Smart Cities

How Smart Cities Use Blockchain

Posted on June 5, 2023June 5, 2023 by Jean Chalopin

Smart cities, which use technology to improve citizens’ quality of life and optimise urban services, have rapidly grown in popularity. According to a recent report, the global smart city market is projected to reach $158 billion by 2022.

By utilising blockchain technology, smart cities can enhance their security, transparency, and efficiency in supply chain management, voting systems, and energy consumption. Implementing blockchain in smart cities benefits the citizens and creates sustainable and resilient urban environments.

This article explains what smart cities and blockchain technology are, and how they work together.

What Are Smart Cities?

A smart city is an urban area that leverages technology and data to improve its citizens’ quality of life, optimise resource use, and create more sustainable and efficient communities. By integrating connected devices and systems, smart cities analyse data to provide more efficient and effective services, from transportation to energy management to public safety.

One prime example of a smart city is Singapore, which has implemented numerous initiatives to enhance the living experience of its citizens. For example, the city-state has a sophisticated transportation system that uses data and technology to manage traffic flow and reduce congestion, making it easier and faster for residents to get around.

Singapore has also implemented smart waste management systems that use sensors to optimise collection schedules, reduce the amount of waste sent to landfills, and increase recycling rates.

Another example of a smart city is Amsterdam, which strongly focuses on sustainability and green energy. The city has implemented several initiatives to reduce its carbon footprint and increase the use of renewable energy sources.

For example, Amsterdam has a smart grid system that integrates renewable energy sources, such as wind and solar power, into the city’s energy mix. This helps reduce the city’s dependence on fossil fuels and increase clean, sustainable energy use.

Additionally, Amsterdam has implemented smart lighting systems that use sensors to automatically adjust the brightness of streetlights based on the presence of people, vehicles, and bikes, saving energy and reducing light pollution.

These are just a few examples of innovative initiatives implemented in smart cities worldwide. By leveraging technology and data, smart cities are creating more livable, sustainable, and efficient urban environments for their citizens.

What Is Blockchain?

Blockchain technology is a decentralised, distributed digital ledger that securely records transactions and information. It uses cryptography to link blocks of information together in a chain, creating a permanent and unalterable record of all transactions.

At the heart of blockchain technology sits a network of computers, called nodes, that work together to validate and process transactions. Each node has a copy of the entire blockchain, and the network’s consensus must validate any changes to the blockchain. This decentralised and distributed structure makes the blockchain resistant to tampering, hacking, and fraud.

The benefits of blockchain technology are numerous. One of the most significant benefits is increased security and transparency, as the decentralized and distributed nature of the blockchain makes it nearly impossible to alter or tamper with the information once it has been recorded. Additionally, blockchain technology can reduce the need for intermediaries, such as banks, to process transactions, lowering costs and increasing efficiency. It also enables secure and transparent tracking of assets, such as supply chains, voting systems, and intellectual property. It provides a safe and transparent platform for creating and managing digital assets like cryptocurrencies.

One example of how blockchain could work in smart cities is in the voting process. Voting systems can be susceptible to tampering, fraud, and errors. By implementing a blockchain-based voting system, each vote would be recorded as a secure transaction on the blockchain, providing a transparent and tamper-proof record of the election results. This would increase trust in the voting process and ensure that the results are accurate and fair.

Blockchain is a secure and trustworthy way of recording transactions and information in a decentralized manner, making it a valuable tool for various applications, including smart cities.

Why Smart Cities Need Blockchain Technology

Smart cities require secure, transparent, and decentralised technology to succeed. This is where blockchain technology comes in. It provides a secure, transparent platform for managing data and transactions in a decentralised manner.

One of the biggest challenges in smart cities is ensuring the integrity and security of the data that is collected and processed. Blockchain technology provides a secure and tamper-proof way of recording information, making it a valuable tool for ensuring the integrity of data in smart cities.

