Blockchain Technologies

IT5044
 Name of the Course: Blockchain Technologies

• Course Code: IT5044 Teaching Scheme

• Semester: VI Theory:3 hrs./week
• Duration: 4 months
• Maximum Marks: 100
Objective of the Course
• To understand the basic concepts of Blockchain fundamentals.
• To understand the concept of Smart Contracts in Blockchain technologies.
• To explore Legal and Governance Use Cases in Blockchain technologies.
Blockchain technologies
IT5044
 Syllabus
• Unit-1: Introduction to Blockchain
• Unit-2: Business Use Cases
• Unit-3: Technology Use Cases
• Unit-4: Legal and Governance Use Cases
• Unit-5: Blockchain Challenges
• Unit-6: Recent Trends in the field of Blockchain

Textbook: Joseph J. Bambara and Paul R. Allen, “Blockchain: A Practical Guide to

Developing Business, Law, and Technology Solutions”, McGraw-Hill Education.
 How Does IoT Work With Blockchain?
IoT with Blockchain is transforming business operations, improving security and
transparency, and increasing efficiency.
• Transforming Business Processes
• Securing IoT Data with Blockchain
• Compatibility Challenges
• Increase in Efficiency
• Smart Contracts: Automating Secure IoT Transactions
 Transforming Business Processes
• The Internet of Things (IoT) is transforming the business work process, which runs
through sensors, the latest devices and infrastructure.
• Enterprises are facing a notable challenge to safeguarding the data all over the IoT
platform.
• Here Blockchain helps secure data breaches in an IoT system.

• It is a circulated ledger technology that combines IoT and enables server-to-server

dealing.
 Securing IoT Data with Blockchain
• A collection of activities or events is recorded in a database and verified by the
various sources, then entered into a shared ledger and circulated among all the
servers.
• IoT and blockchain work together to give several advantages, including the ability
for smart devices to work freely without any centralized authority.

• Also, it can save the tracks of how devices connect to each other.
 Compatibility Challenges
• In spite of being an architectural asset, the distributed nature of the blockchain is a
big challenge for the Internet of Things platforms.
• IoT depends on the centralized client-server architecture and creates an
independent IoT platform to ensure compatibility with the blockchain network.
• Yet, it can be difficult to configure IoT sensors to manage the processing and
storage of the data.
 Increase in Efficiency
• Although IoT has numerous practical uses, the banking sector, financial services,
the automotive industry, and agriculture have integrated blockchain technology
with the Internet of Things (IoT).
• It is also applied to supply chain management, logistics, smart devices, and a
moderately new application called a smart contract.Smart contracts are
speculative, and technology rules and policies are coded in the blockchain
framework to govern transactional agreements hosted on a blockchain network.
 Smart Contracts: Automating Secure IoT
Transactions
• Smart contracts employ blockchains to manage contracts when the specific
requirements are fulfilled.
• Blockchain technology permits businesses to regulate the data on smart objects in
IoT systems.
• Also, it reduces the data transmission and device management costs, and
minimizes the risks of data management from the cyberattacks.
– IoT and blockchain can be integrated into the supply chain to improve quality control.

– Blockchain holds high security by using independent, distributed ledgers to prove and
authorize protected device-generated data.
Use Case of IoT-Enabled Blockchain Technology
IoT enhances the security and transparency of the whole IoT ecosystem. Here
are some popular IoT blockchain use cases that have a significant impact
across multiple industries:
• Operational Maintenance
• Freight Transportation
• Healthcare
• Smart Homes
• Automotive
Use Case of IoT-Enabled Blockchain Technology
Operational Maintenance: IoT devices monitor the conditions of various
machines, such as elevators and engines, to ensure safety and proper
maintenance. Also, they provide secure and unchangeable records of
operational data.

Freight Transportation: Freight transportation is a complex process that

involves the support of different departments, and transportation businesses.
With the assistance of IoT-enabled blockchain technology, it is possible to track
arrival times and the live status of shipping containers in the transits.
Use Case of IoT-Enabled Blockchain Technology
Healthcare: The combination of blockchain and IoT is transforming the
healthcare sector. Wearable devices and sensors can collect patient data and
store it securely on a blockchain. Also, the use of smart contracts streamlines
insurance claims and automates billing, reducing organization expenses.

