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The Blockchain in IoT

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Abstract

—the . This chapter discusses blockchain in IoT. It briefly introduces the birth of blockchain technology and its use in Bitcoin. In addition, it describes Bitcoin as an application of blockchain, and distinguishes blockchain as a key technology, one that has various use cases outside of Bitcoin. Next it dives into how blockchains work, and outlines the features of the technology; these features include consensus algorithms, cryptography, decentralization, transparency, trust and smart contracts. The chapter then introduces how blockchain may impact notable use cases in IoT including healthcare, energy management and supply chain management. It reviews the advantages and disadvantages of blockchain technology and highlights security considerations within blockchain and IoT.

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Author information

Authors and Affiliations

  1. San Jose, CA, USA

    Carlos Davila & Jacob Tarnow

Authors
  1. Carlos Davila
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  2. Jacob Tarnow
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Problems and Exercises

Problems and Exercises

  1. 1.

    What is the double-spending problem in digital currencies?

  2. 2.

    Describe what a “Merkle tree” is? How is it used in Bitcoin?

  3. 3.

    In Sect. 10.3.2, we mention hash pointers and how they are key to immutability of the blockchain. Keeping that in mind, what are other features of blockchains that work with hash pointers to maintain immutability?

  4. 4.

    What are they key characteristics provided by the blockchain? Explain what they are and why they are important for adoption in IoT solutions.

  5. 5.

    What is a hash function and how does it work? What is the difference between a hash and a cryptographic hash function? Provide an example of how cryptographic hashes are used in a blockchain (any blockchain will suffice as an example).

  6. 6.

    What is a hash collision? Does Bitcoin suffer from the probability of hash collisions?

  7. 7.

    Consider a scenario where there a potential double-spend attempt by a malicious actor in Bitcoin. Explain how the blockchain works to reject such attempt and what the malicious actor would have to do in order to fool all other honest nodes.

  8. 8.

    In table format, describe centralized, decentralized, and distributed network architectures.

  9. 9.

    Perform a search and mention five companies that are currently working on blockchain + IoT solutions. Describe their solutions and how IoT and blockchain is being combined. Make sure to include at least one start-up and at least one established company.

  10. 10.

    What type of records can be kept in a blockchain?

  11. 11.

    In Sect. 10.4, we describe some consensus algorithms. Research consensus algorithms for blockchain and name an algorithm that we did not mention in this section. Is it good for IoT? Explain why or why not.

  12. 12.

    What is elliptic curve cryptography and how does it benefit the use of keys within blockchain technology?

  13. 13.

    Describe a Sybil attack and other types of attack vectors that could take place on a blockchain.

  14. 14.

    Blockchains all start from a genesis block and then maintain a block height as the chain grows. Describe the importance of block heights as timestamps and lookups within Merkle trees.

  15. 15.

    Describe the difference between permissioned, permissionless, and consortium blockchains. What type do you think best fits a blockchain involving IoT devices.

  16. 16.

    What is the difference between a smart contract and multi-sig address?

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Davila, C., Tarnow, J. (2019). The Blockchain in IoT. In: Internet of Things From Hype to Reality. Springer, Cham. https://doi.org/10.1007/978-3-319-99516-8_10

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  • DOI: https://doi.org/10.1007/978-3-319-99516-8_10

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-99515-1

  • Online ISBN: 978-3-319-99516-8

  • eBook Packages: EngineeringEngineering (R0)

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