Blockchain-Based Internet of Things: Review, Current Trends, Applications, and Future Challenges

Citation: Alam, T. Blockchain-Based
Internet of Things: Review, Current
Trends, Applications, and Future
Challenges. Computers 2023, 12, 6.
https://doi.org/10.3390/
computers12010006
Academic Editor: Sergio Correia
Received: 1 November 2022
Revised: 13 December 2022
Accepted: 20 December 2022
Published: 26 December 2022
Copyright: © 2022 by the author.
Licensee MDPI, Basel, Switzerland.
This article is an open access article
distributed under the terms and
conditions of the Creative Commons
Attribution (CC BY) license (https://
creativecommons.org/licenses/by/
4.0/).
computers
Review
Blockchain-Based Internet of Things: Review, Current Trends,
Applications, and Future Challenges
Tanweer Alam
Faculty of Computer and Information Systems, Islamic University of Madinah, Madinah 42351, Saudi Arabia;
tanweer03@iu.edu.sa
Abstract: Advances in technology always had an impact on our lives. Several emerging technologies,
most notably the Internet of Things (IoT) and blockchain, present transformative opportunities.
The blockchain is a decentralized, transparent ledger for storing transaction data. By effectively
establishing trust between nodes, it has the remarkable potential to design unique architectures for
most enterprise applications. When it first appeared as a platform for anonymous cryptocurrency
trading, such as Bitcoin, on a public network platform, blockchain piqued the interest of researchers.
The chain is completed when each block connects to the previous block. The Internet of Things (IoT)
is a network of networked devices that can exchange data and be managed and controlled via unique
identifiers. Automation, wireless sensor networks, embedded systems, and control systems are just
a few of the well-known technologies that power the IoT. Converging advancements in real-time
analytics, machine learning, commodity sensors, and embedded systems demonstrate the rapid
expansion of the IoT paradigm. The Internet of Things refers to the global networking of millions
of networked smart gadgets that gather and exchange data. Integrating the IoT and blockchain
technology would be a significant step toward developing a reliable, secure, and comprehensive
method of storing data collected by smart devices. Internet-enabled devices in the IoT can send data
to private blockchain networks, creating immutable records of all transaction history. As a result,
these networks produce unchangeable logs of all transactions. This research looks at how blockchain
technology and the Internet of Things interact to understand better how devices can communicate
with one another. The blockchain-enabled Internet of Things architecture proposed in this article
is a useful framework for integrating blockchain technology and the Internet of Things using the
most cutting-edge tools and methods currently available. This article discusses the principles of
blockchain-based IoT, consensus methods, reviews, difficulties, prospects, applications, trends, and
communication between IoT nodes in an integrated framework.
Keywords: blockchain; smart contract; Internet of Things; security and privacy; proof of work
1. Introduction
Stuart Haber and W Scott Stornetta discovered blockchain in the early 1990s [1].
Blockchain, the major Bitcoin cryptocurrency, was initially recognized in 2009. The
blockchain evolved into a cryptocurrency platform. Commercial banks are the primary
institutions they regard as a new price platform. However, since 2009, the blockchain
aroused tremendous interest in various businesses. Consider the power of cutting in chain
management, consumer procurement restrictions, and other areas to produce income with
blockchain. Blockchain is a broad term for an open, unstable, public realm that allows
anyone to securely transmit data using public key authentication and proof of work (PoW)
because of its power-sharing traits, resilience, confidentiality, and book research abilities.
Throughout the testing, the blockchain’s usage was focused on its usability and speed
difficulties. The authors assumed that five scientific arches were heavily used for the exper-
iment: IEEEXplore, Springer, ACM digital library, and Scopus. After the first round was
accomplished, only 150 articles were selected. After the first round, unusual papers were
Computers 2023, 12, 6. https://doi.org/10.3390/computers12010006 https://www.mdpi.com/journal/computers

Computers 2023, 12, 6 2 of 30
deleted, and 100 papers were selected. In the third round of paper selection, only 81 papers
were selected. Blockchains, by definition, rely on a public directory. The public directory
acts as a common transaction information database for many sites. The ledge was released
in phases, and blocks were noted in the ledger. Blockchain is made up of blocks. Blockchain
time is an indestructible database that is placed in a new time transaction and divided into
a block hash chain. It details many copies of such blocks that were made and saved in the
extracted device’s protocol. The primary purpose is to locate a donor population known as
miners. Blockchain technology Minors are linked to the current blockchain generation [2].
The technique argues that a few miners can amend a risky or inaccurate transaction at
any time stamp. Various blockchain frameworks are now accessible, including public,
non-public, licensing, and no blockchain authorization. Thanks to the social blockchain
standard, anyone can subscribe to the series. Public blockchains are often authoritative,
especially when all users have equal access rights and proportions. A personal blockchain
ensures anonymity. On a personal blockchain, each player’s tool is predetermined. Cus-
tomers do not currently have equal access and equitable rights in the community as a
result of these licenses. Bitcoin is a significant and still commonly used blockchain protocol.
There may be a time constraint of up to 5 min, similar to how a new miner is normally
unbiased and wants the best one to contribute or install a new blockchain device. The
primary question in this circumstance is who will add the transactions and how. The same
gain can be reached using two methods: send proof and process verification. Consider a
case in which you want to pay. The foundation explains why signing transactions validates
the use of cryptographic keys. In this scenario, community service providers or miners
validate the legitimacy of digital signatures and ensure asset access. When these tasks
are complete, the blockchain system delivers new enhancements [3]. Each block has its
hash code, which includes the hash of the previous blocks in the series. It is also used to
connect blocks in a specified manner. To build network leadership, everyone involved in
mining must work hard and rapidly. Internal computing solves the problem of highlighting
contradicting size computations for permanent length recordings. A leader can be elected
in any situation. This leader enables several miners to attempt to rectify the problems with
the person who solved the problem first and offer evidence of completion to the group.
Furthermore, multiple miners must guarantee that the completed designs are ready. In
contrast, confirming and picking that hole. Every node uses a blockchain verification
mechanism before placing something in a blockchain device. If the nodes are authenticated
blocks, they receive a pow. Every new node that joins a shared blockchain device receives a
copy of the blockchain. When creating a new block, send it to all blockchain nodes remotely.
Each node also validates the blocking process and ensures that the data displayed are
correct. If the block is validated, it is posted to the nearby blockchain. Pos has another
alternative. This is another approach. This approach selects the most useful person in the
network. The Pos defines the value of the pole in the network dependent on the amount of
money the miner has. This presupposes that a miner with several poles is very popular in
the network [4]. All nodes eagerly greet this leader by including his block in the mining
block. Only the inclusion of new in-network devices should keep the blockchain current.
The research question is “what are the prospects and obstacles for a blockchain-based
IoT network?”.
There are various survey papers accessible on the blockchain. This study investigates
opportunities, demands, and trends resulting from blockchain systems’ complete function-
ing and behaviour. A few exam papers focus on specific features of the blockchain, such as
framework, smart contracts, privacy, security, compliance agreements, applications, and
IoT–blockchain integration. Few studies investigate the privacy and security challenges
raised by specific blockchain topologies, such as Ethereum or Bitcoin. Table 1 displays
similar studies from the same study area. The author specifies the role of blockchain
in IoT, challenges in communication between blockchain and IoT, and the applications.
The authors examine the characteristics of the current and future blockchain generation,
significant performance difficulties, and open challenges for the future.

