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Author: Tim Kravchunovsky, Founder & CEO at Chirp
Since the inception of the Internet of Things (IoT) concept, its popularity has ebbed and waned. After a long inception phase, IoT went through a huge popularity boom in the 2010s, only to experience somewhat of an anticlimax amid challenges like security, interoperability and data privacy. However, today, innovations like AI and the emergence of new technologies like blockchain are fuelling a renaissance of this sector.
The idea of IoT dates back to the 1980s. However, the term “Internet of Things” wasn’t coined until 1999 – the very height of the dot com boom – when British technologist Kevin Ashton first introduced the concept of “things” being connected to the Internet. Working at Procter & Gamble at the time, Ashton touted IoT as a solution for more effective supply-chain management.
The IoT boom
Yet it wasn’t until after the turn of the millennium, when internet technology became more widespread, that IoT took off. Improvements in wireless connectivity, like 4G and LTE, as well as the expansion of cloud computing, allowed virtually any device to be connected to the World Wide Web.
Tech giants like Amazon and Google started investing in IoT, much like they are doing with artificial intelligence today. In 2014, Google made a major foray into the IoT sector with the $3.2 billion acquisition of Nest Labs – a maker of smart thermostats and smoke detectors. Microsoft launched Azure IoT Suite, Amazon introduced AWS IoT Core, and industry leaders like GE and Siemens made their major investments.
But, like many innovative technologies that capture the public imagination, IoT expectations outpaced reality. The sector faced certain significant hurdles, which caused growth – and investment – to slow significantly in the late 2010s.
Challenges and hurdles
One of these problems was the lack of interoperability between devices created by different manufacturers, with little standardisation present in the industry. On top of this, IoT devices faced security attacks and breaches. Take the famous Mirai botnet attack in 2016, which affected millions of IoT devices. And, of course, growth expectations simply didn’t match reality.
Many of these issues remain a concern today. The IoT space is still highly fragmented, with many connectivity standards competing for the dominant spot – LoRaWAN, cellular, and Bluetooth. Security issues also remain unsolved. This year’s Bitdefender report found that more than 10 attacks against home IoT devices happen every 24 hours.
Yet it also found that the average household has as many as 21 internet-connected devices. So, far from disappearing into non-existence, it seems IoT has quietly revolutionised our daily lives – even if corporations like Google didn’t see the return on investment they had hoped for. And now, new technologies like AI and blockchain are, in turn, ready to revolutionise the IoT sector and solve the challenges that have plagued it since its inception.
A blockchain-powered era
For example, blockchain and AI can help solve the interoperability dilemma. Instead of creating one dominant connectivity standard, blockchain can act as a universal protocol for all types of networks and devices, connecting disparate technologies and industries. AI’s role would then be to dynamically translate and interpret data across various devices and platforms, quickly.
Blockchain also facilitates more secure data storage via decentralised solutions, helping to protect IoT networks from hacks and exploits, while AI tools can be used to monitor networks for attacks and ensure a swift response. Swapping centralised servers for local infrastructure can also help protect data privacy for individuals and organisations.
Decentralisation isn’t just about the technical aspect, though. The entire approach of blockchain-based networks is very different from that of tech giants like Microsoft and Google. Decentralised networks are primarily focused on community rather than profit. By distributing the network across multiple nodes, a decentralised approach ensures profits are shared by the individuals who own these devices. This introduces sustainability and equity into the IoT ecosystem, while also ensuring that progress won’t be stunted just because the ROI isn’t hitting sky-high targets.
It will be exciting to see what digital innovations will spring from this enhanced IoT technology. With the help of AI and blockchain, IoT is about to have another day in the sun, powering a transformative digital future for businesses and individuals alike.
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