Additionally, the decentralised nature of blockchain makes it resistant to hacking, tampering, and other forms of fraud, providing a secure platform for collecting and processing sensitive data.

Another reason why smart cities need blockchain technology is to improve efficiency and reduce costs. By implementing blockchain-based systems, smart cities can reduce the need for intermediaries, such as banks, to process transactions. This can increase efficiency and reduce costs, freeing up resources that can be used to enhance other services and improve the quality of life for citizens.

Finally, blockchain technology enables secure and transparent tracking of assets, such as supply chains, voting systems, and intellectual property. In smart cities, this can be used to improve transparency and accountability and enhance the management of resources, such as energy and waste.

How Smart Cities Are Created With Blockchain

Building a smart city with blockchain technology requires careful planning, research, and collaboration. Here are some steps to get started:

Research and plan: Research existing smart cities and understand the challenges and opportunities they face. Identify areas where blockchain technology can be used to improve the quality of life for citizens, such as in managing waste, energy, transportation, and voting systems. Develop a plan for how blockchain technology can be used to solve specific problems and improve specific services in your city.
Build partnerships: Building a smart city with blockchain technology requires collaboration and partnerships. Partner with blockchain developers, government agencies, academic institutions, and the private sector to share knowledge, resources, and expertise.
Choose the right technology: There are many different blockchain technologies available, each with its strengths and weaknesses. Choose the best technology suited to your specific needs and goals, and consider security, scalability, and interoperability factors.
Develop a pilot project: Start small by developing a pilot project to test your ideas and demonstrate the potential of blockchain technology. Choose a problem or service that can be improved with blockchain technology and create a proof-of-concept project to demonstrate the potential of the technology.
Engage with the community: Building a smart city with blockchain technology requires community engagement and participation. Engage with citizens and stakeholders to understand their needs and concerns and involve them in the planning and implementation of blockchain-based solutions.
Monitor and evaluate: Continuously monitor and evaluate your pilot project to understand its impact and identify areas for improvement. Share your results with the community and stakeholders to demonstrate blockchain technology’s benefits and encourage its wider adoption.

Building a smart city with blockchain technology requires careful planning, research, and collaboration. Following these steps, you can journey towards a more secure, efficient, and sustainable future.

How Did Singapore Become a Smart City?

Singapore has become a smart city through government leadership, innovative technology, and community engagement. The government of Singapore has taken a proactive approach to transform the city into a smart city. It has provided funding, resources, and support for developing and deploying smart city solutions. The government has also established policies and regulations that encourage innovation and collaboration between the public and private sectors, creating a supportive environment for developing smart city initiatives.

Singapore has also made significant investments in technology, including deploying smart city infrastructure, such as smart grids, sensors, and digital networks. This has enabled the city to collect and process large amounts of data, providing valuable insights into energy consumption, traffic flow, and waste management.

In addition to government leadership and investment in technology, community engagement has been crucial to the success of Singapore’s smart city initiatives. The government has worked closely with citizens and stakeholders to understand their needs and concerns and involved them in planning and implementing smart city solutions. This has helped to create a sense of ownership and involvement among citizens and encouraged their participation in developing a more sustainable, efficient, and livable city.

Risks Associated With Smart Cities

Smart cities can face many risks if they do not integrate blockchain technology. One significant risk is the security of sensitive information. In the absence of blockchain, smart cities may use centralised databases and systems to store and manage data, which can be vulnerable to cyber attacks, data breaches, and other forms of digital crime. This can compromise personal data, financial information, and critical infrastructure, causing harm to citizens and the city as a whole.

Another risk is the lack of transparency and accountability in data management. Without blockchain, there is a risk that data may be manipulated or misused without being detected, leading to potential privacy violations and ethical concerns. This can erode trust in government and civic institutions and undermine the legitimacy of smart city initiatives.

In addition, smart cities without blockchain may struggle to manage the increasing amounts of data generated by connected devices and sensors. This can lead to data silos and a lack of interoperability between different systems, hindering the ability of smart cities to make data-driven decisions and achieve their goals.

