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Blockchain: Structure, Uses, and Applications in IoT

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DOI: 10.1007/978-3-030-70501-5_6

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Blockchain: Structure, Uses,
and Applications in IoT

Shanu Khare, Azher Ashraf, Mir Mohammad Yousuf, and Mamoon Rashid

Abstract With the continuous increase in the applications of blockchain, the

research and academic circles are constantly exploring and providing guidelines for
the use of blockchain in new directions. The use of this technology has given new
dimension in the Internet of Things (IoT) systems. In this chapter, the authors are
providing an outline and structure of blockchain and its various applications in
IoT. Blockchain technology helps in building trustless and efficient secure
environment in IoT. Therefore, the authors think it is necessary to aim the basic
shape of this technology and explain its use and applications in IoT in a concise and
comprehensive way. This chapter starts with introduction of blockchain and IoT
supported by its working in various applications of IoT. The authors believe that this
chapter will provide a basic idea to users in understanding blockchain technology in
IoT applications.

Keywords Blockchain · Bitcoin · IoT · Order integrity · Ownership · Transaction

1 Introduction

Blockchain was developed by Satoshi Nakamoto in 2008 as its distributed exchange

registry for use in the crypto blockchain currency. Blockchain is an ever-growing
list of documents, termed as blocks, which are connected and protected through
cryptographic techniques [1]. Usually, each frame includes a hash algorithm
message digest of cryptographic techniques, time frame, and authentication tokens
from the preceding block. Blockchain is by default fundamentally immune to
application of data or information alteration. It is a free public record that can
effectively, verifiably, and permanently document interactions between two entities.
Blockchain is primarily maintained for use as a public record by a peer-to-peer
framework which adheres mutually to a consensus for confirming new blocks [2]. If
registered, the data can’t be modified unconstitutionally in any specific block

S. Khare · A. Ashraf · M. M. Yousuf · M. Rashid (*)

School of Computer Science & Engineering, Lovely Professional University, Jalandhar, India

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2022 131
K. M. Baalamurugan et al. (eds.), Blockchain Security in Cloud Computing,
EAI/Springer Innovations in Communication and Computing,
https://doi.org/10.1007/978-3-030-70501-5_6
132 S. Khare et al.

Fig. 1 Blockchain formation

without altering all corresponding blocks, which involves system network main-
stream collaboration.
Blockchain is safe by nature and exemplifies a high-performance computing
framework with huge appetite to medieval faults [3]. This enables blockchain theo-
retically ideal to store incidents, health records, and other information processing
practices, such as unified communications, payment dispensation, authenticity
tracking, food regulatory compliance, or polling [4]. The formation of blockchain is
shown in Fig. 1. The central sequence (black) contains the maximum sequence of
chains from the (green) inception frame to the present frame. Orphan frames (yel-
low) exist outside of the central sequence.

1.1 Blockchain Concept

Blockchain is a scattered, concerted, and communal voltaic registry that is utilized

to indenture or report remittances through numerous apparatuses so that the datum
or data storage cannot be subjectively altered without reforming all conforming
mounts and platform involvement [5]. This supports the investors to assess
remittances or payments and to assess them moderately. The blockchain platform
has unconventionally functioned across a peer-to-peer groundwork and a dispersed
session casting database. They are unconventionally confirmed by seeming self-­
interests functioned by unceasing cooperation [6]. The consequence is an unchanging
procedure where there is a negligible misperception about the investor’s customer
statistics or information security. Blockchain utilizes eradicating the interminable
methodological accuracy element from digital currency. This is assurance that each
adjustable of spending has been moving only once, addressing the continuing
double expenses issue. Blockchain was well-defined as an identification for the
reciprocating of evaluates [7–10].

