Cryptocurrency based Payment channel for Edge/ IoT devices

Abstract

Abstract: Due to the potential applications in a range of industries, blockchain-based cryptocurrencies have recently gained a lot of attention worldwide. One of these applications is in the domain of the Internet of Things. With B-IoT i.e. merging Blockchain with IoT, we aim to utilize the power of cryptocurrencies without jeopardising payment security, privacy, or long transaction period. On the other hand, traditional payment modes and methods are hampered by relatively lengthy complex process fees making them vulnerable to physical cash exchange thefts. This makes the process of transferring assets complex. By developing a payment channel network, we propose an entirely new and unique model to address these concerns by allowing nodes to build payment channels between themselves without needing to write to the network and benefit us from payment networks like blockchain. Payment channel networks have an exceptional set of characteristics regarding routing complexity. In this study, we describe a detailed analysis of a payment channel network design that will help us make the transaction process through the edge and IoT systems a lot faster and more accessible. Furthermore, there are various references which show that using edge-IoT devices to connect nodes greatly improves the success and efficiency rate. Index Terms: Cryptocurrency, Blockchain, Edge and IoT devices, Payment channel network, Security, Ethereum.