Blockchain technology enables transactions between entities that do not trust each other without requiring a central authority to assert trust. It allows for a complete history of transactions to be traced back to the source at any point in time. Today with Consumer & Industrial IoT applications and products on the rise, their is a pressing need to secure the data shared across these complex networks as these devices communicate with each other. Privacy and security are therefore major concerns for the IoT market. Blockchain technology single-handedly can help secure IoT networks and help address some of pain points of IoT networks such as scalability, vulnerable central authorities and avert any chances of tangible damage.

1. THE ROLE
OF BLOCKCHAINS
IN IoT
W W W . I N N O D A F O O D . C O M

2. WHAT IS BLOCKCHAIN
Originally created for
trading digital
currency
Blocks store
information about
transactions
Based on Distributed
Ledger Technology
A reliable, difficult-
to-hack record of
transactions

3. Transaction is combined
with other transactions
to create a data block
A provider &
customer agree a
transaction
The transaction
is confirmedto
both parties
Verified block is stacked
with other blocks creating a
blockchain
Data block is stored in
decentralised global
network & thus verified
HOW DOES IT WORK

4. Database of transactions shared &
synchronised across all parties– without
centralised control.
DISTRIBUTED LEDGER TECHNOLOGY
Self-executing agreements or rules based on
blockchain technology that automatically trigger
actions or payments once conditions are met.
SMART CONTRACTS:
Source: Blockgeeks, ResearchGate
KEY TERMS ASSOCIATED WITH BLOCKCHAIN
Option contract written as
code into a blockchain.
Contract is part of the
public blockchain.
Parties involved in the
contract are anonymous
Contract executes itself when
the conditions are met.
Regulators use blockchain to
keep an eye on contracts.
Clearinghouse
Centralised
Ledger
Distributed
Ledger

5. 0
2
4
6
8
10
12
14
2017 2018 2019* 2022*
0.95
1.5
2.9
12.4
WORLDWIDE SPEND ON BLOCKCHAIN
Worldwide spending on
blockchain solutions in
2019
$2.9 bn
increase from the $1.5
billion spent in 2018
88.7%
CAGR of Blockchain
spending between
2018-2022
76%
Worldwide spending on blockchain solutions 2017-2022
(in billion U.S. dollars)
Source: IDC

6. 10 INDUSTRIES BLOCKCHAIN IS LIKELY TO DISRUPT
Banking
Healthcare
Education
Politics
Legal
Industry
Security
Government
Rentalsand
Ride sharing
Charitiesand
Ride sharing
Real Estate
Source: Forbes
01
02
03
04
05
06
07
08
09
10

7. IoT SECURITY

8. IoT SECURITY: A GROWING CONCERN
The wide array of connected
devices difficult to monitor &
keep hackers away
A comprehensive IT security
policy is crucial for successful
IoT implementation
Growing threat to security of
Consumer & Industrial IoT
products

9. BLOCKCHAINS
FOR IoT SECURITY

10. Reduce Costs
by removing overhead
associated with
intermediaries
Accelerate Transactions
by reduced settlement time
from days to near
instantaneous
Build Trust
between parties and devices with
reduced risk of collusion and
tampering
HOW CAN BLOCKCHAIN IMPROVE IoT SECURITY
Source: IBM

11. BLOCKCHAINS CAN BE USED TO SOLVE
SOME OF IoT NETWORK PAIN POINTS.
LET US SEE HOW…

12. LACK OF SCALABILITY & VALIDATION OF TRANSACTIONS
The traditional “Client Server” architecture with
central authorities is difficult to scale in a growing
IoT network.
Solution
Each transaction is validated by other nodes
before it gets added to the blockchain. Thus, they
are scalable & fault-resilient.
Pain point

13. INSECURITY & COST OF SECURITY
It is expensive & insecure to purchase trusted
certificates for each device or use locally-hosted
Client Authentication Servers in an IoT network.
Solution
Creating a new block requires high computational
time. As the participating nodes increase, the
network becomes secure without increasing costs.
Pain point

14. VULNERABLE CENTRALIZED AUTHORITIES
The Centralized IoT authority in a network is
susceptible to attacks & the servers can be hacked
resulting in complete device compromise.
Solution
Since each node serves as a Centralized Authority,
if some of the nodes are compromised, the
network recognizes this & discards the fake block.
Pain point

15. TANGIBLE DAMAGE
With Consumer & Industrial IoT products on the rise,
any malicious IoT command & control messages may
cause damage to tangible resources.
Solution
Using Smart Contracts, multiple rules &
authorization entities are created before a
transaction executes to avoid tangible damage.
Pain point

16. REFERENCES
• https://www.crn.com/news/internet-of-
things/300103786/survey-iot-security-is-a-
growing-concern-for-companies-but-few-
are-taking-action.htm
• https://www.statista.com/statistics/804775/
worldwide-market-share-of-blockchain-by-
sector/
• https://www.statista.com/statistics/800426/
worldwide-blockchain-solutions-spending/
• https://www.statista.com/statistics/800561/
worldwide-blockchain-solutions-spending-
by-region/
• https://www.i-scoop.eu/blockchain-
distributed-ledger-technology/blockchain-
iot/
• https://hsc.com/Blog/The-many-roles-of-
Block-chains-in-the-Internet-of-Things