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978-1-5386-7167-2/18/$31.00 ©2018 IEEE
A Study on Leveraging Blockchain Technology for
IoT Security Enhancement
Syeda Mariam Muzammal
1
, and Raja Kumar Murugesan
2
School of Computing & IT, Taylor’s University, Subang Jaya, Malaysia
1
syedamariammuzammal@sd.taylors.edu.my,
2
rajakumar.murugesan@taylors.edu.my
Abstract—In the rapidly growing digital and
technological world, Internet of Things (IoT) is becoming
very popular and widely implemented. As more and more
IoT devices are deployed in an uncontrolled, complex and
often hostile environment, securing the IoT devices, systems
and data exchange presents numerous unique challenges.
With data sensitive IoT applications, there is an utmost need
to protect and explore user privacy, access control, third
party involvement, and Machine-to-Machine (M2M)
information exchange in order to avoid critical security
breach and cyberattacks. Most of the security and privacy
issues of the interconnected heterogeneous resource
constrained smart IoT devices are unable to be solved
efficiently by traditional security practices. On the other
hand, Blockchain technology is well-thought-out as emerging
and revolutionary concept, initiated from cryptocurrency,
and now making way to enhance various scenarios in digital
paradigm, mainly due to its decentralized nature and
transparency. This paper reviews the adoption of IoT in
various fields and its applications to automate and improve
living conditions, along with security and privacy risks
arising from organization and functioning of different IoT
components. Moreover, the study is specifically based on
how effectively the Blockchain technology can be leveraged
for strengthening IoT security and privacy implications, and
possible limitations of embedding Blockchain with IoT
framework.
Keywords—Internet of Things, Blockchain, IoT Security,
Privacy
I. I
NTRODUCTION
Smart devices are ubiquitous in today’s world. The
emergence of IoT paradigm has given rise to the rapid
escalation in use of smart heterogeneous interconnected
devices and applications. The IoT is a network of swiftly
growing complexity, whereas blockchain has been
activated for a substantial impact on IoT by its
decentralized nature and other features of security
enhancement and empowerment for accommodating a
number of devices in the IoT paradigm. Both have the
antagonistic capabilities to transform concepts into realities
and providing innovative opportunities to develop
advanced and secure applications.
With its wide adoption in different industries, like
supply chain management, agriculture, farming,
transportation, insurance, and health, IoT has a number of
well-known security defects that have given rise to recent
attacks [1]. The enhanced and autonomous functionalities
lead to exposure of sensitive data, in M2M
communications, to malicious activities. For example, the
personal data communicated through wearables can be
delivered to undesired sniffing nodes that may cause
intense privacy breach for an individual [2].
For this most commonly implemented infrastructure,
efficient and reliable techniques for security and privacy
have become an obligatory issue for the wide adoption of
IoT technology. Conversely, Blockchain, based on
decentralized and distributed ledger technology is
influencing IoT applications for faster adoption by
enterprises towards digitized and secure smart world.
Extensive research work is going on for the exploitation of
Blockchain for IoT in different industries and many big
companies, like IBM, have already taken on the challenges.
This paper presents a study and discussion on IoT
applications, security and privacy requirements according
to its characteristics and how effectively the emerging
blockchain technology can be viewed in IoT context with
respect to cybersecurity needs, privacy-preservation,
secure data transmission and connection between IoT
interconnected and resources constrained devices. Rest of
the paper is structured into five sections. Section 2 presents
the background and theoretical groundwork for
understanding of IoT and its applications, IoT security and
privacy implications, and a brief introduction to blockchain
technology. Section 3 describes how the combination of
blockchain and IoT can be beneficial in IoT use-cases
along with the limitations that IoT poses in implementation
of blockchain solutions. Section 4 presents the related
work as done by the researchers in said aspect. Section 5
elaborates the discussion and open issues, and finally
section 6 concludes the study.
II. B
ACKGROUND
A. IoT and IoT Applications
IoT is the interconnection of physical devices, forming
a network of smart things that communicate and exchange
data with one another to reduce human exertions, improve
efficiency of systems and overall economic benefits. Many
industries are adopting IoT solutions, such as smart cities,
connected cars, poultry and farming, supply chain,
healthcare, surveillance systems, energy management,
transportation, agriculture, insurance, retail, logistics and
various others.
In an IoT system, a plethora of devices can be
connected to the internet based on the notions of IoT,
making possible the implementation of routine tasks with
M2M communication. The basic components of IoT
system include the IoT devices to collect data (for
example, sensors, antenna, and microcontroller), IoT hub
or gateway to collate and transfer data, and the user
interface or back-end systems.
