The Internet of Things (IoT), the mammoth ecosystem of connected smart devices and people, may have had its beginnings in Ashton’s conceptual science fiction where the world was attached to the Internet via ubiquitous sensors.
But today, this constantly growing and consolidating network of smart objects has achieved physical reality less than 20 years after the idea was first coined. Expressed chiefly by machine-to-machine (M2M) communication, it is predicted that up to 30 billion devices will form the base of IoT by 2020.
This year alone, research firm Gartner estimates that 8.4 billion connected things will be in use globally, with total spending on endpoints and services to reach almost $2 trillion.
As the global economy enters the Fourth Industrial Revolution, there is much expectation on the core technologies of ICBM (IoT, Cloud, Big Data and Mobile) to deliver. IoT’s key contribution to economic value is its perceived efficiency and convenience to users, in an M2M market that Machina Research believes will expand from $4.5 billion in 2014 to $29 billion in 2024.
If everything is connected, is everything also then vulnerable?
Because of IoT’s simplicity in deployment, security is often neglected, despite being a critical element of deployment.
As unrelated objects and devices connect to the Internet to provide a variety of services, they share in existing threats and frightening vulnerabilities, such as those recently discovered in a wide range of IoT devices, including baby monitors, smart cars and even wearables.
From simple invasion of privacy to potentially life-threatening repercussions, it has become clear that IoT security will need to be addressed, eliminating distrust and security threats that come with the convenience of the Internet.
Can Blockchain innovation provide that safety?
For a “hyper-connected society” based around the IoT, it is proposed that a trusted peer-to-peer (P2P) network system must exist, secured by trusted contracts that govern operations between IoT devices.
The distributed nature of blockchain technology draws comparisons with the interconnected structure of IoT.
When merging blockchain capabilities with IoT, it will be easier to achieve confidentiality and integrity of information, critical to ensuring reliable connections and securing processes between devices. Blockchain’s more robust makeup allows the network to better guard against fabrication and modification attacks, while enhancing the trust between parties in communication.
The key is blockchain’s sophisticated cryptographic security, with highly-complex mathematical encryptions making it economically unviable to crack even with quantum computing. Its decentralized nature would also make it difficult for would-be hackers to pinpoint a target for attack, minimizing the impact of individual attacks on IoT devices.
Hdac and transaction innovation: bringing blockchain to the IoT
Next-generation digital service platform Hdac is one of the forerunners in providing and merging blockchain innovations with the IoT. The Hyundai-backed project is working on a practical application of this concept, in the shape of an ultra-advanced micro-payment system.
Partnering with other South Korean-based innovation start-ups including Doublechain, HyundaiPay, and DEXKO, Hdac is developing a new platform based on Multichain, capable of handling the scale and contract functionality required for an IoT platform, as well as bridges to the Bitcoin and Ethereum networks to facilitate payments.
Learning lessons from the blockchain industry, Hdac differentiates from other platforms in terms of efficiency, security, functionality and speed with modifications and optimizations featuring:
– P2P and dispersion structure distributing targets. If distributed computing development is limited in private blockchains, the network can be solved through a “safe IP” tool.
– a trust-based network sharing transparent transaction details of participants and storing them reliably.
– immutability of information validated by each network participant, guaranteeing integrity against counterfeit and falsification attacks.
– authentication and authorization procedures of principal IoT devices.
– decentralization, resulting in efficient allocation of resources and lowered construction costs
A total currency issuance on the Hdac blockchain has been determined at 12 billion DAC, with a first block reward of 5,000 DAC before halving every 840,000 blocks. Block generation cycles are set at 3.5 minutes, resulting in an approximate halving time of 58 months. 10% of DAC generated has been set aside for participants contributing to the Hdac Foundation during a presale and Token Generation Event (TGE) launched recently.
If successful, Hdac will be a future-proof payment system connected to the IoT through a trust-based blockchain network, enabling IoT devices to make payments on behalf of humans. At the same time, IoT devices powered by Hdac will mean more actionable data to improve human lives, businesses and governments.
Talk to the Hdac team in their Telegram channel at https://t.me/HDAC_TGE