Blockchains and Smart Contracts for the Internet of Things
TL;DR: The conclusion is that the blockchain-IoT combination is powerful and can cause significant transformations across several industries, paving the way for new business models and novel, distributed applications.
Abstract: Motivated by the recent explosion of interest around blockchains, we examine whether they make a good fit for the Internet of Things (IoT) sector. Blockchains allow us to have a distributed peer-to-peer network where non-trusting members can interact with each other without a trusted intermediary, in a verifiable manner. We review how this mechanism works and also look into smart contracts—scripts that reside on the blockchain that allow for the automation of multi-step processes. We then move into the IoT domain, and describe how a blockchain-IoT combination: 1) facilitates the sharing of services and resources leading to the creation of a marketplace of services between devices and 2) allows us to automate in a cryptographically verifiable manner several existing, time-consuming workflows. We also point out certain issues that should be considered before the deployment of a blockchain network in an IoT setting: from transactional privacy to the expected value of the digitized assets traded on the network. Wherever applicable, we identify solutions and workarounds. Our conclusion is that the blockchain-IoT combination is powerful and can cause significant transformations across several industries, paving the way for new business models and novel, distributed applications.
Citations
More filters
TL;DR: A general presentation of blockchain that goes beyond its usage in Bitcoin and surveying a selection of the vast literature that emerged in the last few years is given, drawing the key requirements and their evolution when passing from permissionless to permissioned blockchains.
Abstract: Blockchain is a technology making the shared registry concept from distributed systems a reality for a number of application domains, from the cryptocurrency one to potentially any industrial system requiring decentralized, robust, trusted, and automated decision making in a multi-stakeholder situation. Nevertheless, the actual advantages in using blockchain instead of any other traditional solution (such as centralized databases) are not completely understood to date, or at least there is a strong need for a vademecum guiding designers toward the right decision about when to adopt blockchain or not, which kind of blockchain better meets use-case requirements, and how to use it. In this paper, we aim at providing the community with such a vademecum, while giving a general presentation of blockchain that goes beyond its usage in Bitcoin and surveying a selection of the vast literature that emerged in the last few years. We draw the key requirements and their evolution when passing from permissionless to permissioned blockchains, presenting the differences between proposed and experimented consensus mechanisms, and describing existing blockchain platforms.
288 citations
Cites background from "Blockchains and Smart Contracts for..."
...fore application-dependent rules that can vary from system to system [236]....
[...]
TL;DR: A reference architecture of the blockchain-based logistics monitoring system (BLMS) was programmed and tested based on Ethereum and demonstrates how blockchain can be implemented in the operations and supply chain context by using software components.
288 citations
TL;DR: The concept of Proof of Energy is proposed as a novel consensus protocol for P2P energy exchanges managed by DLT and an application of the proposed infrastructure considering a Virtual Power Plant aggregator and residential prosumers endowed with a new transactive controller to manage the electrical storage system is discussed.
Abstract: The unpredictability and intermittency introduced by Renewable Energy Sources (RESs) in power systems may lead to unforeseen peaks of energy production, which might differ from energy demand. To manage these mismatches, a proper communication between prosumers (i.e., users with RESs that can either inject or absorb energy) and active users (i.e., users that agree to have their loads changed according to the system needs) is required. To achieve this goal, the centralized approach used in traditional power systems is no longer possible because both prosumers and active users would like to take part in energy transactions, and a decentralized approach based on transactive energy systems (TESs) and Peer-to-Peer (P2P) energy transactions should be adopted. In this context, the Distributed Ledger Technology (DLT), based on the blockchain concept arises as the most promising solution to enable smart contracts between prosumers and active users, which are safely guarded in blocks with cryptographic hashes. The aim of this paper is to provide a review about the deployment of decentralized TESs and to propose and discuss a transactive management infrastructure. In this context, the concept of Proof of Energy is proposed as a novel consensus protocol for P2P energy exchanges managed by DLT. An application of the proposed infrastructure considering a Virtual Power Plant (VPP) aggregator and residential prosumers endowed with a new transactive controller to manage the electrical storage system is discussed.
