Research

Paper 19,
September 2024

An Extensive Overview of Blockchain

Technology: Applications in the Internet of
Things (IoT)
Satyam Kumar, Vikash Kumar

Chandigarh University, Punjab, India

Abstract - The Bitcoin base, blockchain, has drawn a lot

of attention recently. Blockchain functions as an
The term "internet of things" refers to a network of
incommutable tally that enables decentralized sale diverse linked devices that may collect and share data
processing. Operations erected on blockchain are with other devices via the internet because they are
proliferating and gauging a wide range of diligence, integrated with a variety of sensors, software, and
similar as fiscal services, the Internet of effects (IoT), computing powers. The term "internet of things"
character systems, and more. But there are still a lot of (IoT) has gained popularity recently, and by 2025,
issues with blockchain technology to be resolved, like there will likely be more than 30 billion connected
scalability and security issues. An expansive description devices (Hasan, 2022). IoT devices produce
of blockchain technology is handed in this paper. The
enormous volumes of data, which need to be
eventuality for transubstantiating device commerce and
data exchange across bias exists with the combination of managed securely, dependably, and effectively. This
Blockchain Technology and the Internet of effects (IoT). technology has the power to completely transform a
Without the need for mediators, secure, transparent, and variety of industries, including energy management,
incommutable data transfers between bias can be eased transportation, and healthcare. However, traditional
by blockchain's decentralized armature. This study aims data management approaches are facing challenges
to examine the current status of the blockchain- IoT due to the sheer volume of IoT generated data as well
ecosystem. as privacy and security concerns. Blockchain
technology is a promising solution for Internet of
Keywords:- Blockchain Technology, Internet of Things
Things applications because it offers a decentralized
(IoT), Decentralized Architecture, Blockchain Challenges
in Internet of Things and secure platform for data management and
exchange.
I. INTRODUCTION As seen in figure 1, the Internet of Things (IoT) is
made up of a vast array of devices, including sensors,
All committed transactions are recorded in a list of processors, and several other physical objects that use
blocks on the blockchain, which may be thought of as embedded systems to gather, transmit, and exchange
a public ledger. As fresh blocks are consistently data with one another while requiring very little
added to it, this chain gets longer. For user security human knowledge. The protocols used by these
and ledger consistency, asymmetric cryptography and networked devices for congruence, association, data
distributed consensus algorithms have been used. The transmission, and exchange primarily rely on the
four main features of blockchain technology are particular Internet of Things applications that are
auditability, anonymity, persistency, and implemented.
decentralization. These characteristics allow The key elements of the Internet of Things are:
blockchain to significantly reduce costs while Physical objects, such as Internet of Things gadgets
increasing efficiency. Blockchain can be utilized for a that exchange data with one another gateways that
variety of financial services, including digital assets, provide security by serving as a link between
remittance, and online payments, as it enables physical devices and the cloud using the cloud to
payment to be completed without the need for a bank store and manage the documents or data.
or other middleman. It can also be used in other On the other hand, blockchain is regarded as a kind
domains, including as public services, smart of distributed ledger technology that enables the
contracts, and the Internet of Things (IOT). decentralized and distributed computing as well as
the reliable recording and maintenance of data
without the need for middlemen. To put it simply,
blockchain is a
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Paper 19,
September 2024
public ledger that documents different transactions
that occur across different network nodes that
interact, communicate, and work together in a totally
trust-less environment in a time-stamped manner
.

The main underlying features of Blockchain include:

(i)Decentralization in a P2P network with
linked nodes. (ii)Distributed shared ledger, which is
kept up to date at every node and holds a record of all
the different transactions that take place
between network nodes. (iii)Time-stamping
information to be entered into the shared ledger.(iv)
Consensus mechanism to guarantee that each
participating node's ledger copy is consistent and all
nodes converge on a single agreement.
The Internet of Things (IoT) is growing quickly, and
it has a wide range of applications in the
manufacturing sector, smart cities and homes,
healthcare, e-fitness, and many other areas (Al-
Fuqaha, Guizani, Mohammadi, Aledhari, and
Ayyash, 2015). The internet of things, although
widely used, is vulnerable to a number of security
and privacy-related issues (Elkhodr, Shahrestani, and
Cheung, 2016). IoT entails a decentralized network
of disparate devices that are connected to one
another, yet the security methods and strategies
employed for inter-device communication are
extremely intricate and sophisticated. Thus,
employing blockchain technology can offer improved
security features to facilitate easy and uninterrupted
communication amongst various Internet of Things
nodes connected to the network. The potential for
growth and increased business capacities as a result
of the integration of blockchain technology with the
internet of things.

