Decentralized blockchains offer further benefits over the current client-server model used in IoT. Their decentralized architecture means that identity can be protected and guaranteed. Currently, IoT devices identify themselves via cloud servers, with their identification data held in these databases. As such, the data can be compromised, stolen or imitated, presenting a major security threat to any application that runs atop such a network.
By using a decentralized blockchain, we can protect these identities through the use of asymmetric cryptography and secure hashing algorithms. Devices would be registered according to their own corresponding blockchain addresses, guaranteeing their identity. This blockchain layer can provide a level of security and frictionless identification unmatched by the existing centralized infrastructure.