Computers 2023, 12, 6 3 of 30
Table 1. Related Studies.
Reference(s) Topics Year Area
[5] Peer-to-Peer Electronic Cash System 2008 Bitcoin
[6] Blockchain as a Service for IoT 2016 Blockchain and IoT
[7] Blockchain Technology 2016 Blockchain
[8] Blockchain for the Internet of Things 2016 Blockchain and IoT
[9] Blockchain for the Internet of Things 2017 Blockchain and IoT
[10] Internet of things and Blockchain 2016 Blockchain and IoT
[11] Security of Blockchain 2017 Blockchain Security
[12] Analysis of Established Blockchain Systems 2017 Blockchain
[13] Consensus algorithms of Blockchain 2017 Blockchain
[14] blockchain research framework 2019 Blockchain
[15] Consensus protocols on Blockchain 2017 Blockchain
[16] Blockchain framework 2018 Blockchain
[17] Data processing view of Blockchain systems 2018 Blockchain
[18] Blockchain: trends and future 2018 Blockchain
[19] Blockchain security architecture for the Internet of Things 2018 Blockchain and IoT
[20] Blockchain and IoT integration 2018 Blockchain and IoT
[21] Use of Blockchain for the Internet of Things 2018 Blockchain and IoT
[22] Blockchain meets IoT 2018 Blockchain and IoT
[23] Blockchain technologies for the Internet of things 2018 Blockchain and IoT
[24] The blockchain-empowered software system 2018 Blockchain
[25] Distributed ledger technologies 2018 Blockchain
[26] Blockchain Transactions 2018 Blockchain
[27] Blockchain: Challenges and applications 2018 Blockchain
[28] Blockchain applications in different domains 2020 Blockchain
[29] Blockchain in developing countries 2018 Blockchain
[30] Blockchain and its Role in the Internet of Things 2019 Blockchain and IoT
[31] Blockchain applications in supply chain 2019 Blockchain
[32] Privacy protection in blockchain system 2019 Blockchain
[33] Blockchain in industries 2019 Blockchain
[34] Blockchain for Internet of things 2019 Blockchain and IoT
[35] Evolution of Blockchain 2019 Blockchain
[36] Blockchain-based IoT 2019 Blockchain and IoT
[37] Blockchain Technology 2019 Blockchain
[38] Security Issues in IoT for Blockchain Healthcare 2019 Blockchain and IoT
[39] Security issues and blockchain solutions for IoT 2020 Blockchain and IoT
[40] Scalability of Blockchain Systems 2019 Blockchain
[41] Security and privacy on the Blockchain 2019 Blockchain
[42] Blockchain Applications for Industry 4.0 2019 Blockchain
[43]
Transformative effects of IoT, Blockchain and Artificial
Intelligence
2019 Blockchain and IoT

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Table 1. Cont.
Reference(s) Topics Year Area
[44] Efficiency Issues and Solutions in Blockchain 2019 Blockchain
[45]
Blockchain-based security aspects in heterogeneous
Internet-of-Things
[46] Consensus Algorithms in Blockchain Technology 2019 Blockchain
[47] Determining blockchain applicability 2018 Blockchain
[48] Blockchain Applications in IoT Systems 2019 Blockchain and IoT
[49] Aspects of Blockchain and IoT 2019 Blockchain and IoT
[50] Blockchain characteristics and consensus 2019 Blockchain
[51] Survey of Blockchain-Enabled Cyber-Physical Systems 2020 Cyber-Physical Systems
[52] IoT Applications in Blockchain Systems 2020 Blockchain and IoT
[53] Blockchain, Fog and IoT Integrated Framework 2020 Blockchain and IoT
[54] Blockchain consensus algorithms performance evaluation 2020 Blockchain
[55] Blockchain for 5G-enabled IoT 2020 Blockchain and IoT
[56] Blockchain smart contracts formalization 2020 Blockchain
[57] Blockchain for Cybersecurity in IoT 2021 Blockchain and IoT
[58]
Integration of Blockchain and Internet of Things:
challenges and solutions.
[59]
A Comprehensive Survey on Blockchain in Industrial
Internet of Things: Motivations, Research Progresses, and
Future Challenges
The authors also described blockchain policy terms and changes to blockchain-related
organizations. A scientific study is intended to reveal a target audience’s range of be-
haviours and attitudes about important issues and concerns. The outcomes of qualitative
research are explanatory rather than predictive. All information gathered consists of words
written and uttered by people and their observed behaviours. In-depth interviews are a
qualitative research approach used by researchers to collect data to acquire a more pro-
found knowledge of the interviewee’s perspective and situation. Such an interview strategy
involves asking participants open-ended and screening questions to receive information
that the researcher finds worthwhile. This article carefully explores how BC can benefit
from the Internet of Things. The primary goal of this research is to analyze recent trends
in BC-related approaches and tool usage analysis in an IoT environment. Compared to
previous studies, this paper explores the novel roles of BC in IoT, finds new opportunities
in various areas, for example, in the COVID-19 situation, and explores the challenges.
Additionally, it shows the reader how far along numerous proposed solutions are in their
advancement. We also discuss the main open questions, future research directions in
the field, and the challenges the research community must overcome to integrate BC
and IoT successfully.
This paper describes how blockchain technology can be applied to Internet of Things
contexts to solve problems that arise. The following are some of the key contributions made
by this study:
1. The paper begins with a brief introduction to the Internet of Things and blockchain. On
the other side, this study reveals the numerous challenges experienced by researchers
while exploring the Internet of Things.
2. This study highlights the importance of smart contracts in the Internet of
Things environment.

Computers 2023, 12, 6 5 of 30
3. Method of data storage and management, big data, cloud computing, and network
security management technique are the three primary groups into which we categorize
and investigate the available solutions in depth.
4. In the form of a table, we compare the categories of the offered solutions in terms of
used technology, potential solutions, and implementation notes.
5. This paper covers unanswered research topics and our findings that may be applicable
to the development of blockchain-based IoT systems, based on a review.
The following is how the rest of the article is organized. The authors present the
broad structure and growing technology components of blockchain, including a distributed
ledger, cryptography, consensus protocols, smart contracts, and standards, in Section 2.
Section 3 depicts the consensus algorithms, Section 4 depicts the blockchain layered ar-
chitecture, Section 5 defines current blockchain development trends, Section 6 depicts
the role of blockchain in the IoT, Section 7 depicts communication among IoT nodes
in the IoT–blockchain framework, Section 8 depicts challenges, and Section 9 depicts
blockchain applications.
2. Blockchain
The blockchain is a public digital ledger constructed on a peer-to-peer network that
may be openly distributed across varied users to generate an immutable history of times-
tamped and connected transactions [60]. When a group of transactions is appended, the
data creates a new block in the chain. Simply put, a blockchain is a timestamped set of
unchangeable data records attempted by a group of machines that a single party does not
control. Each data block is encrypted and linked to the next in a chain using cryptography
standards. Without relying on a centralized system, untrustworthy entities with common
interests can utilize blockchain to construct a reliable, unchangeable, and open history of
trading and distribution [61,62]. The numerous elements of blockchain and its reliance on
encryption and distributed systems may allow for a more complex understanding.
Furthermore, each part may be clearly defined and used as a building brick to com-
prehend the greater complex structure. Blockchain technology can be characterized as
public or private [63]. Anyone can connect to the blockchain network using the public
blockchain. By confirming transactions and delivering correct services, all users contribute
to the public blockchain. Public blockchains are the most extensively utilized cryptocurren-
cies today. Only authorized users have access to the private blockchain. The owner of the
private blockchain can modify or remove entities from the blockchain network. A variety
of corporate paradigms recommended the use of private blockchains. The blockchain is
a distributed electronic database of digitally signed transactions that are clustered into
chain blocks [13]. Each block is cryptographically connected to the preceding records after
verification and consensus. When a new block is installed, reconfiguring earlier blocks
is much more challenging. The new blocks are duplicated across all system copies of
the ledger, and any conflicts are addressed instantly using current rules. The blockchain
methods utilized to transmit data between devices are depicted in Figure 1.

Computers 2023, 12, 6 6 of 30
are clustered into chain blocks [64]. Each block is cryptographically connected to the
preceding records after verification and consensus. When a new block is installed, re‐
configuring earlier blocks is much more challenging. The new blocks are duplicated
across all system copies of the ledger, and any conflicts are addressed instantly using
current rules. The blockchain methods utilized to transmit data between devices are de‐
picted in Figure 1.
Figure 1. Blockchain process to send data between devices.
Figure 1. Blockchain process to send data between devices.
2.1. Components of Blockchain
The following are blockchain add-ons.
2.1.1. Block
A block is an information structure used to deceive a transaction group sent to all
public nodes.
2.1.2. Nodes
Nodes for devices or users in the blockchain community.
2.1.3. Transactions
Transactions are the tiniest components of the blockchain framework design.
2.1.4. Miners
A miner is a particular node that executes a block authentication method on a
blockchain network.
2.1.5. Chain
A chain is a sequence of blocks.
2.1.6. Consistency
Consistency refers to highly complex and fast rules that can be used to carry out
blockchain operations when processing transactions. The blockchain can be represented as
a collection of linked blocks. Before Bitcoin, it was known as digital ledgers in general. The
blockchain is an actively distributed system that prioritizes data integrity, transparency,
security, shareability and other features. To distribute processes across various locations,
blockchain uses a distributed platform, often a peer-to-peer (P2P) system [64]. A consensus
approach could be utilized to synchronize the saved and data gathered from each node [65].

