I am trying to find a suitable Bitcoin thin client for IoT devices with Linux OSs. IoT devices will act as peers as thin clients, and the selection criteria for the thin client is least CPU, memory and storage requirements. Which Bitcoin thin client protocol would be the best choice for such system?
you could use a SVP Client/wallet like discussed here : What is an SPV client?
IOT is a wide space, you could specify the technical features of your IOT to get the right help, a raspberry pi for example could be considered as an IOT and it could host a full or a light node.