Blockchain in IOT

Internet of things (IoT) is the next big thing and is here to stay. Billions of devices are estimated to come online in the next few years. In the world of smart and adaptive devices talking to each other, security is of paramount significance.

Past that, reduced cost and automation must be emphasized to sustain these next-generation devices. Currently, IoT faces all the challenges that a client-server system does. Blockchain could well be the secret sauce in the recipe of success of IoT devices.

Let’s see how:


With no upper bound to the number of connected devices, the security of personal data flowing among these devices makes them vulnerable. IoT devices have been hacked in the recent past.

Because of the distributed nature of the blockchain network, there is no single penetration point for malicious hackers. On top of everything, every transaction is digitally signed and cryptographically secured.

Cloud Storage

Most of the IoT devices have their data stored on the cloud. As a result, the looming threat of data being modified cannot be ignored. It is apparent that this will attract the attention of hackers. However, in the case of blockchain, there is no centralized repository of data.

It is nearly impossible to tamper with data recorded on a blockchain. This is so because every transaction is time-stamped. Any attempt to change the blockchain data will be rejected by network nodes. In worse case, if data is tempered successfully, the fraudsters would be traced easily.


Imagine every microtransaction occurring among billion of IoT devices being approved by third parties, and the sloth it causes. Blockchain, with its trustless mechanism, does not need third party intervention for approval and verification of transactions.

This means blockchain-based IoT devices would have faster responses. IoT devices where minimal response time is a necessity, including and especially self-driving cars, blockchain can help achieve it, along with upcoming ultra-fast 5G network technology.


Besides being smart, IoT devices hold the potential to evolve to be autonomously using blockchain technology. Smart contracts can make them work independently and self-monitoring by coding the household or industry-specific rule on the blockchain the device is a part of. These self-executing pieces of code will eliminate any intervention in the functioning of these devices.

One time set up is all these devices would need from the masters.

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