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Two prominent communication protocols are Gossip and Kademlia. Messages are sent over
many endpoints to support these protocols. Gossip is the most widely used protocol in
Bitcoin, and it is used to send data to the whole network, with each node only talking with
its neighbours. Kademlia, on the other hand, defines the network structure using a shared
hash table, and the peer list includes each node interaction.
2.2. Blockchain Versions
Table 2 depicts the evolution and versioning of blockchain technology from 1.0 to 4.0.
With its first use (Bitcoin), blockchain 1.0 was introduced for distributed ledger technologies.
Blockchain 2.0 introduced smart contracts, short computer programs that run automatically
with verifications. Decentralized storage communication on peer-to-peer networks is
possible with blockchain 3.0. Blockchain 4.0 enabled enterprises to access blockchain
technology, allowing them to be employed in Industry 4.0. The current blockchain versions
are listed in Table 2.
Table 2. Blockchain versions.
Year Version Application Algorithms Chaining
Execution
Framework
Other Features
2008 1.0 Currency PoW Metachain Bitcoin
Transparency,
authentication, zminimize
cost.
2013 2.0 Smart Contracts PoW, PoS Metachain Ethereum
Distributed computations,
Exchange the digital
currencies
2015 3.0 Decentralized Apps
PoW, PoS, PoET,
PBFT, etc.
A directed graph,
Metachain, and
sidechain.
Ethereum
Swarm
Decentralized storage and
communication
2018 4.0 Industry 4.0 Apps
Artificial
intelligence-based
Consensus
Connected chain,
Divided chain
unibright.io
framework
Approved workflows,
financial transactions, IoT
data gathering, e-health
management system, etc.
2.3. Blockchain Terminologies
Blockchain terminologies vary from execution to execution—generic phrases
would be utilized to communicate about the present invention. Some terminologies are
defined below.
2.3.1. Blockchain
It is a distributed digital ledger.
2.3.2. Blockchain Technology
This term describes the innovation in the most generic version.
2.3.3. Blockchain Network
This term describes the network where a blockchain will be applied. It demonstrates
blockchain implementation.
2.3.4. Blockchain Network User
This term describes an organization, individual, company, administration, and many
others using the blockchain network system.
2.3.5. Node
A node is an individual device in the blockchain system.

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2.4. Blocks in a Blockchain
Blockchain network users send transactions to the blockchain system through com-
puter apps, smart device apps, digital wallets, web services, and other means. The apps
route such transactions to a node or nodes within the blockchain system. These entire nodes
could be published or unpublished. A submitted transaction would then be disseminated
to other nodes in the network. However, they cannot find the transaction in the blockchain
community. Because of the nature of many blockchain systems, non-time transactions must
wait in a queue until a publishing node sends them to the blockchain network. Figure 2
illustrates the blockchain’s blocks.
Computers 2023, 12, x FOR PEER REVIEW
Figure 2. Blocks in blockchain.
A blockchain block might include both a header and information. This hea
sists of the metadata for the block. The data consists of a list of correct and co
transactions published in the blockchain system. Accuracy and validity are ens
ensuring that the transaction is accurately configured and that the distribute
services cryptographically signed each transaction. In the blockchain implem
there are no standard data fields for a block. They can describe their data fields in
However, data fields are used in a variety of blockchain implementations.
2.4.1. Block Header
In some blockchain networks, a block number is also referred to as a block h
2.4.2. Hash Code
The hash code of the previous block pass. A hash description of the blo
mation (this might be accomplished using a variety of approaches, such as cr
Merkle tree, processing the root hash, or utilizing a hash of all the combination
formation).
2.4.3. Timestamp
Figure 2. Blocks in blockchain.
A blockchain block might include both a header and information. This header con-
sists of the metadata for the block. The data consists of a list of correct and confirmed
transactions published in the blockchain system. Accuracy and validity are ensured by en-
suring that the transaction is accurately configured and that the distributed ledger services
cryptographically signed each transaction. In the blockchain implementation, there are no
standard data fields for a block. They can describe their data fields in a block. However,
data fields are used in a variety of blockchain implementations.
2.4.1. Block Header
In some blockchain networks, a block number is also referred to as a block height.
2.4.2. Hash Code
The hash code of the previous block pass. A hash description of the block information
(this might be accomplished using a variety of approaches, such as creating a Merkle tree,
processing the root hash, or utilizing a hash of all the combination block information).
2.4.3. Timestamp
A method for authenticating data and associating electronic files or events with
a particular instant in time is known as timestamping, which is based on blockchain
technology. A timestamp is a string of letters that serves as a unique identifier for the

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document or event in consideration and the time it was formed. In the most basic form, the
timestamp is a string of letters.
2.4.4. Block Size
A nonce is something that is utilized for mining and is controlled by the publishing
node to solve the hash puzzle.
Figure 3 depicts the process of connecting one block to two others, a previous and
the following one, which validates the chain architecture of a blockchain. However, the
question is, where does that chain begin, and where does it end? The solution is that the
initial block, known as the genesis block, is hardcoded into the source code. This has a
hash reference with only zeros and is the first block in the chain. It also contains certain
arbitrary information that can be identified within its coin base transaction. The following
is the block information:
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arbitrary information that can be identified within its coin base transaction. The follow‐
ing is the block information:
Figure 3. Blockchain structure.
2.4.5. Data
The information in the block.
2.4.6. The Ledger Transactions and Events
This section may include further information.
2.5. Transactions
A transaction is an activity that occurs between nodes. It depicts the exchange of
digital currency between blockchain network nodes. In business‐to‐business contexts, it
could be a method of recording activities involving digital or physical assets. In a block‐
chain, each block may contain zero or more transactions.
Figure 3. Blockchain structure.
2.4.5. Data
The information in the block.
2.4.6. The Ledger Transactions and Events
This section may include further information.
2.5. Transactions
A transaction is an activity that occurs between nodes. It depicts the exchange of digital
currency between blockchain network nodes. In business-to-business contexts, it could be

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a method of recording activities involving digital or physical assets. In a blockchain, each
block may contain zero or more transactions.
2.6. Digital Signature
A digital signature is a computational procedure that is used to authenticate digital
information, such as a code. The accurate digital signature ensures the receiver that
the data were unquestionably generated by a known entity and was not changed during
transmission (un-repudiation) [66]. The digital signature technique is based on an algorithm
that generates a private key with a secure, consistent distribution from a big enough pool of
possible private keys so that multiple copies are not obtained. It enables different identities
to be assigned to each individual. Then it employs an asymmetric cryptographic approach
to determine the appropriate public key. Each component is an algorithm that generates a
digital signature and a relevant message from a private key. The digital signature operations
are depicted in Figure 4.
x FOR PEER REVIEW 10 of 31
algorithm that generates a digital signature and a relevant message from a private key.
The digital signature operations are depicted in Figure 4.
Figure 4. Digital signature process.
2.7. Sharding
The practice of splitting files in the blockchain storage process is known as sharding.
Every shard is replicated to prevent data loss in the event of a communication problem.
These files are encrypted with a key, making it hard for other nodes in the network to
access them. These shards are globally shared via dispersed networks [68]. Nodes must
be registered in the blockchain ledger in order for the blockchain network to validate and
transport transactions across networks. The blockchain storage is designed to save these
links forever and cannot be altered.
2.8. Smart Contracts
The smart contract is a method that is stored on the public ledger and dynamically
executed while defined terms of service are met. These services carry out the developers’
instructions at the most basic level. Its benefits are evident in corporate partnerships,
where they are typically used to handle contracts, and all parties can be satisfied with the
conclusion with the help of an intermediary [69]. The smart contract method is depicted
in Figure 5.
Figure 4. Digital signature process.
2.7. Sharding
The practice of splitting files in the blockchain storage process is known as sharding.
Every shard is replicated to prevent data loss in the event of a communication problem.
These files are encrypted with a key, making it hard for other nodes in the network to
access them. These shards are globally shared via dispersed networks [67]. Nodes must
be registered in the blockchain ledger in order for the blockchain network to validate and
transport transactions across networks. The blockchain storage is designed to save these
links forever and cannot be altered.
2.8. Smart Contracts
The smart contract is a method that is stored on the public ledger and dynamically
executed while defined terms of service are met. These services carry out the develop-
ers’ instructions at the most basic level. Its benefits are evident in corporate partner-
ships, where they are typically used to handle contracts, and all parties can be satisfied
with the conclusion with the help of an intermediary [68]. The smart contract method is
depicted in Figure 5.

