When Distributed Ledger Technology meets Internet of Things -- Benefits and Challenges

Abstract

There is a growing interest from both the academia and industry to employ distributed ledger technology in the Internet-of-Things domain for addressing security-related and performance challenges. Distributed ledger technology enables non-trusted entities to communicate and reach consensus in a fully distributed manner through a cryptographically secure and immutable ledger. However, significant challenges arise mainly related to transaction processing speed and user privacy. This work explores the interplay between Internet-of-Things and distributed ledger technology, analysing the fundamental characteristics of this technology and discussing the related benefits and challenges.