IoT is budding technology and it is expected to grow at a rate of 32 percent with an installed base of 25.1 billion units by 2021.(1) Security is the major concern as IoT devices have connected to several hundred other devices. Unsecured IoT devices have an easy target for Distributed Denial of Service (DDoS). When a programmed system will send a repeated number of requests to the central server, then it might cause a denial of service request for authentic users. Blockchain, a distributed ledger technology has the potential to address the loopholes of IoT security.
What is IoT?
The Internet of Things (IoT) is a myriad of interrelated & interconnected objects(2) that can collect and transfer data over a wireless network without human intervention. In this way, IoT connects people, places, and products by offering value creation. Data is transmitted to the IoT network via sophisticated chips, sensors, and actuators embedded into physical items. IoT analyzes this data to transform insights into action. This will lead to a new way of working and impacts strongly on business processes.
Cost-efficient Data Management
Blockchain can provide a cost-efficient mechanism to manage the enormous amount of data that has been generated by IoT devices. For serving end-customer needs, the data must be collected and trusted with prime importance. Blockchain can provide a trusted link that can scale the whole system of IoT devices. Blockchain can provide a decentralized and publicly accessible network for efficient data transactions for IoT. Blockchain can issue certificates by which IoT data can be retrieved in any location. Blockchain-based IoT certificate management system(3)can provide user privacy and data integrity for users.
Decentralization of IoT applications
The IoT visualizes a connected world where things can communicate measured data and interact with each other. IoT is a digital representation of the real world that includes smart homes, wearables, smart cities, healthcare, the environment, smart grid, and many more. Blockchain has materialized the concept of smart contracts. The smart contract automatically executes in a set of predefined conditions. Smart contracts will active whenever a transaction will take place in the form of cryptocurrency. The process of decentralization is common in both IoT and blockchain. This will make sure that every device is a copy of the application that interacts with the network individually. Day-by-day devices have been embedded into the physical items and hackers can get open access to an abundance of devices and data. Blockchain and smart contracts can attenuate major issues by creating audit trails and tracking the history(4)of transactions.
Meanwhile, IoT and blockchain function differently. Blockchain works at the cloud level while IoT works at the device or sensor or network level. Blockchain links the backend systems and provides flexibility and trust to the trusted links. However, IoT is in a nascent stage, it requires enhanced scalability and efficiency to integrate with different systems. Most of the organizations focus on IoT for digital transformation and blockchain is their least priority. The integration and pattern of blockchain should be user-friendly so that IoT can efficiently connect with blockchain. There is requires a plethora of research on suitable linking with IoT and Blockchain.