1.2 Internet of Things

The Internet of Things (IoT) is an evaluating standard that has altered the methods
in our everyday livelihood and operative. The Internet of Things (IoT) is an
Blockchain: Structure, Uses, and Applications in IoT 133

evaluating standard that helps different organizations to increase the value of

­business and help in improving decision making [11, 12]. With informal accordance
among social and appliances, the rapidity of statistics or facts inception is receiving
multi-fold, enlarging sharply in extent and is acquiring more aggregation. The com-
munication of the Internet of Things is the straight unification of computer-­based
schemes to that of the physical world where the substances can be controlled
remotely by utilizing the remaining network structure [13, 14]. With the utilization
of IoT techniques, human involvement is minimalized, and this technique indicates
to larger accurateness and effectiveness correspondingly. The IoT includes real-time
capturing of data from sensors [15–17]. As the cost of sensors and actuators contin-
ues declining, organizations putting resources into the modern part would most
likely adapt up to the cost deterrents in embracing IoT platforms [18–20].
The rest of the chapter is organized as follows: Sect. 2 discusses the history of
blockchain. Working of blockchain is discussed in Sect. 3. Applications of block-
chain are discussed in Sect. 4. Uses of blockchain are given in Sect. 5. Future trends
of blockchain in IoT are given in Sect. 6. Finally, conclusion is given in Sect. 7.

2 History of Blockchain

Throughout the early 1980s and at the beginning of the 1990s, the key concepts
underlying distributed ledger future tech came out. The paper “The Part-Time
Parliament” [21] was presented by Leslie Lamport to ACM Operations on
Communications Platforms in 1989; eventually, the manuscript was issued in a
1998 matter. This article identifies a paradigm of convergence for finding a set-
tlement in a central server that cannot be accurate for the machines or system
either. As an automated pioneer for the electronic authentication of agreements
in 1991, a registered documentation string had been first established to readily
demonstrate any absence of any of the certificates which were validated through-
out the collection [21]. Table 1 shows the chronology of distributed ledger
advancements.

3 Working of Blockchain

As blockchain is a collection of time stamped records that are immutable in nature

and are managed by cluster of computers instead of single computer or entity. The
working of blockchain contains series of steps which are shown in Fig. 2.
The working of blockchain can be summed up in terms of five steps as
given below:
1. Transaction Request The core of blockchain technology is the storage of data
in secure and true ways. The transaction request makes it sure that status of
134 S. Khare et al.

Table 1 Summary of the current methodologies to the safety of published research observations
Reference Permutations Description
Taylor First Bitcoin, a cryptocurrency development, became an initial big
[22] permutation blockchain exploration. Bitcoin’s daily volume now stands at about
$10–$20 billion, including in dozens of users including a rapid-­
growing content delivery sector
Böhme Second Blockchain became a second development. Almost every large
et al. [23] permutation corporate institution in the world is actively carrying out
cryptocurrency operation, and about 15 percent of businesses have
expected and said that in 2017
Kosba Third The third innovation was called “smart contract,” something which
et al. [24] permutation was embodied in a decentralized system of the early 1990s, called
Ltc, which specifically created techniques via IoT systems that
permit transactions like government stocks or shares to be
interpreted regardless of money-like Bitcoins’ monies. AMD’s
intelligent contracts are estimated at almost 1 billion dollars and
tens of thousands of businesses related to this market
Kiayias Fourth The latest big development, the modern reimagining of IoT systems,
et al. [25] permutation is called “risk confirmation.” Advanced sensing blockchains are
secured by “work documentation,” under which decisions are taken
by the group with the highest total computing ability. Such entities
are called “traders,” and, in exchange for Ethereum purchases,
consumers operate massive data centers to provide this security.
Such energy sources are substituted by modern mechanisms,
replacing structural growth mechanisms for a corresponding and
better set of meanings
Eyal et al. Fifth Blockchain scaling is considered the fifth big innovation. In the
[26] permutation cryptocurrency setting, almost any appropriate device is carried out
with each transaction in the network. It’s a tricky task. A
decentralized blockchain aggravates the issue by computing how
computers have to track each payment and then split the job
efficiently, despite undermining security. That’s a tough question
and no obstructionist problem to handle something except
compromising blockchain’s respectable security or durability. The
customizable blockchain should propel artificial intelligence quickly
and adequately and then take on the two massive economic
counterparty mediators in the world economy.

transaction between the sender and receiver is validated and completed. The Bitcoin
blockchain information exists solely in relation to Bitcoin transactions under
financial information. This is a huge record of success of all the financial transac-
tions, all the way to the first Bitcoin transaction.
2. Chaining the Blocks After the transaction request data establishment, there is a
connection through peer-to-peer network between nodes. This will be chaining the
blocks together and connecting them to each other. In Fig. 2, there are four blocks
which are chained together, and all contain the transaction data.
Blockchain: Structure, Uses, and Applications in IoT 135

