Blockchains and Smart Contracts for the Internet of Things
Motivated by the recent explosion of interest around blockchains, we examine whether they make a good fit for the Internet of Things (IoT) sector. Blockchains allow us to have a distributed peer to peer network where non trusting members can interact with each other without a trusted intermediary, in a verifiable manner. We review how this mechanism works and also look into smart contracts scripts that reside on the blockchain that allow for the automation of multi step processes. We then move into the IoT domain, and describe how a blockchain IoT combination: 1) facilitates the sharing of services and resources leading to the creation of a marketplace of services between devices and 2) allows us to automate in a cryptographically verifiable manner several existing, time consuming workflows. We also point out certain issues that should be considered before the deployment of a blockchain network in an IoT setting: from transactional privacy to the expected value of the digitized assets traded on the network. Wherever applicable, we identify solutions and workarounds. Our conclusion is that the blockchain IoT combination is powerful and can cause significant transformations across several industries, paving the way for new business models and novel, distributed applications.
IEEE Access