Optimizing IoT Scalability and Resource Management Using Proof of Work-Directed Acyclic Graph: A Decentralized Approach

The Internet of Things (IoT) has seen phenomenal interest and growth since it connects billions of devices to extend applications like smart grids and wearables. The IoT also face vulnerabilities of centralization, scalability, and security issues. Traditional blockchain solutions have slow transaction processing and scalability challenges. This paper proposes a system by combination of Proof of Work (PoW) and Directed Acyclic Graph (DAG) to overcome these limitations and support the efficient structure of bandwidth for parallel processing to improve transaction throughput and reduce validation time; hence, it is better suited for high-volume environments in IoT. It also discusses a DAG framework for processing data from multiple IoT devices in a manner that their integrity and security are ensured through distributed consensus without overloading the devices. These results indicate that the system has a stable transaction processing rate for increasing loads in those cases that lead to variable CPU and memory demands. For instance, the time to validate a single transaction was around 0.0022 to 0.0072 seconds at an average throughput of approximately 139 to 531 transaction per second for three different difficulty levels. This research, in essence, demonstrates huge potential in improving IoT security and its scalability, thereby making the blockchain technologies robustly integrated into IoT networks.