Fig. 2 Working of blockchain

3. Validation For validating, blockchain requires verification and separates the

blocks from chaining. All blocks are ready for the hashing and cryptocurrency tech-
nique. Any payment has to be checked until it makes the purchase. For many other
public info documents, such as the Stock Exchange Commission or the public
library, there’s someone in control of searching for newly document inputs. So far
with blockchain, the task is given to a computer network. If they buy from Amazon,
the computer system reacts to verify if your payment occurred throughout the man-
ner you said that it would.
136 S. Khare et al.

Fig. 3 Phase-wise procedure of the processes of blockchain

4. Digital Signature and Hashing In this step, all blocks call for cryptocurrency
contacts record where every block needs digital signature and hashing. Hashing is a
kind of way of everyone in blockchain to agree for the current world state, while
digital signatures ensure that transactions are meant only for rightful owners. These
are important parameters in blockchain that ensure that it will not get compromised
or corrupted.
5. Integration Operations In integration, all blocks combine and attach with the
logs. Upon checking the payment as correct, it receives the perfect excuse. The dol-
lar sum of the purchase, user digital signature, and a digital signature from Amazon
are mostly contained inside a file. Here, the payment is likely to contain tens to mil-
lions of such entities.
Blockchain processes contain five phases for its working as shown in Fig. 3.
These phases are as follows:
Phase 1 – P2P network
Phase 2 – Communication
Phase 3 – Validation
Phase 4 – Verification
Phase 5 – Confirmation

4 Applications of Blockchain

The whole digital web is about stuff, the most precious imminent things user could
access and really wants to secure. All such resources are maintained in encrypted
format on a channel-to-channel string, named the blockchain or registry, whereby
each individual determines with whom users are doing company. Based on these
resources, there are some applications which belong to the blockchain and are
given below:
Blockchain: Structure, Uses, and Applications in IoT 137

• Blockchain finance
• Blockchain business
• Blockchain smart contracts
• Blockchain IoT

4.1 Blockchain Finance

Cryptocurrencies, or virtual tokens at its finest, are tokens which are transmitted
across an online web. Purchases can be made through checking, transferring, or
money. User could also use a kind of digital goods, perhaps commonly Bitcoin, but
also Litecoin, Peercoin, or Dogecoin, and many others, in which user utilizes an
electronically encrypted domain to render the payment. And more important, the
payment is more secure as the user wants it to be. In order to assure confidence,
conventional structures employ a negotiator, including a lender or a payment
processing corporation.

4.2 Blockchain Business

Existing systems appear to be bulky, vulnerable to failure and frustratingly weak. In

many cases, mediators are required to arbitrate the procedure and resolve disputes.
On the other hand, customers are reporting the blockchain to be in lower cost,
transparent, and more powerful. Real surprise, this device is being used by an
increasing array of investment banks to implement technologies including digital
securities and formal verification.
Some points of blockchain business application are as follows:
• Regulation of assets: exchange and reimbursement
• Insurance: compensation
• Handling fees: cross-border fees

4.3 Blockchain Smart Contracts

Smart contracts are electronic, implanted with such an if-this-then-that (IFTTT)

software that allows them to control to operate themselves. In everyday life, an indi-
vidual guarantees that conditions are met by both stakeholders. The blockchain also
renounces necessity external alliance and also guarantees that certain stakeholders
throughout the network know the full contingent of the agreement and therefore that
implied warranties are immediately applied until the requirements are met.
138 S. Khare et al.