Finally, without blockchain, smart cities may not be able to ensure their data’s long-term security and preservation. This can result in the loss of valuable historical data and the inability to build on past achievements, which can hinder the progress of smart city initiatives.

Closing Thoughts

It is unlikely that every city will become a full-fledged smart city. The adoption of smart city technologies will likely vary depending on a range of factors, including the level of development of the city, the availability of resources and funding, and the priorities and needs of the citizens.

For those cities that do embrace smart city technologies, the future looks promising. With the integration of advanced technologies such as the Internet of Things (IoT), artificial intelligence (AI), and blockchain, smart cities will be able to streamline their operations, provide more efficient and personalised services, and enhance the quality of life for their citizens.

The future of smart cities is bright and holds immense potential. As technology advances and the world becomes increasingly connected, more cities will likely adopt smart city technologies to improve the lives of their citizens and create more sustainable urban environments.

Disclaimer: The information provided in this article is solely the author’s opinion and not investment advice – it is provided for educational purposes only. By using this, you agree that the information does not constitute any investment or financial instructions. Do conduct your own research and reach out to financial advisors before making any investment decisions.

The author of this text, Jean Chalopin, is a global business leader with a background encompassing banking, biotech, and entertainment. Mr. Chalopin is Chairman of Deltec International Group, www.deltec.io.

The co-author of this text, Robin Trehan, has a bachelor’s degree in economics, a master’s in international business and finance, and an MBA in electronic business. Mr. Trehan is a Senior VP at Deltec International Group, www.deltec.io.

The views, thoughts, and opinions expressed in this text are solely the views of the authors, and do not necessarily reflect those of Deltec International Group, its subsidiaries, and/or its employees.

Posted on April 7, 2023April 7, 2023 by Jean Chalopin

Smart cities are urban areas that combine technology and data to improve the quality of life of inhabitants and visitors, increase sustainability, and create more efficient systems to be used by all.

The smart city concept has been around since the 1970s. However, it has only recently gained significant traction due to technological advancements and the increasing focus on sustainability and efficiency.

Understanding Smart Cities

One of the critical components of a smart city is the use of technology to gather and analyse data. This data can be used to optimise city services such as transportation, energy, and waste management.

For example, data can be obtained and processed to optimise traffic flows, reduce energy consumption, and reduce waste. This leads to a more efficient and sustainable city, which ultimately benefits the residents who live there.

Smart cities also aim to improve the quality of life for their citizens by making the city more accessible and livable. This goal is achieved by improving the city’s infrastructure and services, such as public transportation, healthcare, and education.

For example, a smart city might have a network of sensors and cameras that monitor air quality and traffic patterns, allowing city officials to respond to problems more quickly by rerouting traffic to less congested areas.

Origins of the Smart City

The concept of “smart cities” has existed for several decades, but it has evolved since its origins and become more widespread with recent technological advances. However, the intelligent city idea goes back to the 1970s, with Los Angeles’ first urban big data project named: ‘A Cluster Analysis of Los Angeles’.

It isn’t easy to pinpoint a single person or organisation as the originator of the ‘smart city’ term. Smart cities as a term first appeared in the 1990s and were defined with several definitions that included six dimensions to measure a smart city’s development:

· Smart people

· Smart economy

· Smart governance

· Smart mobility

· Smart life

· Smart environment

Another early pioneer in smart cities is Enrique Peñalosa, the former Mayor of Bogotá, Colombia, from 1998-2001 and from 2016-2019. Peñalosa introduced innovative urban development and transportation policies, including creating a bike lane network and implementing a bus rapid transit system.

In recent years, innovative city development has been driven by private sector companies, such as IBM, Siemens, and Cisco, as well as government initiatives and research organisations. For example, IBM was the first company to use the term ‘Smart City’ in their Smarter City Challenge program, which developed their centralisation of data vision of urbanisation with a security focus that crosses the world.

