Why Blockchain Needs IOT

3 min readFeb 3, 2021


Essential to Arckadl’s Blockchain Session Controller™ is another equally hyped technology, the Internet of Things (IoT) and, more specifically, Software-Defined IoT. Interestingly enough, the concept of IoT needing blockchain is not new and has since been a discussion topic for several years now. The combination of these technologies is believed to produce a virtually limitless variety of possibilities.

Consider the potential limitations of IoT that blockchain addresses and a real-life application of what can be accomplished with both technologies working together.

Blockchain provides security that IoT lacks

With so many IoT devices connected through the cloud, more data is being collected than ever before. Unfortunately, many have recognized the central IoT model as lacking the necessary security with so much data available. This is where the blockchain comes into play.

Blockchain works as a fully transparent, distributed ledger to provide exchange items of value without an intermediary. Setting the standard for security, trust protocols ensure that records on the blockchain are not altered. This principle can be carried forward to allow secure messages between all IoT devices without a central authority (as is true in the server/client model). Encryption or a private sidechain may be used in the case of confidential data to ensure the network is restricted to company members only, and permission may be needed to read, audit or transact on the blockchain.

Decentralization means no single point of failure

As a centralized system, IoT has a central failure point and may at times experience bottlenecks. In a decentralized system, if a single node on the blockchain is attacked, the rest of the network would be virtually unaffected since the data still exists on all other devices. Therefore, if an attack were attempted, several devices would need to be hacked simultaneously, and even if they were, these devices might not have the secure data that is being sought out. In contrast, the data extraction process from IoT devices may become corrupted or overwhelmed with an influx of data during the entire data aggregation process.

Concerns also exist around one central authority storing mass amounts of data and the regulations around protecting consumer information. After all, as is the case in many organizations, the fine for releasing personal data might be less than the amount earned from selling it. Blockchain provides an additional benefit as a decentralized solution in that no single organization owns the data stored on the ledger.

Remove IoT siloes for increased scalability

Current IoT solutions operate in silos. Siloes exist since IoT devices can’t always be integrated into a company’s current back end systems and existing business applications. Blockchain technology is believed to promote the concept of an ecosystem or data marketplace where transactions can be made across any peers. Data can be shared across the environment, improving IoT interconnection and access to data from its devices.

Blockchain reduces overhead costs

Furthermore, IoT transactions tend to be costly since a third-party is needed as a middleman to oversee transactions. Since blockchain cuts out any intermediaries, costs associated with these interactions are believed to be reduced.

Provides a foundation for enterprise blockchain solutions

Combining blockchain technology and IoT presents many promising opportunities for enterprises seeking business transformation. To help envision these use cases, consider how the Arckadl team leverages Software-Defined IoT to allow data to be collected from any IoT device used by enterprises. The combination of IoT and blockchain allows data to be shared in real-time. This builds off the marketplace concept discussed earlier in the article, proving the ease with which data from health vitals, supply chain or any other device can be transferred between parties in either a public or private setting without fear of being tampered with.

The combination of IoT and blockchain is just one of the technology combinations that the Blockchain Session Controller™ is based on. To learn more about how the Arckadl blockchain solution works or the future iterations, we encourage you to follow our journey on Twitter.

Believe blockchain and IoT go hand-in-hand, leave us a clap and let us know why you agree in the comments.




Arckadl is a global company with an enduring commitment to the foundation of all trusted ecosystems using blockchain technology.