Utilizing Blockchain Technology in IoT

This paper explores the utilization of blockchain technology in the internet of things (IoT). It discusses the benefits of decentralized and secure transactions in IoT and how blockchain technology can enhance the security and reliability of IoT networks.

Utilizing Block chain Technology in IoT technology
Student Name – Student ID
Masters in IT – Networking
[e-mail]
ABSTRACT - The block chain technology is a typical of secured technology that attaches with the internet of things to make the
technology decentralized. It uses the distributed ledger for storing the transactions in the IoT technology. Generally, the block chain
technology is a set of blocks and in this technology each block is connected with the previous block. The IoT nodes are basically smart
physical devices which exchanges the data with the other IoT nodes. The IoT nodes are designed with actuators, sensors as well as
various types of programs that help to communicate with other IoT related nodes. In that case, a technique is provided by the block
chain technology that can help to transfer the data records from one to another node without any insecurity. The transactions
happened in the block chain technology are traced by the authenticated person who will able to make a communication with the IoT.
Here in this paper, it is explored this methodology how the block chain technology is utilized with the internet of things.
Keywords— block chain technology, IoT etc.
1. INTRODUCTION
In the modern world, the internet of things spread its
range to provide smart cities, smart homes as well as
distributed intelligence etc. The IoT nodes are linked
with each other in a decentralized technique (Allen,
2017). In the IoT technology, it is very problematic to
maintain the security in the transaction among all of
the nodes. But, the block chain technology provides a
security based technique in the field of transactions in
IoT. It gives the decentralized distributed ledger to
store the transactions among the IoT nodes. The
storing process of the transaction is maintained by the
peer to peer topology. In the block chain technology,
the process of transaction is designed in terms of
blocks and each of the block in this technology is
linked with each other and each block has the previous
block address. In future, the revolution of the block
chain technology will much better with the
combination of internet of things. The actual objectives
of the block chain technology are making a
decentralized framework, security, identification,
scalability reliability etc. (Al-Saqaf & Seidler, 2017).
Both in the block chain and IoT technology, the
decentralized approach removes the centralization
formation and provides a decentralized system for the
improvement of the system performance. Another
objective relates to the security purposes. The block
chain technology provides better security to all the
transactions associated with the internet of things. In
the identification part, all of the IoT devices have
unique ID and similarly each block existing in the
block chain technology has unique ID. So the block
chain technology provides the single identity to all the
data related to the IoT. In the case of reliability, all the
IoT nodes have the authentication capability to proceed
the data all over the network. The reliable data means
that before entering in the block chain, miners verify
all the blocks. Only the authenticate blocks can pass in
the block chain technology (Andoni et al., 2019).
Another objective i.e. scalability means that the IoT
makes a communication with the distributed network
that helps to send them to the appropriate destination
for interchanging data.
2. LITERATUTE REVIEW
2.1 Impact of block chain technology in IoT
By using the block chain technology, the Internet
of things provides a secure communication. The
overall process of exchanging information is
conducted openly or publicly by the IoT devices
with a secure communication. The function of the
exchanging information employ several physical
devices that are conducted in the internet of things
technology over a heterogeneous network.
According to the overall operation of Iot technology,
the whole technology can be categorised as into a
number of sections that are given below:
2.1.1 Physical Things:
In the IoT technology, each of the physical devices has a
unique id so that they can easily identify with the help of
unique id (Andrews et al., 2017). Generally, the physical
devices are existed in the IoT technology to share
information from one device to another device. The
physical devices considers as nodes also, employs in the
IoT technology over the internet network for exchanging
information among the IoT nodes.
2.1.2 Gateways:
The gateways may consider as the devices that is
conducted to employ in the connection of cloud and
other physical devices such as controllers, sensors,
actuators etc. Not only it employs in the function of
connection, the additional function of the gateways is
that it provides the security services to the iot
technology (Berryhill, Bourgery & Hanson, 2018). In
the normal condition, the sensors in the technology are
employed for generating several of data. At that time,
the gateways help to provide a place for the purpose of
pre-processing the data and then the data sent to the
destination for rest of the operation. The gateways are
also existed in this technology to provide the required
security because the gateways handle the information
exchange operation.

