How the Internet of Things Will Affect The Future Of Blockchain Technology?

Technology is advancing at breakneck speed in today’s world. New technological advances and improvements have made it possible to create new synergies within an existing framework. Blockchain technology, which has stunned people around the world with its efficiency, has made it possible to dream of a decentralised entity. The Internet of Things (IoT) is also on the rise. With the help of IoT, independent devices can be connected to the Internet. This synchronisation will help create smart devices capable of performing tasks without human intervention. But what happens when IoT and blockchain are combined? It sounds like something out of a science fiction novel. However, IoT and Blockchain seem to be a natural combination. In this paper, we explore how IoT will impact the future of blockchain technology and why no one has yet managed to implement IoT on blockchain architecture.

IoT – a great leap into the future

The IoT is based on a concept where wirelessly connected sensors are built into almost every common appliance, such as refrigerators, car parts, washing machines and even dog collars. This means that everything can be tracked, its inventory managed and accessed through a continuous stream of signals. This constant stream of interacting devices will help companies move from being product-centric to service-centric. But this also brings us to an important problem that we need to address. It is estimated that there will be about 10 million interconnected devices and objects in the next four years. This will create a huge tracking effort to identify these things and also verify who owns them and authenticate their interaction with other things in the interloop.

How will the IoT impact the landscape of blockchain technology in the future?

Many renowned organizations, such as IBM, have already begun testing and experimenting with the applicability and future uses of the blockchain network and the Internet of Things (IoT)

To integrate the blockchain network into the IoT, developers must ensure that they treat each device as a unique user of the blockchain. Therefore, any important information transmitted by an IoT device will be processed by the blockchain network as a transaction.

In theory, this system sounds feasible, but this is only possible if the size and transmission of messages are limited. Commercial adoption of blockchain-based businesses will take some time, as the blockchain-based IoT network will need to be significantly upgraded to serve many users.

Why is it still a far-fetched solution?

One of the main issues facing the blockchain network today is the scalability factor. To increase scalability, optimizing the chain helps a bit, but for mainstream market applications, you need to increase the transaction processing speed, which also affects other applications connected to the chain.

Currently, only the Ethereum network has more flexibility than other networks like Bitcoin, which can only process six transactions per second. Jumping from six transactions per second to hundreds of thousands of transactions per second is definitely unrealistic.

To handle this, an unprecedented scalability solution needs to be implemented. Plasma, an Ethereum scaling solution, could be a practical solution to the severe scalability problems of blockchain networks. It uses multiple blockchain networks that are interconnected, and various aspects of transactions are kept confidential by using ZK-SNARK’s cryptographic system. This reduces the size of transactions and ultimately increases the capacity of the blockchain.

However, even with side chains and second-layer solutions such as Plasma or Lightning Network, it is not yet possible for a blockchain to process hundreds of thousands of data points per second. IBM is currently focusing on the development of central blockchain networks. There is a clear trade-off between security and flexibility when implementing permission blockchain networks. Nevertheless, this will help blockchain technology to be successfully deployed in the IoT in the near future.


Currently, permission blockchain networks are the only realistic solution in terms of scalability, and there are few organizations that specialize in developing permission blockchain networks. Brugu, along with brugu, is one of the few reputable organizations that has successfully created permission private blockchain networks for numerous customers. The interaction of IoT and Blockchain can do wonders for business. If you have more questions about blockchain network, please visit brugu

Brugu Written by:

Brugu team contributes the time on blockchain research to gain knowledge and maintains consistency in implementing the best practices on development of software".The team develops decentralized business applications and blockchain technology integrated business solutions to transform and improve traditional business processes. Every obstacle to start blockchain business has to be abolished if we want to build a better and brighter business growth.

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