By 2020, the Internet of Things (IoT) will be connected to 26 billion units and that doesn’t include PCs, tablets and smartphones, estimates American research consultancy Gartner Group.
The global IoT sector market will be worth $3 trillion in 2020 and, says Gartner, by 2025 this figure could have jumped to more than $6 trillion with significant portions of that sitting in health care and manufacturing. Much of this technology, writes Red Herring, will sit on blockchains.
Privacy and security issues are serious concerns for IoT. As so-called smart devices gather more data and information, the danger is this data could be manipulated or falsified. The hope is that blockchain, by becoming the backbone to IoT interactions, will create a secure, independent and democratized platform where no single person has the capacity to hold, manipulate or delete records.
As this convergence between IoT and blockchain strengthens, writes Red Herring, it might bring about “enforceable commercial relationships between devices and humans.”