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executed while defined terms of service are met. These services carry out the developers’
instructions at the most basic level. Its benefits are evident in corporate partnerships,
where they are typically used to handle contracts, and all parties can be satisfied with the
conclusion with the help of an intermediary [69]. The smart contract method is depicted
in Figure 5.
Figure 5. Smart contract.
2.9. Merkle Tree
The Merkle tree is extremely important since it was designed for blockchain. This
binary hashing tree uses the SHA‐256 cryptographic algorithm to encrypt the transac‐
Figure 5. Smart contract.
2.9. Merkle Tree
The Merkle tree is extremely important since it was designed for blockchain. This
binary hashing tree uses the SHA-256 cryptographic algorithm to encrypt the transactions
and provide a list of all the transactions in the block. For instance, consider a case where
the hashing value starts with “000000”.
The hashing starts with “000000” in SHA-256(“blockchain” + nonce).
The nonce and hashing can be combined in blockchain. A nonce can only be a numeric
value. Here are some examples of measurements:
1. SHA-256(“blockchain0”) = 0xjhh323hhg4h43434hg4hg444j4j4j4j4ko4o4p4mh4g4hh4
d6t5l7of0g9e1
2. SHA-256(“blockchain1”) = 0x2hkjhfg987gjh5j3hgf98h7g5f0j0k0401hei9h0j0j6g4c4b4n
4n1m1m2f5k6a0 . . .
3. SHA-256(“blockchain70346529”) = 0x000000j4k3ls8n9m0h0j1k29l4hj7k9e0u0j0a0a
0387a0r8h0k4l1k3b5tt
Examples 1 and 2 are unsolvable. However, example 3 is solvable because the hashing
starts with “000000”.
A Merkle tree can be used to construct transaction blocks. It will, however, reduce
node involvement with low computing power.
Assume A and B are two separate transactions. The hashing can be calculated using
the formula below.
SHA-256(SHA-256(A)) = Hash (A).
SHA-256(SHA-256 Hash(A) + Hash(B)) = Hash (A B).
The Merkle tree is constructed from the ground up. Initially, the transactions within
the leaves are hashed. The related leaf nodes are hashed into a parental node, and so
forward until only one hashing remains, known as the Merkle root.
2.10. Hashing
Hashing is a mechanism for converting letter and digit data into a fixed-length en-
crypted response. The hashing is produced by an algorithm and is required for cryptocur-
rency chain operations.
3. Consensus Algorithms
The consensus algorithms are intended to offer redundancy for the device’s many
unstable constituents. The next block in a blockchain will almost certainly be the most
accurate version of the truth. It keeps fair events from undermining the community,
while also efficiently developing the chain. The most common consensus algorithms
are proof of work (PoW), proof of stake (PoS), delegated proof of stake (DPoS), ripple,
practical byzantine fault tolerance (PBFT), and delegated byzantine fault tolerance (DBFT).
Based on numerous scenarios, Table 2 describes the operation and functionality of the
consensus algorithms.

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3.1. Proof of Work (PoW)
PoW is the most common mechanism used for cryptocurrencies such as Bitcoin and
Ethereum. Before proceeding, for non-technical users, the hashing method would be a way
that may be used to assign random-sized material to fixed-size content. Whether a hash
function is secure or not, its performance is random.
3.2. Proof of Stake (PoS)
Because the PoS does not allow devices to perform repeated processing, it is more
environmentally sustainable. It replaces miners with verifiers, who can keep a portion of
the Bitcoins as a stake. The team of verifiers takes turns suggesting and participating in
the next block, and the stakes’ quality determines the strength of each validator’s voting.
When the validators discover a block that they believe can be added to the blockchain, they
can verify it by placing a bet on it as well. That validator would be given credit for their
stakes. Everyone who maintains a cryptocurrency blockchain foundation can become a
validator by submitting a specific type of operation to safeguard it. The following are some
of the benefits of PoS.
(1) Altitude: allows for faster transactions.
(2) Efficiency: uses less power.
(3) Less equipment: no need for a supercomputer.
Its downside is vulnerability: anyone with enough money to invest exclusively in the
destruction of this device might accomplish it by spending only money, as opposed to PoW,
where they would have to spend money, time, skills, and so on.
3.3. Delegated Proof of Stake (DPoS)
Because delegated proof of stake (DPoS) and conventional PoS differ slightly, the gap
between direct democracy and representative democracy can be compared. Any account
containing Bitcoins is eligible to stake in a standard PoS system. People can vote on
verifying activities, reach a shared consensus, and receive coins in exchange. Each wallet
containing tokens is eligible to vote for representatives throughout the DPoS scheme [69].
3.4. Leased Proof of Stake (LPoS)
This method is an upgraded version of the stake consensus algorithm, which seeks
to generate a decentralized consensus to secure the blockchain platform. This approach
enabled regular people with no technical skills to contribute to the security of the Waves sys-
tem by leasing Waves to complete peers without losing ownership of the keys. Meanwhile,
the Waves blockchain enabled performance with access to 100 TPS, which is a completely
different scenario than other blockchain technologies. Expenses are modest, and there is no
need to provide miners with node incentives to compensate for high energy expenses and
expensive equipment.
3.5. Proof of Elapsed Time (PoET)
Every participant will be given a network-authorized timing entity that will wait
for the time provided by the timestamp. Instead, each participant obtains and sends a
certification proving that the system stopped the remainder of the system. This network
tests how frequently the participant is a member in order to determine the members. Every
member of the blockchain system will delay for a set amount of time. The first member to
complete the time restriction will become a participant in the newly created block. Each
new member must gain access to the blockchain joining system; once activated, the policy
will produce a new key pair, which the member will present to the entire network as part
of a request to participate.

Computers 2023, 12, 6 13 of 30
3.6. Practical Byzantine Fault Tolerance (PBFT)
This algorithm vastly improves aspects of Byzantine fault tolerance (in several terms,
security towards Byzantine faults). It was already implemented in some significant decen-
tralized computer networks and certain blockchain networks. The PoET stochastic selects a
specific peer group to perform demands at a given moment. Typical observers must test a
uniformly distributing random function and wait for the experiment’s specified period. Its
shortest test peers outperform it. Deception is avoided by using a secure implementation
system, identification authentication, blocklisting centred on asymmetric key encryption,
and a comprehensive set of laws.
3.7. Delegated Byzantine Fault Tolerance (DBFT)
This algorithm is utilized to get a consensus, which disappoints some blockchain and
cryptocurrency developers. Delegated Byzantine fault tolerance is more efficient than most
other methods in dealing with unstable or insecure blockchain participants.
3.8. Direct Acyclic Graph (DAG)
This is a topologically organized directed graph data model. Its series could only
occur before and after. It is also used for data analysis, organization, choosing the best
routing technique, and information decoding.
3.9. Proof of Activity (PoA)
This is referred to as a blockchain consensus algorithm that verifies that transactions
are valid and that miners achieve an agreement. The PoA mixes PoW and PoS and attempts
to bring the most powerful of either. Throughout POA, the refining process begins as a
standard PoW mechanism, with multiple miners competing with a great computational
capacity to surpass one another to find a new element. When a new (extracted) block is
recognized, the device switches to POS, with the newly identified block consisting of the
head and data.
3.10. Proof of Importance (PoI)
This became one of the most significant breakthroughs in blockchain-based businesses.
This innovative approach employs system theory to assign a value to the channel for each
consideration. Several additional blockchains assign incentives using proof of work (POW)
or proof of stake (POS). Anyone who can maintain the most reliable connection arrays has
an advantage over many other customers when it comes to POW. Such POW buildings
frequently generate excessive amounts of power, harm the environment, and burden
mining firms with high electricity bills. This gives card hoarders an unfair advantage. The
more coins they use in transactions, the more money they receive.
3.11. Proof of Capacity (PoC)
Blockchain miners employ software backups rather than the more common power-
efficient proof of work (PoW) technique, which combines continuous computer activity.
The transaction system is protected throughout the proof of work method by performing
an absurd amount of processing per moment to verify every block. That is why you
must employ hardware. It usually results in negatives, such as increased electricity usage,
temperature, loud noises, the requirement for modern semi-reusable equipment, and huge
enterprises’ centralization of the refining process.
3.12. Proof of Burn (PoB)
This algorithm is more attainable than others. It reduces energy consumption. There is
no need to mine the hardware equipment in this algorithm. The coin burns are essentially
virtual mining equipment. The PoB algorithm allows miner nodes to make long-term
commitments with other nodes in the network. In this algorithm, the supply or extraction
of coins looks to grow less centralized.

