Blockchain technology can vastly improve the security, reliability and efficiency of embedded devices within the Internet of Things (IoT). In this post, I describe how blockchain works and its benefits for embedded devices and systems. I also interviewed Sven Liess from e-Gits for the post.
In this article:
Blockchain in IoT allows engineers to use blockchain data sharing to enable IoT devices to communicate with each other. The devices do that without using any central network. The blockchain’s distributed network of computer systems allows those communications to be tamper-proof.
The Internet of Things will expand to hundreds of billions or even trillions of devices. But currently, most of those devices communicate through centralized computing systems, and those communications sometimes fail. Hackers cause many other problems. And costs are huge. On the other hand, blockchain avoids that by creating a digital ledger of data, such as transactions. Each data block builds on the previous one by verifying it and building on the blockchain.
A 2015 IBM report, “Device Democracy: Saving the Future of the Internet of Things,” pointed out how IoT would face trouble if it continued to rely on a centralized way of networking.
“Many existing IoT solutions are expensive because of the high infrastructure and maintenance costs associated with centralized clouds and large server farms, in addition to the service costs of middlemen,” the report noted.
The use of blockchain can solve those problems. It allows IoT devices to communicate with each other securely and quickly.
Blockchain works in embedded systems that are part of IoT. For example, an embedded device in your home’s thermostat will enable you to control the thermostat with your mobile phone.
That means your phone will use blockchain to communicate with the thermostat more directly, without needing to use a centralized network of computer servers.
Basics of blockchain for IoTMany people think of blockchain only as the foundation of cryptocurrency like Bitcoin. But the same features that work for cryptocurrency can also benefit how devices work with the Internet of Things. And how they communicate with each other.
That’s because of how blockchain technology works. It creates a distributed digital ledger of transactions that all users share. So, the data is not in one place on one server but in every node that is part of the network. The technology uses cryptography to identify and authenticate anyone in the network who is adding a transaction to the ledger. Nodes on the network then must approve the addition to that ledger.
All of this means that the data is tamper-proof. It allows for efficient verification for embedded systems within IoT. And it therefore enables IoT devices to use the technology to communicate securely.
IoT manufacturers can use blockchain technology to track and coordinate billions of connected devices. The technology allows for communications and transactions among devices that save manufacturers significant amounts of money.
A recent white paper from the Mphasis IT services company highlights the transaction savings created with blockchain technology. The paper, titled “Framework for Integration of Blockchain with IoT Devices,” includes this key passage:
“Applying a reliable peer-to-peer communication model to process the trillions of transactions between devices will drastically reduce the costs related to installing and maintaining large, centralized data centers and will distribute computation and storage needs across the billions of devices that consist IoT networks. This will prevent failure in any single node in a network from bringing the entire network to a tentative collapse.”
The features of blockchain and the needs of IoT are driving the convergence of the technologies. For example, blockchain eliminates any single point of failure, like with a central computer server. That greatly benefits IoT devices.
The IoT devices can then use blockchain to create and monitor interactions among devices through what are known as “smart contracts.” A smart contract is something that happens when a specific condition occurs. In essence, computer code within the blockchain says, “If this happens, then this will automatically happen.”
A grocer, for example, can send automatic payment when a frozen food shipment arrives at a grocer’s dock. Or the grocer can automatically pay a specified amount less for the frozen food if IoT sensors indicate temperature requirements for the food were not maintained in the entire supply line.
Blockchain provides many benefits to embedded systems within the Internet of Things. For example, blockchain improves security. It also makes automation more efficient and saves money.
Here are more detailed benefits of using blockchain in embedded systems and devices:
The Mphasis white paper underscored how invaluable blockchain could be for the future of IoT in these areas.
“Blockchain technology is the missing link to resolve privacy and reliability concerns on the IoT,” the paper states. “Blockchain technology is the silver shot needed by the IoT industry. It can be used in tracking billions of connected devices, allowing the processing of transactions and harmonization between devices. This allows for significant savings for IoT industry creators. This decentralized approach would wipe out single points of failure, creating a more robust ecosystem for the devices.”
Using blockchain for embedded systems and IoT devices also creates some challenges. Those challenges include requirements for a lot of processing power and data storage. Potential legal and compliance issues can also present challenges.
Here are details on the challenges of using blockchain in embedded systems and devices:
Use cases abound for blockchain in embedded systems and devices. For example, you can use blockchain to track vehicle service and ownership. In supply chains, you can track parts and payments securely and efficiently. And Walmart found a use case with produce, requiring suppliers to track it from farm to store.
Here are more detailed use cases of blockchain in embedded systems and devices:
One example features a standard IoT messaging protocol called MQTT. This protocol helps connect remote devices with minimal network bandwidth. MQTT helps drive embedded devices in many industries, including manufacturing, oil and gas, and automotive.
With Qt tools and blockchain technology, MQTT can also help enable secure communication throughout the supply chain. For example, a sensor sends environmental data using Qt Bluetooth, transmitting it to the cloud via MQTT. The system then uses Etherium Blockchain to secure the data of the decentralized edge devices.
Qt is an industry leader and pioneer in security for embedded devices and systems. In fact, the founder of Bitcoin—a person or group of people using the name Satoshi Nakamoto—used Qt to create the first Bitcoin wallet, called the Bitcoin Qt wallet, in 2009. Today, Qt enables a single software code across all operating systems, platforms and screen types, from desktops and embedded systems to wearables and mobile devices connected to the Internet of Things.
As a result, we offer the best possible security for embedded devices. You see it Qt action by watching this 77-second video on securing Qt applications and devices.