Future of the internet of things emerging with blockchain and smart contracts

Abstract

The Internet of Things (IoT) has the potential to change the way the world works from home automation to smart cities, from improved healthcare to an efficient management system in supply chains to industry 4.0 revolution. IoT is increasingly becoming an essential part of the homes and industrial automation; nevertheless, there are still many challenges that need to fix. IoT solutions are costly and complicated, while issues regarding security and privacy must be addressed with a sustainable plan. Support the growing number of connected devices; the IoT is in dire need of a reboot. Blockchain technology might be the answer. Starting as a decentralized financial solution in the form of Bitcoin, Blockchain technology has expanded to diverse areas and Information Technology applications. Blockchain technology and Smart Contracts can address the outstanding security and privacy issues that impede further development of the IoT. Blockchain is a decentralized system with no central governance, facilitates interactions, promotes new and improved transaction models, and allows autonomous coordination of the devices using enhanced encryption techniques. The primary reason for this paper is to showcase the challenges and problems we are facing with the current internet of things solutions and analyze how the use of Blockchain and Smart Contracts can help achieve a new, more robust internet of things system. Finally, we examine some of the many projects using the Internet of Things together with Blockchain and Smart Contracts, to create new solutions that are only possible by integrating these technologies.