Computers 2023, 12, 6 14 of 30
3.13. Proof of Weight (PoWeight)
This blockchain consensus mechanism assigns them a ‘weight’ based on the amount of
digital currency they own. Consumers of PoWeight play an important role in the consensus
mechanism. Each consumer is assigned a “weight” based on the relevance chosen to serve
the customer’s commitment to the system. It safeguards against double spending and other
wrongdoing on the blockchain. The high proportion of the weighted portion must pose a
risk to fair customers. The number of coins determines the likelihood of PoS at risk linked
to the rest of the system. PoWeight, on the other hand, might employ different weighted
standards to evaluate the possibilities.
4. Blockchain–IoT Layered Architecture
The blockchain comprises numerous components that perform various functions, such
as processing transactions, propagating blocks, mining, finding approval, and storing the
ledger for its related coins. The blockchain contains several levels similar to the well-known
TCP/IP infrastructure. These elements could be classified based on their characteristics.
There are still various concepts for creating a blockchain network with a tiered design. The
blockchain layered architecture is depicted in Figure 6.
long‐term commitments with other nodes in the network. In this algorithm, the supply o
extraction of coins looks to grow less centralized.
3.13. Proof of Weight (PoWeight)
This blockchain consensus mechanism assigns them a ‘weight’ based on the amoun
of digital currency they own. Consumers of PoWeight play an important role in th
consensus mechanism. Each consumer is assigned a “weight” based on the relevanc
chosen to serve the customer’s commitment to the system. It safeguards against doubl
spending and other wrongdoing on the blockchain. The high proportion of the weighted
portion must pose a risk to fair customers. The number of coins determines the likelihood
of PoS at risk linked to the rest of the system. PoWeight, on the other hand, might employ
different weighted standards to evaluate the possibilities.
4. Blockchain–IoT Layered Architecture
The blockchain comprises numerous components that perform various functions
such as processing transactions, propagating blocks, mining, finding approval, and
storing the ledger for its related coins. The blockchain contains several levels similar to
the well‐known TCP/IP infrastructure. These elements could be classified based on thei
characteristics. There are still various concepts for creating a blockchain network with a
tiered design. The blockchain layered architecture is depicted in Figure 6.
Figure 6. Blockchain layered architecture.
4.1. Application Layer
This layer includes smart contracts, chain code, and blockchain applications. Thi
layer is divided into two sections: application and execution. In the blockchain system
end users use the applications to communicate and share information. Software, Web
applications, user interfaces, and protocols are all included. For such applications, th
blockchain system serves as the back‐end infrastructure. These apps, however, frequently
interact with the blockchain system via interfaces. The second tier is the implementation
Figure 6. Blockchain layered architecture.
4.1. Application Layer
This layer includes smart contracts, chain code, and blockchain applications. This
layer is divided into two sections: application and execution. In the blockchain system,
end users use the applications to communicate and share information. Software, Web
applications, user interfaces, and protocols are all included. For such applications, the
blockchain system serves as the back-end infrastructure. These apps, however, frequently
interact with the blockchain system via interfaces. The second tier is the implementation
level, which includes smart contracts, basic rules, and a hybrid ledger. It follows strict
coding and execution standards [70,71]. The smart contract was created in Solidity and will

Computers 2023, 12, 6 15 of 30
be executed on Ethereum’s runtime platform. To show that coding requires the use of a
compiler. The bytecode becomes shorter as it is compiled. As a result, it outperforms on
Ethereum. The Ethereum software is isolated from the network and file system.
4.2. Blockchain Layer
Consensus is the most fundamental and necessary level of any blockchain. A con-
sensus mechanism creates a proven collection of entity commitments in a decentralized
P2P system. According to the consensus, most of the nodes are precisely aligned. The
consensus mechanisms vary depending on the type of blockchain. The consensus mecha-
nism is defined as deterministic if preceded by an unregulated blockchain network, such as
Ethereum, Bitcoin, and so on. Although there is a danger that different parties may have
different viewpoints on a block in the blockchains, consensus ensures the accuracy of the
ledger. Deterministic approaches are used by permitted blockchains, such as Hyperledger.
Unique nodes, known as ordered endpoints, exist on specific blockchain platforms.
4.3. Network Layer
This layer is accountable for transaction discovery and block distribution in the IoT
environment. This means that nodes will discover each other and will be able to con-
nect, share, and transfer data to better the blockchain system’s existing position. The P2P
platform is a network in which devices are shared and system loads are redistributed.
Endpoints execute blockchain transactions. Full nodes and light nodes are the two types of
nodes. Full nodes provide exchange verification, authentication, processing, and compli-
ance with consensus laws. These nodes are in charge of ensuring the system’s trust. The
light node can convey the blockchain’s header and submit operations.
4.4. Data Link Layer
The data structure of the blockchain could be regarded as a link list of blocks where
transactions are structured. Merkle’s tree is a hash code binary tree. All blocks contain a
hash of Merkle’s root and information, such as the hashing of the previous block, timestamp,
nonce, block versions, and the most recent complexity level. Merkle trees, cryptography,
and consensus mechanisms are the foundation for distributed ledger technology. The root
hashing might be applied to the entire tree network. Every block lists multiple transactions
that occurred since the previous transaction, and when those transactions are submitted,
the root hashing indicates the current state of the blockchain.
4.5. Hardware Layer
Blockchains could be used to structurally measure, verify, and store transactions in
a distributed database. This database contains all important information, transactions,
and facts. A P2P system considers every computer to be an endpoint. Endpoints confirm
transactions, organize them into blocks, upload them to the blockchain system, and so on.
Nodes add blocks to the blockchain system and upgrade the public ledger replica after
reaching an agreement. A virtualized layer is used to create such a layer. Substantially,
the nodes are at the centre of this layer. A computer is referred to as a node when it is
connected to a blockchain system. These nodes are part of a decentralized and distributed
blockchain system.
5. Roles of Blockchain in IoT
Privacy and security in IoT device communication gained much attention between
2018 and 2022. Many papers will be published between 2018 and 2022 [72–76]. In 1990,
Stuart The authors published an essay on sharing a record with privacy without storing any
information on timestamping services. The blockchain concept originated with, although
Satoshi Nakamoto provided the first blockchains in 2008. The author gave a document in
which the blocks were joined to construct a blockchain in a certain order. The IoT chain is
proposed by for data authentication between two nodes in IoT networks. In addition, they

Computers 2023, 12, 6 16 of 30
developed a set of guidelines for altering records in IoT and blockchain technology. The
authors’ goal is to secure the authorization component of the IoT chain device. The item
researched the cloud and manet infrastructure to connect intelligent gadgets in the IoT and
provide security and authentication during verbal transmission. It represents a suitable
framework known as the net cloud framework, which could be useful for facilitating
communication with IoT-based intelligent devices. It proposes a cloud-manet middleware
system for accessing various IoT node records. The project also suggests ways to combine
blockchains and the IoT. They also provide security within the blockchain–IoT to construct
IoT apps using blockchain capability. The IoT enables connected physiological things in a
heterogeneous system to modify their records. The Internet of Things would be divided
into the following components.
5.1. Physical Things
The Internet of Things provides a unique identity for each related thing within the
network device. IoT devices can exchange data with one another.
5.2. Gateways
Gateways are devices that function between physical objects and the cloud to guaran-
tee the connection is secure and the network device is protected.
5.3. Networking
This is used to control the glide of statistics and determine the shortest path for various
IoT devices.
5.4. Cloud
The cloud is used to store and compute records.
5.5. Storage
Blockchain is a collection of demonstrated and encrypted blocks of transactions stored
on a network device. The records of blocks are recorded in a virtual ledger that is pub-
licly shared, distributed, and open. Blockchain enables secure communication within
the IoT community device. With extraordinary qualities, blockchain might be personal,
public, or consortia.
5.6. Blockchain Ledgers
A decentralized trust model, excessive protection, extremely publicly accessible, pri-
vacy ranging from low to high, and transferable identities are all properties of blockchain
ledgers [77,78]. The properties are centralized versions with low trust and public access.
Privateness is an excessive and non-transferable acknowledgement. As a result, blockchain
is more advanced than centralized storage systems.
5.7. Blockchains
Blockchains are a technological development that secures transactions between IoT
devices. It enables decentralization, dissemination, and public peer-to-peer storage of
sections of data stored or validated in an IoT network. The information recorded in the
blockchain is quickly handled in a peer-to-peer setting. Blockchains are a technology that
allows IoT devices to alter transactions in the blockchain device. The following summarizes
blockchain’s function in IoT.
5.8. Smart-Route Control Algorithm (s-RCA)
The s-RCA finds the optimal route for data traffic between a source and a destination,
minimizing the total number of hops and the total amount of time it takes to transfer that
data. This reliable connection can be used in medical procedures to guarantee that all
instructions are received promptly and carried out without delay. This idea can enhance

