Companies are heavily investing in IoT and Blockchain. The integration between the two technologies is booming among enterprises in the US.
The latest report from Gartner has revealed that 75% of enterprises have already implemented IoT to pair it with Blockchain, or plan to do so within 2020. Moreover, the research firm added that by 2022, the number would increase to 89%, indicating that organizations with substantial investment in IoT see the value of using Blockchain to improve IoT security and reliability.
As per the report, 94% of companies with mature IoT implementations plan to connect their IoT with Blockchain. Gartner defines IoT implementations as companies using KPIs and centers of excellence in their IoT systems. Gartner VP Avivah Litan stated that the integration of IoT and Blockchain networks is moving ahead at a much faster pace than expected.
One of the main reasons companies are connecting IoT and Blockchain is the rise in security and trust in shared multiparty transactions and data, the report found. Connecting IoT sensors and devices with Blockchain allows an immutable audit trail of crucial IoT data and related business events. This data can be shared across multiple participants and can be verified by each party independently.
Another solid reason is the ability of Blockchain-connected IoT devices and sensors to save organizations money. Blockchains allow the use of decentralized applications that work across business platforms, support smart contracts, and enable automation that can speed up processes from the factory to retail. A rise in the revenue, new business opportunities, and improved participant experience are some of the other reasons cited for IoT and Blockchain integration.
The research firm offered some important recommendations for businesses that have or are planning to implement IoT and Blockchain integration. Integrating the two technologies is best suited to increase trust and security in shared multiparty transactions and to automate processes across network participants.
The report concludes saying that IoT and Blockchain integration is still an emerging technology. If companies are looking forward to implementing it make sure that the immaturity and fast rate of change in both fields will not create problems.