Blockchain-Application

in

the Internet of Things(IoT)PENG, Rui – RES - 399084

26.09.2018

Slide 1

1

Blockchain-Application in the Internet of Things |Source: [1] [2] Slide 2

Security !

• Decentralized Structure

• POW mechanism

Overview

Motivation (current existing Challenges in IoTs)

Application in IoTs (Example)

Conclusion (Existing Problem and Advantage)

Blockchain-Application in the Internet of Things Slide 3

Motivation

Current major challenges of IoT

Security of Devices

Privacy

ScalabilityComplex

construction

Slide 4

Hackattack (like

DDos attack) hacks

IoT-devices.

Different platforms

Different standard

Different language.

Private data saved by

centralized third party

company can be used

without permission.

Always exist third party

to deal with transaction

and to solve the trust-

problem.

Blockchain-Application in the Internet of Things | Source: [1] [2] [3]

What can ‘Blockchain + IoTs’ do ?

Privacy safety

Lower cost of

deployment

Scalability

Security

P2P systems - no more third parties.

Smart contract - proceed in Low-trust condition.

Data specific encrypted.

Saved by the whole network (distributed).

Transparent published raw code.

Open source (same standard possible).

Blockchain is traceable and nearly

immutable .

Data totally permanent saved.

Slide 5Blockchain-Application in the Internet of Things |Source: [3] [4]

Application - The IoT electric business model

The architecture of IoT E-business

Third party in traditional E-business

Slide 6Blockchain-Application in the Internet of Things | Source: [1]

Entity

DACs – (Decentralized Autonomous Corporations)

A DAC can be understood as a set of devices, which have

enough CPU, memory, storage, bandwidth and at least one

static IP address.

it contains some kind of internal property (like Bitcoin)

that is valuable in some way.

They could 1) provide IoT commodity 2) search and

purchase IoT products according to certain conditions

automatically.

Slide 7Blockchain-Application in the Internet of Things | Source: [1] [4]

Commodities

Paid data

Paid data is the major commodity in the IoT E-business.

it consists of sensor data, the data processed by human beings or DACs etc.

Smart property

Smart properties consist of car, house, energy and parking spaces, which can

be controlled by electronic locks or access control systems.

(realize the online transaction of ownership or usage permission).

Slide 8Blockchain-Application in the Internet of Things | Source: [1]

The operating mode

Operating mode of IoT E-business

Slide 9Blockchain-Application in the Internet of Things | Source: [1]

All published into the blockchain

Commodity information

Analyze,rank and

filter the information

result

Sign contract

Smart Contract

Blockchain-Application in the Internet of Things | Source: [3] Slide 10

1. Check whether the DAC has paid

enough money.

2 . Fetch the data from sensors.

3. check the validity of the

data.

The transaction mode

Payment

exchange

individual DAC

Smart contract

coin Product

Deal!

A B

Smart contract

Smart

property coin

Deal!

（can be a car）

Slide 11Blockchain-Application in the Internet of Things | Source: [1]

digitization of the financial and monetary

（data）

Conclusion - benefits

With Blockchain technology in IoTs

we can realize the effective data exchange within various

devices. – no need of third party to solve trust issues.

provide security and privacy for these transactions.

Slide 12Blockchain-Application in the Internet of Things

Discussion - Energy consumption（Bitcoin）

Proof of Work

To mine a block, some specific nodes known as

miners try to solve a resource consuming

cryptographic puzzle named Proof of Work (POW)

but only the node that solves the puzzle first

mines the new block to the BC. This causes a lot of

consumption of energy.

Nowadays Bitcoin network consumes 75 GWh/year

Slide 13Blockchain-Application in the Internet of Things | Source: [8] [9] [10]

Blockchain-Application in the Internet of Things | Source: [6] [10] Slide 14

Danke für Ihre Aufmerksamkeit !

Slide 15Blockchain-Application in the Internet of Things

References

[1] Yu Zhang , Jiangtao Wen, "The IoT electric business model: Using blockchain technology for the internet of things".

[2] Seyoung Huh*, Sangrae Cho*, Soohyung Kim,“Managing IoT Devices using Blockchain Platform”.

[3] Ali Dorri, Salil S. Kanhere , Raja Jurdaky and Praveen Gauravaramz, “Blockchain for IoT Security and Privacy: The Case Study of a Smart Home”.

[4] Nakamoto S, “(2012) Bitcoin: A peer-to-peer electronic cash system[J]. Consulted 2008:1”.

[5] Ali Dorri, Salil S. Kanhere, and Raja Jurdak , “Blockchain in Internet of Things: Challenges and Solutions”.

[6] ”Bitcoin Energy Consumption Index (beta)," [Online]. Available: https://digiconomist.net/bitcoin-energy-consumption.

Blockchain-Application in the Internet of Things Slide 16

References

[7] "Bitcoin Transaction Fees, ” [Online]. Available: https://bitcoinfees.info/.

[8] "Der wahre Energieverbrauch des Bitcoin-Mining," [Online]. Available: https://blockchain-institut.org/de/aktuelles/2017/der-wahre-energieverbrauch-des-bitcoin-mining.html.

[9] "Blockchain Charts ," [Online]. Available: https://blockchain.info/charts/.

[10] "The world’s cryptocurrency mining uses more electricity than Iceland," [Online]. Available: https://www.digitaltrends.com/computing/bitcoin-ethereum-mining-use-significant-electrical-power/.

Blockchain-Application in the Internet of Things Slide 17