B. IoT Security and Privacy Implications
The general acceptance and mass adoption of IoT is
based on assurance of privacy and security, as they collect
vast amounts of sensitive information related to users’
identity, health, environment, location, operations, routine
tasks and activities, and certain crucial data related to
individuals and industries as well as militaries. Fig. 1
shows a generic taxonomy of IoT security and privacy.
Various security and privacy concerns, related to devices,
data, networks and users, in functional and infrastructural
aspects of IoT need to be considered for enhanced
solutions. Some of the substantial challenges related to
security and privacy for interconnected IoT devices,
applications and networks are briefly described as below:
Lack of Standardization: The use of several different
standards for development and deployment of IoT
applications, leads to incompatibility and unexpected
incidents [3]. For example, sometimes system
administrators are unable to monitor and control IoT
devices. Similarly, sufficient access control mechanisms
are not incorporated for some IoT devices that may cause
privacy breach.
Device Identification: IoT devices need to have secure
identities and ownership, which are currently not provided
or just provided by the device manufacturers.
Device updates: For ongoing maintenance and security,
device firmware needs to be updated with regular intervals,
thus require implementation of a scheme for only
authenticated updating of devices.
Data Sharing: The interconnected IoT devices share a
large amount of data with each other and with external
sources that require proper authorization and authentication
mechanism for secure data interchange and command
consent. Moreover, to preserve the privacy, there should be
proper user consent mechanism to keep the right of
individuals to share their information. For example, in
healthcare IoT using the patients’ data without their
permission.
Fig. 1. Taxonomy of IoT Security and Privacy
Anonymity and Access Control: Privacy-preservation can
only be achieved with proper embedding of data and user
anonymity with access control only by authenticated
parties. In IoT, usage of personal data by outsourced parties
and monitoring of individual’s data as in healthcare
applications may cause privacy breach.
Logging: For the command issuance and implementation,
data transactions and revocations need to be logged and
monitored to resolve any possible disputes.
Policy sharing and validation: Another perspective for
secure IoT relies on policy sharing and validation that can
contribute to access control and authorization. Moreover,
lack of applicable policies and sanctions enforcement to
devices may lead to data leaks, and privacy and security
breaches.
Centralization in IoT: The current IoT infrastructure
relies on a centralized mechanism, a hub or gateway for
processing that may be through a cloud or a third-party
service provider. This leads to dissemination of
information to Trusted Third Party (TTP) by relying on
their security and privacy-preservation mechanisms. The
low powered, resource constrained IoT devices and
platform have unique security requirements related to
centralization and weak communication channels. Hence,
need a dedicated scheme to embed security in IoT.
Another major concern in centralized IoT infrastructure is
the availability. Since, IoT networks are integrated with a
platform that leads to a single point of vulnerability.
Overlapping IoT Security and Privacy Challenges with
other technologies: Since the IoT platform is based on
cloud, which also IoT security concerns to cloud
computing. Additionally, for the interconnection and
wireless networks, the IoT threats overlap with networks
security. For example, unsecure communications with
data exposure and exchange over public Wi-Fi/Internet.
However, there have been specific and critical challenges
that are restricted to IoT infrastructure.
Distributed Denial of Service (DDoS) Attack: The IoT
security concerns reached the hype in September 2016
when Mirai botnet attack caused immense disruption by
DDoS outbreak against a major DNS provider, Dyn. The
shot was made possible and successful through security
cameras [4] [5], using dictionary password with direct
access for internet connected devices [1]. Similarly, in the
later kinds of Mirai botnet attack, IP spoofing attacks were
launched. Other such attacks include the turning of Smart
TVs into secret listening devices by CIA [6], accident by
remotely controlling a jeep [7], destruction of nuclear
centrifuges of Iran by turning it out of control through
Stuxnet virus [8].
Hence, the above-mentioned security and privacy
implications of IoT and the cyber attempts emphasize the
need for the enhancement and an upgraded security and
privacy-preserving solutions for IoT.
C. Blockchain Innovation
A blockchain is basically a growing list of records,
called blocks, which are cryptographically linked together,
forming a chain of blocks. Blockchain technology is
considered as a vigorous and robust solution for
cybersecurity and privacy preservation in various
technological scenarios, especially in IoT. The technology
itself is said to be secure by design for its decentralized
nature [9]. In a blockchain model, there is no need for an
intermediate or third party to store data, instead the data is
stored in a distributed manner in which each node holds
an identical set of information. Hence, there is no single
point of failure. If security breach is occurred at one
device or node, system rejects its activities, hence
securing rest of the network [10]. Additionally, multi-
signature mechanism for authentication and verification,
and cryptographic linkage of blocks provides further
protection to the data in nodes and strengthens the
blockchain to defend malicious attempts. The privacy-
preservation in blockchain can be guaranteed by keeping
the transactions anonymous, depending on blockchain
platform being used and the underlying application
design.
