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

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Technology in today’s world is advancing at a breakneck speed. New technology advancements and improvements have made it feasible to create new synergies within an existing framework. Blockchain technology, which has astounded people all over the world with its efficiency, has made it feasible to fantasise about a decentralized unit. Similarly, the Internet of Things (IoT) has been rapidly gaining traction. Independent gadgets will be able to connect to the internet with the aid of IoT. This synchronisation will aid in the creation of intelligent gadgets capable of doing tasks without the need for human intervention. But what happens if IoT and Blockchain are combined? It sounds like something out of a science fiction novel. IoT and Blockchain, on the other hand, appear to be a natural fit. In this essay, we’ll look at how the Internet of Things will affect the future of Blockchain technology and why no one has yet succeeded in implementing IoT on the blockchain architecture.

IoT– A significant jump towards the future

IoT is based on the concept where wirelessly connected sensors are embedded in almost any commonly used devices such as refrigerators, auto-parts, washing machines and even dog collars. This means everything can be tracked, its inventory managed and can be made accessible through a continuous stream of signals. This constant flow of interacting devices will help the businesses to move away from the product-oriented theme to the service-oriented theme. But it also brings us to one important issue to address. According to estimates, there will be around 10 million inter-connected devices and objects in the next four years. This will create a huge amount of tracking to identify those things and also verify who owns them, authenticate their interaction with other things in the interloop.

How will IoT influence the landscape of Blockchain technology in the future?

Many reputed organizations such as IBM have already started testing and experimenting with the applicability and future potential uses for the blockchain network and the Internet of Things (IoT)

For integrating the blockchain network with the IoT, developers must ensure that they treat every individual device as a unique user of the blockchain. Therefore, every vital piece of information that gets transmitted from the IoT device is processed by the Blockchain network as a transaction.

In theory, this system does sound feasible, however, this is only possible if the size and the transmission of the messages are limited. Commercial deployment of blockchain-based businesses will take some time as the blockchain-based IoT network has to be upgraded significantly in order to serve many users.

Why is it still a long shot solution?

One of the main problems the blockchain network is facing these days is the scalability factor. To increase the scalability, optimizing the chain will help a bit but for mainstream market applications one must boost up the transaction processing speed which will affect other applications connected to the chain as well.

At present, only the Ethereum network has more flexibility than other networks such as bitcoin, which can process only six transactions per second. To make a jump from six transactions per second to hundreds of thousands of transactions per second is definitely unrealistic.

In order to handle this, an unprecedented scalability solution must be implemented. Plasma, an Ethereum scaling solution, could become a practical solution to the severe scalability issues of blockchain networks. It uses multiple blockchain networks that are interconnected with each other, and several aspects of transactions are kept confidential through the usage of ZK-SNARKs 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 like Plasma or Lightning Network, it is still out of the question for a blockchain to handle hundreds of thousands of data points per second. IBM  is currently focused on developing centralized blockchain networks. With the implementation of permission blockchain networks, there is a definite trade-off between security and flexibility. Nevertheless, this will assist in the successful implementation of blockchain technology with IoT in the near future.


Currently, permission blockchain networks are the only realistic solution in terms of scalability and there are a few organizations that specialize in designing permissioned Blockchain networks. Brugu is one of the few reputed organizations apart from brugu which has successfully created permission private blockchain networks for numerous clients. The conglomeration of IoT and Blockchain can do wonders for the business. If you have any further queries regarding the Blockchain network, please visit Brugu

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