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Blockchain & IoT Integration: Where we are Headed

The Internet of Things is already surrounding us everywhere we go. Whether it’s a bank or a retail store that we’re visiting, we will likely encounter dozens of devices connected to the internet...

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The Internet of Things is already surrounding us everywhere we go. Whether it’s a bank or a retail store that we’re visiting, we will likely encounter dozens of devices connected to the internet, serving a specific purpose with the help of the sea of information accessed through it.

As much as the IoT has grown, so did blockchain technology and the cryptocurrencies powered by it. The number of merchants accepting crypto as payment for goods and services has increased dramatically in recent years, making decentralized tokens more of a utility than a volatile financial instrument.

Even more recently, DeFi projects started trying to bridge the gap between centralized data and on-chain data through entities called oracles that help us connect chains to external systems and gather real-world, off-chain data.

So far, blockchain oracles have helped produce valid prediction markets where outcomes data can arrive on a blockchain in real-time and finalize agreements between a large number of participants.

While features like oracles have indeed made blockchain and traditional data more interconnected, there are benefits to IoT that no server-based service can provide. One of those benefits is security.


The Ledger hardware wallet is likely the best-known IoT device in the world of cryptocurrency. There is no online wallet more secure than a portable, USB-connected device available to you at all times. Moreover, the latest versions of Ledger have enabled staking, crypto exchange & swaps with over 5,500 assets, and general funds management.

In general, purpose-built hardware can oftentimes out-compete general-purpose devices in specific operations. For example, some such devices have been designed to maximize efficiency in encryption, which is a critical part of blockchain as well.

Supply Chain Management

Blockchain technology combined with hardware can be an optimal solution for verification of real-world objects and their physical state.

Since blockchains are based on node validation where participants verify each other’s transactions, a given organization might be able to track a large number of things in real time, such as distance traveled, temperature in which products are being kept, physical conditions, and more.

The data stored on the blockchain is of the immutable type, thus it cannot be tampered with after a transaction is completed. This creates quite a secure and transparent environment for local and global trade.

Energy & Vehicles

Like other parameters that can be kept track of on the blockchain, energy production and consumption fall into the category of activities the fruits of which can have their representative data managed in a decentralized fashion.

One will often find transportation next to energy, therefore vehicles can also have blockchain implemented for specific purposes.

Imagine you’re out of gas in the middle of your trip.

What if other drivers on the road could share their gas/electricity if you sent a crypto-based micropayment from your car to their car?

This might seem like a concept taken from the depths of a science fiction novel, but IoT and blockchain combined indeed could enable such phenomena.

The incredible transaction finalization speeds today’s leading layer-1 blockchains achieve can add to node/entity validation on-chain, as well as to the security that comes with the merger between blockchain and IoT.

Moving Forward

To conclude, it would be safe to say that there is no more advanced system for verification of physical and digital objects than blockchain today.

The inherent, fundamentally decentralized nature of portable hardware devices, when joined with blockchain, can serve even the most influential industries at scale.

The process of making IoT-blockchain systems compliant and easily implementable across different sectors will not be a simple task, but it is satisfying to see a series of Web3 projects working on these problems and making visible progress.

Some of the best examples of IoT-blockchain startups are:

  • Helium. This decentralized machine network allows to connect low-power devices to the internet and mine its native HNT tokens
  • Chronicled. A supply chain project building end-to-end solutions for logistics by implementing IoT devices into shipping containers. This provides real-time updates on shipping statuses.
  • HYPR. A security-focused IoT-blockchain project offering data protection and storage in a decentralized fashion. Allows connections to ATMs, cards, locks, houses, and more.


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