Start with ur definition on terms IoT and Blockchain…

Internet of Things
Internet of Things
 The Internet of Things (I0T) is the network of physical objects or “things” embedded with electronics,
software, sensors, and network connectivity, which enables these objects to collect and exchange data.
Challenges in IoT System:
 Centralized Storage Constraints

 Data Collection and management difficulties

 Duplication of data

 Data Transmission Latencies

 Data Computation

 Data Privacy and Protection

 Blockchain
A Blockchain is a network of decentralized and distributed ledger, where the users

share their ownership and manage the network through computer nodes.
Blockchain technology stores data in blocks and link them together to form a chain.

Features :
 Decentralized Ledger Storage

 Immutability

 Enhanced security

 Transparency

 Traceability

 Cost effective computation & Communication

Distributed Ledger – Means…
Properties of Blockchain
 Blockchain in IoT
What is Blockchain??
Blockchain is simply a data structure where each block is linked to another
block in a time- stamped chronological order.
It is a distributed digital ledger of an immutable public record of digital
transactions.
Every new record is validated across the distributed network before it is stored
in a block.
All information once stored on the ledger is verifiable and auditable but not
editable .
Each block is identified by its cryptographic signature.
The first block of the blockchain is known as Genesis block.
 Blockchain in IoT
Blockchain is a distributed ledger with the capability of maintaining the integrity
of transactions by decentralizing the ledger among participating users.
Internet of Things (IoT) represents a revolution of the Internet which can connect
nearly all environment devices over the Internet to share their data to create novel
services and applications for improving our quality of life.
Although the centralized IoT system provides countless benefits, it raises several
challenges.
Resolving these challenges can be done by integrating IoT with blockchain
technology. To be prepared for the integration process, this course provides an
overview of technical aspects of the blockchain and IoT.
 BLOCKCHAIN TECHNOLOGY
Defined..
A blockchain is a decentralized, distributed digital ledger that records transactions
across multiple computers.
 BLOCKCHAIN TECHNOLOGY
Key Features:
Decentralized: No single person or organization controls it; instead, it’s managed by a
network of computers.
Immutable: Once a transaction is recorded, it can’t be changed or deleted, ensuring
reliability.
Transparent: All network members can see transaction histories, promoting trust.
Secure: Transactions are validated using advanced cryptographic methods for added
security.
 How does Blockchain work?
Blocks: Data structure containing meta data about block itself and contains transactions.
Chain: Blocks are linked together in chronological order, forming a chain of records.
Consensus Mechanism: Network computers agree on transaction validity using methods
like Proof of Work or Proof of Stake.
Steps:
1. Transaction Facilitating
2. Transaction Verification
3. New Block Formed
4. Consensus Algorithm
5. Adding the New Block to the Blockchain
6. Transaction Complete
How does Blockchain Work?
 Types of Blockchain
There are 4 types of blockchain:

Public Blockchain.
Private Blockchain.
Hybrid Blockchain.
Consortium Blockchain.
 Public Blockchain
• Public blockchains are open, decentralized networks of computers
accessible to anyone wanting to request or validate a transaction (check
for accuracy).
• Those (miners) who validate transactions receive rewards.
• Public blockchains use proof-of-work or proof-of-stake consensus.
• Permission-less distributed ledger system.
• Anyone who has access to the internet can sign in on a blockchain
platform to become an authorized node and be a part of the blockchain
network.
• Example : Bitcoin and Ethereum (ETH) blockchains.
Public Blockchain
 Private Blockchain
• A Private Blockchain is just like a relational database i.e. fully
centralized and owned by a single organization.
• Private blockchains are not open, they have access restrictions.
• People who want to join require permission from the system
administrator.
• They are typically governed by one entity, meaning they’re
centralized.
• For example, Hyperledger
is a private, permissioned blockchain.
Private Blockchain
 Consortium Blockchain
• Validation is conducted by known and identified members of the
limited network of nodes.
• Greater privacy since the information from verified blocks is not
exposed to the public.
• Consensus is reached by a relatively small number of nodes in
accordance to the governance scheme.
• A consortium platform is more flexible.
• voting-based system, it ensures low latency and superb speed.
 Hybrid Blockchain
• like a consortium blockchain, but it is not.
• Hybrid blockchain is best defined as a combination of a private and
public 22 blockchain.
• It has use-cases in an organization that neither wants to deploy a
private blockchain nor public blockchain and simply wants to deploy
both worlds’ best.
 Mining Mechanism
Blockchain mining mechanisms are essential for securing the blockchain network, verifying
transactions, and ensuring that new blocks are added in a decentralized and trustworthy manner.
1. Proof of Work (PoW)
It requires miners to solve complex mathematical problems, typically involving finding a specific
hash value that meets a certain condition.
2. Proof of Stake (PoS)
Instead of using computational power, PoS relies on validators who hold and "stake"
cryptocurrency to secure the network.
3. Proof of Authority (PoA)
Proof of Authority is a consensus algorithm where a few trusted entities are given the authority
to validate transactions and create blocks.
4. Proof of Burn (PoB)
Proof of Burn involves miners "burning" (destroying) a certain amount of cryptocurrency to
earn the right to mine new blocks.
 Consensus Algorithms
A consensus algorithm is a procedure through which all the peers of the Blockchain
network reach a common agreement about the present state of the distributed ledger.
Consensus algorithms in distributed systems are protocols that enable multiple computers
or nodes within a network to agree on a single data value or decision.
Types of Consensus Algorithms:

