Blockchain for IoT: Case Study of Smart Homes

and Private Blockchain

Muhammad Umar line 1: 2nd Given Name Surname line 1: 3rd Given Name Surname
Department of Computer Sciecne. line 2: dept. name of organization line 2: dept. name of organization
(of Affiliation) (of Affiliation) (of Affiliation)
line 3: name of organization line 3: name of organization line 3: name of organization
(of Affiliation) (of Affiliation) (of Affiliation)
line 4: line 4: City, Country line 4: City, Country
line 5: email address or ORCI line 5: email address or ORCID line 5: email address or ORCID

Abstract—In Public Blockchain transaction fees is charged revolutionized trustworthiness, guaranteed immutability,
to include every single transaction in blocks, required high increased transparency and sorely automatic way of
mining power and time to add a new block in blockchain (BC). exchanging money, securities [19] and other assets. In recent
This makes low scalable to the Internet of things (IoT) for work years Blockchain received a significant and overwhelming
in real and semi-real time. IoT, one of the most disruptive amount of hype and tackle a wide range of challenges. The
technologies is ramping up recently. IoT is future to coordinate development of applications in voting, digital identity,
the keen items into the web and furnishes the clients with financing, e-government, real estates, and health [18] sector
different administrations such as smart homes, driving demonstrate how blockchain can potentially be used to
assistance, health monitoring. The rate of generating a address challenges [15]. Clearly, these open doors paint a
transaction in real and semi-real-time in IoT is very high, that scene of future economic improvement and potential
makes the high cost to the homeowner. Most of the currently
development that is worthy of assessment, particularly as
running IoT systems are centralized. The owner must trust the
service provider, on the other hand, blockchain provides a
Gartner predicts that: By 2022, at least one innovative
trustworthy environment to share data over the decentralized business built on Blockchain technology will be worth $10
network. The owner has confidence in given decentralized billion and by 2025, the business value added by Blockchain
system that data was not tampered/altered before being sent or is expected to increase over $176 billion, then exceed to $3.1
used by the third party. The research proposed a private trillion by 2030 [17]. In the first quarter of 2018, 412
blockchain system to communicate effectively and securely with blockchain projects raised more than $3.3 billion by initial
IoT based Smart homes to minimize the cost on each transaction coin offerings (ICOs) [13]. Total 2122 cryptocurrency market
and provide the decentralized database. cap stands at about $140.66 billion [16]. JPMorgan, the
London Stock Exchange Group, Wells Fargo, and State Street
declared they united a consortium with IBM, Intel, and Cisco
Keywords— blockchain, private blockchain, IoT, multichain, and blockchain startup Hyperledger to create blockchain
Smart Home innovation. With the announcement, R3 (blockchain startup)
partnered with 30 noteworthy banks like HSBC, Citi, and
I. INTRODUCTION Bank of America prior this year to produce a blockchain
Internet of Things (IoT) isn't a completely new idea, term framework that would enable the banks to more effectively
is coined by Kevin Ashton in the mid-2000s work by MIT's exchange assets with each other. The Bank of Canada is also
AutoID Lab [5] and Blockchain, words to block and chain experimenting to invest in this technology.
distinctly used by still-mysterious Satoshi Nakamoto in 2008 The IoT is not a new Internet, it is an extension to the
[12] in his famous whitepaper, are disruptive technologies still existing Internet [24] is “a worldwide diverse range of
in early stage of embracing. Both together they renovate ideas interconnected objects uniquely addressable, based on
and create new potentials, each in their fields, and there is an standard communication protocols” [1]. IoT network consists
opportunity to create applications that can share the of low-cost sensors, microelectronics and actuators, and data
fundamental characteristics for discovering how the IoT can communication technologies [4] with the ability of data
behoove from the distributed nature of the Blockchain. collection, monitoring, decision making. Even people can be
II. BACKGROUND furnished with a sensor-enabled gadget to track their health
status.
Blockchain, the underlying technology that runs Bitcoin:
A Peer to Peer Electronic Cash System is like a distributed IoT paradigm gaining momentum and progressively
electronic public ledger that records any transaction of value widespread in both industries and research societies quickly,
whether it be money, goods, property, work or votes [14]. In between the years of 2008 and 2010, due to rapid development
which transaction data (generally represented as a Merkle in the number of Wireless Sensor Networks (WSN) [22],
tree) are not added to a file or database individually, they are Radio Frequency IDentification (RFID) [25], fully integrated
bunched together added into timestamped, continuously future internet[23], and sensors network technology[]. On
expanding interlinked blocks by a reference to the previous October 20018, in their Report “The Internet of Things”
block is identified by its cryptographic hash [36] across a peer- prepared by Rob van Kranenburg discourses this term in
to-peer (P2P) network. Each block in the blockchain network which objects produce information that would be stored and
collects new transaction made by each node can store multiple protected[27].
