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Blockchain: The Future of Smart Home Automation & Security

Oct 1, 2018 Editor's PicksICO 0

By: Chanda Parashar, MLG Contributor

This piece is part of a collaboration with MLG Blockchain Consulting,  a leading global blockchain development and consulting firm headquartered in Toronto, Canada, with a distributed team across North America, Europe and Asia that is focused on building next generation applications using blockchain and smart contract technology.


“Automation has been at the top of the technology agenda in the recent years.”

You may have heard about ‘home automation’ and how related gadgets can improve our lives oftentimes. But what do we mean by it, exactly? Home automation made possible by the Internet of Things (IoT), is beginning to play an important part in our lives, with more and more devices being able to send and receive data via the Internet  – you can even control the thermostat or lighting within your home through WiFi connection!

The advancement of technology has been one of humanity’s most important endeavors so far, and even after many years of expanding upon it, we devise new ways of giving birth to disruptive technology that revolutionizes the way we live our lives. Technological progress has been ever-constant, and within the past few decades, we have been improving and perfecting our applications and devices in order to enhance our standard of living.

The smart home industry is growing rapidly as the penetration of Internet of Things (IoT) devices into the household increases. With the introduction of the IoT, possibilities for creating a unique and technologically personalized home are virtually limitless. The IoT represents the next step in connectivity and quality of life – a network of house appliances that are interlinked and accessible via the Internet while being enhanced with cyber-physical systems that grant them a vast array of possibilities for uses.

smart home, IoT, home, security, interconnectivity

The Internet of Things (IoT) is a fast-growing industry destined to transform homes, cities, stores, farm production, factories, and practically everything else by making them smart and more efficient. But the chaotic growth of IoT will introduce several challenges, including identifying, connecting, securing, and managing the devices it interacts with. It will be very challenging for the current infrastructure and architecture underlying the Internet and online services to support huge IoT ecosystems of the future.

Today’s connected-home platforms have come a long way from their roots as simple security systems, evolving to automate everything from our thermostats to our kitchen appliances. Hence it’s time to evolve the way we manage access to our connected homes, to give  customers control and peace of mind. Future smart home solutions will integrate an ecosystem of customer-facing services ranging from home security, to energy management, to healthcare. Progress toward this goal is currently hindered by consumer concerns over data security and protection, and a lack of standards and interoperability among devices on the market.

Industry leaders and innovators in the smart home industry are beginning to experiment with blockchain and distributed ledger technologies, which have the potential to improve data security and provide a common platform to support smart devices and integrative applications. Blockchain can create new value in the smart home market if three crucial areas are addressed: ease of deployment, interoperability, and scalability. Blockchain will enable IoT ecosystems to break from the traditional broker-based networking paradigm, where devices rely on a central cloud server to identify and authenticate individual devices.

Several companies are already putting blockchain to use to power IoT networks. Onename to know is Arloid Automation, a startup looking to drive innovation by employing the world’s first community backed IoT Ecosystem. This ecosystem combines the Arloid Hardware with the Arloid Platform, which uniquely allows the Arloid Community to decide the development routes of the ecosystem’s growth. The community needs will drive demand for the highest quality projects to populate its blockchain-powered IoT Ecosystem.

Blockchain technology has the potential to ensure that the IoT succeeds in harnessing mass adoption. The technology will enable the creation of secure mesh networks, where IoT devices will interconnect in a reliable way while avoiding threats such as device spoofing and impersonation. With every legitimate node being registered on the blockchain, devices will easily be able to identify and authenticate each other without the need for central brokers or certification authorities, and the network will as a result be able to support billions of devices without the need for additional resources.

Security is the main issue that the IoT currently faces. Now the question is – can blockchain offer potential solutions for security issues? The IoT plays an ever increasing role in our lives, meaning that more devices are linked together. Intelligent thermostats, smart lightings are just the beginning, and the smart refrigerator, smart washing machine and smart bed are set to make even the small things in life more convenient and pleasant. However, traditional cloud-based connections are full of security holes. Further, serious interconnectivity problems are posed by insecure cloud servers, unencrypted communication, weak passwords, improper authentication and the neglect of TLS (transport layer security).

Blockchain elevates home automation and home security to a whole new level by solving these problems. Companies, such as Arloid already experimented with the idea, and discovered that switching to a blockchain-based system not only improved upon security regarding IoT accounts and password management, but it also made the login process faster and more user-friendly. Arloid’s IoT Ecosystem is based on a blockchain protocol managed by the Arloid Community through blockchain smart contracts. With a secure and easy-to-use environment for both the consumer community and third-party developers, Arloid ensures a collection of the most up-to-date blockchain and IoT applications that will touch upon many aspects of users’ lives.

Arloid’s Smart Home System consists of a wide variety of features including instant synchronization, ease of use, sleek design and high performance that differentiates them from other companies in this space. In short, it would be fair to say that Arloid has moved far beyond the usual smart home solution and shaping the innovation in the ecosystem.

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Davit K

Davit is a corporate development professional at one of Canada's largest FinTech companies, responsible for strategic planning and execution of M&A transactions. He spends his free time traveling and writing about new developments in blockchain and crypto currency world.

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