Slide#1: Thank you very much Danial for a comprehensive set of information on the subject.

To add what Danial has so far said, I would continue to discuss why there is a need to apply a
decentralized model or the blockchain approach in IoT.

 There are certain security and other drawbacks in IoT which Urges to incorporate a
decentralized approach. Existing security technologies will play a role in mitigating IoT risks
but they are not enough. The goal is to get data securely to the right place, at the right time, in
the right format. For example, Security standards, for platform configurations, involving
virtualized IoT platforms supporting multi-tenancy is immature.
o There is a lack of standards for authentication and authorization of IoT edge devices
 DoS (Denial of Service) attacks are the most common and easiest to implement attacks on IoT
systems. They can be seen in many forms and are defined as any attack that can undermine the
network or systems' capacity to perform expected functions.
 Denial-of-Sleep (DoS) attacks consist in exhausting the bat- teries of the devices by increasing
their duty cycle. By forcing nodes to awake at unnecessary times or by inducing additional duty
(e.g., listening, retransmissions), these attacks aim at re- ducing the expected lifetime of the
constituted IoT network
 A prime example of the urgent need for such new security technologies is the distributed
denial of service attack (DDoS) that crippled the servers of popular services like Twitter,
Netflix, NYTimes, and PayPal across the U.S. on October 21st, 2016. It was the result of an
immense assault that involved millions of internet addresses and malicious software. • One
source of the traffic for the attacks was devices infected by the Mirai malware.
 The attack comes amid heightened cybersecurity fears and a rising number of internet security
breaches. All indications suggest that countless IoT devices that power everyday technology
like closed-circuit cameras and smart-home devices were hijacked by the malware, and used
against the servers.
 The problem with the current centralized model. Current IoT ecosystems rely on centralized
communication models. All devices are identified, authenticated and connected through cloud
servers that need huge processing and storage capacities. Connections between devices have to
exclusively go through the internet, even if they happen to be a few feet apart.
 Existing IoT solutions are expensive because of the high infrastructure and maintenance cost
associated with centralized clouds, large server farms, and networking equipment. • The sheer
amount of communications that will have to be handled when there are tens of billions of IoT
devices will increase those costs substantially.
 A decentralized approach to IoT networking would solve many of the issues above. For example,
Using the blockchain model, IoT devices may send and receive messages in the same way as
financial transactions to enable secure data communication between connected things
 Adopting a standardized peer-to-peer communication model to process the hundreds of billions
of transactions between devices will significantly reduce the costs associated with installing and
maintaining large centralized data centers and will distribute computation and storage needs
across the billions of devices that form IoT networks.

While moving to next slides.

However, establishing peer-to-peer communications will present its own set of advantages and
challenges, chief among them the issue of security. And as we all know, IoT security is much more than
just about protecting sensitive data. Let’s discuss what we could get if we apply blockchain approach in
this regard.
Slide 2

1. This decentralized approach would eliminate single points of failure, creating a more resilient
ecosystem for devices to run on. The cryptographic algorithms used by blockchains would make
data more private.
2. The ledger is tamper-proof and cannot be manipulated by malicious actors because it doesn't
exist in any single location, and man-in-the-middle attacks cannot be staged because there is no
single thread of communication that can be intercepted.
a. A man-in-the-middle attack is a type of eavesdropping attack, where attackers interrupt
an existing conversation or data transfer. After inserting themselves in the "middle" of
the transfer, the attackers pretend to be both legitimate participants.
3. Blockchain makes trustless, peer-to-peer messaging possible and has already proven its worth in
the world of financial services through cryptocurrencies such as bitcoin, providing guaranteed
peer-to-peer payment services without the need for third-party brokers.
4. In an IoT network, the blockchain can keep an immutable record of the history of smart devices.
This feature enables the autonomous functioning of smart devices without the need for
centralized authority.
a. Basically, an object is immutable if its state cannot change once the object has been
created.
5. It can be used in tracking billions of connected devices, enabling the processing of transactions
and coordination between devices; this allows for significant savings for IoT industry
manufacturers.
6. by leveraging the blockchain, IoT solutions can enable secure, trustless messaging between
devices in an IoT network. In this model, the blockchain will treat message exchanges between
devices similar to financial transactions in a bitcoin network. To enable message exchanges,
devices will leverage smart contracts which then model the agreement between the two parties

In a nutshell, The decentralized, autonomous, and trustless capabilities of the blockchain make it an
ideal component to become a foundational element of IoT solutions.

Slide#3
1. Since blockchain has limited capability to handle large amounts of transaction, this might lead to
centralization, which is casting a shadow over the future of the cryptocurrency.
2. Processing power and time required to perform encryption for all the objects involved in a
blockchain-based ecosystem. IoT ecosystems are very diverse. In contrast to generic computing
networks, IoT networks are comprised of devices that have very different computing
capabilities, and not all of them will be capable of running the same encryption algorithms at the
desired speed.
3. Storage too will be a hurdle. Blockchain eliminates the need for a central server to store
transactions and device IDs, but the ledger has to be stored on the nodes themselves. And the
 ledger will increase in size as time passes. That is beyond the capabilities of a wide range of
smart devices such as sensors, which have very low storage capacity.
4. Very few people understand how blockchain technology really works and when you add IoT to
the mix that number will shrink drastically.
5. It's a new territory in all aspects without any legal or compliance code to follow, which is a
serious problem for manufacturers and service providers. This challenge alone will scare off
many businesses from using blockchain technology.

Slide 4

1. IoT can: • Acquire and manage data to create a standards-based, scalable, and secure platform.
• Integrate and secure data to reduce cost and complexity while protecting your investment. •
Analyze data and act by extracting business value from data, and then acting on it.
That's a tough trade off but not impossible and blockchain technology is an attractive option if
we can overcome its drawbacks.
2. Security needs to be built in as a foundation of IoT systems, with rigorous validity checks,
authentication, data verification, and all the data needs to be encrypted.
3. At the application level, software development organizations need to be better at writing code
that is stable, resilient and trustworthy, with better code development standards, training,
threat analysis and testing
4. As systems interact with each other, it's essential to have an agreed interoperability standard,
which is safe and valid. Without a solid bottom-top structure we will create more threats with
every device added to the IoT. What we need is a secure and safe IoT with privacy protected.
5. Developing solutions for the Internet of Things requires unprecedented collaboration,
coordination, and connectivity for each piece in the ecosystem, and throughout the ecosystem
as a whole.
6. All devices must work together and be integrated with all other devices, and all devices must
communicate and interact seamlessly with connected systems and infrastructures. It's possible,
but it can be, time consuming, and difficult.