Blockchain in association with IoT

28/09/2021 20mins
Shaibana S


Blockchain and cryptocurrency had occupied every headline towards the beginning of this decade enjoying support from a vast section of loyal users. Blockchain was initially associated with bitcoins. While Bitcoins still appeal to the larger mass, blockchain technology finds wider use with other applications and platforms.

The integration of Blockchain with IoT has been a significant one with blockchain addressing a number of issues associated with IoT. IoT has invaded the globe with a network of connected devices. This has helped in connecting with remote devices and the gathering of data associated with it. But however, the actual challenge lies in the consolidation of the data received through these connected devices. And blockchain technology has been instrumental in streamlining and managing these data.

Blockchain and IoT integration: Things to know

Before integrating blockchain with IoT it is important to know the underlying technology that renders blockchain the potential to handle this data.

Blockchain technology is used for tracking transactions and large volumes of transactions in a short period of time. And blockchain helps in the seamless execution of these transactions without the aid of a central authority. In other words, what would take financial sectors a central authority and credit processing to execute, blockchain would require none of these entities to execute the same.

The most important asset of blockchain lies in its transparency, and how does blockchain process these transactions in a transparent manner. This is achieved through a distributed processing of power. This has proven to be very powerful, with miners sharing their processing power. With IoT connecting across a number of devices and data captured through these devices, this processing power will be distributed across these connected devices.

Blockchain can create a ledger for huge data. If someone is in need of processing power this can be compensated through other parties sharing their processing power, which in turn empowers the blockchain network. The users donate their processing power in exchange for a reward that can generate some revenue.

Many of the IoT devices are connected to processors through embedded chips. Though this may not be adequate enough to meet the requirements throughout. With the integration of blockchain, the processing power of IoT can be enhanced through distribution.

How important is Blockchain in getting IoT secure

Security concerns loom large with the internet of things through data sharing. With device sharing on IoT, issues like hacking and virus attacks are set to increase making connected devices vulnerable to security threats. With sensors connected to most of the devices, hackers can pry into anyone’s personal information.

Blockchain technology can be effectively implemented here as blockchain is very effective in addressing security issues. And it has a proven track record of securing and verifying data received through IoT. This is because blockchain consists of blocks that are encrypted using keys. The distributed ledger and shared data make hacking data in the blockchain impossible. Any change in the data is recorded and shared across multiple nodes which are recorded and verified. This could be instrumental in verifying identities and maintaining control over the system.

Though the integrated system of Blockchain and IoT ensures security across the connected devices, there are certain vulnerabilities associated with the system. With multiple systems processing data and recording it into a single entity, the system can be hacked with the hacker taking over more than half the connected systems. But this is not practically possible. Even if it were, the network can be expanded to as many communities as possible, distributing its processing power.


Many enterprises are exploring the possibilities of blockchain in lieu of IoT. But realizing the potential of implementing blockchain technology is still in its nascency as it requires to be fully understood. But both concepts complement each other. With the rapid growth of IoT, generating a huge amount of data and blockchain being able to process and segmentalize it is indeed promising.


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