockchain technology is the transparency of all transactions - any member of the network can check them. At the same time, this creates a potential vulnerability for the disclosure of confidential information.
Requirement number 3: processing and storage of information
The growth of the Internet of Things creates a problem of over-computing and storing information — every network participant needs to process all transactions, while most smart devices have extremely limited memory and computing power.
Thus, blockchains will have to recognize devices and their capabilities, as well as use a variety of consensus mechanisms that do not require significant computational power.
Requirement # 4: interrupted connection
Until now, the main task of the Internet of Things was a continuous connection, but now you can see a confident tendency to search for compromises between connectivity and battery life, transmission costs, infrastructure costs, etc. This is quite logical, because many devices participating in the network receive and send data very rarely and in small quantities.
Requirement # 5: reversibility of actions
The blockchain's immutability can be very convenient when transferring property rights and similar operations, however, when it comes to the Internet of things, things are not so simple.
Malfunctioning devices or hacker attacks can have serious consequences. For example, a faulty RFID reader may report the existence of a cargo that has not actually arrived at the warehouse and initiate an incorrect transfer of funds.
This problem is not only characteristic of IoT - immutability can play a cruel joke when personal data, child pornography and the like get into the blockchain.
Economic requirements
The introduction of blockchain into the world of IoT is hampered not only by technical problems, but also by a number of economic obstacles. Most large enterprises are accustomed to using centralized systems - they are time-tested and work well. At the same time, they have no economically justified reasons for decentralization.
Despite the obvious advantages of the blockchain (for example, in the field of micro-transactions), its implementation in IoT will be very slow - at least until a clear and convincing business model appears.
Summing up
We used to talk about the blockchain as a complete replacement for intermediaries and regulators. However, when we talk about the Internet of things, the blockchain is in a wider context, including institutional relations, legal requirements and regulatory control. Thus, the role of the blockchain is gradually reduced to a magazine of “decisions and actions”, which may need to be adjusted in the future.
Source: https://habr.com/ru/post/359415/
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