The Smart City Council, a global organisation focused on promoting the development of smart cities, was founded in 2012 and has become a leading voice in the field.

Overall, the idea of smart cities has been developed and shaped by several individuals, organisations, and governments over the years and continues to evolve as technology advances and urban populations continue to grow.

The Smartest Cities

One example of a flourishing smart city is Amsterdam in the Netherlands. Amsterdam has implemented several innovative smart city initiatives, including a smart grid that optimises energy consumption, a smart transportation system that reduces congestion and improves traffic flow, and a smart waste management system that reduces waste and increases recycling. These initiatives have helped Amsterdam to become a more efficient and sustainable city while also improving the quality of life for its residents.

Another example is Singapore, which has been named one of the world’s smartest cities. Singapore has implemented several smart city initiatives, including a smart transportation system that uses technology to optimise traffic flow and reduce congestion.

Additionally, Singapore has implemented a smart energy grid that uses data to optimise energy consumption and reduce waste. These initiatives have helped Singapore to become a more sustainable and efficient city while also improving the quality of life for its residents.

Dubai’s Smart City project has adopted a strategy calling for the transformation of around 1,000 government services, focusing on the following six key sectors:

· Transportation

· Infrastructure

· Communications

· Economic services

· Urban planning

· Electricity

Dubai implemented many initiatives within the above six sectors, which fall under the following categories:

· Simple and open access to data

· Smart transportation

· Optimising energy resources

· Smart parks and beaches

· Smartphone apps for policing

· New designated master control room

The Challenges

While the benefits of smart cities are clear, some significant challenges make smart city development and implementation difficult. One critical challenge is privacy and security. The use of technology and the creation of data in a smart city means that a large amount of personal information is being collected, which raises significant privacy concerns.

In addition, because of this data and the control these systems have over the lives of so many, there is a risk of hacking and cyber-attacks, which could compromise the security of the city’s systems. Imagine the disruption of water, power, traffic, or other city systems by a nefarious actor for criminal or terror reasons.

Another challenge must be dealt with is the high cost of implementing smart city initiatives. The technology and infrastructure required to create a smart city can be expensive, and there is a legitimate risk that the costs of such an implementation could outweigh the benefits.

The Future of Smart Cities

The future of smart cities is promising and exciting as technology advances and urban populations grow. With the rise of several new technologies, including the Internet of Things (IoT), 5G networks, and artificial intelligence, smart cities have the potential to become even more efficient, sustainable, and livable in the years to come.

One of the key areas where smart cities are likely to continue to evolve is transportation. Self-driving cars, intelligent traffic management systems, and connected transportation networks are just a few examples of how technology will continue revolutionising how we move around cities. This will not only make transportation more efficient, but it will also help to reduce congestion and improve air quality.

Another area where smart cities are likely to evolve is in the area of energy management. With the increasing focus on sustainability and the need to reduce carbon emissions, smart cities will likely continue investing in renewable energy sources such as solar and wind power. Additionally, smart cities will likely be at the forefront of developing more efficient energy systems, using data and technology to optimise their energy consumption and reduce waste.

The development of smart cities is also likely to impact how their inhabitants live and work significantly. With the rise in popularity of the gig economy and the increasing number of remote workers, smart cities will have to adapt to accommodate these changes. These developments may include developing coworking spaces, flexible housing options, and integrating technology and connectivity into public spaces.

While the future of smart cities is exciting, some challenges must be addressed. One of the toughest challenges is ensuring the technology and infrastructure are secure and protecting citizens’ privacy.

In addition, with the ever-increasing amount of data being collected by smart cities, how this data is used will significantly impact the perception of its collection by the city’s residents. Therefore, it is essential that this data is stored and used responsibly and safeguards are in place to protect against hacking and cyber-attacks.

Closing Thoughts

The future of smart cities is exciting and holds great promise for the nearly 5 billion of us that live in urban areas. With advancements in technology and the increasing focus on sustainability and efficiency, smart cities have the potential to become even more livable, efficient, and sustainable in the years to come.