Computers 2023, 12, 6 17 of 30
m-QoS for surgical procedures performed at a distance with the help of trusted paths. The
new s-RCA can be integrated into an existing routing protocol to keep tabs on the primary
path and track emergency packets stored in node buffers for immediate forwarding via the
demand path [79].
5.9. Decentralized Framework
Both IoT and blockchain will be utilized in this framework. A structure such as this
eliminates the need for a centralized approach and even allows for a decentralized design.
It increases the likelihood of the cumulative control unit failing or performing poorly.
The use of blockchain firmly established decentralization. A data offloading algorithm is
also being developed to distribute various processing and computing tasks to OpenFlow
switches based on their current load. A traffic model is also recommended for modelling
and analyzing traffic in different network nodes. The proposed algorithm is evaluated
using both a testbed and a simulation. The experimental results show that the proposed
framework performs better regarding latency and resource consumption.
5.10. Exchanges between Nodes in Blockchains
Exchanges between nodes in blockchains are always secure. It is a novel way to
achieve relationship security. Blockchains allow IoT devices to connect with one another
more efficiently.
5.11. Identification
In the IoT, all connected devices are uniquely recognized using a cryptographic hash.
Each block is also clearly labelled. As a result, blockchain is a powerful innovation that
gives known facts that can be processed across the database.
5.12. Consistency
The blockchain database of nodes effectively acquired information scattered across
the database. The data were correct when the miners double-checked it before entering it
into the blockchain. Only validated blocks may enter the blockchain.
5.13. Autonomous
Every IoT device can communicate with any other device in a network via a
distributed architecture.
5.14. Optimistic
IoT devices could interact with high availability, a decentralized intelligent network
communicating with the target device in real-time, or transaction data.
6. Communication among IoT Nodes in an IoT Blockchain Framework
IoT blockchains evolved into a new ledger incorporating IoT users’ utilized, used,
public, and real-time performance. The blockchain is organized in blocks, and each block
is linked to the blocks that came before it to form a chain. Every block contains a crypto-
graphically secure token, a front hash block, and metadata. Blockchain transactions are
basic gadgets used to send data between IoT-based devices. Nodes are various kinds of
physical objects.
On the other hand, smart gadgets have embedded sensors, actuators, and packaging,
and can interface with other IoT devices. Its role in the IoT is to offer secure system
records to IoT devices. It is a luxury that may be publicly utilized and accepted by the
public. The IoT requires this time to facilitate secure communication between IoT nodes
in a heterogeneous machine. Anyone with authenticated communication within the IoT
platform can track and monitor blockchain transactions. The IoT blockchain can increase
chat security and authentication. Throughout this work, the author investigated this
technique, its possibilities and situations that require assistance, and its thoughts.

Computers 2023, 12, 6 18 of 30
6.1. Peer-to-Peer Network
Peers are computer systems linked to one another via the internet network in the peer-
to-peer (P2P) ecosystem. Without a central system, documents could be shared instantly
among devices on the platform. Any device connected to the P2P platform will function as
a storage server and computer. The primary goal of P2P systems would be to communicate
information and assist linked devices in interacting efficiently and effectively, gaining access
to critical services, or performing specified duties. P2P is a network resource exchange
protocol used to trade network resources, such as compute power, networking capacity,
and data storage capacity. However, the most common use case for P2P networking is
file sharing via a network. Peer-to-peer networks are ideal for file sharing because they
allow connected devices to receive and transmit files simultaneously. Sensor nodes with
P2P networking could play an essential role in the IoT system. A lightweight encryption
technique is required for IoT sensor nodes.
Blockchains offer an efficient solution to a P2P communication network problem.
This technology enables the creation of a shared electronic transaction ledger distributed
among device peers rather than centralized. Users are linked to blockchains to track
activity. This system employs cryptography to verify and recognize the participants’
peers, allowing them to attach actions to the database cryptographically. Transactions are
vetted and checked by specific nodes in the process, eliminating the need for a central
system. This approach might be easily applied to IoT platforms to overcome the scale issue,
allowing millions of devices to use the same infrastructure without requiring professional
help. Blockchains also address the issue of authority conflicts among manufacturers by
establishing a standard in which everyone has equal rights and privileges.
6.2. IoT-Blockchain Integration
Each IoT tool acts as a blockchain node, capable of generating transactions, sharing
them to form a block as a miner, and acting as a more straightforward transaction validation
node to establish a blockchain subgroup and confirm exchanges to apply a simplified
change validation approach. In spite of the limited resources available, the integration of
blockchain protocols into IoT devices is being carried out. Keeping and validating a large
volume of blockchain data is especially useful when limited resources require sufficient
recent memories or processing. As a result, the idea is that not all of the data collected by
IoT devices should be kept and stored in the blockchain network. Almost all blockchain
offerings, including IoT distribution networks, are open to the public. However, if the
personal blockchain is used as much as feasible, scalability will no longer be as much of
an issue as it is now [80]. Because the information is of the quickest subject, the private
blockchain will no longer include that many performers. Its transmission is critical for
the export company, the importer, and maybe other parties in the manufacturing process.
Except for performers associated with the blockchain, most cannot participate in and verify
the emergence.
6.3. IoT Blockchain Communication
The Internet of Things is rapidly expanding, with applications such as smart homes
and cities, e-fitness, distributed intelligence, and so on. However, it creates difficult privacy
and security conditions. To connect IoT devices, decentralized networking is used. As a
result, employing the same old security approaches in spoken communication among IoT
devices became significantly more complicated. Blockchain is a technology that provides
security in transactions between different IoT nodes. Blockchain is a distributed, decentral-
ized, and publicly accessible shared ledger that keeps track of the blocks processed and
demonstrated in an IoT network. The public ledger’s information is handled automatically
via a peer-to-peer network. Blockchain is a generation in which IoT device transactions are
recorded as a block in the blockchain. Blocks are linked, and each tool has a tool reference
that comes before it. The approaches to blockchain and IoT integration work within IoT and

Computers 2023, 12, 6 19 of 30
cloud integration techniques. Blockchain has the potential to alter future IoT conversations.
The visions of blockchain and IoT integration are outlined below.
1. The decentralized method is quite similar to IoT and blockchain technologies. This
removes the centralized device and provided the power of a decentralized method.
This reduces the likelihood of failure and enhances the overall performance of
the framework.
2. Security: Blockchain enables secure transactions between nodes. This is a revolution-
ary communication strategy. The Blockchain enables IoT devices to communicate
with one another in a safe environment.
3. Identifications: IoT assists all associated gadgets that are uniquely recognized with a
unique id variation. Every block in a blockchain is also uniquely identified.
4. However, blockchain is a trusted era that gives uniquely recognized information kept
in a shared public ledger.
5. Reliability: The IoT nodes in blockchain can authenticate the information passed over
the networks. Facts are reliable because miners validate them before entering the
blockchain system. However, only the most useful proved blocks can be included in
the blockchain device.
6. Autonomous: The blockchain enables all IoT nodes to connect with any node in the
network without relying on a centralized approach.
7. Scalability: Blockchain enables IoT devices to communicate in a distributed
intelligence network. It also communicates with real-time destination tools and
alternate facts.
6.4. Platforms
Several systems are used to create IoT packages using blockchain.
1. IoTa: IoTa is the new platform for blockchain and IoT, also known as next-generation
blockchain. By utilizing fewer assets within the device, the platform contributes to
high information integrity, overall transaction performance, and block validity. This
also resolves the blockchain restrictions.
2. IoTify: this provides a web-based IoT approach to reduce the constraints of blockchain
in the form of customized applications.
3. Iexec: this open-source blockchain-based device is used to assist your apps and the
blockchain’s decentralized cloud benefits.
4. Xage: this versatile blockchain platform for IoT allows for increased automation and
more relaxed data in the machine.
5. SONM is a decentralized blockchain-based fog computing platform that simplifies
cloud offerings for users.
The IoT and blockchain are extending company potential and introducing new market-
places in which anybody or everything can connect in real-time in a decentralized device
with authenticity, privacy, and security. Incorporating these revolutionary technologies will
revolutionize the current world on numerous levels, with gadgets communicating without
people. The framework’s goal is to provide safe data at the right place, in a suitable format,
and real-time on a device. Blockchain will fine-tune billions of IoT-connected concerns,
coordinate this stuff, facilitate transaction processing, resolve or eliminate crises, and build
a flexible environment for running physical things. Blockchain develops data privacy for
clients connected to the framework by utilizing hashing procedures in information blocks.
7. Current Trends in BC-IoT Development
Due to the security method of sending transactions between numerous entities without
a trusted third and monitoring information veracity, blockchain gained a lot of attention.
Even though many analysts feel that blockchain is the solution to many problems in today’s
fundamentally insecure internet because of its privacy and security capabilities, there may
not be a systematic study to examine and evaluate blockchain from various angles [81].
Blockchain made its debut in 2009, less than a decade earlier. Because of this extraordinary

