Layer-3 Blockchain Infrastructure for High-Frequency IoT Data Logging

Abstract

The exponential growth of Internet of Things (IoT) devices has led to unprecedented volumes of sensor-generated data, necessitating novel data-logging infrastructures capable of handling high-frequency, high-throughput streams with robust security and immutability. Traditional centralized databases struggle with scalability, fault tolerance, and tamper resistance under such loads. This study proposes a Layer‑3 blockchain infrastructure tailored to high-frequency IoT data logging, integrating an optimized consensus mechanism, sharded storage, and lightweight cryptographic primitives to ensure real-time performance without compromising decentralization. We design a three-tier architecture: Layer 1 (Device Layer) handles data generation via resource-constrained edge nodes; Layer 2 (Aggregation Layer) performs preliminary filtering and batch-preparation; and Layer 3 (Blockchain Layer) executes immutable logging and consensus. The proposed consensus algorithm, FastShard, combines proof-of-stake with dynamic shard assignment to parallelize transaction validation and minimize latency. We implement a prototype using a permissioned Ethereum fork augmented with sharding and conduct experiments with 1,000 IoT nodes generating 10,000 transactions per second. Results demonstrate average transaction latency of 120 ms and throughput exceeding 9,000 tps under realistic network conditions, achieving 30% performance gains over baseline permissioned blockchains. Security analysis confirms resistance to byzantine faults and double-spending attacks, while cost evaluation shows reduced computational overhead on edge devices. The findings suggest that Layer‑3 blockchain infrastructures can effectively meet the demands of high-frequency IoT applications in smart cities, industrial automation, and environmental monitoring.