Decentralization and Security Challenges in Blockchain-Enabled IoT
Govinda Rajulu. G, L. Sharmila, D. Venkatesan, Peer Mohamed Appa M.A.Y, Jayapraksah Chinnadurai, S. Kalvikkarasi · 2025
The blockchain on which the Bitcoin is based upon is very attractive because it has the potential to enhance safety and confidentiality within the IoT network. In this particular topic, there is similarly extensive amount of research has carried out in the academic as well as the various corporate research fields. Proof of Work (POW) is one of the fundamental types of cryptographic puzzles that implements a pivotal function in ensuring the integrity of the blockchain To do this, it maintains and records transactions history that cannot be tampered with. Further, in BC, the variable Public Key (PK) is used in the storage of user identities thus making the system more secure. Blockchain has been successfully incorporated into various other non-rewarding applications and use cases including distributed storage systems, proof of location, healthcare, etc. To ensure the identification of the utilization of the blockchain technology for enhancement of security in IoT, the study considered publications of current research articles and activities. It was to discover the challenges that relate to using blockchain in securing IoT and proposed ways of dealing with them. The interactions and possible solutions related to decentralization and security issues of blockchain-based Internet Of Things (IoT) systems With the rise of IoT systems, it is apparent that blockchain-based systems for the handling of large volumes of IoTs data are required for improved decentralization and security. Blockchain has appeared as a possible solution to those problems since it offers the transparent and distributed architecture for data and transactions storage. However, there are other factors that should be consider in such a way to integrate blockchain in IoT system in a proper way. . As a result, these abstract aims to define the major challenges related to decentralization and security in systems based on ‘blockchain’ with reference to IoT, including factors of scalability, privacy, consensus, and trust. It also looks at potential solutions such as sharding, privacy-preserving measures, improvement of consensus algorithms, and approaches to identity management. Addressing these challenges, the IoT systems with the help of blockchain technology can gain higher decentralization and security levels to enable the safe and efficient IoT devices operation in various spheres including smart home, health-care systems, automotive industry, and logistic systems.