internet of cars: a driver-side primer on iot implementation

Currently, a vast number of devices—measured in the billions—are linked to the Internet of Things (IoT), and projections indicate substantial expansion over the next ten years.

Within the IoT landscape, the automotive industry represents a particularly promising, complex, and financially rewarding field. Considering the central role automobiles play in many individuals’ routines, a vehicle equipped with “smart” technology has the potential to significantly improve efficiency and reduce expenses for drivers.

However, the development of an “Internet of Cars” also raises concerns about potential drawbacks, such as a rise in intrusive advertising and heightened security risks. It is important to contemplate both the positive and negative possibilities—and for consumers to become well-informed—to help guide the evolution of future vehicles in a beneficial direction.

The promises and problems of connected cars

Consider a scenario where your vehicle could automatically notify a service professional when it detects potential mechanical issues. Envision that professional being able to access detailed performance data from your car’s systems and proactively secure the necessary replacement components. Furthermore, picture this data being compiled to identify and address potential widespread defects requiring a recall. What if vehicles could exchange information with each other during traffic slowdowns, collaboratively adjusting spacing to alleviate congestion?

Most vehicle owners readily recognize these common inconveniences, and a novel system designed to eliminate these difficulties would be a significant improvement.

However, a crucial question arises: how can we guarantee the secure and confidential handling of the extensive data generated by these increasingly intelligent vehicles? As automakers accelerate the integration of online capabilities, it appears probable that major technology companies will be key collaborators in establishing the infrastructure for connected cars. This development may raise anxieties for consumers who are increasingly wary of data exploitation or security breaches. While these large technology firms are not necessarily malicious, their core operational models often prioritize factors other than consumer privacy and data protection.

It is easy to foresee potential negative consequences of a fully connected automotive ecosystem: continuously updated, location-based advertising displayed on your windshield, the storage of sensitive driving behavior information on centralized databases, and the creation of numerous new avenues for cyberattacks. How can we integrate vehicles with the internet to enhance convenience without simultaneously introducing a distinct and novel set of challenges?

Data security must be the foundation of the IoC

Naturally, large technology firms will likely be enthusiastic about providing connectivity solutions for vehicles, but this will probably involve transferring private information to their servers. This situation, as is often the case, introduces two significant concerns. Firstly, consolidated data creates an attractive target for malicious actors. Regardless of how robust the security measures are, attackers understand that a successful breach grants them access to a comprehensive collection of information. The second issue is that the financial benefit derived from this data is too substantial for its holder to overlook. The data will inevitably be commercialized, despite assurances of anonymization.

The Internet of Things introduces a novel level of technological integration into our daily routines, and its impact will be comparable to the original introduction of the internet. Even with the progress of mobile internet access through smartphones, online applications have, until now, largely relied on less refined interfaces such as displays, keyboards, and pointing devices. The IoT will introduce a more advanced approach to how and where we connect to the internet, but this also implies a greater degree of encroachment into our tangible world. Regarding automobiles, we have legitimate reasons to be cautious about this new development, but it doesn’t necessarily have to present difficulties.

Distributed ledger technology (DLT) offers a viable approach for the Internet of Cars, as it incorporates data security and privacy directly into the core structure of any connected device. A typical DLT model incorporates fundamental principles, including the transmission of data across a decentralized network of computers and servers. It also signifies that data is stored perpetually, and each new data entry undergoes mathematical validation. DLT represents a fundamentally different method for managing extensive datasets. DLTs have demonstrated exceptional resistance to attacks, and the data residing on these networks is extremely difficult to gather and sell.

Selecting the Appropriate Technology for the Task

Currently, a substantial number of vehicles with internet connectivity are in operation, though their capabilities are largely limited to basic subscription-based services like music streaming and weather updates. As technology progresses, this connectivity will become far more comprehensive, with the typical connected vehicle equipped with as many as 200 sensors, each continuously recording data points. The sheer volume of data generated will be immense, and the necessity for rapid data processing will become particularly evident in critical situations. Consider a scenario involving highway driving with moderate traffic density.

If a tire failure occurs on a vehicle approximately half a mile ahead, this information could be rapidly disseminated to nearby cars, providing a warning about the potential for sudden braking. Any distributed ledger technology (DLT) solution implemented for this purpose would require a highly efficient verification mechanism to accommodate the influx and transmission of these numerous data packets.

Furthermore, due to the inherent computational demands, the majority of DLTs currently in use impose a charge for each new transaction added to the network. This fee is, in fact, a fundamental component of the architecture of many of these computational systems. Such a model would be impractical for a system like urban traffic, which would generate billions of “transactions” daily. The reality is that decentralized data networks were not originally conceived to manage use cases of this magnitude. Blockchain technology, for instance, excels at providing censorship resistance within a network, a characteristic that has proven beneficial in specific financial applications.

However, a DLT that requires a payment each time a vehicle’s air conditioning system reports its performance is simply not viable for that application. Any DLT aiming to deliver a high degree of security and real-time connectivity must also operate without transaction fees.

Security, speed, and flexible adaptation facilitated by a fee-less structure represent the three essential criteria for any network supporting the Internet of Cars. While DLTs undoubtedly offer the most robust security, they must also demonstrate scalability and a fee-less operational model.

The ability to automatically settle parking fees may appear to be a minor convenience. However, successfully implementing these types of small-scale transactions from the outset will significantly aid in overcoming the challenges associated with the complexity and volume of data generated by connected vehicles, ultimately contributing to the development of a secure and user-friendly Internet of Things overall.

When envisioning a fully interconnected physical world, the alternatives to scalable, fee-less DLT are genuinely concerning.