VIBE: Blockchain-based Virtual Payment in IoT Ecosystem: A Secure Decentralized Marketplace

Internet of Things generates massive amounts of data that is essential for organizations interested in collecting, processing, and trading personal data. Therefore, there is a great demand for an open IoT ecosystem that provides stakeholders with an appropriate platform to publish, search, trade, secure, and control their data. Our solution is a fully decentralized smart contracts-based model incorporating Blockchain-based off-chain payment with the IoT ecosystem. It is the first Perun-based scheme with the BIoTope H2020 project to resolve the scalability problem of existing blockchain models and trade IoT data to consumers in micro-units or as per their requirements. The proposed model provides (i) A novel algorithm to integrate Ethereum virtual payment with the IoT ecosystem and IoT data trading between client and supplier by suppressing the platform service provider with incentives, (ii) Flood and loot attack free payment model that secures payment without compromise the privacy with intermediaries in virtual payment and (iii) Ensures no single point failure and penalties for malicious participants and contract violators. The resultant model ensures faster payment, which takes 99 % less time than other existing blockchain models. However, the data storage efficiency achieve through the Interplanetary File System(IPFS) and SHA3 algorithm that uses cryptographic tokens. Further, the proposed review system enhances participants’ responsibility to create a secure market environment, and theorems ensure the validation against malicious activities. The results demonstrate the implementation of the resultant scheme using the gas consumption of different smart contracts and computation costs, and it compares with other existing works to illustrate the efficiency.