Blockchain and IoT — Benefits and Challenges

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After two posts about IoT, we are now going to check all the benefits and challenges IoT brings.

Check the previous posts here:
- Quras and IoT
- How to Authenticate Billions of IoT Devices?

IoT is evolving rapidly. And no wonder — it has such a great perspective. Built as a system for interfacing different devices to each other, IoT can do wonders in both home and business environments.

But, naturally, like all innovative technologies, IoT has its advantages and disadvantages. Let’s dive into them and see what we can expect from IoT in combination with Blockchain:

Benefits of IoT with Blockchain

IoT, combined with Blockchain, is a great innovative technology which brings many advantages to our daily lives. Here are some of them:

- Consensus protocol of Blockchain protects the IOT network from major malicious attacks.

- A great deal of proposed IoT security spins around compelling encryption conventions. An initial correspondence check is initiated against the known device registrations for devices to confide with each other and propagate the communication between.

- These registries act as the perfect focus for hacks and Blockchain technology depicts to be an extraordinary option for following these registrations and updating their framework.

- One of the crucial goals of IoT is to track and verify the IoT network components. The immutable property of Blockchain makes these records extremely reliable.

- Smart contracts are a stunning asset in IoT systems taking into account a high level of coordination and authority. Especially with regards to overseeing transactions and interactions, smart contracts guarantee appropriate union. IoT is constantly based on having the capacity to take the right action at the right time.

- Transactions are additionally helpful for IoT. Mainly, micro-transactions are a key part of guaranteeing financial feasibility and optimality in a machine-to-machine connection.

Challenges of IoT with Blockchain

The blockchain and IoT will face a couple of challenges before reaching mass adoption. Here’s a list of them:


The future of blockchain technology completely revolves around its scalability issues. As the size of blockchain grows the authority gets confined with minimal hands with no proper management of records. This often results in loss of data reliability and authenticity.

Handling of power

As it demands the performance of encryption calculations for every one of the items involved in Blockchain -based IoT network, the IoT network is extremely distinct and contain devices that have very different computing capacities, and not every one of them will be equipped for running similar encryption calculations at the desired speed.


Blockchain removes the need for a central server to store transactions and device IDs, however, the ledger has to be stored on the computers themselves, and as time pass, the size of the ledger will increase. That is past the abilities of a wide variety of devices for example sensors, which have a very low storage limit.


Both IoT and Blockchain are in their development stages, guaranteeing that the future will bring reliable and easy machine-to-machine communication. When joined, IoT and Blockchain will give companies a chance to flourish by effortlessly using and securing information. At that point, the possibilities will be never-ending!

Written by

Secret Contract Platform for Privacy 2.0

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