The Internet of Things (IoT)¹ is forecasted to experience exponential growth. It is predicted that the global number of internet connected devices could pass 50 billion by the year 2020, and McKinsey Global Institute predicts that²:
If policy makers and businesses get it right, linking the physical and digital worlds could generate up to $11.1 trillion a year in economic value by 2025.
Whilst progress is being made and IoT devices are now a regular feature in our lives, there are some stumbling blocks around cost, data and security that are preventing the rapid adoption of IoT.
Cost: the current centralised nature of IoT infrastructure creates huge barriers for interoperability and interconnection of devices, massively driving up the cost of devices and IT infrastructure required.
Data: traditional IoT infrastructure is typically built with specific application scenarios in mind and this results in isolated pools of data, making it hard to fully utilise the value of IoT data.
Security: cyber attacks and the theft are very real daily threats with regular instances of breaches to IoT systems. This highlights that privacy and security are critical issues that need addressing.
Due to it’s distributed / decentralised framework, blockchain technology has the potential to significantly reduce the cost of equipment interconnection, create new business models to maximise the value of data whilst also ensuring privacy and security.
Utilising blockchain as the backbone for IoT is a clear use case. Speed, scale, reduced transaction costs and security are some of the hallmarks of the blockchain promise. However, to deliver on their promise the technology needs to overcome scalability challenges around the high cost of data storage and computations and the low efficiency of current consensus mechanisms.
An exciting new player has entered the market claiming they can do just that. CPChain is a China based blockchain business that attacks the aforementioned challenges, with a unique blockchain that can reduce connectivity costs, protect data and maximise the value of IoT data. As per their website⁴:
CPChain is a new distributed infrastructure for next generation IoT. CPChain intends to build a fundamental data platform for IoT system in combination with distributed storage, encryption computation and blockchain technologies, providing the whole process solution from data acquisition, storage, sharing to application.
CPChain will address the traditional and blockchain specific challenges faced by IoT. Their focus is creating scalability, security and real time transmission of data and transactions dedicated to IoT infrastructure. This is broken down into three steps / technologies that feed into an integrated ecosystem based off the main chain.
Parallel distributed cloud storage architecture will be deployed to solve the scalability problem of large-scale data storage and sharing.
A new hybrid consensus protocol will be implemented that is capable of huge scaling whilst optimising computing power
A side chain consensus system focuses on high levels of security whilst also allowing real time, high volume concurrent transactions
On solving both the legacy and blockchain specific challenges of delivering a seamless IoT infrastructure, CPChain will be able to deliver a number of critical applications, across examples including (but not limited to) big data, intelligent transportation and drug traceability.
CPChain have already completed the R&D phase in their development of the distributed cloud storage architecture, consensus protocol and side chain and recently completed a highly successful fund raise to enable them to embark on full scale project implementation, to be built out as follows:
The beta chain is expected to be live by Q3 2018 with sample applications to follow in the summer of 2019. By the start 2020, CPChain expect to be in a position to have a fully viable and functioning product with a number of live commercial partners.
To deliver on such an aggressive timeline requires excellent, credible partnerships. CPChain are well ahead on that front compared to most of their competitors. They have already formed partnerships with QTUM⁵, VeChain, High Performance Blockchain (HPB)⁶ and Metaverse⁷. And in addition they have secured investment from Torque Capital Partners⁸.
In addition, the team is packed with technical, operational and business expertise that is typically a strong indicator of future success in such blockchain projects (especially when backed by such strong partners).
Dr. Long Chengnian PhD⁹ is the Co-Founder and Principal Scientist. A professor at Shanghai Jiao Tong University, Dr. Long has over 40 published works and has twice received awards from China’s Ministry of Education. He has a deep expertise in security estimation and control in cyber-physical systems, mobile IoT and MIMO wireless systems and will lead the technical elements of the project.
Dr. Zhao Bin PhD, also a Co-Founder, has more than 12 years research and development experience across IoT, including 4 years experience in the IoT department at Alcatel Lucent. He has three patents on IoT and thanks to his work with three major Chinese carriers on IoT platforms and his relationships with government and operators he has secured a pilot project with the Shanghai Automotive Industry.
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.