What is the use of blockchain for the Internet of Things?

In October last year, the state identified blockchain technology as the core technology strategic development direction, which aroused unprecedented enthusiasm from all walks of life.

Although people are generally optimistic about the long-term development of the blockchain, it is precisely because of the unique technical architecture and business model of the blockchain that many people are full of confusion. People from all walks of life hope to learn more about the blockchain, find the combination of the blockchain and their own industries, and explore a business model that suits them.

The communications industry is no exception. Is it possible to combine communication + blockchain? What kind of changes will the blockchain bring to the communication network? Industry enterprises have been exploring and trying.

On May 27, Ziguang Zhanrui, Molian Technology, Guanghetong and Wanxiang Blockchain jointly held an online sharing meeting to introduce their latest achievements to “Internet of Things + Blockchain”.

At the sharing meeting, Guanghetong announced the launch of the world’s first Cat.1 blockchain module based on UNISOC’s IoT chip platform Chunteng 8910DM and Molian Technology’s BoAT (Blockchain of AI Things) blockchain application framework – L610.

What is the use of blockchain for the Internet of Things?

Blockchain mods? what is this? What is the difference between it and traditional IoT modules? Next, Xiaozaojun will give you a comprehensive introduction based on the content shared by the experts on the spot.

We know that a traditional IoT module is a communication module based on a baseband chip. For a terminal device, it is a “mobile phone” that provides network connection capabilities. In addition, with the development of the times, modules can also provide location service capabilities, secondary application development capabilities, and AI capabilities. expand.

The blockchain module, on the basis of the traditional module, adds a blockchain application framework, so that it has the ability to access the blockchain network.

In layman’s terms, the sensors of the terminal equipment generate data, and the traditional IoT modules transmit data, while the blockchain IoT modules add the “on-chain” operation.

What are the benefits of being on the chain?

First of all, the terminal device on the chain will have a unique ID and cannot be tampered with. This is equivalent to issuing an anti-counterfeiting ID card to the device.

Secondly, before the terminal device on the chain sends data, the blockchain module will “signature” the data and record the “hash value” on the chain (the hash value, that is, the HASH value, is obtained by encrypting the content of the file. A unique set of binary values ​​resulting from an operation). When the application side wants to extract data from the cloud, it can be compared with the “hash value” on the chain. If it is the same, it proves that the data has not been tampered with.

Take a smart meter as an example. If your smart meter is on the chain, then, first, your meter has a unique identity, other people’s meters cannot be disguised as yours, and you can’t make fake meters yourself. Second, the data generated by your home appliance cannot be tampered with.

In fact, the security protection technology of our 4G/5G communication network is still very powerful, and it is generally difficult to break through from the outside world. Therefore, attacks against the entire “terminal, pipe, and cloud” of the Internet of Things mainly focus on the terminal and the cloud.

Chip-level blockchain IoT security technology, data storage and signature are performed on the terminal-side chip, and all data transmission in the blockchain has undergone strict cryptographic processing, which fundamentally prevents data tampering. Data traceability and tracking can be achieved.

According to the 2020 Unit 42 IoT Threat Report, 98% of IoT device traffic is currently unencrypted, and 57% of IoT devices are vulnerable to moderate or high-intensity attacks. Blockchain technology adopts a unique chain structure to realize distributed data recording and storage, thus providing strict protection for terminal security and privacy.

Let’s put it this way, if IoT enables low-cost access to massive amounts of data, then blockchain enables us to trust that data at scale, efficiently, and at low cost. There is no doubt that blockchain is of great significance and role to the Internet of Things.

In addition to helping service providers prevent terminal data tampering, the more important point of blockchain IoT is to prevent service providers from tampering with data.

Speaking of which, you may ask, why do service providers tamper with their own data? As the owner of the data, is it necessary to guard against theft like this?

Indeed, the service provider is the owner of the data. However, when the data needs to be under supervision, or the service provider’s assets need to be pledged or used for financing, the accuracy and reliability of this data are very important. It is especially important to prevent service providers from tampering with data.

We still illustrate this problem with an example.

If a bicycle sharing company, all bicycles are equipped with blockchain IoT modules. Then, the number of bicycles and the daily usage data of bicycles can be uploaded to the chain. When a bike-sharing company conducts financing, the capital party can obtain the authenticity certificate of the number of bicycles and daily operation data by joining the alliance chain. Alternatively, when a bicycle-sharing company needs to apply for a mortgage-guaranteed loan through fixed assets, the bank can also obtain the authenticity certificate of the data by joining the alliance chain.

Did you all find out? Through the blockchain Internet of Things, the cost of trust between two parties and even multiple parties is greatly reduced, and the risk is also reduced, creating favorable conditions for the development of Internet of Things finance.

Previously, there was another interesting case of “cow networking”. In an animal husbandry enterprise, by installing IoT terminals on cattle and IoT monitoring equipment in cowsheds and pens, the vital signs of each cow are monitored in real time, and parameters such as body weight are collected to judge the health status and life cycle of the cattle. This measures the collateral value of the cattle.

The regulator and the capital market give the animal husbandry enterprise corresponding credit according to the credible data on the chain, and the enterprise applies for a loan with the credit. This is a typical IoT financial application scenario, isn’t it? With the blockchain Internet of Things, investors are no longer afraid of Zhangzidao’s scallops escaping!

IoT Financial Model

With the continuous advancement of “Internet of Everything”, IoT devices have entered a state of geometric growth. According to forecasts, by 2025, the number of global IoT connections will reach 25.2 billion. The growth in the number of IoT devices means an increase in the amount of data.

We all know that data is the “gold mine” of the new era. How to manage massive devices and how to mine the commercial value of massive data determines the competitiveness in the digital economy era.

Undoubtedly, the blockchain module opens up the connection between the blockchain application platform and the physical world, giving IoT devices the ability to access the blockchain and smart contracts. Based on the contract, data exchange can be realized, the exchange can generate value, and the data can be capitalized.

According to a Gartner survey, 75% of IoT technologies in the United States have adopted or plan to adopt blockchain technology by the end of 2020. This also fully proves that blockchain technology is gradually becoming the standard of the Internet of Things.

Ziguang Zhanrui Chunteng 8910DM blockchain IoT chip platform and Guanghetong L610 blockchain IoT module have chosen the most popular Cat.1 bis technology. Obviously, they hope to use the spring breeze of “new infrastructure” to make arrangements in advance Digital infrastructure core technologies to prepare for the upcoming market growth.

It is believed that in the near future, blockchain chips and modules based on NB-IoT and 5G technology will also appear in large numbers, providing a basic environment for data exchange for the “Internet of Everything”, including industrial Internet, smart agriculture, smart logistics, smart Transportation and other industry application scenarios provide security guarantees, and also create a new situation for data value mining and business model closed-loop.

The era of smart and secure digital society will be opened by blockchain and the Internet of Things!

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