Block Chain in IoT

Block Chain in IoT

IoT has brought the vision of a fully connected network, where even the tiniest device is capable of playing a specific role on gathering and broadcasting personal and environmental data. On the other hand, the Blockchain technology creates peer-to-peer networks where non-trusting members, without a trusted intermediary, can interact verifiably and securely. This work starts by performing surveys of these two paradigms and then tries to demonstrate whether specific Blockchain characteristics can be used to add value to the IoT fundamental proposition. Current E-business models could hardly fit the IoT requirements as a convenient, safe and stable transaction system is needed to exchange information and payments.

Why Block chain in Iot

Current architecture of IoT networks has limitations, which can be overcome by improving communications between devices and access to evolved forms of aggregation and consumption of collected data. This work tries to evaluate the combination of these two paradigms - IoT and Blockchain. In the manufacturer’s point of view, the current centralized model of an IoT platform has a high maintenance cost, related to the distribution of software updates to millions of discontinued devices. From the consumer’s side, it presents a justified lack of trust in devices in the background, being needed a ‘security through transparency’ approach. These issues can be solved with a scalable, trustless P2P model that can operate transparently and distribute data securely, which is in line with the core functionalities that Blockchain can provide.

  • Energy credit management
  • Asset optimization
  • Payments within Smart Grids
  • Payments within Smart Meters
  • Payments to distributed generation asset owners.
  • Sharing of services and resources
  • Peer-to-peer computing
  • Possibly leading to the creation of a marketplace between devices, by allowing the automation in a cryptographically verifiable manner
  • Several existing time-consuming workflows
  • Decentralization and true redundancy
  • Trust without central authority
  • Privacy and enhanced security
  • Devices can talk directly to each other, without a central authority
  • Reduce Costs associated with installing and maintaining large centralized data centers
  • Avoid network latency problem due to massive increase in transactions in IoT