How Is 5G-Enabled IoT Positively Transforming The Blockchain Applications?

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With globalization, the barter-driven trade is turned into a global flow of commodities that are purely based on trade finance. Many fundamental issues exist with global trade (Supply chain) that was negatively impacting the economic efficiency. This is why trade finance is evolved by embracing emerging technologies such as IoT, 5G network, and blockchain that are capable of addressing the concerns and incrementally enhance the industry in isolation or together.

In the real-time supply chain monitoring, the hundreds of machines and people are interconnected over wireless IoT network where the high latency, security risk, and scaling issues pose a challenge. That’s where 5G-enabled IoT devices with the introduction of 5G reduce the latency, increases system capacity, and enable massive device connectivity. However, security remains an issue, which can be fixed with blockchain adoption as it encompasses decentralization, immutability and no middlemen involvement.

It’s just a point in a case that we have considered to showcase how the three technologies when used in tandem, they solve the problems to the core and can create wonders for the industries.

Let’s discuss in detail how 5G and IoT together redefine the blockchain adoption:

The IoT transactions occur on the second layer of the network where a vast number of devices are interconnected. The long lag times that come due to high latency (4G network or poor internet connectivity) prevent the smart home or driverless vehicles to perform to the peak efficiency because they cannot communicate in the real-time.

Thanks to the 5G network that’s rolled out in major cities of the USA by major carriers- Verizon, AT&T, Samsung, Qualcomm, and Apple. The high speed, low latency, and capacity to connect a huge number of devices are the byproducts of the 5G network that’s making IoT applications responsive and perform to the notch. The emergence of 5G is a boon for IoT applications as IoT connections that are expected to increase by 100 billion by 2025 need high capacity and ability to connect a large number of devices.

In the next decade, when automation becomes a part and parcel of human lives, the 5G-enabled IoT plays a vital role in making the automation solutions perform at scale.

The diminished latency through 5G also enhances the blockchain applications in terms of reducing the time between the data broadcasted and received by the oracles to the contracts under smart contracting. The network improvements lead to a significant increase in network participation and developers get more opportunities to experiment with reduced block times.

Let’s hop back on to the 5G-enabled IoT bandwagon where 5G-coverage enables the IoT apps to perform as intended and exploit the full potential. But, the fusion of 5G has some downsides to it.

First: The high-speed 5G network creates chaos within networks when malicious devices are interconnected.

Second: The high volume of transactions and payment occur between these devices is beyond the capacity of centralized financial infrastructure.

Third: The IoT devices acting as a cloud server with identification data stored in databases that can be stolen or imitated, which means security can be compromised at any time.

Blockchain- the decentralized ledger comes to rescue.

The immutability, tamper-resistance, transparency, and consensus nature of blockchain makes the technology a perfect fit as a foundational layer for the IoT applications.

The decentralized blockchain resolves the first problem with its smart contract feature where a consensus is established among all the entities (Trusted or untrusted) through a protocol layer (Created and checked by multiple parties to ensure rules coded correctly, and the contract will behave as expected) to ensure there is no vulnerability. Besides, the blockchain immutability ensures the smart contract remains unchanged which keeps the system robust secured.

The scaling issue is handled by blockchain by not executing all the transactions on layer one protocol; instead, the majority of transactions are deferred to layer two protocols that operate on the top of the blockchain. The leading blockchains such as Bitcoin Cash ABC, Ethereum, and others are meeting the scalability needs with 5G and layer two blockchain infrastructure.

The last, the decentralized architecture of Blockchain app development ensures that the identity of the devices remains protected and no one can afford to put a dent in the security layer.


Saying one technology supersedes other is implausible as they separately have the unique value proposition. When used in synergy as we have discussed, the industries can gain high momentum by exploiting the full potential of technologies, when leveraged in conjunction.

Are you ready to create a breakthrough embracing the trio- 5G, IoT, and Blockchain? If so, get teamed up with a Blockchain development company that aids in addressing the increasing interconnectedness, low latency, high speed, capacity to connect enormous devices, and security aspects with a great fusion of 5G, IoT, and Blockchain in an application. All the best!


Author bio

Shahid Mansuri

Shahid Mansuri Co-founder Peerbits, one of the leading mobile app development company the USA, in 2011 which provides Blockchain app development services. His visionary leadership and flamboyant management style have yield fruitful results for the company. He believes in sharing his strong knowledge base with a learned concentration on entrepreneurship and business.