Moreover, blockchains can be either permissioned or
permissionless [11]. Hence, can be accommodated
according to the requirements of the IoT use case for
effective enhancement of security and privacy. The
permissioned blockchains are private and restricted with a
closed group of only known participants to which access
is granted by some authority [12]. Whereas,
permissionless blockchains are open platform and public
in nature in the aspect there is no known participants, and
anyone is allowed to join or leave the blockchain anytime
[9] [13].
III. C
ONVERGENCE OF
B
LOCKCHAIN AND
I
O
T
TO
OVERCOME CERTAIN CHALLENGES
Blockchain is considered to possess the potential of
providing enactment of anonymity, trust, authentication,
integrity and operative contracts between involved
participants or groups, without the need of an intermediate
party to be trusted. Any corporate or private sector
organization with a system and IoT devices can enhance
productivity and eradicate single points of fiasco in
systems by objectifying this innovation and using either
permissioned or permission less blockchains or integration
of both [11].
A. Blockchain Characteristics to Improve IoT
Blockchain possesses a number of outstanding
characteristics that make it suitable for addressing
shortcomings of IoT. IBM has mentioned three key
benefits of Blockchain for IoT including trust building,
cost reduction, and transactions acceleration [14]. Others
include, decentralization, immutability, anonymity,
authentication, verification, credibility, trust building, and
overall security from numerous malicious attacks.
B. Use Cases of Blockchain-based IoT
Some of the major use cases of Blockchain-based
solutions for IoT applications are discussed below.
Supply chain: In supply chain IoT, achieving transparency
is the key issue. Blockchain-based solution can provide
visibility, optimization, petition, as well as proper access
control for data sharing among the participants involved.
The integrity, availability and reliability of real-time data
access will increase the efficiency of supply chain
management.
Vehicular IoT: One of the most beneficial application of
blockchain-based IoT solutions is automotive industry by
providing real-time data access and execution of
transactions among big auto companies, manufacturers,
partners, service providers, insurance, financing authorities,
regulators and customers. On-the-go decisions, services
and payments are made easier through blockchain
integration. For example, to assist manufacturing a single
car, Toyota has taken an initiative for the tracking of
vehicular parts that are transported throughout the globe via
factories and suppliers.
Energy Management and Smart Grid: With the
integration of blockchain and IoT in energy industry, there
has been tremendous increase in the efficiency of smart
grids and energy distribution, along with the monitoring
and control of dissemination of resources. For example, it
can be made possible for the excess energy release from the
solar panel on a roof-top, to other users who need it, along
with record and payment without any security and privacy
breach. Similarly, blockchain-based mesh networks of IoT
devices can be deployed to monitor energy grids for fault
tolerance and fixing an arising malfunction as early as
possible.
Healthcare: One of the blockchain-based IoT solution in
healthcare is the self or remote monitoring of patient’s data
through wearables or other smart devices. The security of
patient’s data and privacy is ensured by storing data in a
distributed ledger and defining smart rules of access in
blockchain. The use of Blockchain is also significant in
pharmaceutical supply chains.
Other applications: Apart from the mentioned above,
there are certainly tremendous unknown applications of
blockchain-based IoT, providing evidence that
management and security of IoT devices and privacy-
preserving data flow in networks can be improved by
integration of blockchain technology. Additionally, it
empowers the access control of data and services and data
exchange among involved parties. Since, blockchain is
born to be a technology for cryptocurrency, hence can
facilitate for secure payment services in accordance with
operations and flow of data, while maintaining the
anonymity.
IV. R
ELATED WORK
The potential of Blockchain's integration in IoT is being
evaluated through variable measures envisioned to
strengthen security and privacy. A number of initiatives
have been made by industries and organizations for the
development of efficient IoT solutions based on
blockchain to enhance production with satisfactory
consumer’s experience. A group of highly reputed
companies was formed in January 2017 for setting
security standards of IoT applications using blockchain
[17]. Similarly, several companies are heading towards
integrating blockchain into their businesses. For example,
Provenance has started building a traceability data system
using blockchain for tracking of materials and goods,
which is auditable and open to public, providing
transparency of products [18].
