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Blockchain Technology

Network and Transmission Layer: This is generally referred to as the commu­

nication tier, which securely moves information from the physical equipment of the

perception layer to the topmost tiers. Numerous heterogeneous network architectures

that can be divided into local area networks (LAN), central networks or networks of

access are enabled by this tier. Authentication and confidentiality of network data are

the foremost security issues within this framework. This tier is extremely susceptible

to attacks that can create network interference and have pervasive access to informa­

tion on the perception layer; meanwhile, it holds a huge volume of data (Zhang &

Wang, 2006) (Figure 3.2).

Perception Layer: This layer is the primary IoT design layer, which involves

equipment such as global positioning systems, cellular sensor networks, radio fre­

quency recognition, micro-electromechanical systems, sensors and/or nano-electro-

mechanical systems. This involves object detection and tracking and the collection

and acknowledgement of data from the physical devices or from the outside envi­

ronment, which is thereafter translated and digitalized for data transmission to

the communication layers for secure handling. The risks to safety on this layer are

mostly from outside and physically affect or bypass the system program, such that

nodes operate according to their desires and network knowledge is obtained; for the

entity nodes involved, this layer offers unique protection services (Suo et al., 2012;

Xiaohui, 2013). This has four main purposes: Authentication, security, sensitive data

protection and risk analysis.

3.1.3  Blockchain-empowered IoT

In information technology, innovative technologies emerge frequently; very often,

these technologies comprise the integration and amalgamation of different existing

technologies to create a new technology. Blockchained IoT / Blockchain-enabled

Internet of Things / Blockchain-based Internet of Things tries to maximize the effec­

tiveness and efficiency of IoTs by implementing Blockchain algorithms at various

FIGURE 3.2  Architecture of IoT with respect to three layers.