1. Crash Fault Tolerant (CFT) Algorithms:

 Paxos: A family of protocols that achieve consensus despite network delays, node failures, and message
losses. Paxos is known for its robustness but is often considered complex to understand and implement.
• 2. Byzantine Fault Tolerant (BFT) Algorithms:
 Practical Byzantine Fault Tolerance (PBFT): Handles Byzantine failures, where nodes can act
arbitrarily or maliciously. PBFT requires a supermajority of honest nodes to reach consensus and is used
in systems requiring high security.
 Consensus Algorithms
3. Proof-Based Algorithms:
 Proof of Work (PoW): Used in Bitcoin and other cryptocurrencies, PoW requires nodes (miners) to solve
complex cryptographic puzzles to validate transactions and add new blocks to the blockchain. It is energy-
intensive but provides robust security.

 Proof of Stake (PoS): Validators are chosen based on the number of tokens they hold and are willing to
“stake” as collateral. PoS is more energy-efficient than PoW and is used in cryptocurrencies like Ethereum
2.0.

4. Leader-Based Algorithms:

 View-stamped Replication (VR): VR involves a primary node (leader) that coordinates the replication of
logs to backup nodes. If the leader fails, a new leader is elected to continue operations.

5. Voting-Based Algorithms:

 Quorum-Based Algorithms: These rely on a majority (quorum) of nodes to agree on a value.

 Merkle Tree
• The blockchain is a hash-based linked list of blocks, where each block
consists of a header and transactions. The transactions are arranged in
a tree-like fashion, known as the Merkle tree.

• In a Merkle tree, transactions are grouped into pairs. The hash is

computed for each pair and this is stored in the parent node. Now the
parent nodes are grouped into pairs and their hash is stored one level
up in the tree. This continues till the root of the tree.
Merkle Tree
Merkle Tree
 Gas Limit
What is Gas Limit?
Gas refers to the unit that measures the amount of computational effort required to
perform operations like executing transactions, running smart contracts, and
interacting with decentralized applications.
Gas Limit: The maximum amount of gas an user is willing to spend on a
transaction. It acts as a cap on the computational effort that can be expended.
Setting Gas Limits:
• Simple transactions (like sending ETH) require lower gas limits, typically around
21,000 units.
• Complex transactions involving smart contracts may require higher gas limits.
 Gas Limit
Importance of Gas Limit:
• Resource Optimization: Since each transaction consumes
computational power, the gas limit prevents unnecessary resource
consumption.
• Security: Prevents infinite loops and excessive computation by
limiting the execution time of smart contracts.
• Cost Control: Users specify a gas limit to control how much they are
willing to spend.
 Gas Limit
Consequences of Incorrect Gas Limits:
• Too Low: The transaction may fail, but the gas fee is still deducted.
• Too High: The extra gas is refunded, but users risk overpaying.
Block Gas Limit:
• This is the maximum total amount of gas that can be used by all
transactions in a single block. It is set by miners and can change based
on network conditions.
 Rewards

Definition: Rewards are incentives given to network participants (miners or validators) for
contributing computational power or validating transactions.

•Mining Rewards:
•For Proof of Work (PoW) blockchains (like Bitcoin), miners receive block rewards (newly
minted cryptocurrency) and transaction fees.

•Staking Rewards:
•For Proof of Stake (PoS) blockchains, validators earn rewards by holding and locking up
their tokens in the network to verify transactions.
 Blockchain Applications
[Link] Management: Trade Processing and Settlement
[Link]: Claims processing
[Link]: Cross-Border Payments
[Link] money lenders/ hard money lending
[Link] car/ smartphone
[Link] Internet-of-Things (IoT)
[Link] Appliances
[Link] Chain Sensors
[Link] Healthcare
 Blockchain Forks
Many times the nodes in the network can’t come in a unanimous
consensus regarding the future state of the blockchain.
This event leads to forks, meaning that point in which the ideal
‘single’ chain of blocks is split into two or more chains which are all
valid.
Forks in blockchain means copying the code and modifying it to
create a new software or product.
Blockchain Forks
 Blockchain Forks
CODEBASE FORK: In codebase blockchain fork you can copy the entire
code of a particular software.
LIVE BLOCKCHAIN FORK: Live Blockchain fork means a running
blockchain is been divided further into two parts or two ways.
TEMPORARY FORK / ACCIDENTAL FORK: Mining of a block by more
than one party at nearly the same time.
INTENTIONAL FORK: In intentional fork the rules of the blockchain are
changed, knowing the code of the software and by modifying it
intentionally.
 Blockchain Forks