2.1.3 Networking: Networking in the IoT technology helps to control
the information flow and provides the shortest route to
all
the IoT nodes so that the information can reach so
fast (Chitchyan & Murkin, 2018). The networking also
provides the connectivity, control, power, security,
compute, policy and also manageability to the IoT
technology for better performance of the data
exchange.
2.1.4 Cloud:
Cloud plays a part in the IoT technology and it helps
to store as well as compute the information. In that
case, the block chain technology reflects a significance
in the IoT technology. The block chain composes a
number of blocks that is used to provide a secure
communication in the IoT technology. Generally, in
the block chain technology, the blocks are
cryptographic in nature that are used for the transaction
purpose over the network (Czepluch, Lollike &
Malone, 2015). The blocks in the block chain
technology represent the distributed ledger so that it
can securely transmit the information all over the
network. The block chain technology may be public or
private based on its properties.
Type of
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By using the block chain technology, the databases
belong in the properties like decentralized trust
model, high security, highly public accessible, low
privacy and also the transferable characteristics etc.
(Ellul & Pace, 2018). But when the IoT technology
was based on centralized database, the properties
were opposite to the characteristics in block chain
technology that means centralized trust model, low
security, low public accessible, high privacy and also
non-transferable characteristics etc. To develop the
internet of things technology in a secure position,
there are certain number of block chain technology
based platforms are adopted such that IOTA,
IOTIFY, iExec, Xage, SONM.
IOTA – It refers as the new platform in the area of
block chain technology and provides the functions of
high data integrity, high level of transactions, and
high block validity with the help of smaller resources
(Herbert & Litchfield, 2015). This platform helps to
solve the boundaries of the block chains.
IOTIFY – It is also a kind of block chain platform
based on the cloud that are employed in the IoT
technology and used to control the boundaries of the
block chain technology (Hileman & Rauchs, 2017).
It also helps to deliver a better grade to the IoT
technology as being faster as well as cheaper.
iExec – It is another open type of block chain tools
and also considers as a connection between the cloud
resource sellers and cloud resource buyers and be a
part of decentralized network that engages in the
privacy conserving applications.
Xage - It is one kind of secure based platform in the
block chain technology that engages in the field of
increment of automation and security about the
transferable information.
SONM – It is also decentralized block chain platform
that engages to provide the security to the IoT
technology (Huckle et al., 2016). It is in relation to
the fog computing that attaches with the IoT
technology to change the marketing strategy in the
present world. It offers many new type of
opportunities to the IoT technology with a proper
security as well as privacy. The offered opportunities
help the people to take a part in the transaction sin
the field of IoT technology (Hughes et al., 2019). In
the IoT technology, the block chain technology is
utilized in the tracking purposes as well as coordinate
and remove all the failures of the Iot technology. In
the case of privacy provided to the users, hashing
technique are existed in the block chain technology.
2.2 Opportunities
To provide a lots of security services to the internet of things
technology, the block chain technology creates a great
significance on this technology. With the addition of the block
chain technology to the IoT, there are number of opportunities
that help to make a change in the markets all over the world
(Larmuseau & Shila, 2019). The people can easily handle the
transactions related to the IoT technology with a provided
security. There are number of opportunities of the block chain
technology are given as below:
Build a trust among parties – Since, the block chain is added
in the IoT technology to increase security in the transactions,
thus the integration of the block chain IoT approach generates
the trust among the parties so that it can maintain the security

purposes about the transactions related to the IoT technology
(Muzammal, Qu & Nasrulin, 2019). Because of having trust,
only verified blocks can enter in the block chain network to
deliver the proper security to the transactions. At the operation
time, each of the block transaction verifies by the miners at
first and after completing the verification part, if the blocks
are verified then they can enter in the block chain network.
Reduction of cost – The block chain and IoT approach is
deployed in the reduction of cost (Pahl et al., 2018). The main
reason of consuming cost is to install the third party in the
connection of sender and receiver. But, entrance of the block
chain technology in the field of internet of things technology,
the cost consumption is tended to decrease. Because, the block
chain technology ensures the communication related to the
IoT technology without the third party. There is no third party
in the connection of sender and receiver while it is in relation
with the block chain technology.
Reduction of time – The integration of the block chain and
IoT helps to reduce the time. In the previous days, in the IoT
technology, the transactions take a lot of time in the execution
case. But when the block chain technology is added with the
internet of things technology, it saves the time and reduce the
duration of the timing from days to second (Patel, Bothra &
Patel, 2017). By using this technology, the communication
related to the IoT gives into a step of advanced version.
Security and privacy – Security is the main opportunity by the
block chain technology when it is additional with the IoT
technology. The transaction in the IoT technology is too much
vital for all the users because this technology carries sensitive
information through various IoT nodes. So, carrying the
sensitive information in the IoT technology, provides
sufficient security to this technology so that it can handle all
the data for the users (Queiroz, Telles & Bonilla, 2019). The
transaction in the IoT technology may be public or private but
the communication needs to secure over the network.
Social services – In the IoT technology, all the nodes are
connected with each other over a heterogeneous network so
that
they can communicate with each other and exchange sensitive
information (Rantos et al., 2018). The addition of block chain
technology with the IoT technology, provides the social as
well as public services to the IoT devices.
Financial services – With the help of block chain and IoT
approach, the financial transaction can stay in secure position.
The overall process of transaction conducts in a secure way
and also without the help of third party (Rantos et al., 2018).
By using block chain the technology, the transaction can be
processed in a secure and faster way. Since, the IoT
technology adds with block chain technology, it saves not
only the cost but also the timing in the case of transaction in
the IoT technology.
Risk management – In addition of block chain technology
into the IoT technology, the transactions associated with the
IoT technology becomes much better than the previous one
that means the technology becomes faster, cheaper and also
smarter (Tasca & Tessone, 2017). The block chain technology
ensures the IoT technology in a secured position. Since by
using block chain technology, the IoT technology develop in a
smart way. Therefore, it reduces a lot of risk associated with
the IoT technology. Due to decrease the risk management, in
the operation purposes, the IoT technology diminishes the
amount of failures cases. The IoT technology reduces some
different kind of risks like vendor risk, Credential security and
also legal and compliance risks etc.
2.3 Challenges
With the help of block chain technology, the IoT
technology develops in a smarter way. It changes its
capability and develops a better position than the
previous position. Due to the block chain technology in
the Iot technology, the transaction related to the IoT
technology in a secure position. People can easily
transfer their funds with security. Instead of a lots of
advantages of the IoT technology with the help of the
block chain technology, this approach have faced some
challenges (Wang et al., 2019). The number of
challenges enlist in such a way like scalability, storage,
lack of skills, discovery and integration, privacy,
interoperability and also rules related challenges.
Scalability – Scalability is one of the important
challenges in the block chain technology. The Bitcoin
storage takes a part in the block chain technology. The
block chain technology has the capability to store the
information into it. If the storage makes overflow, then
the technology is hanging up. Scalability is that type of
problem while the block chain technology overloads
with a lots of data. At that situation, the block chain
technology becomes hang. Moreover, the block chain
technology is added with the IoT technology.
Therefore, the data storage capability exceeds its
limitation and full of transactions and that why, this
type of problem arises.
Storage – This kind of problem is almost connected
with the scalability problem. The block chain
technology provides the digital distributed ledger to the
IoT technology. With the addition of block chain
technology into the IoT technology, the distributed
digital ledger is associated all the IoT nodes in the
technology. Due to having the digital ledger in the IoT
technology, the technology becomes in a cryptography
way. For the IoT nodes, the capability improves than
the previous stages. For that, a lots of transactions take
place in the IoT technology and as a result, there will
be overload in the block chain technology. Due to the
load of transactions in the IoT technology, the Iot
nodes need to increase the storage size which is the
challenging task for the Iot technology. For that, there
will be a heavy load on each of the Iot nodes.
Lack of skills – In the recent world, the block chain
technology comes in the society is not a lot of years
ago (Zheng et al., 2018). It is a new technology. So,
many people have no idea about this technology that
what the technology is and how the technology works
in the market area. However, the proper utilization is
not done by the people due to lack of skills. Therefore,
it is the challenging part for the IoT technology that to
utilize the block chain technology in a better way,
firstly it is needed to train people about the block chain
technology.
Discovery and integration – At the first time, the
block chain technology is not designed for the IoT