285 citations
Cites background from "Blockchains and Smart Contracts for..."
...sands of smart contracts [55] in near-real time and with no obstacle due to data center design and maintenance....
[...]
TL;DR: This paper proposes a novel hybrid network architecture for the smart city by leveraging the strength of emerging Software Defined Networking and blockchain technologies and proposes a Proof-of-Work scheme in the model to ensure security and privacy.
281 citations
TL;DR: The development of blockchain systems are traced to reveal the importance of decentralized applications (dApps), the future value of blockchain and the direction of blockchain development to fulfill the desirable characteristics of dApps.
Abstract: Blockchain technology has attracted tremendous attention in both academia and capital market. However, overwhelming speculations on thousands of available cryptocurrencies and numerous initial coin offering scams have also brought notorious debates on this emerging technology. This paper traces the development of blockchain systems to reveal the importance of decentralized applications (dApps) and the future value of blockchain. We survey the state-of-the-art dApps and discuss the direction of blockchain development to fulfill the desirable characteristics of dApps. The readers will gain an overview of dApp research and get familiar with recent developments in the blockchain.
279 citations
Cites background from "Blockchains and Smart Contracts for..."
...According to a previous study [22], blockchain offers good potential for IoT solutions, because IoT applications are by definition distributed....
[...]
References
More filters
TL;DR: The Albanian Generals Problem as mentioned in this paper is a generalization of Dijkstra's dining philosophers problem, where two generals have to come to a common agreement on whether to attack or retreat, but can communicate only by sending messengers who might never arrive.
Abstract: I have long felt that, because it was posed as a cute problem about philosophers seated around a table, Dijkstra’s dining philosopher’s problem received much more attention than it deserves. (For example, it has probably received more attention in the theory community than the readers/writers problem, which illustrates the same principles and has much more practical importance.) I believed that the problem introduced in [41] was very important and deserved the attention of computer scientists. The popularity of the dining philosophers problem taught me that the best way to attract attention to a problem is to present it in terms of a story. There is a problem in distributed computing that is sometimes called the Chinese Generals Problem, in which two generals have to come to a common agreement on whether to attack or retreat, but can communicate only by sending messengers who might never arrive. I stole the idea of the generals and posed the problem in terms of a group of generals, some of whom may be traitors, who have to reach a common decision. I wanted to assign the generals a nationality that would not offend any readers. At the time, Albania was a completely closed society, and I felt it unlikely that there would be any Albanians around to object, so the original title of this paper was The Albanian Generals Problem. Jack Goldberg was smart enough to realize that there were Albanians in the world outside Albania, and Albania might not always be a black hole, so he suggested that I find another name. The obviously more appropriate Byzantine generals then occurred to me. The main reason for writing this paper was to assign the new name to the problem. But a new paper needed new results as well. I came up with a simpler way to describe the general 3n+1-processor algorithm. (Shostak’s 4-processor algorithm was subtle but easy to understand; Pease’s generalization was a remarkable tour de force.) We also added a generalization to networks that were not completely connected. (I don’t remember whose work that was.) I also added some discussion of practical implementation details.
5,208 citations
TL;DR: In this article, a group of generals of the Byzantine army camped with their troops around an enemy city are shown to agree upon a common battle plan using only oral messages, if and only if more than two-thirds of the generals are loyal; so a single traitor can confound two loyal generals.
Abstract: Reliable computer systems must handle malfunctioning components that give conflicting information to different parts of the system. This situation can be expressed abstractly in terms of a group of generals of the Byzantine army camped with their troops around an enemy city. Communicating only by messenger, the generals must agree upon a common battle plan. However, one or more of them may be traitors who will try to confuse the others. The problem is to find an algorithm to ensure that the loyal generals will reach agreement. It is shown that, using only oral messages, this problem is solvable if and only if more than two-thirds of the generals are loyal; so a single traitor can confound two loyal generals. With unforgeable written messages, the problem is solvable for any number of generals and possible traitors. Applications of the solutions to reliable computer systems are then discussed.
