In this model, other layers would perhaps remain the same, but an additional blockchain layer will be introduced as a middleware between all participants of the IoT network.
It can also be visualized as a peer-to-peer IoT network after abstracting away all the layers mentioned earlier.
A Complete Guide to Understanding This Blockchain Concept
This model is
The IoT network can be optimized for performance by using blockchain.
In this case, there will be no need to store IoT data centrally for millions of devices because storage and processing requirements can be distributed to all IoT devices on the blockchain.
This can result in completely removing the need for large data centers for processing and storing the IoT data.
Blockchain-based IoT can also thwart denial of service attacks where hackers can target a centralized server or data center more efficiently, but with blockchain’s distributed and decentralized nature, such attacks are no longer possible.
Additionally, if as estimated there will be billions of devices connected to the internet soon, it will become almost impossible to manage security and updates of all those devices from traditional centrally- owned servers.
Why This Matters for Blockchain Technology
Blockchain can provide a solution to this problem by allowing devices to communicate with each other directly in a secure manner and even request firmware and security updates from each other.
On a blockchain network, these communications can be recorded immutably and securely which will provide auditability, integrity, and transparency to the system.
This mechanism is not possible with traditional peer-to- peer systems.
In summary, there are clear benefits that can be reaped with the convergence of IoT and blockchain and a lot of research and work in academia and industry are already in progress.
Key Points to Remember
- Blockchain-based IoT model In this model, other layers would perhaps remain the same, but an additional blockchain layer will be introduced as a middleware between all participants of the IoT network.
- It can also be visualized as a peer-to-peer IoT network after abstracting away all the layers mentioned earlier.
- The IoT network can be optimized for performance by using blockchain.
- In this case, there will be no need to store IoT data centrally for millions of devices because storage and processing requirements can be distributed to all IoT devices on the blockchain.
Going Deeper: Advanced Concepts
There are various projects already proposed providing blockchain-based IoT solutions.
For example, IBM Blue Horizon and IBM Bluemix are IoT platforms supporting blockchain IoT platforms.
Various start-ups such as Filament have already proposed novel ideas on how to build a decentralized network that enables devices on IoT to transact with each other directly and autonomously driven by smart contracts.
In , a practical example is provided on how to build a simple IoT device and connect it to the Ethereum blockchain.
Conclusion
Blockchain-based IoT model represents one of the many innovative layers that make blockchain technology so powerful and transformative. As distributed systems continue to evolve, a solid understanding of these core concepts becomes increasingly valuable — not just for developers, but for anyone building, investing in, or working alongside blockchain-powered systems.
Whether you are just starting your blockchain journey or deepening existing expertise, mastering these fundamentals gives you the tools to think clearly about decentralized systems and make smarter decisions in this rapidly evolving space.