technology. In the IoT technology, the Iot nodes are
employed for the transaction purposes. They are not
able to discover as well as integrate another block
chain nodes. So, itb is the challenging task for the IoT
technology.
Privacy – As discussed in above, the block chain
technology provides the distributed digital ledger for
the transaction purposes related to the IoT technology.
In the IoT technology, the digital ledger is circulated
among all of the IoT nodes and the total operation
occurs publicly. The people can see all the transactions
related information in the digital ledger. So, for the IoT
technology, it is quite challenging part to improve
about the privacy settings.
Interoperability – The operation of the block chain
technology can be either public or private. Therefore, it
is the challenging task for the IoT technology about the
interoperability of the block chain technology within
public or private.
Rules and regulations –Both the block chain
technology and the IoT technology work in the global
area. Both the technology is operated publicly. The
public can operate the digital ledger for the transaction
purposes. So, both the block chain technology and the
IoT technology must follows few rules and regulations
so that they can operate properly.
3. CONCLUSION
It has been concluded that, the internet of things
technology brings a new change in the daily life. It creates
smart home, smart cities as well as smart lifestyle. But, if
something adds with the IoT technology, then it would
perform better than previous. At that moment, the block chain
technology comes in this point and adds with the IoT
technology so that the IoT technology improves in its own
way. The block chain technology provides its cryptographic
style as well as distributed ledger to the IoT technology so that
they can perform better. Due to the addition of the block chain
technology, the IoT technology has many advantages like
builfd trust with parties, reduce the risk management, reduce
timing and cost etc. But instead of having lot of advantages,
the technology has faced some challenges. The challenges
related to the IoT technology are like scalability, storage, lack
off skills, interoperability, privacy etc. But the integration of
block chain technology and IoT technology helps to the real
world. It reduces the transaction cost as well as transaction
timing. People can easily transfer their funds with a full of
security. So, in future, the integration of the block chain
technology and the IoT technology will be useful for the
modern world and also for the public.
4. RECOMMENDATIONS
The block chain technology is a kind of technology
which is related to the collection of information. The
information is attached with the block in the block chain
technology with the help of connecting with the other
blocks making a chain of blocks. If the block chain
technology is attached with the IoT, then it improves the
security better than the previous situation. With the help of
this technology, the trust among the parties has been
established. Also, in the recommendation part, it has been
stated that it helps to decrease the cost because at the earlier
days, it needs to involve another cost in the case of
installing third party between sender and receiver. But the
block chain technology reduces the cost because there is no
need of involvement of third party. In addition of this, use
of block chain technology reduces the execution time and
also increases the privacy purposes. Since, the block chain
technology increases the security as well as privacy, it also
effects on the decrement of risk management.
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