Monetizing IoT Data with Blockchain

IoT Data

“Data is the most important asset class of current generation”. In Internet of Things (IoT) era, with increasing device proliferation in hyper-connected world, humongous collection of sensor data can facilitate the conversion of incredible ideas into value-adding services. In creating value with data explosion, Blockchain Technologies can play a critical role creating a peer-to-peer marketplace providing IoT sensor owners an opportunity to monetize data and simultaneously enable data consumers with a decentralized market to buy IoT sensor data.

According to Allied Market Research (AMR), the global market of sensors is poised to grow with a compound annual growth rate (CAGR) of 11.3 percent until 2022 when the market would reach $241 billion. The data resulting from such vast reach of IoT sensors is for the primary usage of the sensor owner or it is enhanced with value-added insights and reselling. In both the scenarios of either for primary usage or for enrichment and re-sale, the data remains unacceptably under-utilized and the utility if hindered away in organizational silos. Blockchain can provide a marketplace for IoT sensor data connecting data owners with 3rd party data consumers directly by externalizing the data outside primary silos.

The upside potential arrives from expected growth of todays 10+ billion sensors deployed globally to reach 40+ billion by 2020. Blockchain technology can help monetizing data by creating a marketplace offering a fully built financial ecosystem with a very minimal fees compared to a traditional fiat payment processors who typically charge between 1 and 3% for transactions. Also with creation of data utility tokens offers possibility to use small fractions of the token combined with very low fees making micro-transactions feasible. As well decentralization with blochchain backbone enables a very large numbers of participants in a trustless environment transacting with each other.

As shown in the picture above, a perfect ecosystems can be built for monetizing IoT data with Blockchain technology backbone. The players include sensor owners, data lakes gets created, network providers, blockchian data broker framework, data processers/enrichers, and data consumers / buyers. Sensor owners get an opportunity to monetize their data recovering some of their investments in IoT sensors. Network operators can win-back their enterprise accounts gaining scale and speed in the adoption of their network. This creates new types of buyers offering ease of access to data. Alongside data processors gain an eco-system to sell their services to the right people.

The use cases for such monetization of IoT data can be numerous covering multiple industries. A few examples of described below.

Use case

Trends in Edge computing – Ease & secure access of Industrial data

computing-edge-default-logo-450x198

In IIoT ecosystem, IT and OT meet at the edge. The edge is where data is sampled and collected from the environment by instrumented things or devices. Edge-Centric Architectures extend elastic compute, networking and storage across the cloud through to the edge of the network. The following are few of the trends for maintaining security and uptime with edge computing while streaming data securely.

  • Cloud offloading to address communication latency: Handling more processing at the network’s edge reduces latency from the device’s actions. Use cases that are highly time-sensitive and require immediate analysis of, or response to, the collected sensor data are, in general, unfeasible under cloud- centric IoT architectures, especially if the data are sent over long distances.
  • Encryption on endpoint to safeguard data security: By and large, sensitive and business-critical operational data are safer when encrypted adequately on the endpoint level. Unintelligent devices transmitting frequent and badly secured payloads to the cloud are generally more vulnerable to hacking and interception by unauthorized parties. Additionally, many enterprises may need to secure and control their machine data on the edge level for compliance reasons.
  • Sensor fusion: Combining data from different sources can improve accuracy. Data from two sensors is better than data from one. Data from lots of sensors is even better.
  • Sensor hubs: Developers increasingly experimenting with sensor hubs for industrial internet devices, which will be used to offload tasks from the application processor, cutting down on power consumption and improving battery life in the devices.
  • Analytics on the Edge leading to low cost-of-ownership and secured data: Reduce potentially huge cloud-computing costs (because of the sheer volume of 24/7 sensor data) by allowing “fog computing,” where the processing would be done right at the collection process combining real time analytics, with only the small amount of really relevant data being passed on to a central location.
  • Gateway-mediated edge connectivity and management architecture pattern: As the widespread acceptance of modern, open-field protocol standards has reduced the need for traditional gateways in the field, the IIoT has created a need for a new breed of intelligent gateways that unlock the full potential of interoperability among diverse real-world devices and industrial Internet systems

Top Trends in IoT for Smart Manufacturing

smartmanufacturing

IoT is taking smart manufacturing a step forward enabling demand-driven ‘smart supply chains’. IoT systems are being built on top of a solid technology platform including cloud, analytics, big data and mobile. But to fully implement IoT systems for smart manufacturing, businesses need to establish an integrated fabric of devices, data, connections, processes and people. I was part of a panel discussion in identifying top IoT trends for smart manufacturing. You can download he outcome of panel discussion below.

http://info.convetit.com/hubfs/Top_4_Trends_in_IoT_for_Smart_Manufacturing.pdf