Some points of application in blockchain smart contracts are as follows:

• Blockchain music
• Blockchain healthcare

4.4 Blockchain in IoT

Blockchain and IoT are crucial technologies that will have a major impact on pro-
duction firms over the next few decades. These two technologies boost productivity,
generate incentives for new companies, resolve legal requirements, and improve
efficiency and visibility. The IoT makes it simple to analyze real-time sensor data
relevant data. As the expense of detectors and sensors continues to decrease, by
accepting IoT frameworks, manufacturing sectors will overcome financial barriers.
The collective use of the distributed, open, generic ledger available to investors
in the organizational network would enable blockchain to share critical information
gathered from the IoT.
Information security and IoT privacy are immense possible due to the vast and
pervasive nature of IoT networks. For the remainder of resource-controlled IoT
devices, deconcentration and security of blockchain technologies often need
substantial resources, setbacks, and task processing that is not suitable.
The Internet of Things (IoT) has been sufficiently formed from its inception and
is indicative of the Internet’s growth in the coming time frame. One of the technical
challenges is the need to handle millions of machines worldwide. While usability
structures and procedures for IoT perform, they rely on structured constructs that
place a fresh set of functional limitations on international administration. As the
transfer moves from source to destination, the blockchain will contain relevant
records from smart applications connected to products or materials.

5 Uses of Blockchain

Blockchain’s predominant use currently is as a decentralized booklet for digital cur-

rencies, particularly Bitcoin. There are some areas to describe the uses of block-
chain in different or various modes. These are the following:
1. General Potentials Blockchain technique has a tremendous capability to
lengthy-term transformation of marketing strategies. The decentralized blockchain
registry architecture is rather a fundamental innovation—capable of building a
newer base for foreign socioeconomic structures. Through using blockchain, the
distribution networks, electronic communications, and institutional investors and
distributed instant messaging of public networking frameworks are offering major
levels of efficiency.
Blockchain: Structure, Uses, and Applications in IoT 139

In principle, the collection of taxes, transportation, and hazard control by block-

chain will be feasible. With a centralized database, blockchain cuts payment control
procedure costs, and by eliminating necessity trustworthy “external parties,” such as
financial organizations, to execute payments, the system also decreases connectivity
expenses, supporting many submissions. Blockchain technique, which begins with
a heavy focus on economic implementations, expands to practices like distributed
and interactive implementations that remove an intermediary.
2. Land Registrations Structures and hearings including the one at the Sweden
Companies house seek to show the blockchain’s efficacy in accelerating surface
selling transactions. The Republic of Georgia is channeling blockchain-constructed
material goods archive. Tokens and experiments such as those carried out in the
Sweden Property Register are intended to show the productivity of the blockchain
in accelerating land selling agreements. Georgia is conducting the repository of
blockchain properties. India’s administration of government is using the blockchain
to counter property corruption.
3. Smart Contracts Ledger-based intelligent transactions are transactions which,
without human involvement, can be accidentally or deliberately implemented or
performed. Computerized issuer is one of the key goals of an intelligent agreement.
The IMF is of the opinion that the ledger can reduce perverse incentives and
maximize transaction use in overall. Their legality is not obvious due to the absence
of common utilization.
Several blockchain applications can allow transaction programming to be exe-
cuted when certain requirements are met. Through comprehensive coding guide-
lines that identify and implement a transaction, blockchain digital transaction will
be allowed. Digital currency strength is, for instance, a decentralized accessible-­
source framework developed specifically to understand this alternative through the
implementation of a Fleming absolute coding language or programming language
to enforce these transactions.
4. Financial Contrast The implementation of smart blockchain contracts provides
management multitude of financial contracts on blockchain. Economic contracts
identified as derivative products are especially suitable for implementing
blockchains. This is because they are agreements which are based on appreciating
value. The conduct of the appreciating value offers the critical incident which
induces the execution of the agreement.
Blockchain provides group authentication which ensures that depositors involved
in financial transactions are safe. It is also offering a continuous and official database
of all the agreements and what occurred in them so that government regulators
could use to recognize the occurrences on the sector in brief and those who have
invested in accountability. Through streamlining financial products, performance
can be improved, and market operational visibility for regulatory authorities and
investment costs can be minimized. Many modern economic derivatives are
exchanged across the board, which implies their trading is uninformative and stores
organizations to collect massive fees for their role as financial intercessors.
140 S. Khare et al.

