- Blockchain has a massive role to play as the Internet of Things becomes one of the defining technologies of our time, and some, like IOTA, Chainlink and VeChain, are taking the lead.
- IOTA was developed with machine-to-machine communications in mind and is the industry leader, while Chainlink’s interoperability is changing the game.
The Internet of Things has emerged as one of the defining technologies of our time. Studies suggest that it could add between $5.5 trillion and $12.6 trillion to global GDP by the decade’s end. Today, there exists over 15 billion interconnected IoT devices, from smart home appliances and wearable tech to self-driving cars and industrial sensors. This number could triple by 2030, according to the latest studies.
Beyond the statistics, IoT is having a real impact on the quality of life. These devices are enhancing efficiency and automating most processes, lowering costs by reducing downtime, providing real-time data and insights for improved decision-making, offering better customer experience through personalized services and opening up new business models and economic opportunities.
While IoT is transformative, it still needs to integrate with other technologies for optimum performance security, efficiency and privacy, none more than blockchain. Today, many IoT projects rely on blockchain to secure their endpoints, verify and protect data, enhance machine-to-machine microtransactions and more.
Blockchain and IoT
The world of blockchain is expansive—today, there are over 10,000 crypto projects, and many have their own blockchain networks. However, only a few have cracked the IoT market.
IOTA leads the pack. The network was built with machine-to-machine interconnections in mind, as founder Dominik Schiener told CNF. One of IOTA’s biggest strengths is its ability to scale effortlessly to handle very high throughput through its Tangle technology. With over 80 billion IoT endpoints this year, only a blockchain technology that scales massively can handle the workload. While some networks like Bitcoin handle some functions, like storing value extremely well, they are not equipped for these scaling demands.
Additionally, IOTA offers feeless transactions, and with trillions of messages expected to be sent between IoT devices daily by 2030, it would cost an astronomical amount to pay for each transaction. IOTA’s decentralization, low resource requirements and data integrity also make it uniquely positioned to handle IoT.
Chainlink is another blockchain network that’s making its mark in IoT. One of Chainlink’s biggest strengths is its interoperability solutions. Today, CCIP is the world’s premier blockchain interoperability solution and connects dozens of the top networks, with new apps integrating it every other day. Additionally, Chainlink’s decentralized oracles connect blockchains to off-chain data, which includes data generated by IoT devices. Essentially, blockchain and IoT integration is almost impossible with Chainlink.
VeChain is also emerging as an important player in blockchain-IoT integration, and has been accruing important patents for the sector, as we reported.