Computers 2023, 12, 6 20 of 30
innovation, the globe underwent a rapid transition. Blockchain is making inroads into
various professional industries, including retail, medical care, and science.
7.1. Federated Blockchain
Federated blockchain is one of the most significant and successful recent blockchain
innovations. This is an upgraded method of the basic blockchain framework, making it
perfect for various relevant applications. According to experts, federated blockchain could
grow in popularity since it provides a more customizable perspective for private blockchain.
Federated blockchains are comparable to private blockchains in most ways, with some
small advantages. These blockchains are speedier (higher scalability) and provide greater
transaction privacy. Federated blockchain examples include R3 (banks), EWF (energy), B3i
(insurance), Corda, and more.
7.2. Blockchain as a Service (BaaS)
BaaS is the creation and maintenance by third parties of cloud-based systems used
by industries to run blockchain-based apps. Another trend that Microsoft and Amazon
are utilizing is BaaS. This recent blockchain trend is currently integrated with various
startups and businesses. However, such future blockchain trends may not be viable while
building, sustaining, and monitoring a new blockchain technique. It is a cloud-based
system that uses blockchain technology to enable users to develop online services. Such
digital products could be smart contracts, apps, or other services that operate independently
of the blockchain-based network.
7.3. Ricardian Contracts
The Ricardian contract was designed to identify a legally valid document that was
electronically linked to an important aspect. The Ricardian contract organizes all of the
legal agreement facts into a layout that the program can execute. As a result, it is both a
legal contract and a mechanism that electronically integrates the agreement into digital
infrastructure while providing a secure network because of cryptographic verification. It
is distinct from the smart contract. Smart contracts are a type of digital agreement that
was previously agreed upon and is automatically executable. On the other hand, the
Ricardian contract is an agreement paradigm for recording an agreement’s objectives and
any behavior related to that agreement prior to the agreement being performed. Ricardian
contracts could likewise be simply applied to software by utilizing hashes that describe
external documentation.
7.4. Blockchain Interoperability
Interoperability refers to exchanging information and other content across many
blockchain networks and infrastructures. The public could easily access information that
was held on a number of different blockchains because of this function [82,83]. It enables
subscribers to transfer funds easily and quickly from one blockchain to another. This
functionality also adds additional functions, such as cross-chain transactions. It can also
improve multi-token transactions by constructing multi-token wallet services.
7.5. Social Networking
Blockchain in social networks would be capable of resolving difficulties such as
prominent debates, privacy violations, information manipulation, and the significance of
the material. As a result, blockchain is a new technology trend that is being integrated
into social media architecture. Tokens are used by social networks. As a result, media
companies are given financial incentives to generate content and increase network produc-
tivity. Token exchanges, such as the blockchain, are finished and practically instantaneous,
with no charges.

Computers 2023, 12, 6 21 of 30
7.6. Hybrid Blockchains
The future scope of blockchain technology, which could be simplified as the blockchain,
proposes using a more appropriate fraction of public and private blockchain technologies.
The exchange rate is slightly lower because the network’s popular nodes make validating
processes simple and quick. The hybrid blockchain operates in a closed ecosystem, so
all evidence on the network improves security. This also avoids more than half of all
attacks, since thieves cannot gain access to the blockchain system. The user can update the
rules whenever it is necessary. It also helps to keep a task secret when engaging with the
outside world.
8. Opportunities within the Integrated Technique
Several excellent potentials for blockchain–IoT integration were discovered.
Blockchain–IoT together opens new opportunities in several regions. Figure 7 depicts
the blockchain–IoT potential. However, some of the options are listed here.
into social media architecture. Tokens are used by social networks. As a result, media
companies are given financial incentives to generate content and increase network
productivity. Token exchanges, such as the blockchain, are finished and practically in‐
stantaneous, with no charges.
7.6. Hybrid Blockchains
The future scope of blockchain technology, which could be simplified as the block‐
chain, proposes using a more appropriate fraction of public and private blockchain
technologies. The exchange rate is slightly lower because the network’s popular nodes
make validating processes simple and quick. The hybrid blockchain operates in a closed
ecosystem, so all evidence on the network improves security. This also avoids more than
half of all attacks, since thieves cannot gain access to the blockchain system. The user can
update the rules whenever it is necessary. It also helps to keep a task secret when en‐
gaging with the outside world.
8. Opportunities within the Integrated Technique
Several excellent potentials for blockchain–IoT integration were discovered. Block‐
chain–IoT together opens new opportunities in several regions. Figure 7 depicts the
blockchain–IoT potential. However, some of the options are listed here.
Figure 7. Blockchain–IoT opportunities.
Figure 7. Blockchain–IoT opportunities.
8.1. Create Trust among Gadgets
Because of its security, blockchain-IoT technology will instill trust in some of the nu-
merous connected devices. However, only the most basic verified devices can communicate
within the community, and the miners must first validate each transaction block before it
can enter the blockchain [84].
8.2. Reduce the Expenses
It will save money because it communicates instantly using an online platform. This
removes all third-party nodes. It also allows direct communication among IoT nodes.
8.3. Reduce Time
It may drastically shorten the time. Blockchain-IoT cuts transaction time from days
to seconds.

Computers 2023, 12, 6 22 of 30
8.4. Security and Privacy
Blockchain-IoT provides devices with security and anonymity, and data are exchanged
between devices [85].
8.5. Social Services
Blockchain-IoT provides public and social services to connected nodes. Each connected
gadget can communicate and exchange data [86].
8.6. Financial Services
It can safely transfer payments without the involvement of other parties. Blockchain-
IoT enables a quick, secure, and private financial services system. It also decreases transfer
costs and time, among other things [87].
8.7. Risk Management
It played a critical role in analyzing and mitigating the risk of system resources and
transactions failing [88].
9. Challenges
Many difficulties, including measurement, storage, services, and discovery, could be
addressed by blockchain–IoT. The blockchain–IoT challenges are depicted in Figure 8. The
integrated strategy faces the following challenges.
023, 12, x FOR PEER REVIEW 23 of 31
Figure 8. Blockchain–IoT challenges.
9.1. Scalability
Because of its high transaction volume, blockchain can become blocked. On 10 July
2022, Bitcoin had more than 406 GB of storage space [90]. Weight can be considerably
more significant than the best blockchain when IoT joins blockchain.
9.2. Storage
All IoT devices will store the given ledger. However, it will increase with its storage
size in the form of being challenging to work with and a significant weight on every
connected tool.
9.3. Inadequate Abilities
Figure 8. Blockchain–IoT challenges.
9.1. Scalability
Because of its high transaction volume, blockchain can become blocked. On 10 July
2022, Bitcoin had more than 406 GB of storage space [89]. Weight can be considerably more
significant than the best blockchain when IoT joins blockchain.
9.2. Storage
All IoT devices will store the given ledger. However, it will increase with its storage
size in the form of being challenging to work with and a significant weight on every
connected tool.

Computers 2023, 12, 6 23 of 30
9.3. Inadequate Abilities
Most researchers are unaware of the blockchain phenomenon, which is increasingly
mainstream. It is also an initiative to teach people nearly every technology.
9.4. Exploration and Integration
Blockchain is not intended for IoT applications. It is quite tricky for associated devices
to locate another tool within the blockchain and IoT systems. As a result, IoT nodes can
access all other nodes while detecting and integrating blockchain and other nodes.
9.5. Confidentiality
The shared ledger is broadcast to all connected devices. These gadgets are capable of
viewing ledger transactions in real-time. As a result, maintaining privacy in an embedded
system is a difficult task [90].
9.6. Interaction
Blockchain might be public, private, or in the form of a consortium. As a result, the
interaction between public and private blockchains is also a blockchain IoT agreement.
9.7. Rules and Regulations
Because the IoT blockchain will function internationally, numerous norms and laws
will be enforced globally.
This research looks on a novel approach known as blockchain-IoT. The article [91]
discusses numerous possibilities and challenges. Similarly, this article lists the platforms
that are available to implement Blockchain-IoT technique. Blockchain-IoT has the potential
to lead the internet by redesigning and replacing it with a new internet service in which
each smart device connects to other peer-to-peer devices. This can save both money and
time while providing precise data to the relevant device. As a result, it has the potential to
be a very useful strategy in the future.
10. Applications
The modern internet is concerned with the availability and security of connected
resources. These resources might be encrypted on a network-to-network chain known
as the blockchain or ledger, where each user knows with whom they transact. Because
it simplifies the business, speeds up the process, eliminates failures, and saves it, it may
safeguard commercial connections and avoid fraud. The distributed blockchain technology
will transform people’s life by allowing them to execute trades or control money via phones,
vote, rent a car, and even prove their identity.
10.1. Smart Devices
A smart device connects wirelessly and gives users more excellent knowledge and
control than ever before. For instance, if your washing machine stops working, a code
associated with your device can connect to the internet and warn you. Such alerts keep
the devices in good working order, saving them money on energy efficiency and allowing
you to monitor the gadgets while on the road to work. Accessing such gadgets via the
blockchain would safeguard the assets while allowing for information flow.
10.2. Sensors for the Supply Chain
A sensor is a device that detects and responds to a specific sort of input derived
from physical infrastructure. Light, wind, movement, humidity, strain, or any other
environmental changes may provide critical information. Sensors in the supply chain aid in
the location of vehicle temperatures, pressures, and so on. When supply chain executives
need to watch product or vehicle situations and determine precisely where they are and
where they are heading, such inputs are used. The value of sensors in the supply chain is
based on their ability to provide real-time activity information.

