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The fundament of the week: Internet of Things (IoT)

To this day, we see the term Internet of things almost on a daily basis. It is attributed to Kevin Ashton of Procter & Gamble, who used the phrase in a 1999 article to describe the role of RFID tags in increasing supply chain efficiency.

In the literature, as well as on the Internet, we find countless definitions. This is evidenced also by the number of slightly different definitions of IoT given in Towards and the definition of the Internet of Things (IoT) Revision 1 - Published 27 MAY 2015 . This only proves the fact that the IEEE (The Institute of Electrical and Electronics Engineers) has not defined a standard to this date. Simply put, the Internet of Things thus still has several definitions.

What is the Internet of Things

The Internet of Things uses Internet Protocol (IP), the same protocol that identifies computers throughout the Internet, and allows them to communicate with each other. The goal of the Internet of Things is to have devices that behave the same in real-time, improve their efficiency, and deliver key information faster than a human-dependent system.

Advantages of IoT

IoT promises to change a wide range of areas. For example, in medicine, interconnected devices can help professionals monitor patients both inside and outside of the hospital facilities. Computers can then evaluate data to help physicians tailor treatment and improve the outcome of treatment.

Another area that is undergoing transformation is urban planning. For example, if you place sensors with their own IP address under a busy street, the relevant authorities can warn the driver about an impending delay or potential accident. Meanwhile, AI waste disposal bins can inform the waste disposal facilities as soon as they are filled, thus optimizing waste collection routes.

The use of smart devices is also likely to give a competitive edge to businesses that use them strategically. For example, by monitoring data on energy consumption and inventory levels, a company can significantly reduce its overall costs. Interconnection between companies and their consumers can also help companies in doing their business more efficiently.

By monitoring consumer behavior in the store premises, a retailer could theoretically sell recommended products directly tailored to its customers, thereby increasing the overall sales volume. If an IoT appliance is in the consumer's home, it can alert its owner about the need for a service and easily recommend him to book an appointment.

Disadvantages of IoT

As with all personal data problematics, many personal data protection issues need to be addressed in the context of IoT, which is the biggest problem. This technology has advanced much faster than the regulatory environment, so companies that continue to expand their Internet-enabled devices face potential regulatory risks.

Jakub is a crypto trader and founder of Trader 2.0 project, which helps hundreds of traders from central Europe to understand cryptocurrency trading and its challenges. Jakub not o...

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