5. Asset Tracking Another potential utilization case for blockchain is with an asset
monitoring method toward proving possession or authenticity of a given asset. The
involvement in the global supply chain of illegal merchandise and so-called conflict
diamonds is a concern that needs to be addressed. A device of publicity must be
visible, unchanged, and verified property documents which can be investigated at a
certain moment in time to evaluate how a specific event is produced. Blockchain
precisely gives this number of characteristics and therefore suits this rule. It will
find things simpler for everybody to decide about who controls what and make runs
in all exchanges surrounding every single item because it has changed ownership in
the global marketplace.
6. Payment System Blockchain can be used for the implementation of payment
systems in fiat currency. This is a logical outgrowth of its capacity to control cryp-
tocurrencies’ payments and transactions.
7. Digital Identity Just as blockchain is used to monitor the purchase of assets and
their authenticity, it can be used to purchase people’s identity. Assume that some-
one’s citizenship is held on a blockchain and it will permit users to send documents
as blockchain payments. This ensures the track of exchange within or outside coun-
tries. That ensures they’re unchangeable, verified by the society, and centrally
planned. By introducing payment systems to the scheme, it may also be feasible to
transmit regulations to refuse access to only certain individuals besides punitive
measures toward places of destination, security purposes, or indeed any purpose but
to have others to enforce immediately on the blockchain. Everything should be
transparent and standardized to allow mechanical failure to meet a process. The
requirements should be clear.
8. Global Trade and Commerce Many corporations and consortia are encouraged
to modify everyone’s outdated technology because of the influence of blockchain
technologies on global trade finance services. The impactful effect of Ethereum
blockchain is recognized in the operation of global supply chains by massive trad-
ing businesses around the world, the management of financial transactions, and the
opening of new business models. Further, from the time of digitalization, the frame-
work allows current records, bank guarantees, and further digital signatures.
9. Real Estate Real estate makes use of blockchain to activate electronic real estate
possibilities. The job with ConsenSys develops new business opportunities,
improves the underlying property operational activities, reduces prices, eliminates
information silos, and improves the market.
10. Capital Market In a time of higher results, the innovation of the blockchain
changed the capital market technique to understand trade. In modern times, there
have been tough restrictions, institutions, and obligations in the share market
architectural style. The associated risk involves high administrative expenses and
prompts industry by undermining the financial position and potential customers by
raising the degree of entry. The methodology of blockchain can enhance operating
expenses downwards through the available, implemented, unavoidable, and grow-
ing factual sources between such banks and financial institutions.
Blockchain: Structure, Uses, and Applications in IoT 141

11. Copyright or Intellectual Property and Royalty Protection Intellectual

property and ownership rules on music and other information have become increas-
ingly vague in a world with increasing internet access. Blockchain would greatly
enhance these intellectual property rules to make that the artist or originator of the
material acquired is given a decent share of the electronic content uploads. The
blockchain will also provide artists and content producers with full detail and accu-
rate copyright allocation information.
12. Digital Voting Blockchain allows the capability to vote digitally, even though
regulatory authorities should be able and see if something has changed in the chan-
nel. It mixes the accessibility of digital voting with the blockchain’s indivisibility
(i.e., the unchangeable scientific community) to categorize the voting rights of all.
13. Immutable Data Backup Blockchain could be an excellent way to retrieve
information. While cloud services storage programs are implemented to become a
go-to origin for information security, they are not resistant to attackers or even
issues with architecture. Utilizing blockchain as a backup device for the cloud com-
puting environment or any information could address this problem through GPS
receivers itself on routes.
14. Medical Record-Keeping The excellent thing is that for years now the health
industry is already shifting away from document for documentation purpose. Yet
blockchain offers that much greater safety and efficiency. To get medical informa-
tion, it will be in charge of the medical information, who has the right to obtain
these electronic records and has exposure of handling these documents. It
would be a matter to enhance the HIPAA rules that secure patient confidentiality.
15. Data Sharing In November, Cryptocurrency IOTA released a beta version of
all its primary data sources, illustrating that blockchain could be used as a consumer
market to exchange or exchange discarded information. Because most company
information passes unclaimed, blockchain can serve as an interface to purchase and
migrate this information to achieve a series of businesses. While in its initial stages,
IOTA has far more than 35 brand name members (one of them being Microsoft)
providing feedback.

