China Bigs Tout “Blockchain of Things”

Blockchain, FinTech, News | March 22, 2017 By:

China’s Ministry of Industry and Information Technology is collaborating with e-commerce giant Alibaba Group, multinational telecom ZTE and China Unicom to create a blockchain framework for the Internet of Things (IoT), the name used to describe the interconnection of various electronics systems.

The companies believe that blockchain can solve many of the problems plaguing the further development of IoT, bringing higher trust, cryptographic security, lower costs and increased speed of operations. A 23-page document was submitted to the ITU-T SG20 Internet of Things (IoT) Study Group meeting at Dubai earlier this month.

ITU-T is the Telecommunication Standardization Sector study group. It assembles experts from around the world to develop international standards known as ITU-T Recommendations, which act as defining elements in the global infrastructure of information and communication technologies. Those standards enable global device communication in voice, video and data messages.

In the paper submitted on the IoT, the China-allied companies argue that their solution, the so-called “Blockchain of Things” (BoT), offers an advantage to peers by allowing for the ability to send shared IoT data to cryptographically hashed BoT ledgers, and also by allowing business partners to access and supply IoT data without the need of centralized management systems.

The companies have identified issues hindering the development of the IoT, including high prices and centralized nature of connection, poor scalability, network vulnerability, mistrust as to the technology, and other issues.

 

“Blockchain with IoT/SC&C (smart cities and communities) together becomes a potential game changer by opening the door to invent new styles of digital interactions, enabling IoT devices to participate in blockchain transactions, as well as creating opportunities to reduce the cost and complexity of operating and sustaining business,” according to a document submitted to the ITU-T SG20 Internet of Things (IoT) Study Group meeting at Dubai.