Emergence of IoT and evoluation of supply chain
The Internet-of-Things (IOT) is a new generation network of computing systems,
objects and machines connected by sensors/devices with sensing and actuating
capabilities. In the absence of human intervention, sensors in the IoT can
automatically collect and analyze information, thereby enabling communication
among all objects in the network.
Supply chain, as a natural component of the IoT ecosystem, requires better
management and value transfer mechanism to achieve self-optimization in each
link and node along the chain.
IDC forecasts that the world market for IoT solutions will grow from $1.9 trillion
in 2013 to $7.1 trillion in 2020. IoT Device shipments will reach 6.7 billion in
2019 at a CAGR of 61%. In addition, Mckinsey Global Institute estimated that by
2025, the economic impact of IoT application could reach $3.9 to $11.1 trillion.
According to GSMA’s report “How China Is Scaling the IoT”, China is the world’s
largest Machine-To-Machine (M2M) market with 74 million M2M connections
and has now become the global leader in the deployment of IoT.
As the Internet-of-Things keeps expanding, the need for interoperability, security,
identity verification and resources sharing across numerous networks become a
1.2 The Problems
Current IoT systems have been developed based on a centralized architecture, in
which devices and equipment are connected through centralized servers residing
in the cloud.
With the rapid expansion of the IoT network, billions of nodes comprised of
sensors and devices have joined the network, increasing the complexity of the
entire network. It is, therefore, becoming more and more expensive to maintain
an infrastructure sustained by centralized servers. Moreover, as the number of
devices increases, so does the chance of fraud and malicious attacks.
It is expected that in the near future an unprecedented flow of data collected by
these devices worldwide will be generated and processed quietly through the
execution of pre-programmed procedures with physical actuators, which will
manage more and more aspects of our lives. Therefore, without reliable IoT
interaction, data privacy, security and trust will become the priorities that need to
be resolved promptly when potential systemic failures could trigger disastrous
It is also believed that fundamental security risks will increase exponentially as
50 to 200 billion connected devices will come online by 2020.
Therefore, future IoT system should be designed to upgrade from expensive
centralized architecture to decentralized autonomous ecosystem without having
to worry about tampering of security parameters. Such an ecosystem should be
able to provide a trustful environment for cost reduction, device autonomy,
platform scalability, operational security, and redundancy against cyber attacks.