Integrating Blockchain Technology into IoT Systems

IoT-Blockchain Solution

The trend of micro and nanotechnology or miniaturization is evolving rapidly. It is providing the transformation in wireless communication, automated electronic systems, and real-world interactions with the digital one efficiently.

This transformation has become possible due to the rise of the Internet of Things. It incorporates Wireless Sensor Networks with RFID tags to establish communication channels over internet connectivity.

Today, any electronic device with possible hardware and software integration and modification can be an IoT device. All credit for transforming standard cities into smart ones goes to the IoT platform, which helps to implement intelligent electrical grids, home automation, and many others.

The market research has shown that the adoption of IoT platforms is expected to cross the bar of a 75 billion market in the upcoming five years (by 2025).

With IoT devices, it is possible to transmit a significant amount of data across the network area. Most businesses use data gathered by IoT devices to extract meaningful insights from data to drive impactful decisions. IoT adoption often benefits businesses in many ways apart from security benefits.

The IoT platform might face potential security threats and scalability challenges (such as bottlenecks), which can be experienced by adding more IoT devices into a single network. This challenge requires extra investment in servers to reduce bottlenecks of incoming workload. However, security and scalability challenges can be eliminated with the help of Blockchain technology.

Also Read: Best Practices in Combating Business Data Security Threats

How Blockchain Technology Resolves the Challenges of IoT Systems?

If organizations are dealing with virtual financial(currency) transactions without any verification or audit-related mechanisms, there are chances to face integrity issues. In context to this problem, Blockchain technology was invented as a part of distributed ledger technology.

Today, blockchain is beyond cryptocurrency because of its institution. It further helps to enable diversification discovery features and solve IoT challenges if integrated with IoT systems.

IoT networks are vulnerable to cyberattacks because they perform operations on data by distributing them to multiple devices handled by different keepers. Thus, it is hard to find the source of cyber-attack in this complex network.

As there are several owners involved, there are chances of disagreement across the ownership. Here, the challenge itself acts as a use case, where blockchain is famous for providing high-end security, scalability, and efficiency to the organization.

Let’s understand the reason behind Blockchain technology for being popular:

  • Blockchain technology is a tamper-proof one, which eliminates the trust issues for sensitive transactions among multiple parties.
  • Blockchain puts an additional security encryption layer on the IoT network and makes it next to impossible for malicious parties to overwrite or break into the system.
  • Provides a strict authorization policy with access and tracking transaction history of users to the management authorities by making them discover the source of the attack easily.
  • Support several devices to perform faster data operations and allow you to scale the network as required.
  • Eliminates the IoT network gateway overheads and reduces financial spending

The main idea behind developing blockchain technology is to secure critical transactions and collaborations. As it is recommended to integrate blockchain into the IoT system in the easy stage, it requires research and strategies to meet the pace of applications.

Use Cases of IoT-Blockchain System:

Let’s take a look at the use cases of IoT-Blockchain systems in significant industries:


This industry contains several owners and demands real-time visibility and transparency across the system, which is hard to achieve. IoT bridges the tracking and data storing challenges at certain phases but still lag to implement robust security, and that’s where blockchain comes into the picture and improves security and efficiency.


Most pharma companies face problems while comparing the experimented drug with real solutions. That is where the IoT-Blockchain system helps them see the entire record of such medicine from origin to end, track medicine shipments, and identify the authenticity of medicine prescriptions when it comes to sensitive products.


IoT-Blockchain technology helps agriculture supply chain consumers track the place where their goods are planted or stored, shipments, and more. Through this system, data, and relative suggestions, farmers can also enhance their farming techniques.


IoT-Blockchain system helps telecommunication industries to provide detailed communication track records collected by sensors.

Also Read: 5 Best Considerations for getting Started with AIOps

Embracing Business Infrastructure with IoT-Blockchain Technologies:

Integration of blockchain with IoT system enhances operational reliability by storing each business transaction and security of their infrastructure. These technologies have made it easier to gather resources by enhancing real-time collaboration and management of the organizational inventory.

This integrated system helps organizations discover system loopholes and ways to optimize operations and improve the visibility over the supply chain efficiently at reduced costs. Though the IoT-Blockchain system is still in the initial phase, it has shown its potential to the world and made global organizations adopt it to embrace its digital initiatives.

Want assistance in IoT development? Or Have questions? Contact CloudStakes Technology Pvt. Ltd. – a leading IoT solutions & consulting company in India, TODAY!! You can also book your free IoT consultation service with our IoT experts and get instant IoT solutions to all your questions.

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