transactions within the specified size limit of 1MB as an Now a days IoT plays a dominant role in the fields of home
immutable record. automation [20, 26], government sector [10], healthcare [7],
Blockchain has only just begun to be explored, create real estate [8], finance [9]. According to McKinsey Global
wide-reaching impact across the public and private sector by Institute, 300% rise in the connected machine to machine
devices over the past five years and 100 million things could III. RELATED WORK
be connected to the internet across sectors like manufacturing, The integration of blockchain with IoT have investigated
transportation, health care, and utilities. A new report by Cisco in a few papers. For instance, the IBM
and DHL found that there will be 50 billion devices by 2020
on the IoT[3]. The IoT has the potential to create an economic Autonomous Decentralized Peer-to-Peer Telemetry
impact of $2.7 trillion to $6.2 trillion annually by 2025 [2]. (ADEPT) project [7] leverages the blockchain to build a
distributed network of devices. As for the ADEPT project,
Currently, majority of IoT ecosystems are based on a many other approaches are trying to design a
centralized (client-server) model in which a negotiator or a
center controls the interaction between devices that are the solution that will be able to merge all the different
connected to cloud storage[?] and processing service[?] with blockchain-based applications [8]. Also, Slock.it
the help of Internet[?]. At present this kind of solution work
introduced the first implementation of IoT and Blockchain
properly, however, this approach has become unsustainable as
using the Ethereum platform [9]. It is so
the expected growth in IoT has come across. Devices need to
exchange truthful, real-time and huge volume of big data, called Slocks to reflect real-world physical objects that can
among themselves autonomously. Big data[?] (abroad term of be controlled by the Blockchain. They use the
data sets) is data that has three distinct characteristics as
compared to traditional data sets are: volume (i.e. terabytes of Ethereum Computer which is a piece of electronics that
data), variety(i.e. heterogeneity of data types) and velocity brings Blockchain technology to the entire home, making it
(i.e. speed and time of data creation). Privacy and anonymity possible to rent access to any compatible smart object and
must be integrated into ever expanding IoT paradigm. This accept payments without intermediaries. In addition, Dorri et
specific requirement has led to efforts towards decentralized al. [10] have proposed a new secure, private, and lightweight
IoT platforms and needs a reboot. architecture for IoT, based on blockchain technology that
eliminates the overhead while maintaining most of its security
and privacy benefits was investigated on a smart home
application as a representative case study for broader IoT
applications. The proposed architecture was hierarchical
and consists of smart homes, an overlay network and cloud
storages coordinating data transactions with
blockchain to provide privacy and security. Blockchain in
healthcare IoT application has introduced as a solution for
many challenges facing the healthcare sector. For example,
Gupta et al. [11] have
Therefore, as it is illustrated in Figure 1, to be safe, proposed an approach to explain how Blockchain could
scalable and efficient, IoT networks are re-architectured. enable an interoperable and secure electronic health records
Before 2005 IoT network was closed and centralized exchange in which health consumers are the ultimate owners.
mainframes advanced towards IoT open-access cloud- They have proposed a scenario to store only the metadata
centered, being the next step the distribution of the cloud about health and medical events on the Blockchain.
functionality among multiple peers, where blockchain with its Otherwise, the Blockchain infrastructure will have to scale
decentralized implementation and security capabilities, massively to support complete health records. So, metadata
provides an alternative to current anti-counterfeiting such as patient identity, visit ID, provider ID, payer ID, etc.
mechanisms. can be kept on a Blockchain, but the actual records should be
stored in a separate universal health cloud. Another study for
In this paper, the potential behoove of IoT and BC and the Blockchain in Healthcare utilizes
current challenges of their integration will be analyzed. We
use the scenario of smart home and adopted qualitative Ethereum's smart contracts to create representations of
research for this paper to introduce a private blockchain that existing medical records [12]. These contracts are stored
is optimized. In our vision, a private blockchain is a directly within individual nodes on the network. They
framework facilitating transaction processing and have proposed a solution called “MedRec” to structure
coordination among interacting IoT devices each be able to
manage its own roles and behavior. the large amount of data into three types of contracts. The
first one is the Registrar Contract. It stores the participants’
The rest of this paper is structured as follows: Section II
presents related work discoursing integration identity with all the needed details and of course, the
public keys. This kind of identity registration can be
blockchain with IoT applications; In the next section III,
we provide a classification of blockchain systems, separating restricted only to certified institutions. The second contract
them into public, private and hybrid settings. Section IV is the Patient-Provider Relationship Contract. It
summarizes the main behoove and challenges that arise when
is issued when one node stores or manages data for another
integrating blockchain with IoT. In section V we proposed the
node. The main usage will be when there is a
design of an optimized Private Blockchain approach for IoT
applications to reduce the inefficiencies. Finally, Section VI the smart contract between the care provider and patient.
