Decentralized IoT Permission Management using NFTs: Implementation and Evaluation on Low-Cost Blockchains

Abstract

The proliferation of Internet of Things (IoT) devices necessitates secure and auditable access control, often unmet by traditional centralized systems. This work evaluates a decentralized approach leveraging Non-Fungible Tokens (NFTs) - representing unique device identities - and smart contracts for automated, on-chain enforcement of access rules, deployed on cost-effective Layer 2 blockchain platforms. In this model, NFTs signify verified devices, with ownership conferring primary access, while smart contracts immutably manage device registration, time-limited permission delegation, and access revocation, enabling fine-grained control. The system was implemented and comparatively evaluated across Polygon, Arbitrum, and Optimism. Performance analysis focused on transaction costs (USD) and gas consumption for core functions. The results demonstrate significant economic viability, evidenced by measured transaction costs consistently remaining fractions of a US cent on all platforms, confirming suitability for scalable, real-world IoT applications. This study validates the feasibility of using NFTs on Layer 2 platforms for secure, transparent, and low-cost IoT access management, providing empirical data to inform platform selection based on specific operational trade-offs.