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Indoor localization and Location Based Services (LBS) can greatly benefit from the widescale proliferation of communication devices. The basic requirements of a system that can provide the aforementioned services are energy efficiency, scalability, lower costs, wide reception range, high localization accuracy and availability. Different technologies such as WiFi, UWB, RFID have been leveraged to provide LBS and Proximity Based Services (PBS), however they do not meet the aforementioned requirements. Apple's Bluetooth Low Energy (BLE) based iBeacon solution primarily intends to provide Proximity Based Services (PBS). However, it suffers from poor proximity detection accuracy due to its reliance on Received Signal Strength Indicator (RSSI) that is prone to multipath fading and drastic fluctuations in the indoor environment. Therefore, in this paper, we present our iBeacon based accurate proximity and indoor localization system. Our two algorithms Server-Side Running Average (SRA) and Server-Side Kalman Filter (SKF) improve the proximity detection accuracy of iBeacons by 29% and 32% respectively, when compared with Apple's current moving average based approach. We also present our novel cascaded Kalman Filter-Particle Filter (KFPF) algorithm for indoor localization. Our cascaded filter approach uses a Kalman Filter (KF) to reduce the RSSI fluctuation and then inputs the filtered RSSI values into a Particle Filter (PF) to improve the accuracy of indoor localization. Our experimental results, obtained through experiments in a space replicating real-world scenario, show that our cascaded filter approach outperforms the use of only …