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1. A method for establishing a secure connection between a Bluetooth device and a peer device, the method comprising: a step of the Bluetooth device sending encrypted predefined first data to the peer device; a step of the peer device receiving the encrypted predefined first data and sending the encrypted predefined first data along with a predefined second data to a server; a step of the server receiving the encrypted predefined first data and the predefined second data from the peer device and processing it for authenticating the received data and, on successful authentication, sending the processed data to the peer device; a step of the peer device receiving the encrypted processed data and sending it to the Bluetooth device; and a step of the Bluetooth device receiving the encrypted processed data from the peer device and processing it for authenticating the received data and, on successful authentication, bonding and communicating securely with the peer device, wherein the steps performed by the Bluetooth device and the peer device for initiating pairing and bonding comprises: a step of the Bluetooth device generating and setting values of one or more parameters for creating a service; a step of the Bluetooth device advertising pairing and bonding service Universally Unique Identifier for accepting incoming connection from the peer device; a step of the peer device scanning and searching for available Bluetooth devices and selecting the Bluetooth device for pairing and bonding based on the advertised ‘pairing and bonding service UUID’; a step of the peer device reading values of the one or more parameters in the created service and sending them to the server; a step of the peer device obtaining the values of the parameters from the server and writing into the service in the Bluetooth device; a step of the Bluetooth device notifying ‘ready for pairing’ on successfully: computing a session key using the one or more parameters read and written by the peer device and received from the server; and generating the verifier nonce which is a substantially random value; and a step of the server making available a service functionality with its own ‘pairing and bonding service UUID’ comprising a plurality of characteristics, and wherein the plurality of characteristics comprises: SessionNonce_Device, SessionNonce_SP, DataNonce_Device, DataNonce_SP, UserConfirm_Device, DeviceConfirm_SP, ID_Device, ComputeSessionKey, ReadyForPairing.
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