6 Future Trends of Blockchain in IoT

Apache blockchain is generally used for maintaining conformity with laws, boost-
ing inventory monitoring and enhancing identity security, only to mention a few
instances. Blockchain performs differently with several conventional centralized
networks and holds log files of all activities indefinitely. In addition, several small
firms, businesses, state agencies, and individuals can also use this platform. In
several industries and confidence, this combination of blockchain with IoT can
establish greater accountability and deter manipulation as most of the industries
prosper and adopt this innovation. A collection of why the human race adopts the
whole innovation and the adjustments we can see is presented below:
142 S. Khare et al.

Higher Consumer Acceptance We might see a massive requirement for IoT in the
next 20 years when everyone needs anonymity, protection, and above all time-­
saving capability. Blockchain is needed to boost this IoT requirement and to func-
tion reliably. Therefore, as consumption rises, production growth improves, and
businesses embrace the modern ideology of technological breakthroughs. The IoT
infrastructure will be built, and travel, protection, and farming problems will dra-
matically decrease.
Market Rise in Home Automation Everyone needs luxury, and it can be done by
intelligent houses. Think you get home on a warm weather afternoon and would like
to have your AC unit on and space pretty chilly, what if you just hit and press the
button on your smartphone? Such trends are going on and might grow rapidly.
Presently blockchain can do it by clicking on the button by transmitting and receiv-
ing the information for both you and your air conditioner; it appears natural, but we
don’t really want full access, and we never want to exploit or exchange our informa-
tion. That’s the area in which blockchain steps in, and we will monitor the opera-
tion, i.e., who did it if it happens. This is a prime demonstration and is always
challenging to protect information at excessive densities.
Need in Public Well-Being Services Followed by the community services, this
innovation will grow significantly. It’s still been assessed all around the global econ-
omy. There are a range of monitoring technologies, and the customer’s full surgical
records and photographs and pre-diagnostic symptoms may be saved in the data-
base. Their daily well-being could be registered, and they might be utilized across
situations.
Distributed Ledger Incorporation and Advanced Analytics IoT In the near
future, when the future IOT models in their functionality start to be implemented by
various industries, AI is in force. Typically businesses such as Sentrian, Manna, Veros
Networks, Neura, etc. use IoT AI and will eventually implement blockchain, and the
applications will be much improved. Blockchain owns and operates on regular
machines, and an immense quantity of energy is necessary to perform the job. And
both of this can be combined with a great deal of time and storage, and slowly grow-
ing as technology is the key challenge here. However, if this innovation flourishes
correctly, analysis issues, AI coding, protection, and several others may be generated.
Blockchain Organizations on IoT As competition for blockchain specialists and,
in particular, for citizens with awareness of IoT is growing, it is also essential. Since
separate schools aim to solve both, still a distance remains, and we sense as we
learners are interested in different industries. That’s why various companies have
their own systems where they freshen up their talents to get their industry ready, but
this entire phase is too grueling for the business, and they’ll continue to pay the costs.
Electricity and Capital Control Blockchain and IoT Regulation In order to
handle the money we have and the electricity properly, use of IoT equipment with
blockchain technologies would become an important commodity. In our houses and
workplaces, to hold the humidity, sprayers, etc., we can have IoT gadgets. Active
Blockchain: Structure, Uses, and Applications in IoT 143

identification and efficient utilization of energy, remote identification, and elevated

usage power, thanks to the blockchain embedded with IoT, we may render all of
these visible information. This will enable us to deter and track climate change, the
conservation of soils, protected areas and all the community industry MNC, etc.,
concerns that have little impact on our climate.
Augmentation of IOT Appliances with Blockchain 95% of businesses with their
service equipment would be IoT. As per Gartner, the corporations are now
considering increasing the extension of these. It is important to make the products
increasingly robust and to enable anyone to use and prosper from this.

7 Conclusion

In this chapter, the authors provided an outline and structure of blockchain and its
various applications in IoT. As blockchain technology helps in building trustless
and efficient secure environment in IoT, the authors discussed this technology in
this chapter and explained its use and applications in IoT in a concise and
comprehensive way. The use of this technology has given new dimension in the
Internet of Things systems. Moreover, the future trends of blockchain technology in
IoT are included in this chapter. The authors believe that this chapter will provide a
basic idea to users in understanding blockchain technology in IoT applications.

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