SOFT FORK: When the blockchain protocol is altered in a backwards-

compatible way. In soft fork you tend to add new rules such that they do
not clash with the old rules. The change is such that the new blocks
mined on the basis of new rules are also considered valid by the old
version of the software.
HARD FORK: Hard fork is opposite of Soft fork. When the blockchain
protocol is altered in a non backwards-compatible way. The change is
such that the new blocks mined on the basis of new rules are not
considered valid by the old version of the software
 Internet of Things - Integrated platform for
blockchain enablement
• The integration of Internet of Things (IoT) and Blockchain offers enhanced security,
transparency, and decentralization in IoT networks.
• Internet of Things (IoT): refers to networks of devices that collect sensor data and
share these measurements with gateways or servers, usually via the internet, allowing
for the automation and management of numerous systems and processes.
• Blockchain: a cryptographically secure digital ledger that maintains a record of all
transactions that occur on the network and follows a consensus protocol for confirming
new blocks (digital pages in the ledger) to be added to the blockchain
• By integrating IoT with blockchain technology, IoT data can be secured, authenticated,
and decentralized, which improves trust, transparency, traceability, and reliability in
IoT-based processes and automation. The combination of these two technologies can
be applied to improve the security, healthcare, and industrial sectors, as well as global
supply chains.
Use Cases of IoT and Blockchain Integration
 Internet of Things - Integrated platform for
blockchain enablement
Supply Chain Management
• Problem: Traditional supply chains often lack transparency and are vulnerable to fraud and
inefficiency.
• Solution: Combining IoT sensors and blockchain allows real-time tracking of products throughout
the supply chain. Blockchain ensures that records are immutable and transparent, while IoT
provides real-time data, improving visibility and accountability.
Smart Homes and Cities
• Problem: IoT-enabled smart homes and cities require secure, scalable, and autonomous
communication between various connected devices.
• Solution: Blockchain can decentralize control, ensuring secure, transparent, and tamper-proof
communication among devices. This reduces reliance on centralized systems that may be
vulnerable to attacks.
 Internet of Things - Integrated platform for blockchain enablement

Healthcare Systems
• Problem: IoT devices generate large volumes of sensitive health data, which need to be securely
managed and shared between healthcare providers.
• Solution: Blockchain can enhance the security and privacy of health data generated by IoT devices
(such as wearables or connected medical devices) while enabling transparent and secure sharing of
health records between patients, doctors, and healthcare institutions.
Autonomous Vehicles and Transportation
• Problem: Autonomous vehicles rely on IoT sensors for navigation, safety, and communication, and
these systems need to be secure, transparent, and autonomous.
• Solution: Blockchain provides a decentralized ledger for vehicle-to-vehicle (V2V) and vehicle-to-
infrastructure (V2I) communications, which can ensure trust and transparency between various
stakeholders like manufacturers, service providers, and users
Energy Grids and Smart Metering
• Problem: Energy distribution and consumption management require a decentralized and transparent
system to prevent fraud and inefficiency.
• Solution: Blockchain integrated with IoT allows for decentralized, peer-to-peer energy trading and
smart contracts that automate billing and energy usage.
Internet of Things
Internet of Things
Internet of Things - Evolution
Architecture of IoT
 Architecture of IoT
Layer 1 : Physical Layer  Collects data from the physical world and transfers to the upper layers.
Layer 2 : Connectivity  To interconnect different IoT devices with each other using interconnection devices
such as Switches, gateway, and Router.
Layer 3 : Edge Computing  Takes data coming from Layer 2 and converts to information appropriate for
storage and higher-level processing.
Layer 4 : Data Accumulation  Store data coming from layer 3.
Layer 5 : Data Abstraction  Combines data from different sources and converts stored data into the appropriate
format.
Layer 6 : Application Layer  Information interpretation of various IoT applications.
Layer 7 : Collaboration and Process  Identifies individuals who can communicate and collaborate to make use
of the IoT data effectively.
Characteristics of IoT
IoT Application Domains
Challenges of IoT
Basic terminologies to remember lifetime!!

1. Artificial Intelligence (AI)

2. Machine Learning (ML)
3. Deep Learning
4. Neural Network
5. Natural Language Processing (NLP)
6. Computer Vision
7. Reinforcement Learning
8. Supervised Learning
9. Unsupervised Learning
1. The ability of machines to perform tasks that typically require human intelligence
such as learning, reasoning, problem-solving, and decision-making.
2. A subset of AI where machines learn from data without being explicitly
programmed.
3. A subset of ML that uses neural networks with multiple layers to model complex
patterns in data.
4. A computational model inspired by the human brain, consisting of layers of nodes
(neurons).
5. AI techniques that enable machines to understand, interpret, and generate human
language.
6. The field of enabling computers to interpret and process visual information from
the world.
7. A learning paradigm where agents learn optimal actions through trial and error,
receiving rewards or penalties.
8. Learning from labeled data to make predictions.
9. Learning from unlabeled data to discover patterns or structures.