CD Laboratory for Blockchain Technologies for the Internet of Things

Blockchains have attracted enormous attention from research and business in recent years, particularly as the technical basis for cryptocurrencies such as Bitcoin and Ethereum. Today, blockchains and other distributed ledger technologies (DLTs) are no longer used exclusively in the financial sector, but are also seen as potentially disruptive technologies in many different areas of application. In many of these fields of application, DLTs are combined with Internet of Things (IoT) technologies to store, process and share data in a tamper-proof manner. The CD Laboratory Blockchain Technologies for the Internet of Things researches novel methods, concepts and technologies for the cross-system application of blockchains and other DLTs in the Internet of Things and beyond.

In general, DLTs are used for the decentralised documentation of (financial) transactions, but can also be used for trustworthy data exchange in general. Classic, i.e. database-based approaches for transactions and data exchange are based on a centralised ledger that is managed by a single entity (e.g. a bank). DLTs, on the other hand, are based on a network of computers that jointly manage the distributed ledger using a defined protocol. New transactions and data are added to the ledger in a decentralised manner using the protocol so that all participants have the same consensus regarding the transactions and data.

The great interest in DLTs has led to a wide range of research and development activities. Accordingly, many new blockchain protocols and other DLTs have been introduced, which has led to a highly fragmented technology landscape. This is problematic because blockchains and other DLTs represent self-contained worlds per se. Accordingly, it is not easily possible for different blockchains and DLTs to interact with each other. Many applications can therefore only be executed within the boundaries of a specific blockchain. This is a massive obstacle to the use of blockchain technologies in the IoT, as heterogeneous technologies must interact with each other. For this reason, this CD Laboratory deals with fundamental research questions of cross-blockchain interoperability and the integration of blockchains with other DLTs and other systems. It is also investigating the extent to which lightweight DLTs can be used to supplement or even replace the heavyweight blockchain technologies currently in widespread use.

Although the focus of this CD Laboratory is on the application of blockchain technologies in the IoT, other DLTs will also be considered. The planned research results are not limited in their applicability to the IoT, but can also be used in other systems where interoperability between different DLTs is necessary. Through these contributions, the CD Laboratory is contributing to a paradigm shift from today's closed blockchains to an open system in which devices and users can interact with each other across the boundaries of individual DLTs.