The emergence of the Internet of Things (IoT) has been recognized as a potentially revolutionary technology for diverse industries and businesses, offering powerful tools for enhancing business models and productivity. However, IoT systems are often vulnerable to data loss due to inevitable failures, leading to significant operational losses. This research examined the potential causes of data loss in IoT architecture and explored solutions to mitigate this risk. Empirical simulations were conducted using Python program and Docker containers, with parameters configured for both centralized infrastructure and Blockchain-based IoT architecture. The findings revealed that Blockchain-based architecture strengthens data loss mitigation in IoT systems, outperforming centralized infrastructure architecture. The Blockchain-based IoT, equipped with mechanisms for verifying transaction publishing and health/strength monitoring, achieved an average transaction time of 0.116 sec per transaction without any observed failures. In contrast, the centralized infrastructure exhibited a performance of 7.28 sec per transaction with failures.