Blockchain-Based IoT Application Using Smart Contracts: Case Study of M2M Autonomous Trading

Abstract

Blockchain technology can be used to track billions of interconnected devices, enabling secure data exchange and data processing. The decentralized and autonomous ability of the blockchain makes it an ideal solution for Internet of Things(IoT) applications. In this paper, we explore a basic IoT-Blockchain fusion model with four layers which contains different types of IoT devices. Distributed file system is considered in the model to store huge amount of IoT data. Then, a case study for blockchain-based IoT application, a Machine-to-Machine(M2M) autonomous trading system, is proposed on the Ethereum blockchain. We build smart contracts for device registration, data storage, service provision and fair payment, and the proof-of-concept is implemented using two Raspberry Pis to interact with smart contracts. The proposed system verifies that blockchain could improve IoT applications in transparency, traceability and security.