A Fair and Lightweight Consensus Algorithm for IoT

Abstract

Abstract With the rapid growth of hyperconnected devices and decentralized data architectures, safeguarding Internet of Things (IoT) transactions is becoming increasingly challenging. Blockchain presents a promising solution, yet its effectiveness depends on the underlying consensus algorithm. Conventional mechanisms, such as Proof of Work and Proof of Stake, are often impractical for resource-constrained IoT environments. To address these limitations, this work introduces a fair and lightweight hybrid consensus algorithm tailored for IoT. The proposed approach minimizes resource demands on the nodes while providing a fair and secure agreement process. Specifically, it utilizes a distributed lottery mechanism to ensure fair block proposals without requiring dedicated hardware. In addition, to enhance trust and establish finality, a reputation-based voting mechanism is incorporated. Finally, we experimentally validated the key features of the proposed consensus algorithm.