Internet of Things (IoT) devices’ uses are growing tremendously in our daily lives and business. Global IoT connections are expected to grow to 27 billion by 2025. Today’s IoT businesses mainly run on the Web2 means they are centralized and are governed by a particular organization or firm. These organizations use collected data to maximize their business’s value.
Web3 arrival can fundamentally change the working of the IoT business. The world is embracing Web3 and other disruptive technologies like blockchain, AI, and IoT. Are Web3 and IoT different, or do they enhance one another? One common belief is that IoT is web3 technology and encourages the growth of new web3 landscapes.
Major business players need clarification about using Web3 and IoT in their business as several significant players are exploring Web3 for their business growth. Web3 offers a transparent and open environment for app development.
Web3-based applications guarantee ownership and decentralization. Web3 uses distributed, community-driven networks to restore user control over their data. This shift in perspective opens up exciting opportunities for Web 2.0 IoT businesses to reimagine their value propositions and customer engagement methods.
This article will cover the following topics: the Internet of Things (IoT), web3, and the digital transformation that web3 in IoT can bring to the IoT industry.
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What is Web3?
Web3 refers to the Internet’s third iteration. It is a platform that uses crypto, blockchain, and NFTs to put the reins of ownership back in the hands of the users. Web2 was read/write; eventually, Web3 will be read/write/own. Web1 was read-only.
Web3’s Core ideas
- Creators and consumers alike share equal ownership of Web3.
- Access to Web3 is universal and free.
- Web3 uses cryptocurrency.
- It functions on the back of economic incentives and mechanisms.
- With Web3, you can independently manage all of your digital possessions. Direct ownership in Web3 is implemented through non-fungible tokens, which no one (not even the developers) can take away from you. If you decide to quit a game but still want to keep the items you’ve accumulated, you can always recoup some of their value by selling or trading them.
- When you use Web3, your information is kept in a blockchain. Because of this, you will retain your reputation if you leave a platform.
- Web3 allows you to become a part of a collective that owns the platform through tokens, which can be leveraged to gain access to the data you already hold.
- Tokens like ETH are used in Web3’s token-based system to facilitate instantaneous browser-based monetary transactions. Therefore, it eliminates the need to rely on any third parties.
The Internet of Things(IoT): What Is It?
With the help of the Internet of Things, common household items can now share information with humans through online channels. By bridging the gap between the real and the virtual, IoT is rapidly enhancing humanity’s level of intelligence.
The Internet of Things exists across many devices, markets, and environments.
Applications of the Internet of Things
One of the most prominent applications of IoT is the “smart home,” where electronic devices are interconnected. Connected hubs of Internet-enabled thermostats, doorbells, smoke detectors, and security alarms allow users to manage these “things” from afar using a mobile app or website.
The term “Internet of Things” does not only refer to domestic appliances. Its impact can be seen in various sectors, including the automotive industry, where it enables connectivity for monitoring and optimizing vehicle performance. The IoT has also benefited the healthcare sector by providing providers with improved methods for monitoring vital signs like glucose levels.
Devices for the Internet of Things(IoT)
- Security and climate control systems for “smart” houses
- Fitness and health monitoring wearables
- Automobile diagnostics for self-driving cars
- Industrial Robotics and Automation for the Future of Production
- Lighting and traffic systems for smart cities
- Keeping an eye on the harvest
- Monitoring the Distribution Network in a Retail Setting
- Disease detection and tracking
Security Challenges with IoT
Lack of Visibility
Users often need to inform IT departments to deploy IoT devices, making it possible to have an accurate inventory of what must be protected and monitored.
Open-source Code Vulnerabilities
The open-source software used in the firmware of Internet of Things devices is notorious for its security flaws.
Massive Amounts of Information
Monitoring, managing, and protecting data from IoT devices is challenging because of the sheer volume of data generated.
Most IoT developers need to give adequate attention to security so they don’t bother with thorough vulnerability testing.
Low level of Security Integration
Integration of IoT devices into security systems is difficult due to the vast number and variety of IoT devices.
How Blockchain Infuses Decentralization and Security into IoT Devices
Blockchain, best known for its applications in the financial sector, forms the basis of web3. Yet blocks can record more than just monetary transactions. The blockchain can record and disseminate any data in an immutable and transparent fashion. Then, why not allow IoT gadgets to exchange data via the blockchain? Many problems plaguing the Internet of Things could then be fixed this way.
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The truthfulness of data recorded by sensors in the Internet of Things is essential to its value. As a result, the current IoT infrastructure depends on intermediaries and centralized entities to check the accuracy of the data. With blockchain, web3 IoT could shift from a Client/Server architecture to a decentralized peer-to-peer one. To begin fixing the issue of trustworthiness, consensus mechanisms (like those used by cryptocurrencies) can be used to verify the transformation. In this way, the Internet of Things (IoT) could become a trustless system that enables unmediated communication between devices.
Key Web 3.0 IoT Features
Each connected smart device in web3 IoT will have the option to sync with its blockchain wallet. Ultimately, it is up to the device owners to decide how they want their web3-based IoT apps to share data. The entire IoT infrastructure is managed in a decentralized fashion by the community. Each participant will be compensated for their use of various infrastructure services.
In addition, web 3.0 IoT apps frequently utilize digital assets as incentives to motivate community participation and are built on well-designed token economies models.
How to Adapt Web3 in the IoT Model?
Many web 2.0 IoT businesses win over customers by developing cutting-edge products and services that excel in specific areas. Additionally, they launch massive advertising initiatives. Web3 technologies such as DeFi, non-fungible tokens, and decentralized autonomous organizations (DAOs) offer potent tools for creating novel IoT business models.
Additionally, these technologies have the potential to boost customer involvement and promote positive social change. Businesses that want to compete in the Internet of Things market may choose to issue NFTs to adjust to the widespread adoption of web3. They can use these NFTs to tokenize their Internet of Things products on the blockchain, giving NFT holders access to various benefits (e.g., access to future developments).
Customers could be incentivized to provide businesses with IoT data in exchange for passive income via DeFi platforms. It is possible to allow customers to form a DAO to jointly own a machine and make decisions about its use through a democratic, consensus-based governance mechanism. In addition, businesses should be free to choose the web3 technologies and configurations that best serve their needs.
Web3’s goal is to make the Internet more distributed and give users more control over their personal information. At the same time that it seeks to bridge the gap between the digital and physical realms, IoT aims to connect virtually everything in our immediate environment to the Internet.
If you’re working in the Internet of Things (IoT), adopting web3 marketplace development is a must. To finish analyzing data, you will need responses to a survey you sent out after an event. Web3 can suggest alternatives based on weather, time of year, and the expected turnout. Data, information, and suggestions will be delivered instantly, streamlining your planning process. You can even use this information to revamp your yearly meeting schedule.