Blockchain as a Solution for IoT Business Model Challenges

Blockchain may offer a solution to the Internet of Things’ (IoT) business model challenges, which often involve companies needing continuous revenue streams to maintain products. Consumers are often reluctant to pay subscription fees for everyday items like doorknobs or fridges. The IoT’s problem lies in the mismatch between the lifespan of products and the business models of companies selling them. Traditional IoT devices may become obsolete or unsupported, leading to ‘bricking’ of devices. However, blockchain-enabled Decentralized Physical Infrastructure (DePIn) could allow for self-managing IoT networks, operating more sustainably without the need for constant company maintenance. Recent advancements in IoT, such as devices integrating with HomeKit and Matter controls, are built to function without internet connections, reducing reliance on single enterprises for maintenance. The future of smart homes will likely require internet connectivity and cloud computing, potentially supported by decentralized cloud infrastructure, where devices with spare capacity can contribute to complex network applications.