The important trends that are prompting smart home industry leaders trying out blockchain technology have been identified in a new report from Navigant Research.
There is a growing concern about data security and protection because of a number of high-profile customer data hacks and security breaches. Cybersecurity and interoperability is amongst the biggest challenge for the industry because of the growth of the number of connected Internet of Things (IoT) devices and the further penetration of the smart home services into the consumer household.
With this growth of the IoT technology and the smart home devices market, a number of companies in the smart home industry is experimenting with blockchain and distributed ledger technologies in order to create a common platform that would be able to support smart devices while enhancing data security at the same time.
“Blockchain technology can enhance the smart home customer experience, but crucial questions need to be addressed before consumers welcome blockchain into their homes,” says Johnathon de Villier, research analyst with Navigant Research. “Concrete pilot and demonstration projects will be needed to evaluate blockchain-based platforms in smart homes, specifically in terms of their scalability, interoperability, and deployment.”
The report notes that it is imperative for the smart home industry to obtain a clear and complete understanding of the blockchain technology and the implication of it on data security. Companies in this industry require to be agnostic about technology and follow exploratory agreement to enhance cybersecurity for this nascent technology so that they are able to integrate the innovations securely.
The report is titled ‘Smart Home Service Providers Are Testing the Waters with Blockchain’ and it explains the key trends in this industry with respect to blockchain technology.
The report identifies and stresses on the issues in the smart home services market where blockchain architectures or blockchain-based platforms can increase the effectiveness of the services. The report also highlights some of the most important roadblocks which includes issues with scalability of the existing technologies. These roadblocks are likely to hamper the adoption and expansion of blockchain technology in the market. the report also provides some recommendations about the manner in which the promises of blockchain can be best explores for benefit of the stakeholders in the smart home and IoT industries.
(Adapted from Businesswire.com)