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Internet of Things and Blockchain
5.1 Internet of Things (IoT)
IoT is the network of physical objects containing embedded sensors, software, and communication capabilities to connect and exchange data with other devices and systems over the internet.
IoT Architecture:
- Perception layer: Physical sensors and actuators (temperature sensors, accelerometers, cameras)
- Network layer: Communication technology (Wi-Fi, Bluetooth, Zigbee, 4G/5G, LoRaWAN)
- Processing layer: Edge computing or cloud processing
- Application layer: User interfaces and dashboards
IoT Applications:
| Domain | Application | Example |
|---|---|---|
| Smart Home | Automated lighting, security, climate | Amazon Alexa, Google Nest, Philips Hue |
| Healthcare | Remote patient monitoring, smart pills | Wearable ECG monitors, glucose sensors |
| Agriculture | Smart irrigation, soil monitoring | Groundwater level sensors, drone-based crop health |
| Industry (IIoT) | Predictive maintenance, supply chain | Siemens Smart Factory, GE Predix |
| Smart City | Traffic management, waste management, energy grid | Singapore's Smart Nation, Pune smart grid |
| Wearables | Fitness, health tracking | Apple Watch, Fitbit, Samsung Galaxy Watch |
| Transport | Connected vehicles, fleet management | Tesla OTA updates, Ola/Uber GPS tracking |
Challenges:
- Security vulnerabilities: Billions of poorly secured devices → entry points for hackers (Mirai botnet 2016 — 600,000 IoT devices used for DDoS attack, crashing major websites)
- Standardisation: Fragmented protocols; no single universal IoT standard
- Privacy: Constant data collection from home and personal devices
- Energy: Low-power requirements for devices in remote locations
5.2 Blockchain Technology
Blockchain = Distributed Ledger Technology (DLT)
How blockchain works:
- A transaction is initiated (e.g., A sends 1 Bitcoin to B)
- Transaction broadcast to a peer-to-peer network of computers (nodes)
- Network validates transaction using consensus mechanism (Proof of Work, Proof of Stake, etc.)
- Validated transaction combined with others → new block
- Block added to the chain — cryptographically linked to the previous block (contains its hash)
- Transaction is complete and immutable — altering any block invalidates all subsequent blocks
Key concepts:
- Hash: A fixed-length cryptographic fingerprint of data; changing even one character changes the hash completely — provides tamper evidence
- Smart contracts: Self-executing code on blockchain that automatically enforces terms when conditions are met (Ethereum specialises in this)
- Consensus mechanisms: Proof of Work (PoW — Bitcoin; energy-intensive mining); Proof of Stake (PoS — Ethereum post-2022; validators stake coins, energy-efficient)
- Public vs. Private blockchain: Public (anyone can participate — Bitcoin, Ethereum); Private/Permissioned (controlled access — Hyperledger Fabric for enterprise use)
Applications beyond cryptocurrency:
| Application | How Blockchain Helps |
|---|---|
| Land records | Rajasthan, Andhra Pradesh piloting blockchain land registries to prevent tampering |
| Supply chain | Track food provenance — IBM Food Trust + Walmart track mangoes from farm to store in 2.2 seconds vs. 7 days |
| Healthcare | Secure sharing of patient records across hospitals |
| Voting | Tamper-proof e-voting (pilots in USA, Estonia) |
| Education | MIT's blockchain certificates; tamper-proof degrees |
| Central banking | CBDC (Central Bank Digital Currencies) using private blockchain |