However, it is essential that smart city challenges of privacy, security, implementation costs, and inclusiveness are addressed and that smart city initiatives are implemented sustainably.

The author of this text, Jean Chalopin, is a global business leader with a background encompassing banking, biotech, and entertainment. Mr. Chalopin is Chairman of Deltec International Group, www.deltec.io.

IoT Devices Enhance Proactive Risk Management

Posted on November 2, 2022November 2, 2022 by Jean Chalopin

IoT (Internet of Things) is a buzzword that has been around for a few years and is growing in popularity as we slowly connect everything to the net. An enormous amount of data is being collected already, and this is going to the next level through IoT sensors.

While there are many problems with IoT sensor security that still need to be solved, the data that is being supplied by these devices, if useful and used correctly, has the power to disrupt traditional risk management. This article will discuss some proactive uses of IoT for risk management and why IoT will be invaluable in the finance and insurance fields.

IoT’s Growth

The growth of IoT as a technology is unbelievable. IoT use cases are being seen in nearly every business sector, from connected technologies to cloud computing and digital data. Pharma is using IoT for material tracking and machine monitoring. Oil producers are using IoT for safe extraction and delivery. The travel industry is connecting aircraft to regulate seat temperatures and other IoT devices to make travel seamless.

Cannabis producers are using IoT devices for monitoring their plants from seed to store to stay compliant with their local regulations. Any industry can find benefits from IoT devices. And for finance and insurance, this spread of devices can be used for our own needs.

IoT for Risk Management

The embedding of IoT sensors into physical objects can complement risk mitigation and risk management services. The finance and insurance industries can either piggyback, extracting data from devices that are already installed, or can require the use of our own device’s native sensors. Our goal is to predict and identify risks with reliable accuracy.

During the COVID-19 pandemic, the use of IoT sensors surged in popularity. The shutdowns of the pandemic forced many businesses to rely on IoT sensors to be their eyes and ears.

These new sensors had the ability to watch over vacant buildings. If a building’s system fails, the IoT sensor would identify the failure and notify someone to deal with the problem. The ubiquity of these sensors means that there is a continuous supply of tracking data, like with the data inherent to finance and insurance.

At this year’s Risk Management Society (RIMS) conference, several industry leaders from Waymo, Chubb and Prologis Inc. spoke about how IoT is being used for their risk mitigation practices.

The team members from Chubb, including their chief risk officer, spoke about how IoT is helping Chubb take risk mitigation and management to the next level, allowing them to predict and even prevent potential damage before it happens. A Chubb team member stated that IoT is having a particularly noteworthy impact on their commercial insurance industry. This change is evolving the way that they are now pricing, underwriting, and servicing commercial insurance.

IoT in Insurance

The adoption of IoT in the commercial insurance segment has accelerated significantly since the beginning of the pandemic, and they expect it to expand further. Chubb’s senior vice president and IoT lead, Hemant Sharma, said that Chubb sees IoT as a valuable opportunity to offer their clients bespoke risk prevention services that will ultimately reduce or, in some cases, avoid losses.

Prologis Inc’s senior vice president of global risk management, Jeffery Bray, spoke about how critical IoT was to their business. Prologis has a billion-dollar portfolio of warehouses, and they are using IoT to find better ways to manage and predict risk. IoT tech provides the perfect fit as Prologis’s main risk is driven by property exposure.

The IoT sensors help Prologis get ahead of their operating risks, collect more data in real-time and be more predictive. According to Bray, Prologis is now working on valuing leading indicators as opposed to reacting to lagging counterparts. This switch involves the ideation and development of “autonomous” buildings, those which effectively use IoT devices.

One new area advancing IoT: drones. After a natural disaster, drones can be utilized to gather in-field data quickly for any resulting claims. Drones gather data for building inspections, providing underwriters with more information and people with faster payouts.