concludes. The last one is Summary Contract which helps the patient to
locate her medical history. As a result of this contract, all
previous and current engagements with other nodes in the
 system are listed. B. Transparency
IV. CLASSIFICATION OF BLOCKCHAIN IoT generated data need to kept private and honest.
Blockchain can create potentially predictable transparency by
Based on data access, classifying blockchains is valuable allowing (a) transaction to be verified by a group of people
for recognizing the major characteristics of blockchains. openly since the first transaction of the system (b) everyone
A. Public Blockchain (Permission less) with an internet connection to the network has a copy of the
ledger holds equal rights and ability to access the ledger.
Public Blockchain has no sole owner, they cannot be
Transactional data on blockchain thus transparent and
owned. However, some snippet of the blockchain might be
auditable offers full traceability of record for IoT
encrypted in order to sanctuary a participant’s anonymity [21].
applications[?].
These systems allow anyone to join the network without the
need for any approval and can act as a miner (node). C. Privacy
Transactions can be validated by anyone and there is no access After Edward Snowden leaks [30], it is difficult to
control. Anyone write to and to read the transactions from trust technological organization who, give control to certain
those networks maintain the integrity of the records by authorities by allowing them to gather and analyze user data.
reaching a consensus about its state through several different The massive organization often fail to secure its data putting
consensus algorithms (e.g. Proof of Work (PoW), Proof of their customers at serious risk. Blockchain is all about
Stake(PoS), Practical Byzantine Fault Tolerance, Proof of fairness. It is a huge database in nature lets you record data
Elapsed Time (PoET), Proof of Existence (PoE), Delegated and information without the need to trust on certain authorities
Proof of Stake (DPoS), Proof of Importance, proof of storage like governments, manufacturers and service provider.
[34] etc.). Bitcoin and Ethereum [12,31] are the two best- Therefore, the privacy of collected data should be at the core
known examples of this. of future Blockchain based IoT solutions.
B. Private Blockchain (Permission) D. Security
Private blockchains are faster, sorely energy efficient and The problem lies in centralization is data stores in
easily implementable compared to public blockchains. They one central point is sorely vulnerable to compromise.
may have one or various owners – often syndicates are formed Blockchain ensures the security of data by distributing the
to manage the ownership. Participants must be authorized by ledger potentially offers a greater level of security.
the owners of the blockchain with permission can read or write Blockchain security methods include the use of public-key
to the transaction in such networks. When a new record is cryptography that uses pairs of keys. A public key which may
added, its integrity is checked by a restricted consensus be disseminated widely is used for encrypting the messages,
process. Hyperledger Fabric [32] and Ripple [33] are and private keys which are known only to the owner is used
examples of blockchain platforms that only support private to decrypt the messages. This concept is known as asymmetric
blockchain networks. cryptography. Thus, these key encryption mechanisms are
C. Hybrid Blockchain fundamental security ingredients in modern cryptosystems
and applications assuring the confidentiality, authenticity, and
By combining both private- and public-ledger
non-repudiability of a blockchain [21].
characteristics are those that participants must be authorized
but all transaction is public. Certain people will be able to E. Immutability
write to the network, but all transaction are public. Blockchains are immutable, when data has been
recorded in the ledger, it cannot be covertly altered without
allowing the network to know it. It is very difficult for an
V. BENEFITS AND CHALLENGES FOR BLOCKCHAIN BASED
individual or group of individuals to tamper with the ledger
IOT APPLICATIONS
unless these individuals control the majority of “voters.” For
Sun et al. [28] say that Blockchain can drive all public proof-of-work blockchains such as Bitcoin, the
transactions processing and coordination between devices. immutability is related to the cost of implementing a so-called
Blockchain unique properties significantly added values to “51% attack.” For private blockchains, the block-adding
various fields but here we explore how blockchain can be used mechanism tends to be a slightly different, and instead of
to facilitates the IoT applications: relying on expensive Proof-of-Work, the blockchain is only
A. Decentralization valid and accepted if the blocks are signed by a defined set of
participants. This means that, in order to recreate the chain,
IoT relies on expensive centralized servers that are
one would need to know private keys from the other block-
also costly to deploy and maintain [6]. Blockchain application
adders.
