A scalable blockchain framework for IoT based on restaking and incentive mechanisms

This paper proposes a scalable blockchain framework based on sidechain solution for the Internet of Things (IoT). Considering the low-trust models of existing sidechains, we present a restaking-based trust aggregation method for Proof of Stake (PoS). By allowing mainchain validators to duplicate their stake on the sidechain network, we enhance the cryptoeconomics security of the sidechain while reducing costs. Given the potential conflicts between risks and rewards of trust aggregation, and the challenges posed by the heterogeneity of IoT devices for quantitative analysis, we propose an incentive analysis framework based on contract. By analyzing the optimal strategies of different risk-preference validators, design differentiated contracts to promote incentive-compatible outcomes. Additionally, we account for the uncertainty in the distribution of sidechain validators and discuss optimal configurations under various conditions. To address potential collusion attacks, we introduce a quantifiable exemption mechanism to limit the security risks. Finally, numerical simulations verify the feasibility and effectiveness of our proposed method.