A group of companies which includes giants like Alibaba Group, ZTE, China Unicom and China’s Ministry of Industry and Information Technology are going to join their ranks in order to create a blockchain framework for the internet of things (IoT).
The group has already approached the International Telecommunication Union, the U.N. special institution for IT engaged in developing standards for communication services infrastructure.
The framework’s detailed description is available here.
The group of companies has 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 so on.
The companies claim that the key advantages of integrating the IoT and blockchain technology are higher trust, cryptographic security, low costs, and increased speed of operations.
Additionally, blockchain opens the gate for automating business processes while keeping a complex and expensive centralized IT infrastructure off the table.
Ant Financial, which is a payments subdivision of Alibaba, claimed it intended to expand its clientele tenfold by the next decade, thus reaching 2 billion users, and implement blockchain-based solutions.