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Blockchain has penetrated various sectors and its integration with IoT (Internet of Things) devices looks like one of the most promising combinations for the future of technology. This synergy is based on the complementary strengths of both technologies: IoT facilitates the connection and interaction of physical objects over the network and blockchain brings security, transparency and decentralisation to these interactions.

IoT has grown exponentially, driving ubiquitous connectivity ranging from household appliances to complex industrial systems. However, with this growth come concerns about security, privacy, and the management of data generated by billions of connected devices. This is where blockchain, with its structure of distributed, immutable records, plays a crucial role.

1. Security: IoT devices are vulnerable to cyber attacks due to their heterogeneity and lack of uniform security standards. Blockchain provides a solution by eliminating single points of failure. Its decentralised nature means there is no single point that an attacker can compromise to disrupt the overall system.
2. Transparency and Traceability: In sectors such as supply chain, where IoT is already widely adopted, blockchain enables the creation of immutable records of every transaction or change in the state of a product. This not only improves transparency, but also facilitates product traceability, ensuring that recorded information cannot be retroactively altered.
3. Decentralised management: Traditional IoT systems often rely on a centralised model for device management and control. This creates bottlenecks and increases the risk of single points of failure. With blockchain, it is possible to manage devices in a decentralised manner, enabling the creation of networks of devices that can be managed autonomously and securely, without the need for intermediaries.

Uses and Applications

The integration of blockchain and IoT is being explored in multiple sectors:

1. Smart Supply Chains: Companies such as IBM and Maersk are already using blockchain and IoT to create more transparent and efficient supply chains. IoT sensors can record the status of products during transport, while blockchain ensures that these records are immutable and accessible to all stakeholders.
2. Smart Cities: In the context of smart cities, IoT enables efficient management of urban resources such as water, energy and traffic. Blockchain adds a layer of security and transparency, ensuring that the collected data and the decision-making are reliable and auditable.
3. Automation and Smart Contracts: With the use of smart contracts in blockchain, it is possible to automate transactions between IoT devices without the need for intermediaries. For example, in a decentralised energy grid, devices can autonomously buy and sell energy based on supply and demand, with all transactions recorded on a blockchain.

Challenges and the future

Despite its many advantages, the integration of blockchain with IoT faces significant challenges. Scalability is one of the main issues, as current blockchains may not be able to handle the massive volume of transactions that a fully developed IoT ecosystem will generate. In addition, power and processing limitations in IoT devices may make it difficult to implement the advanced cryptography needed to participate in a blockchain efficiently.

However, research into technologies such as next-generation blockchains, such as proof-of-stake (PoS) blockchains or second-layer networks, could mitigate these challenges. In addition, the development of more robust and energy-efficient IoTs will also facilitate integration.

Master in Blockchain and Smart Contracts

The integration of blockchain with IoT has the potential to transform the way we interact with the physical world, improving the security, transparency and efficiency of transactions involving connected devices. As these technologies mature and overcome current challenges, we are likely to see widespread adoption across multiple sectors, from logistics to smart city management, redefining the future of digital connectivity.

For this reason, the University of Salamanca, through the BISITE Research Group, proposes the Master in Blockchain and Smart Contracts, through which it addresses this and other topics, such as the use of Blockhain in Ethereum and Hyperledger platforms. For more details about this degree and the enrolment process, visit the Master's website or contact us at formacionbisite@usal.es.