Smart Contract-based Hierarchical Auction Mechanism for Edge Computing in Blockchain-empowered IoT

Abstract

Edge computing is a promising paradigm to expand the capability of Internet of Things (IoT) devices by computation offloading. To establish a distributed ledger to provide a secure and trusted environment for the resource allocation between edge servers and IoT devices, the emerging blockchain technology has attracted a lot of attention recently. However, in practice, edge resource allocation in IoT devices often involves multi-layer structures, which poses a challenge due to information incompleteness among different layers. Moreover, how to design a suitable and efficient blockchain framework for hierarchical resource allocation markets is a critical issue. In this paper, we apply blockchain to propose a secure and efficient hierarchical resource allocation framework for edge computing. First, we study the edge computing resource allocation problem in the hierarchical market of IoT devices, in which the IoT devices beyond the coverage of Access Points can participate in the resource allocation through middlemen. To solve the problem, a smart contract-based hierarchical auction mechanism is developed. The edge computing resources allocated in the top market can be continually reallocated to the sub-markets based on the mechanism, which then leads an efficient solution that maximizes the social welfare of the whole participants. Moreover, the mechanism is implemented as a smart contract in the blockchain, which enforces the rule of the hierarchical auction in a non-deniable and automated manner. Finally, the extensive simulations demonstrate the correctness and performance of the proposed mechanism.