Apple’s iBeacon

When Apple very recently launched iOS 7 and followed this up with another set of phones, many speculated an NFC-enabled iPhone and/or iPad. However, not only did they make the decision to keep away from NFC, they also opted to go with another technology that they believe can become a potential game changer, and it is called iBeacon.

What is iBeacon?

iBeacon is a novel technology that enables mobile apps to detect when an iPhone is near a small wireless sensor called a beacon.  “Beacons” are  small wireless sensors that makes use of  Bluetooth Low Energy (BLE) to  transmit data to an iPhone and vice versa.

BLE Technology

iBeacon makes use of Bluetooth low energy (also known  as Bluetooth Smart) which is a wireless computer network technology for transmitting data and is characterized by reduced power consumption and lower cost. It consumes minuscule amounts of energy and so, there is minimal battery impact of the device. Estimote Inc, a supplementer of beacons, boasts of one which can run for up to two years on a single coin battery. Imagine that!!

How does it work?

Imagine you are walking by a store that has a beacon installed, with an iPhone in your hand. This “beacon” can be thought of a context-aware miniature sensor which is capable of spotting your location. If your iPhone has an app associated with the store installed on it, once you are within the beacon’s range, it can transmit specific data (including advertisements, promotions) to your iPhone through this app.

Further, this could enable payments at the point of sale (POS) so that you don’t need to remove your wallet or card to make a payment. With this feature, iBeacon could become a possible NFC competitor.

Pros:

·         Compatibility – Most recent phones are compatible with BLE (including iPhone).

·         Range –  iBeacons range is up to 50 meters which is significantly higher compared to NFC.

·         Low power consumption – The most attractive feature so far is that, even with constant use, there is minimal battery impact

·         Works indoors (unlike GPS)

Cons:

·         Expensive – iBeacons are slightly more expensive than NFC chips.

·         Security is a concern.

Compatible devices

The following set of hardware are considered iBeacon compatible:

·         iOS devices with Bluetooth 4.0 (iPhone 4S and later, iPad 3 and later, iPod touch 5, iPad mini and later)

·         Android devices with Bluetooth 4.0 and Android 4.3 and later (Samsung Galaxy S3/S4, Samsung Galaxy Note II/III, HTC One, Nexus 7 2013 edition, Nexus 4, Nexus 5,HTC Butterfly, Droid DNA)

·         Macintosh computers equipped with OS X 10.9 (Mavericks) and Bluetooth 4.0 using the MacBeacon application from Radius Networks

The claim that iBeacon could be a potential NFC killer is supported by the fact that it is already being adopted worldwide by different e-commerce business giants . PayPal, one of the  e-commerce business giants is already working on this to enable payments wirelessly. On December 6, 2013, Apple made a huge statement by deploying iBeacons across its 254 US retail stores. Although iBeacon technology primarily points out to Apple’s dislike towards data-sharing capabilities of near field communication (NFC) technology, is a great product idea and could revolutionize contact-less payment systems in the near future.