4,901 citations
[...]
TL;DR: It is shown that, without a logically centralized authority, Sybil attacks are always possible except under extreme and unrealistic assumptions of resource parity and coordination among entities.
Abstract: Large-scale peer-to-peer systems face security threats from faulty or hostile remote computing elements. To resist these threats, many such systems employ redundancy. However, if a single faulty entity can present multiple identities, it can control a substantial fraction of the system, thereby undermining this redundancy. One approach to preventing these "Sybil attacks" is to have a trusted agency certify identities. This paper shows that, without a logically centralized authority, Sybil attacks are always possible except under extreme and unrealistic assumptions of resource parity and coordination among entities.
4,816 citations
"Blockchains and Smart Contracts for..." refers background in this paper
...Because of the Sybil attack [15], consensus in public networks is costly...
[...]
...anyone can join though, this would be catastrophic because of the Sybil attack [15]: a single entity could join with multiple identities, get multiple votes, and thus influence the network to favor this entity’s interests....
[...]
22 Feb 1999
TL;DR: A new replication algorithm that is able to tolerate Byzantine faults that works in asynchronous environments like the Internet and incorporates several important optimizations that improve the response time of previous algorithms by more than an order of magnitude.
Abstract: This paper describes a new replication algorithm that is able to tolerate Byzantine faults. We believe that Byzantinefault-tolerant algorithms will be increasingly important in the future because malicious attacks and software errors are increasingly common and can cause faulty nodes to exhibit arbitrary behavior. Whereas previous algorithms assumed a synchronous system or were too slow to be used in practice, the algorithm described in this paper is practical: it works in asynchronous environments like the Internet and incorporates several important optimizations that improve the response time of previous algorithms by more than an order of magnitude. We implemented a Byzantine-fault-tolerant NFS service using our algorithm and measured its performance. The results show that our service is only 3% slower than a standard unreplicated NFS.
3,562 citations
"Blockchains and Smart Contracts for..." refers background or methods in this paper
...5If more than 3f + 1 nodes are used, then the quorum thresholds listed in [26] may lead to forks....
[...]
...Tendermint vs PBFT—Tendermint....
[...]
...Sieve [38], a mechanism used in the HyperLedger Fabric project, augments the PBFT algorithm [26] by adding speculative execution and verification phases, inspired by the execute-verify architecture presented in [39]....
[...]
...Tendermint [32] provides BFT tolerance and is similar to the PBFT algorithm; however it provides a tighter guarantee with regards to the results returned to the client when more than one third of the nodes are faulty, and allows for a dynamically changing set of set of validators, and leaders that can be rotated in a round-robin manner, among other optimizations [33]....
[...]
...PBFT works on the assumption that less than one third of the nodes are faulty (f ), which is why say that it requires at least5 3f + 1 nodes....
[...]
Proceedings Article•
19 Jun 2014TL;DR: Raft is a consensus algorithm for managing a replicated log that separates the key elements of consensus, such as leader election, log replication, and safety, and it enforces a stronger degree of coherency to reduce the number of states that must be considered.
Abstract: Raft is a consensus algorithm for managing a replicated log. It produces a result equivalent to (multi-)Paxos, and it is as efficient as Paxos, but its structure is different from Paxos; this makes Raft more understandable than Paxos and also provides a better foundation for building practical systems. In order to enhance understandability, Raft separates the key elements of consensus, such as leader election, log replication, and safety, and it enforces a stronger degree of coherency to reduce the number of states that must be considered. Results from a user study demonstrate that Raft is easier for students to learn than Paxos. Raft also includes a new mechanism for changing the cluster membership, which uses overlapping majorities to guarantee safety.
1,811 citations
"Blockchains and Smart Contracts for..." refers methods in this paper
...popular Raft algorithm [30], is used as a consensus mechanism in Juno [31]....
[...]