Smart Homes: Blockchain brings the concept of a smart home to another level
by fixing the major security challenges and eliminating centralized
infrastructure. For example, you can deploy security procedures such as
biometric authentication and facial/voice recognition to prevent the data
captured from smart devices getting into the wrong or irrelevant hands.
Use Case of IoT-Enabled Blockchain Technology
Automotive: Automation in the automobile industry is a key application of
blockchain and IoT. The automotive industry depends on these two disruption
technologies to access various benefits, such as finding a vacant parking space
and making payments with crypto wallets.
Another notable application of blockchain and IoT is the use of RFID tags. Car
manufacturers can easily identify spare auto parts and track the exact location
of any vehicle in IoT-connected devices using RFID tags.
 Benefits of Using Blockchain Technology in IoT
Every transaction is recorded in a digital ledger- organized into data blocks,
linked in a secure, unchangeable chain. This blockchain technology is a great
choice for propping IoT security.
Here are some of the benefits of blockchain in IoT.
• Lower Cost
• Improved Security
• Quick Data Change
• Streamline Finances
• Efficient Supply Chain
 Benefits of Using Blockchain Technology in IoT
• Lower Cost: Blockchain enables data to be shared on a peer-to-peer
basis without the need for centralized control. This decentralized structure
reduces business costs, as scaling a highly scalable centralized
infrastructure becomes expensive over time.

• Improved Security: Blockchain verifies data and ensures it comes from a

reliable source, which improves secure transmission and improves privacy
agreements. A trusted digital ledger exhibits who can access IoT data and
who has permission to handle transactions.
 Benefits of Using Blockchain Technology in IoT
• Quick Data Change: Blockchain minimizes the time taken to verify the
transactions by utilizing its trusted nodes and handling the performance
requirements of IoT (Internet of Things). It also fastens the speed of
exchanging data of IoT. This simplifies the process and builds new
business value across the whole system by banking on the data conveyed
by the IoT-connected smart devices and sensors.

• Streamline Finances: The finance department is the utmost important

section for any business house, it deals with important and sensitive data
that needs more transparency backed by IoT and blockchain.Blockchain
secures the information added to the ledger but also it makes sure that no
unauthorized personnel can access or change it without permission.
 Benefits of Using Blockchain Technology in IoT
• Efficient Supply Chain: Every single business aims for an efficient and
effective supply chain, but economic and global challenges make this
process difficult. By removing negotiators, blockchain and IoT can greatly
enhance the supply chain and its efficiency, speed up transactions, and
also reduce the cost of the supply chain.
 Challenges of IoT with Blockchain
Where the potential of integrating blockchain with the Internet of Things is
enormous, several challenges must be mentioned. Scalability, energy
consumption, conformity, and cost are among the key challenges for
implementing the technology.
• Scalability: IoT and blockchain generate a huge amount of data, and
ensuring that the blockchain can handle the scalability requirements of IoT
devices is a challenging task.
• Security Risk: To extend the capabilities of an IoT-powered blockchain
system, you need smart arrangements that offer efficiency by automating
contract administration. Yet, this results in security risks, which can hinder
blockchain adoption in IoT.
 Challenges of IoT with Blockchain
• Sensor Reliability: The question arises that how reliable are the sensors
which are in use? They could interfere with correctly calculating the
standards required to execute a transaction. It is important to take
measures to ensure external interference does not change sensors and
you can create a safe and secure environment for the data recording and
transactions.
• Network Privacy: The transaction history in the shared digital ledger for a
network of IoT-connected devices cannot be presented on the public
blockchain. This happens because the transaction patterns analysis is
applied to make inferences about the user or device essence behind public
keys.
 Challenges of IoT with Blockchain
• Complex IoT and Blockchain Projects: Since Blockchain is a relatively
new technology, its integration with IoT Solutions may not be as suitable as
we expect. This is because both the latest technologies need experts with
sufficient experience and knowledge to handle any related issue that might
arise.
 Introduction to NFTs
• A Non-Fungible Tokens (NFT) is essentially a digital token that represents
ownership of a digital asset.
• The token is stored on the blockchain, usually the Ethereum blockchain,
and is not fungible like other cryptocurrencies like Bitcoin or Ethereum.
• This means that each NFT is unique and can’t be duplicated or exchanged
in the same way.
• NFTs represent ownership of a variety of digital assets, including artwork,
music, virtual real estate, collectible items, and more.
 Reason behind NFTs’ Popularity
• A Non-Fungible Tokens (NFT) is essentially a digital token that represents
ownership of a digital asset.
• The token is stored on the blockchain, usually the Ethereum blockchain,
and is not fungible like other cryptocurrencies like Bitcoin or Ethereum.
• This means that each NFT is unique and can’t be duplicated or exchanged
in the same way.
• NFTs represent ownership of a variety of digital assets, including artwork,
music, virtual real estate, collectible items, and more.
 Summary
• IoT refers to the interconnection of computing devices embedded in everyday
objects via the Internet, enabling them to send and receive data.
• IoT is not owned by any one engineering branch. It is a reality when multiple
domains join forces and combine efforts.
• IoT is all about providing service to any device, anywhere, anybody, and any
network.
• IoT has certain characteristics which are important: a. Connectivity. b. Intelligence
and identity. c. Scalability. d. Dynamic and self-adapting (complexity). e.
Architecture. f. Safety.
• “Things” refer to variety of devices. At times, even humans in the loop becomes a
thing. For anything to qualify as a “thing”, it requires identity. The “thing” can
monitor, measure, etc.; for example, a temperature sensor could be a “thing”.
References