Potential Uses for IoT in Risk Management

For future uses of IoT, there are two crucial questions to ask:

1. Will this new technology help drive differentiation in the marketplace?

2. Will it stand the scrutiny required of a solid and profitable business case?

The risk management space has many candidates that can potentially fulfill these requirements.

Oil and Gas

The oil and gas industry has consistently invested in its sensor and early warning infrastructure to ensure safety. Some of the most common risks in the energy industry are injuries, fires, hazardous gas leaks, and vehicle accidents.

A collaboration between the energy industry and insurers can be formed through IoT data to look for the early signs of potential accidents. This can prevent costly accidents, environmental spills, and insurance claims.

Despite preventive measures, risk is always present with oil and gas, and the costs of adverse events are often devastating. Research from 1974 to 2015 shows the total accumulated value of the 100 largest oil and gas disasters exceeds $33 billion. Another report shows that only Russian refinery damage from 2011 to 2015 exceeds $1.5 billion.

Infrastructure

The variety of sensors for commercial infrastructure OEMs has seen a substantial increase. These sensors can monitor safety breaches, ranging from water leakage, smoke, overloading of weight-bearing structures, and the presence of mold and mildew, among others. There will be an ongoing integration of infrastructure management systems with IoT data to aid loss prevention programs and provide preventative actions.

A 2018 study compared a classical (non-telematics, IoT-based) risk model against a telematics-based version and a hybrid (telematics and traditional factors) version, measuring their predictiveness levels. The result: the classic model ranked least predictive.

Grocery and Other Retail

With the millions of routine visits to these stores and the potential hazardous locations within grocery and convenience store aisles, seafood facilities, salad bars, and liquid storage areas, opportunities for proactive risk management are abundant.

IoT devices can be used in accident-prone areas to monitor human traffic patterns, debris, and cleaning. Beyond the logging of activity for compliance reasons, IoT can help prepare injury reports and the necessary remedial actions for reducing claims-based losses.

Smart Homes

We now see the addition of new connected devices entering our homes. Ring doorbells, smart thermostats, baby monitors, IoT-enabled refrigerators, other appliances, pipe leakage sensors, lighting, and entertainment controls are becoming more commonplace. If utilized correctly, the resulting increase in data can allow for new innovative insurance products and engagement with the insured and mortgage borrowers.

Wearables

Connected health wearables such as watches, patches, shoes, socks, and a new supply of industrial safety wearables are entering the market.

These different items of clothing monitor biometric data, as well as odd joint angles (improper lifting technique, carpal tunnel syndrome), bad posture, and more. They help prevent injuries and costly medical insurance claims.

Proactive Risk Management in IoT Programs

IoT technologies continue to evolve, and the real test is whether the technology can benefit the finance or insurance carrier and the borrower or insured respectively. Until the industry can get a high engagement index with the user, be they personnel or commercial, the chance of the user opting out remains high. Thus, the technology’s potential is limited.

Progressive Insurance and other pioneers in the IoT space have moved in the right direction, initially focusing on the automotive sector. Their Snapshot program rewards the insured with monetary benefits when they can drive safely and avoid high-risk driving behaviors such as late-night driving or excessive acceleration and breaking.

The result is a “high stickiness” describing their insured population, who will keep lower rates for passing the six-month “Snapshot” test. It also allows Progressive to identify more risky drivers that will not receive the lower rates while still notifying those drivers with “beeps” that their actions are hazardous. Additionally, Snapshot has withstood the scrutiny of actuaries, reshaping how insurers assess, limit, and price the risk of their product offerings.

*Image courtesy of* *Progressive Insurance*

So, what can we do to fulfill the two questions of market differentiation and profit?

Develop an ecosystem with technology partners. This means to explore the IoT marketplace thoroughly by studying product roadmaps, vendors, and system integrators.
Continuously experiment. This means to include businesses and markets adjacent to your usual targets through expanded coverage or product rehauls.
Integrate IoT into operations early. In other words, developers must marry underlying systems to IoT-capable devices starting from the ideation stage.
Plan for the long-term. As IoT evolves, business leaders should increasingly take on an “investor mindset,” seeking out opportunities to improve income or reduce costs?

