IoT adoption isn’t matching the pace of its growth
A new Gartner report predicts an increase in human-centric technologies like the Internet of Things (IoT), 4D-printing and connected devices and self-healing systems.
Blockchain and IoT platforms have crossed the peak in growth and will likely reach maturity in the next 5-10 years. There’s no questioning, says Xin Song of Bottos, that we are in the age of the Internet of Things.
Both consumers and businesses are fascinated by IoT products on the market. These products have sensors that allow for quick communication over the Internet, with other devices or with the Cloud. In just a few short years, these products have become standard, and the expectations for these products will only continue to rise.
As these technologies advance, one of the biggest obstacles to innovation is data. The cost to access and utilise data is surmountable – and for smaller start-ups, can be a huge barrier to entry.
A handful of companies are creating decentralised public blockchains for AI and IoT that include DApps that serve as global data marketplaces. These marketplaces will bring together data providers, data requesters and data service providers. Companies can post requests for data or offer their own datasets. A token-based economy and smart contracts make transactions simple and fast.
Utilising a centralised model to scale up IoT solutions can be cost-prohibitive. Centralised clouds, server farms and networking equipment can be extremely expensive. By some estimates, a decentralised P2P marketplace can reduce data costs by as much as 30%. These marketplaces are growing IoT as they are increasing the availability of needed data.
Key technologies like speech recognition, video analytics and facial recognition also play a role in the acceleration of IoT. These tools are creating new IoT applications – for example, researchers can watch shoppers browse the aisles of a store and look through merchandise, then evaluate customer demographics and patterns.
Given the hype around new technologies and new possibilities within IoT, the adoption of IoT is slower than expected. Why is this so?
IoT integrations take work, and it’s not easy to understand the mind of a consumer. Some are willing to spend hundreds of dollars on the newest Alexa but won’t spend a penny on a smart lightbulb. Unsurprisingly, the giant tech companies that make adoption of IoT easy are the ones who have no issue selling their products. For IoT adoption to increase, companies need to understand the market needs that can be solved with the Internet of Things.
According to a recent Bain & Company report, 45% of Internet of Things buyers say, “concerns about security remain a significant barrier and are hindering the adoption of IoT devices.” A solution every company should consider for their IoT projects is blockchain technology. Blockchain provides immutability, decentralisation and transparent data sharing, an advantage for those looking for a cyber security solution.
Utilising blockchain technology also helps from an operational standpoint. It improves the management and sharing of computing resources. With IoT, it is necessary to equip discrete computing resources, such as edge computing and fog computing, with more extensive and reliable management networks. Blockchain can create a shared, transparent, tradable computing environment to organise these resources.
Gartner expects to see 20 billion internet-connected things by 2020. By then, IoT will have had a huge impact on the global economy. Now, the industry’s focus needs to move to IoT adoption. If IoT adoption cannot match the pace of its growth, many companies will be left behind.
The author of this blog is Xin Song, the co-founder and CEO of Bottos, a public blockchain for AI and IoT.
About the author
Xin works with the Bottos team to drive innovation in artificial intelligence, ultimately creating a new decentralised AI ecosystem. He has 13 years of experience in investment, strategy and restructuring of enterprise digitisation.