The centralized security model common in the enterprise today will struggle to scale up to meet the demands of the internet of things or IoT. And, with so many devices designed to be tiny and unobtrusive, pulling them from circulation could be difficult if they are captured in a botnet or go rogue.

Blockchain and the combination of cryptographic processes behind it offers an intriguing alternative. Because blockchain is built for decentralized control, a security scheme based on it should be more scalable than a traditional one. And Blockchain’s strong protections against data tampering would help prevent a rogue device from disrupting a home, factory or transportation system by relaying misleading information.

The blockchain is promising for IoT security for the same reasons it works for cryptocurrency: It provides assurances that data is legitimate, and the process that introduces new data is well-defined.

The problem of IoT security needs solving because data flowing from sensors and embedded processors can change the way urban planners lay out hospitals and bus stops.

But blockchain isn’t a slam dunk. Bitcoin presents a simpler problem to solve than IoT security. With bitcoin, blockchain simply moves wallets of currency from one anonymous owner to another. Full-fledged device authentication, security, and control layers are more complex. ChainAnchor framework addressed device security with activation and security layers supported by device makers, data providers, and independent third parties. Ethereum is another choice to develop this kind of systems for IoT.  Our solution is to use a Private Ethereum to solve this problem.