Closing Thoughts

The internet of things (IoT) is flourishing globally as the number of connected devices continues to expand, projected to grow beyond $50 billion in 2025, with more than two devices for every human (19.1 billion). This massive expansion, coupled with ongoing device computing power improvements, is giving rise to new possibilities for the finance and insurance industries..

Possible incentives include better pricing on mortgages and loans, rebates on policies, and discounts for companies that use them. IoTs also come with added conveniences, such as reduced employee absence, less downtime, and faster repairs. The key is to remain proactive and consistently seek out methods by which IoT reshapes the global risk management industry.

IoT and Its Applications in Reality

Posted on September 23, 2022September 23, 2022 by Jean Chalopin

What do we mean by IoT? We can turn on the plug sockets in our houses from a chair in a remote workplace. Our refrigerator’s built-in cameras and sensors allow us to track our food and know when it’s about to expire. The temperature in our home can be set to the perfect condition based on our preferences, ready for when we return

These sentences are not extracts from a fictional dystopian future. They are just a few of the millions of frameworks that make up the Internet of Things (IoT) that are now in use.

IoT has changed how we connect, communicate, and go about our everyday tasks. The network of gadgets is making our society more innovative and more efficient, from homes to maintenance to cities.

In the early 2000s, IoT was just a notion, but as we approach 2022, statistics demonstrate that this technology is here to stay. According to reports, 35.82 billion IoT devices will be installed globally in 2021, and 75.44 billion by 2025.

*Source:* *https://iot-analytics.com/2021-global-iot-spending-grow-24-percent/*

This article discusses what IoT means and provides some typical real-world applications.

What Is the Internet of Things?

All physical items that link to the internet and other devices are referred to as “things” in IoT.

The phrase “internet of things” is evolving incrementally with increased use to describe devices that interact and “talk” to each other, enabling efficiencies in our lives.

IoT devices are characterized by their capability to accumulate data about their environments, exchange that data with other electronic devices, and, consequently, assist us, the ultimate users, in obtaining information, resolving a problem, or completing a job.

*Source:* *https://www.losant.com/blog/internet-of-things-is-going-to-take-over-the-world*

As a simple example, most of us have walked into a room where the light has turned on by itself. An IoT sensor detects your movement and connects to the light fitting, turning it on. Perhaps the most popular devices are Amazon Alexa, Google Home, and other intelligent equipment that many people use to connect everything they own.

How Does IoT Work?

Sensors are a critical component of IoT, as they allow linked devices to communicate with one another. These sensors detect temperature, pressure, motion, sound, and light. IoT is made possible by intelligent sensors that measure, assess, and collect data. Following the collection of these events, cloud-based apps are used to analyse and communicate the data supplied by the sensors.

Source: https://www.embitel.com/blog/embedded-blog/how-iot-works-an-overview-of-the-technology-architecture-2

Because data is stored in the cloud and not a physical server, users may access it through applications at any time and from anywhere.

Applications of IoT in 2022

Several industries are benefitting from IoT in 2022.

Agriculture

Integrating IoT technologies into agriculture can enhance productivity and keep it in sync with the global population boom. Precision farming–the use of analytical data to understand soil moisture levels, climate changes, plant requirements, and so on–can come from IoT applications, boosting productivity, and encouraging resource efficiency.

For example, having adequate knowledge of climates is pivotal for optimizing the quantity and quality of crop production. IoT allows farmers to monitor weather conditions in real-time through sensors placed in the fields. Environment data will enable them to select the best crops that will grow and sustain in the climate conditions. The need for a physical presence is eliminated, which is particularly important in areas with unpredictable situations.

Smart Homes

Smart home technology automates our lives using sensors, connected devices, IoT, AI, and machine learning. The devices are controlled through apps, laptops, or other technology that is connected to the internet. For example, the Nest Thermostat learns user behaviour and controls the temperature in the home according to their preferences.