Similarly, Filament is working on integration of
blockchain technology in industrial Internet of things
(IIoT) for secure execution of transactions making
connections of devices independent of central authority
[19]. Moreover, via giant cloud infrastructure, IBM is
providing blockchain services for supply chain items
tracking [20]. In addition to the top high-tech companies,
researchers are also working hard to explore blockchain-
based solutions for IoT, to enhance efficiency via
decentralized interconnection, and specifically security
and privacy of the overall system and its components. For
example, in logistics and supply chain management
system [21]–[24] and Smart grid and energy management
[25], [26]. Most of the experts are interested in improving
TABLE I. SUMMARY OF SHORTCOMINGS OF IOT AND BLOCKCHAIN SOLUTIONS
Shortcomings of IoT Blockchain Solutions
High costs - Increased cost with scalability and addition
of new IoT devices
- Need for large servers and networking
equipment
- Maintenance and infrastructure cost
- No third party needed
- Autonomous and distributed storage
- Non-central and dispersed control guarantees robustness
and scalability
Single point of
failure
- Possibility of bottleneck
- One malicious node can disrupt the entire
network
- IoT small devices are susceptible to DDoS
attacks, data theft and remote hijacking.
- Interlocked devices
- Data breach on/from one device, that device is thrown out
of Blockchain
- Utilizing resources of all participating nodes and
eliminating one-to-many and many-to one traffic flows
Susceptibility to
manipulation
- Mismanagement of data
- Manipulation of findings in a particular
direction
- Trackability
- Immutability: data once entered or once a transaction is
occurred, cannot be altered or deleted
Downtime &
Unavailability
- Since, current infrastructure of IoT is
mostly dependent on cloud, hence
possibility of servers down or cooling
- Transactions are on a number of devices to hold identical
information
- A faulty node can join in or leave the system anytime
Unsecure
Communication
- Communication is through third party or
cloud
- Leverage smart contracts for secure communication
- Message exchanges between occurs same as financial
transaction in bitcoin
Privacy Breach - Personally identifiable information (PII)
can be exposed, for example, through
profiling
- Anonymity of personal data by cryptographic linkage of
nodes
- Confidentiality is maintained similar to securing identity
and balance information in bitcoin
Authentication - Relies on trusted third party (TTP) - Cryptographically signed transactions
- Verification of digital signatures
- Trust building
- Eliminating Man-in-the-middle and replay attack
Credibility - No authorization and data integrity
mechanism
- Collective verification via consensus mechanisms
- Tamper resistance – each node holds identical copies of
data
- Can check on malicious nodes
smart home IoT devices and application, to improve human
experience and facilitation [27]–[31]. Others have proposed
enhanced blockchain-based solutions in various areas, like
agriculture [32] and social networks (Social IoT)[33].
Further work comprises of blockchain-based solutions for
secure IoT devices interconnection [34], ownership of IoT
devices [35], authentication [36], networks [37]–[40],
servers overloading [41] and data storage [42]. A lot of
work is still ongoing in exploring the potential of
blockchain-based solutions for improving IoT applications,
devices and the security and privacy implications [43] [44]
[45]. To overcome the blockchain overhead, [16] proposed
an IoT compatible architecture based on blockchain, while
preserving its benefits of security and privacy. Similarly, to
support the continuous synchronization and overcome the
challenges of third party and client server model, [46]
proposed blockchain-based platform using Ethereum for
controlling and configuring IoT devices.
Currently, the idea of blockchain-based IoT solutions is
just at preliminary stage. It is evident that there is a
possibility of a blockchain based infrastructure, for IoT, built
upon distributed ledger technology enabling smart contracts,
like Ethereum and Hyperledger. However, most of the work
is focused on Ethereum blockchain since it is permissionless
and lightweight, well suited for the requirements of IoT.
Though a lot of research work and initiatives are undergoing
in this area, till now blockchain has not been widely adopted
and extensively used, which shows that it has not been really
tested effectively to evaluate its real potential.
V. D
ISCUSSION
There are a number of privacy and security violation
causes in a non-blockchain infrastructure that are not
applicable to blockchain world [9]. Organizations store a
huge volume of information including personal and
confidential data for analysis and to reveal novelties in their
businesses without considering the security and privacy
impacts. Moreover, the collection, storing, processing and
sharing of data is handed over to the third parties, and hence
may involve cloud service providers (CSPs), relying on their
security standards, and giving rise to potential security and
privacy issues. A summarized picture for the security and
privacy-preserving features that blockchain can support for
IoT is depicted in Table 1.