Computers 2023, 12, 6 24 of 30
10.3. The Smart Contract
The smart contract evolved into a digital machine designed to electronically encourage,
test, or execute the arrangement and execution of an agreement. Smart contracts allow for
the performance of trustworthy exchanges without the use of third-party providers.
10.4. Keeping Track of Prescription Medications
Blockchains could improve the patient experience by allowing them to scan a barcode
and instantaneously determine whether a prescription is counterfeit, according to the
release. Its innovation could also determine when pharmaceuticals were gathered and
transferred across the production process at the required temperature changes.
10.5. Voting through Electronic Means
In any country, the security of a vote is a matter of national security. Computer security
is investigating the prospect of using an online voting system to lower the cost of hosting
a federal election while meeting and increasing security criteria. Since the inception of
democratic politicians, the voting mechanism was based on paper and pen. It is critical to
replace the current pen-and-paper procedure with modern election technology to reduce
fraud and make voting verifiable and trackable. Blockchains enable a wide range of
applications that profit from the exchange. Blockchain has the potential to play a significant
role in implementing shared electronic voting systems as a service. However, establishing
electronic voting systems and using blockchain to implement these structures is fraught
with difficulties.
10.6. Healthcare on the Blockchain
The blockchain can revolutionize healthcare data, place the patient at the centre of
health infrastructure, and improve healthcare security, privacy, transparency, and connec-
tivity. Such innovation has the potential to create a new architecture for health information
sharing by making electronic records more influential, without an intermediary, and secure.
This modern, continuously changing environment is ideal for innovation, research, and
proof of concept testing.
10.7. Blockchain Music
In some cases, blockchain technology may be advantageous in music. It could increase
availability or incentivize and share revenue with viewers through special edition electronic
releases. However, employing it for a music service is unjust, and claiming it is a solution
to any of the most pressing issues musicians confront is false.
10.8. Blockchain Identification
Identity verification is now an important aspect of our daily life. Visiting another
nation, purchasing a new automobile, and enrolling in a university necessitate identifica-
tion checks. Creating a new social media account also necessitates mobile authorization.
Bringing personal belongings may not always be practical or even possible. That is where
the blockchain’s effective confidentiality control comes into play.
10.9. Passports
The idea behind a blockchain-based passport is that citizens can control electronic
transport identification using provable information, such as biometrics, travel history, or
any other related information gathered at checkpoints by trusted public authorities and
other contact points. Instead of keeping the details to themselves, each authority or agency
decides to rely on each other’s data. Blockchain passport enables partnership members
to obtain verifiable traveller-identifying information claims to assess validity, streamline
passenger processing, and reduce risks. People can also use blockchain passport to retain
their identification and acquire personal information, and digital attestations choose which

Computers 2023, 12, 6 25 of 30
data to transmit. The more attestations a traveller possesses, the more alliance members,
governments, and other parties may be able to guarantee smooth and secure travel.
10.10. Certificates of Birth, Marriage, and Death
Some things are more significant than showing the paperwork, such as birth certifi-
cates, marriage certificates, and expiry certificates that give you access to various ben-
efits (such as elections, employment, and residency), but ineptitude is becoming more
widespread. According to UNICEF, more than one-third of children under five do not have
a birth certificate. The Blockchain can make records more secure by obtaining birth and
death certificates and allowing users to access this vital information.
10.11. Processing of Insurance Claims
Smart contracts on the blockchain network might be used to handle insurance claims.
In this case, all parties to an insurance policy may have access to the shared insurance
ledger to view policy details. When a claim is applied, a claimant can submit evidence
such as insurance papers, claim documents, and supporting claims proof to the distributed
ledger. For statements, policyholders must interact directly with distributors. This ac-
tivity is recorded on a private blockchain, with smart contracts enabling a workflow
claim. Blockchain financial services and tariff plans need to be scrutinized. The active
policy and smart contracts will be placed on the blockchain for policyholders with preset
claim requirements.
10.12. Data Exchange
Blockchain is primarily concerned with improving the efficiency of data exchange
across the supply chain, including producers, shipping providers, distributors, govern-
ments, suppliers, fulfilment centres, and consumers. Blockchains will allow the corporation
to track the source of degradation much more quickly, reducing the impact of tainted prod-
ucts. Regarding customer refunds, blockchains can give end-to-end information traceability,
the best right to examine the product’s background, and real-time position and condition.
10.13. Copyright and Royalties Are Protected
Blockchains could be game changers for copyright holders looking to defend their
rights electronically. Without question, it began to make its presence known to copyright
holders. It remains to be seen whether the compliance procedures recommended for such
networks will be implemented. However, the outlook remains positive. It is difficult to
imagine blockchain being utilized to secure copyright in the coming months. This technique
must first be broadly adopted before it can be widely used to defend copyright.
10.14. Property Registration, Real Estate, and Land Registration
Blockchains can profoundly alter the real estate market, from property acquisition to
title management. It can transform the relationship between taxpayers and tax authorities
and change how tax returns are submitted, taxes are paid, and data are handled. Blockchain
technology can disrupt and restructure finance and streamline transaction, exchange, and
property registration processes.
10.15. In a Catastrophic Situation (COVID-19)
The COVID-19 pandemic emphasizes global interconnectedness. This also highlights
a complex reality: vast amounts of critical information stay trapped in fortified information
storage facilities and reputation mechanisms when we require swift, collective action or
cooperation. The blockchain–IoT integrated solutions aid in the resolution of the most
difficult issues confronting us between 2019 and 22.

Computers 2023, 12, 6 26 of 30
11. Conclusions
A critical component of this decentralization strategy was the blockchain design, which
included hash-based proof of work, shared key encryption, and peer-to-peer networks.
Complexity, limited compatibility, resource constraints, privacy and security concerns,
and vulnerabilities hamper current IoT solutions. The rapid advancement of blockchain
technology provides solutions to problems such as increased connectivity, privacy, security,
transparency, and stability. Academics investigate the intersection of blockchain and the IoT
throughout this post. They also discussed and presented literature on blockchain and the
IoT. The issues and applications for developing a stable and interoperable communication
infrastructure for blockchain and the IoT are discussed. This article examines current
blockchain trends. The integration of blockchain and IoT architecture is investigated, as are
the advantages and disadvantages of the combined strategy.
Funding: This research received no external funding.
Data Availability Statement: Not applicable.
Conflicts of Interest: The author declares no conflict of interest.
Abbreviations
IoT Internet of Things
P2P Peer-to-peer
PoS Proof of stake
PoW Proof of work
R3 An enterprise blockchain technology company
EWF Energy web foundation
B3i The blockchain insurance industry initiative
Corda Open-source blockchain platform for business
Chain A sequence of blocks
DPoS Delegated proof of stake
PBFT Practical Byzantine fault tolerance
dBFT Delegated Byzantine fault tolerance
LPoS Leased proof of stake
PoET Proof of elapsed time
DBFT Delegated Byzantine fault tolerance
DAG Direct acyclic graph
POA Proof of activity
PoI Proof of importance
PoC Proof of capacity
PoB Proof of burn
PoWeight Proof of weight
IOTA The next generation of distributed ledger technology
IoTIFY Online cloud-based MQTT/HTTP network simulator
iExec Blockchain-based decentralized cloud computing
Xage Blockchain cybersecurity system
SONM Decentralized fog computing platform
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