  This paper addresses the challenge of enhancing cybersecurity in
Blockchain-based Internet of Things (BIoTs) systems, which are increasingly
vulnerable to sophisticated cyberattacks. It introduces an AI-powered system
model for the dynamic deployment of honeypots, utilizing an Intrusion Detection
System (IDS) integrated with smart contract functionalities on IoT nodes. This
model enables the transformation of regular nodes into decoys in response to
suspicious activities, thereby strengthening the security of BIoT networks. The
paper analyses strategic interactions between potential attackers and the
AI-enhanced IDS through a game-theoretic model, specifically Bayesian games.
The model focuses on understanding and predicting sophisticated attacks that
may initially appear normal, emphasizing strategic decision-making, optimized
honeypot deployment, and adaptive strategies in response to evolving attack
patterns.