A captivating characteristic of blockchain is that the
personal data can only be viewed with permission from the
individual and it cannot be stored for later retrieval. The
cryptographic technique is used to store proof of identity
hence, breaking it is almost impossible [47], providing a
strong privacy protection mechanism. Moreover,
cryptographic identity and access control systems can be
helpful in avoiding IP Spoofing attacks. Furthermore, a
robust application of blockchain is considered to be the
sheltered storage with digitally signed messages and
documents transmission. Such applications, in order to
validate assets and individual’s identity, are being built and
verified in shipping, finance, insurance, and especially in
automated IoT scenarios.
By using blockchain’s decentralized, autonomous and
trustless nature, a number of key security and privacy
challenges related to the centralized model of cloud can be
addressed. Moreover, if IoT devices are placed just at a
close distance to each other, still connections and
communications between them go through the internet and
TTP [48]. Likewise, centralized models are expensive and
problematic to manage when employed to heterogeneous
scenarios like IoT, hence leading to the adoption and
effectiveness of a blockchain-based decentralized approach.
The exponential increase in network size, scalability issue of
IoT, can be made more secure by consensus driven structure
of blockchain. Since, data in blockchain is dispersed around
several devices or nodes that are interlocked together to
form a chain - blockchain; an attacker can only be
successful, if manage to hack more than 50% of the
blockchain network. It is also worth noting that, while
bitcoin is the application that utilized blockchain structure
for cryptocurrency, has had a perception among public
about hacking attempts [15]. However, it has been reported
that there is no successful hacking on bitcoin transactions
till now, rather it occurred to the systems that were holding
and storing bitcoin private keys [49][9].
The blockchain for IoT is being proved and worked
upon by researchers by applying core blockchain
approaches and components to multiple industries, sectors,
applications and use-cases of IoT infrastructure. Through
the general ideas of IoT security and privacy perceptions
with reference to the current model and blockchain-based
solutions (as depicted in Table 1), it can be inferred that
traditional security methods do not fit the needs of IoT
resources-constrained devices and infrastructure. IoT
requires privacy and security protection that is light,
scalable, and distributed that Blockchain has the potential to
provide [13]. However, it is not light, rather computational
intensive, hence require adaptations and optimizations to
meet the needs of IoT privacy and security.
Accountability of the individual roles in transactions is
ensured by blockchain, thus avoiding disputes. Since,
blockchain is immutable, cannot be altered or deleted, hence
denying the possibility of devices connecting to a network
by masquerading and forging signatures. Specifically,
device identification can be managed just like the
cryptocurrency model that provides ownership of bitcoins;
the workout can be enhanced for IoT devices and users. The
choice of permissioned and permissionless blockchain
depends on various types and number of authorizing
participants with varying credentials as well as the nature
and importance of assets being exchanged or transferred.
From the above discussion, it is apparent that blockchain
may prove to be a nightmare for cybercriminals, data
manipulators and others who mishandle personal data and
devices. While blockchain is foreseen to address various
aspects of security and privacy, the most promising is the
control of personal data by individual itself. For example,
after the government agency provides a digitally signed
copy of a document (e.g., driving license, ownership
documents of vehicle, house, land and other assets), and add
it to blockchain, it is then immutable and cannot be accessed
or modified [50]. Additionally, it should be noted that
blockchain currently is in its emerging state. The number of
applications based on DLT and blockchain are evolving in
order to adequately evaluate the superiority of this
technology to the current systems in defending against
various cyberattacks, threats and risks. However, the
architecture and structure of blockchain infrastructure is
promising to be incorporated for the enhancement of IoT
smart applications.
VI. C
ONCLUSIONS
:
Keeping in view the sensitivity of smart devices’
functionality, and data they collect, generate and process,
IoT solutions should address the potential security and
privacy concerns. It is noted that IoT security and privacy
concepts periodically change with the change in trends and
technology, and moreover with the adapting industry or use
case. The “Blockchain” not only enables the movement of
money but can also be used to secure transfer of information
and allocate resources between devices, enabling the use of
Blockchain as a service for IoT. The connected world can
usefully include Blockchain technology as a layer for which
more and more devices (wearables, sensors, IoTs,
smartphones, tablets, laptops, homes, cars, and smart cities)
can benefit from the advanced characteristics. This study
presented the shortcomings of IoT and characteristics of
Blockchain that can be valuable to achieve desirable
security and privacy in IoT infrastructure and applications.
It has been discussed that blockchain presents many
promising opportunities for the future of IoT. Challenges,
however, remain, as consensus models and computational
costs of transaction verification. Nevertheless, it is still in
the early stages of developing blockchains, and these
obstacles will eventually be overcome, opening the way
towards many possibilities and changing concepts into
realities.
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