II. CHARACTERISTICS OF BLOCKCHAIN

Following are the key characteristics of Blockchain:

 Decentralization: Every transaction in traditional
centralized transaction systems must be verified
by a central trusted agency (such as the central
bank), which invariably drives up costs and
creates performance bottlenecks at the central
servers. With blockchain, a third party is no longer
required, in contrast to the centralized mode. In
distributed networks, consensus techniques in
blockchain are employed to preserve data
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consistency.
 Persistency: Quick validation of transactions is
possible, because sincere miners would not accept
erroneous transactions. Transactions once
included in the blockchain cannot be easily
removed or reversed. It is possible to identify
invalid transaction-containing blocks right away
 Anonymity: With a created address that conceals
their true identity, each user can communicate
with the blockchain. Be aware that due to inherent
constraints, blockchain cannot ensure full privacy
preservation.
 Auditability: User balance information is stored on
the Bitcoin blockchain using the Unspent
Transaction Output (UTX-O) architecture. Every
transaction must make reference to some
previously made but unpaid purchases. The status
of the referred unspent transactions changes from
unspent to spent once the current transaction is
added to the blockchain. enabling simple tracking
and verification of transactions.

III. BLOCKCHAIN TECHNOLOGY IN

IOT

2008 saw the initial introduction of blockchain

as the core technology underlying the Bitcoin
cryptocurrency (Nakamoto and Bitcoin, 2008).
Since then, it has grown in popularity as a tool
for transparent and safe record-keeping across a
variety of industries, including supply chain
management, healthcare, and finance. In
contrast, the Internet of Things has been
evolving for several decades. but has recently
seen a meteoric rise in popularity as more
gadgets become internet-connected. The
amalgamation combining blockchain
technology with the Internet of Things could
revolutionize data management and exchanged.
Blockchain primarily functions as a distributed
digital ledger with the ability to record the
transactions in a transparent and safe manner.
The following graph shows the market share of
blockchain integration in IoT from 2020 to
2024 for key sectors such as smart cities,
healthcare, and manufacturing.
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The last block in the chain that is attached

retains the previous block's cryptographic hash
and unique code, making Because of this, once
a block is added to the blockchain, it cannot be
removed or changed, which makes it the perfect
solution for the Internet of Things. Therefore,
blockchain can be defined as a distributed,
decentralized shared ledger technology that
guarantees safe transactions occur naturally
between network nodes in a transparent manner
without the need for a centralized authority. It
furthermore produces an impenetrable record of
every transaction, which is essential for the
Internet of Things as the Sensitive data is being
transferred and kept. Another noteworthy
benefit of utilizing Smart contract development
is facilitated by blockchain technology. Smart
contracts are thought to be self-executable
programs that launch on their own when
particular requirements are satisfied (IBM,
2020). This is even more helpful in the Internet
of Things space, where gadgets may
communicate and execute.

IV. ADVANTAGES OF BLOCKCHAIN

IN IOT

In recent years, a number of researchers and business experts have hyped up the scope and usefulness of blockchain
technology in the Internet of Things (IoT) (Alam, 2021). The following are some possible advantages of integrating
blockchain technology with Internet of Things systems: increased data integrity, better security, and lower transactional
and infrastructure expenses executing. Figure 2 illustrates key advantages of integrating blockchain technology into the
Internet of Things.

(1) Enhanced Security: Blockchain technology offers a secure framework for exchanging data because every
transaction is validated and certified by a network of nodes. Since blockchain is distributed and decentralized,
it does not require middlemen, which makes it more difficult for hackers to change data. Additionally, the use
of cryptographic protocols ensures that data is transmitted, stored, and accessed securely.
(2) Improved Data Integrity: With blockchain technology, data can be securely stored and tamper-proofed that
further ensures the data authenticity and data integrity.
(3) Reduced Transactional processing costs: Blockchain technology lowers the overall cost of transaction
processing because it eliminates the need for a third party to implement and maintain the systems needed to
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record transactions.
(4) Increased Scalability: Because blockchain can process a large number of transactions, it is a good fit for the
Internet of Things, which produces enormous volumes of data. The distributed nature of blockchain
technology facilitates horizontal scalability, which permits the network to accommodate gradual expansion of
the nodes on the blockchain.
(5) Increased Privacy: As all transactions are visible to and accessible by network nodes, blockchain offers a
transparent framework for data interchange. However, permission-based access and encryption can help to
protect the privacy of the data.

