Corporate Finance, DeFi, Blockchain, Web3 News
Corporate Finance, Fintech, DeFi, Blockchain, Web 3 News

Combining Blockchain and IoT

The internet of things (IoT) is one of prevalent factor in the growth of technology markets such as smart cities, Industry 4.0 ect.

Sensors and remotely controlled systems are becoming a standard for every industry. IoT interconnects devices and objects to create a physical network in which sensing, processing, and communication processes are automatically controlled and managed without human intervention. All these data collected from sensors are core to the business model of all industries.

Data is a sensitive and a capital element. Its control is a major issue for any company. The quality of the data collected lead industry manager to important decisions and it is essential that these data are reliable and qualified. IoT have strong needs in terms of data security, history and interoperability.

The blockchain has become famous for its ability to secure cryptocurrency transactions.

Blockchain technology is nowadays not only used for cryptocurrencies but also to secure and qualify all kinds of data. By adding a layer of security via a chain associated with the identity of the connected object, making it resistant to hacking attempts Blockchain has emerge as an essential elements to secure the internet of things. This identification chain, characteristic of the blockchain, allows connected objects to receive commands, transact and to communicate with each other, in a secure manner. Indeed, the blockchain allows objects to interact with each other without having to communicate via a third party, thus limiting the outflow of information or potential attacks from outside.

Facing the security Issue

Current IoT architectures are centralized, complex, with security issues in its communications and data transfer.Information is sent from the device to the cloud where the data is processed using analytics and then sent back to the IoT devices. With billions of devices set to join IoT networks in the coming years, this type of centralized system has very limited scalability, exposes billions of weak points that compromise network security and will become incredibly expensive and slow if third-parties have to constantly check and authenticate each and every micro-transaction between devices. Blockchain is this missing link to settle security, immutability, and reliability concerns in the Internet of Things. It can be used in tracking thousands of connected devices, enable the processing of transactions and coordination between devices. This decentralized approach eliminate single points of failure, creating a more resilient ecosystem for devices to run on. Information is securely shared across a decentralized, cryptographically secured network, meaning it becomes very difficult to compromise the all system.

Connecting the Physical world and the Digital World through Tokenisation

Blockchain technology plays a fundamental role in the process of Digital Transformation. As a trust protocol, blockchain can be seen as the bride between the physical world and the digital world. With its features of trust, security distribution and value, blockchain makes it possible to identify and connect physical objects and their digital representation.

This is made possible with the concept of tokenization. In simple terms, a token is the digital representation of an asset on the Blockchain. This asset can be both digital or physical as well as tangible or intangible. A Token is not related to a Cryptocurrency and is often compared to a security document. From a technical point of view a Token is a Smart Contract on a Blockchain.

There are two types of Tokens :
• Security Tokens : tokenization of shares of a company to carry out a capital increase
• Utility Tokens: these are digital tokens giving access to a service by a company. Their price changes over time based on supply and demand, reflecting the value of the service in question.

Tokenisation of assets goes well beyond a simple means of financing. New projects can create their own economic ecosystems, through the establishment of a decentralized organizational model. In this model there is no company or central authority and the ownership is distributed among all those who own the tokens. This offers a new world of possibilities for new project in many industries.

Combining Tokenisation and IoT will allow the monetization and trading of IoT data. Data collected by IoT represents a very high value, and they can publicly offered for sale. Energy data (energy produced by solar panel for example) can be offered and payed trough tokens. The Blockchain technology can allow then to have a local energy marketplace between prosumers (that produce energy with their solar panel) and the electricity network to resell the energy produced or spent it on services like EV charging for example.

Combining Blockchain and IoT
Digital tokens are expanding and democratizing. Institutional investors, who were reluctant to invest in crypto-assets for years, have adopted security.

Likewise, innovative SMEs and large groups are developing projects based on the issuance of tokens to develop new project with new financing methods and Business models.

This is the challenge that Kalima Systems has taken up since 2012 by putting its blockchain technology at the service of Internet of Things to meet the needs of industrial requirements.

Kalima Systems has developed a unique approach using blockchain for the IoT securing end-to-end IoT data transmissions and providing new tools to monetize these IoT data with a mobile payment application and a tokenization platform.

Lundi 26 Avril 2021