An LED as cool as the iPhone?

However, because most smart home devices run on wireless technology, some observers fear residences could become a prime target for hackers in an era when online security is becoming a hotly debated topic.

In a world where social media accounts and smart devices are routinely compromised, analysts point out it would pose little challenge for a hacker to access a home security system or a webcam. It also raises the question about whether companies like Sengled can navigate the shoals of privacy and efficiency.

"Consumers are entitled to privacy, but it is the protection of this privacy that is key to success," Ruan said, adding that most personal devices come with "a tradeoff between privacy and convenience" that most consumers tacitly acknowledge, if not completely accept.

In that vein, smart home hardware isn't altogether different from a credit card or a cell phone, which are considered secure, until they aren't.

"For the most part, our cards are secure and, in cases where our cards are physically or virtually stolen, the card issuing bank steps in to protect consumers from fraud," Ruan said. "We [also] view our mobile phones as highly secure," even in the possibility of wiretapping, he added.

Like card issuers and wireless companies, privacy fears will place the onus on smart technology providers to "ensure a high level of security," Ruan said.

"The underlying success of personal privacy lends to a business model where service providers are the entity that secure the network, devices, and services" he added.

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An LED as cool as the iPhone?