V. APPLICATIONS OF BLOCKCHAIN IN IOT

A number of application examples illustrate how blockchain might affect the Internet of Things. Blockchain, for
instance, can help with transparent and safe supply-chain management, making it possible to trace items from
manufacture to delivery. It may also be utilized in smart homes, where blockchain helps to provide a safe channel
for device communication, improving the privacy and security of data. Blockchain technology may be used in the
healthcare industry to store and distribute trustworthy patient data, facilitating safe and effective data sharing
between healthcare providers. Blockchain technology has the power to completely change how we think about the
internet of things (IoT) and how useful it is.

(1) Secure Device Authentication and Identity Management: Blockchain technology provides the ability to
manage IoT device authentication in a secure, fully decentralized environment, therefore limiting the risk of
cyberattacks and preventing illegal access.
(2) Supply Chain Management: Blockchain provides increased transparency and traceability by tracking the
products in real-time throughout the supply chain. This can assist in locating and resolving problems with the
authenticity, quality, and compliance of the product.
(3) Smart contracts: Without the need for middlemen, the implementation of consensus across different IoT
devices may be automated with the use of smart contracts. This can contribute to cost savings, increased
productivity, improved security, and a greater level of automation.
(4) Data sharing and monetization: Blockchain technology can give Internet of Things devices a transparent,
safe, and uncompromising means to exchange data while guaranteeing that the data is neither altered or
corrupted. Additionally, it may open up new avenues for data monetization business models.
(5) Smart Homes: It may also be used to smart homes, where blockchain technology can offer a safe channel for
communication between devices, improving data security and privacy.
(6) Healthcare Management: Blockchain technology may be used in the healthcare industry to securely store and
share patient data, facilitating dependable and effective data interchange between healthcare providers.
(7) Energy Management: Blockchain technology may be used to establish decentralized energy marketplaces
where Internet of Things devices can exchange energy. This can aid in cutting waste and improving energy
use.

Some Real World Applications are:- The Internet of Things sector is already utilizing blockchain technology
in a few practical use cases. To trace the flow of food from farms to tables, IBM has created a blockchain-
based system (IBM, 2019). Through the use of sensors, the system keeps track of the food's temperature and
humidity as it travels through the supply chain. The data is then stored on a blockchain platform. Overall,
blockchain Technology can open the door to an IoT ecosystem that is more transparent, safe, and effective.
fresh opportunities and room for development and creativity.

VI. CHALLENGES OF BLOCKCHAIN IN IOT

(1) Scalability: Massive amounts of transactions can be produced by IoT devices. Real-time Internet of Things
applications may demand a scale that current blockchain networks are unable to provide. Transaction
confirmation times might be an issue, especially for applications that need quick answers.
(2) Energy Consumption: The energy requirements of Blockchain Technology are high, and the processing and
power capacities of IoT devices are constrained. The energy needed to validate blocks and mine transactions
may quickly deplete IoT devices' batteries.
(3) Data Privacy: Because blockchain is an unchangeable, visible database, the privacy of Internet of Things data
may be jeopardized. For some IoT applications, this can be a major problem because any data or information
stored on the blockchain is readily available to everyone with network access permissions.
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(4) Complexity and Cost: Blockchain integration with current IoT systems might be difficult and need certain
expertise. The cost of creating and managing a blockchain solution may be higher than that of conventional
centralized systems.
(5) Interoperability: It is difficult to build a single blockchain network that can easily interface with all IoT
devices due to the absence of standards in IoT devices and protocols. Integration effprts may be hampered by
the absence of standardized frameworks for blockchain and Internet of Things.
(6) Data Management: Because blockchains are not built for high-capacity data storage, storing a lot of IoT data
on them may cause problems. The principle of "garbage in, garbage out," applies here it is imperative to
ensure the quality and integrity of data supplied into the blockchain.

VII. CONCLUSION

In Conclusion, Blockchain Technology has a lot of potential for the Internet of Things, there are still several
questions that need to be addressed before it can be fully incorporated into IoT systems. The incorporation of
blockchain technology into IoT devices has significant promise for transforming their functionality and fostering
inter-device communication. To fully exploit the benefits of blockchain in the Internet of Things, however, further
research and development are required to get over the present obstacles and constraints. We examined and
contrasted these protocols in various ways. In addition, we outlined a few obstacles and issues that would prevent
blockchain development and provided an overview of several current methods for resolving these issues.

VIII. REFERENCES