operates in a decentralized way, build trust in distributes
environments without the need of central authorities. It allows F. Data Integrity and Availability
consumers and suppliers to connect directly, eliminating the To guarantee that data accessed and stored by IoT
need for a third party to approve transactions and set rules. devices are reliable, integrity and availability of data must
Transforming from client-server (centralized) architecture to always be ensured. Blockchain by providing useful
P2P (distributed) eliminate a single point of trust and central mechanisms considered secure and promises block integrity
point of lapse[?]. This aid has motivated Ali et al. [29] build a and availability. The integrity of every block in the blockchain
new decentralized PKI and an identity system, called is tested by computing its hash value (which is generated using
Blockstack ID. a cryptographic one-way hash function), and the hash value of
any block depends on the hash of previous blocks. The J. Blockchain size
concept of hashing in the blockchain not only ensures the
K. Processing Power and Time:
integrity of a new block, but it also extends the integrity check
to all previous blocks. A similar approach is proposed by Dorri L. Legal and Compliance
et al. [37] used in blockchain-based IoT networks to check the
M. Heterogeneity
integrity of sensing and transmitted data among devices and
users. Data on Blockchain is distributed in nature among is a problem for the future development of
nodes, so the disruption of any node in the transport network blockchain technologies, because it will thwart their
should not affect the availability of the required data can bring development, adoption, and stimulation of innovation
key aspect in IoT. N. Cost issues.
Recall that the integrity of each block in the blockchain is
verified by computing its hash value, and that the hash value Blockchain use is not free of cost which is a
of any block depends on the hash of previous blocks. drawback of decentralization and the blockchain technology.
Accordingly, not only hashing in the blockchain ensures the The users must pay for transactions and computational power.
integrity of a new block, but it also extends the integrity check VI. PBC-BASED SMART HOME ARCHITECTURE
to all previous blocks. As shown in [67], the same concept can
be used in blockchain-based IoT networks to check the The proposed architecture, shown in Figure 1,
integrity of sensing data, transmitted data, and transactions includes 5 main components, namely the transaction, node,
among devices and users; Recall that the integrity of each home miner, private blockchain. In the following, we briefly
block in the blockchain is verified by computing its hash introduce these components.
value, and that the hash value of any block depends on the A. Transaction
hash of previous blocks. Accordingly, not only hashing in the
In this section, we focus on how transactions are
blockchain ensures the integrity of a new block, but it also
handled in our framework.
extends the integrity check to all previous blocks. As shown
The transaction is one complete message sent from
in [67], the same concept can be used in blockchain-based IoT
one address (node) to another. The transaction is divided into
networks to check the integrity of sensing data, transmitted two parts one is transaction header (TH) and the second one is
data, and transactions among devices and users;
a message for a node to follow. TH has non-encrypted data
Recall that the integrity of each block in the blockchain is
such as Time Stamp, too, from and previous hash and the
verified by computing its hash value, and that the hash value
second part are encrypted (lightweight encryption for secure
of any block depends on the hash of previous blocks.
communication) with the public key which contains device id,
Accordingly, not only hashing in the blockchain ensures the transaction type, instruction, and instruction id. The proposed
integrity of a new block, but it also extends the integrity check system has five types of the transaction as link device, unlink
to all previous blocks. As shown in [67], the same concept can
device, action, feedback, and store.
be used in blockchain-based IoT networks to check the
1) Linked Device: this transaction registered an IoT
integrity of
device to PBC.
sensing data, transmitted data, and transactions among devices
and users Recall that the integrity of each block in the 2) Unlinked Device: This transaction removes an
blockchain is verified by computing its hash value, an authority to send instructions to give IoT device
3) Action: it explains what action is to perform with a
smart device.
G. Automation 4) Feedback: it stores the action id and the result after
Standard and automated communication guarantee performing an action.
with the help of smart contracts (scripts stored on the 5) Store: it just stores the results of automated action.
blockchain)[?] that executes autonomously and repeatedly on And other terms are defined as
every node in the network[11] without the need of any human
interaction. 6) Device Id: unique identification number of smart
devices connected to the smart home node.
H. Energy conception 7) Transaction Type: it explains what type of action it is.
blockchains are usually power-hungry, due to 8) Instruction: it is actual data against traction type.
mining and P2P communications 9) Instruction Id: it a unique identification of action to
perform (only in case of traction type “Action”).
I. Transaction latency
A genesis block/ genesis transaction is a unique
to process transaction blockchain requires a certain transaction which cannot has any transaction type and
amount of time transaction message against any device or node
Diagram
B. Node
Node a single processing unit connected to a peer to
peer network. Given the system has two types of nodes
commander and solver. Commander is a small node act as a
remote Control of smart home. It makes a transaction of
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