Daily Management Review

Cisco & Bosch In A new Consortium To Use Blockchain Technology For Improving IoT Security


Companies see “tremendous potential for the application of blockchain”.

Cisco & Bosch In A new Consortium To Use Blockchain Technology For Improving IoT Security
Anna Irrera reports to Reuters that several companies including Bosch Ltd and Cisco Systems Inc have formed a consortium for working together to explore the ways to secure the usage of blockchain technology for improving IoT applications in the attempts of the sectors “beyond finance” who are seeking to reap the “benefit from bitcoin’s underlying technology”.
The above mentioned conglomeration also involves “Bank of New York Mellon Corp (BK.N), Foxconn Technology Group, security company Gemalto and blockchain startups Consensus Systems (ConsenSys), BitSE and Chronicled Inc”, whereby the group informed that the entire collaboration will “develop a shared blockchain protocol for the internet of things”, which bases itself on the concept of joining everyday objects like washing machines or shipping container through the internet, enabling them to “send and receive data”.
Even though there are some consumer and business advantages to have “more devices” linked through the net, it proportionately increases the threat of the information thus circulated being hacked more easily.
On the other hand, blockchain turns out to be “tamper-proof distributed record of transactions” preserved by a computer network on the net, while its advanced cryptography adds to its security. Irrera writes:
“Proponents of the nascent technology believe it could be used to provide additional security and better identity management features to internet of things applications”.
In the words of the Bosch Software Innovations’ Chief Alliance Officer, Dirk Slama:
“We are seeing tremendous potential for the application of blockchain in industrial use cases. Being able to create a tamperproof history of how products are manufactured, moved and maintained in complex value networks with many stakeholders is a critical capability ...”
The above mentioned consortium is one among several collaborative ventures undertaken by “large companies” for developing the blockchain technology further. The “startup R3 CEV” runs a blockchain consortium wherein almost forty banks have taken part as members. Similarly, Hitachi Ltd. and IBM Corp. are in another consortium that is “led by the Linux Foundation”. Companies from various sectors have got together to explore the said technology while some “financial forms” seem to be ahead in the race as their recent announcement reveals their plans of deploying “new blockchain systems this year”.
The new IoT consortium is a testimony which gives a glimpse into the “bigger moves in blockchain this year” taken up by various companies. Gemalto’s Product Strategy Director, Joe Pindar, said:
“Securing identity for physical property and packaging is going to be a big business opportunity over the next decade, high value parts of logistics supply chains and regulated industries like energy, pharmaceuticals, and cold chain could all see a blockchain component over the next decade”.
Irrera concluded:
“As investment into blockchain continues to grow, skeptics have warned that the technology may be hyped and that it may take several years before companies can reap its benefits”.