*Source:* *https://www.bam.co.uk/media-centre/blog/bamblog/2017/07/05/creating-buildings-with-brains*

There are countless smart home devices available on the market at affordable prices in 2022. The three main functions they carry out are:

· Monitoring and controlling smart homes remotely

· Making decisions based on user behaviors and preferences

· Providing users with real-time data from anywhere

The products are primarily designed to save users time, money, and be innovative. For example, smart sprinkler systems can be controlled remotely to save water. Refrigerators can moderate temperature and reduce energy consumption. Cleaning robots can vacuum the floor autonomously to save you time. Name a task, and there is probably a smart device out there that can do it.

Supply Chains

Following the Covid-19 pandemic and its impact on supply chains, IoT is more essential than ever within logistics. The likes of Amazon already track the delivery of goods, but there are other ways that IoT can influence supply chain efficiency.

Source: https://www.zetes.com/en/technologies-consumables/iot-in-supply-chain

Using sensors, companies can understand attributes such as the condition, location, and environment of goods in transit. Real-time access to data keeps you informed, allowing better decision making and the opportunity to take corrective actions should something be wrong. IoT removes manual processes such as emails or phone calls, negates the likelihood of blind spots, and provides complete chain transparency.

Some organizations are taking this a step further and combining IoT with blockchain technology. For example, IoT sensors can detect a problem with a product in transit, such as being stored at the wrong temperature. Imagine a smart contract is set up on a blockchain that guarantees a specific temperature between the two parties. As soon as that term is broken, it activates the blockchain and alerts all parties that the contract has been breached.

Autonomous Vehicles

Toyota, Volvo, Tesla, and Ford are a few examples of significant automobile manufacturers aiming to deliver completely autonomous vehicles to the mainstream market. Tesla already has a car with self-driving capabilities.

*Source:* *https://www.sam-solutions.com/blog/iot-in-automotive-manufacturing/*

Self-driving cars operate using IoT. For example, the vehicle is connected to an IoT-based technological system that communicates information about the road and the car itself as it is moving. These systems collect an enormous amount of data on traffic, roads, navigation, and more, which is then evaluated by the car’s computer systems to drive itself.

Financial Services

There are many prospective applications of IoT in financial services. First, institutions may use IoT devices to improve the security of their branches. Banking and financial institutions may avoid money losses by installing IoT-enabled devices such as cameras and mobility sensors and connecting them to the internet.

*Source:* *https://link.springer.com/chapter/10.1007/978-1-4842-6041-8_10*

Thanks to constant data collecting facilitated by IoT solutions, attending to consumers’ demands and requirements have become considerably more straightforward. IoT allows businesses to access real-time datasets, providing services almost instantaneously.

In banks, customers may check online to see how long the queues are at the branch or arrange a cash withdrawal and perform the transaction at any nearby ATM.

Businesses use IoT to collect data for credit risk assessment. Asset management organizations can receive relevant data across various industries such as retail and agriculture for better decision making thanks to modern IoT technologies like D2D (device-to-device) communication protocols and sensor installation.

Summary

Since the pandemic, the number of devices connected to the internet has soared, and that will continue throughout 2022 and beyond. Going forwards, as technologies such as blockchain, 5G, and edge computing become more prominent, there is a vast amount of scope for enhancing IoT devices.

IoT technology can offer green solutions for businesses, cities, and communities as the focus on establishing a green economy and mitigating climate change intensifies. These applications, which include lowering energy costs, enabling remote installations, monitoring failure spots, and many more, will quickly transition from niche appliacations to IoT growth drivers.

Naturally, one of the IoT community’s primary goals should emphasize the incorporation of IoT into any realistic model of a sustainable global economy.

Disclaimer: The author of this text, Jean Chalopin, is a global business leader with a background encompassing banking, biotech, and entertainment. Mr. Chalopin is Chairman of Deltec International Group, www.deltecbank.com.