The Role of Blockchain Security in the Internet of Things

Michael Omar*,
Computing Department. University of Greenwich (Vietnam),
E-mail ID. Omar2@fe.edu.vn,
*Corresponding author : omar2@fe.edu.vn

Abstract

Blockchain (BC) may be a new technology within the Internet of Things. It functions with the public, distributed,
decentralized, and instantaneous ledger to stockpile various transactions within the nodes of IoT. A Blockchain
comprises sequences of blocks with each component linked to the previous block sequences. Individual blocks
contain previous block hash, cryptography hash code, and stored sets of knowledge. The transactions, which happen
within the Blockchain are the elemental elements, which transfer data from one IoT node to a different one. The
nodes vary in physical composition, though all of them have actuators, sensors, and programs; thus, they will
communicate with one another. The function of Blockchain in IoT is to ensure a secure process of transferring data
through the nodes. The technology is efficient and usable publicly without worrying about knowledge pilferage. The
BC is important for IoT because it enables the secure transfer of data between its nodes in an environment, which is
heterogeneous. The communications in BC are traceable to a person who has the permission to exchange
information within the IoT. The System may help in IoT to reinforce the safety of communication data. During this
paper, I reconnoitered the weakness of IoT security, the importance of Blockchain technology in IoT, the mixing of
BC in IoT, and therefore the design architecture of the mixing of IoT and Blockchain

.Keywords – Authentication, Decentralization, Blockchain, Internet of Things IoT, hash, Node, Cloud, Fog

I. Introduction

The growth of the Internet of Things (IoT) is rapid, and each and every year, the technology aims to embrace 5G
technologies for various functions, including e-health- smart cities, smart homes, and distributed intelligence, among
others (Giusto, Iera, Morabito, & Atzori, 2014). However, IoT has security challenges, and it is linked in a
decentralized manner, thus difficult to use the existing typical systems while communicating between IoT nodes.
Blockchain technology enhances security in transactions, which occur in IoT devices (Giusto, Iera, Morabito, &
Atzori, 2014). The technology avails a decentralized, distributed, and sharable ledger that members of the public can
access to keep the blocks' data, which are processed then get verified in a network of IoT. The information, which is
held in the ledger, is managed in an automated manner using the peer-to-peer-based topology. Blockchain
technology entails processes in which transactions are sent in the form of a block, which is connected with every
device and each other. The transactions have the original address as well. The IoT and Blockchain together function
in the cloud integration and IoT frameworks. In a decentralized market, technology enables investors to deal directly
with each other instead of operating from within a centralized exchange. Virtual markets that use decentralized
currency, or cryptocurrencies, are examples of decentralized markets Therefore the main goal of the technology is to
provide security as it enhances the makes transactions more secure while occurring between nodes. Consequently,
IoT devices would be secure havens for sensitive business transactions that involve huge data and various parties.
Blockchain refers to a chain of blocks arranged in sequence and stores all the records of transactions, which
occur in IoT. Each unit of the chain has a block body and block header. The latter has the following components; the
block version that shows the validation rules and software version, the Merkle Tree root hash, which depicts the
summary of every transaction and the hash value, the Timestamp that has the contemporary universal time all the
way from 1970, the N-bits that define the number of bits a verification of a transaction requires, a nonce, which
carries a 4-byte number that begins from 0 and goes up for each and every transaction of the hash. Finally, it has a
parent block hash that holds the value of the hash. It shows the previous block. The Block body depicts all the

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records of transactions, which occur on the Blockchain. The maximum amounts of transactions rely upon the size of
the blocks (Panarello, A., Tapas, N., Merlino, G., Longo, F., & Puliafito, A., 2018). In this regard, the paper
discusses security issues and solutions regarding IoT and Blockchain.

Paper Outline:
The manuscript is sectioned as follows: The first section represents the introduction, while the second represents the
literature review. The third part covers weaknesses in IoT security as the fourth part talks about Blockchain as a
Solution to IoT Security problem. The Fifth section focuses on the architecture of the IoT and Blockchain
integration. The sixth section explained the code Design and Implementation along with the execution procedure.
The seventh section is all about the implementation processes and the last section is the summary of the whole
paper.
II. Literature review

In the year 2018, communication experts have paid much attention to the security of IoT devices used in
communication. Many researchers have done their publications regarding the topic. Stuart Harber is among the first
individuals to publish a literal work on the transfer of information among parties in a secure manner without keeping
it in a time stamping service Giusto, Iera, Morabito, & Atzori, 2014). The concept of Blockchain originated from the
duo. However, Satoshi Nakamoto was the first person to present Blockchain in the year 2008(Giusto, Iera, Morabito,
& Atzori, 2014). The Scientist demonstrated the technology by showing a paper containing an arrangement of
blocks in chains. In the literal works, the authors demonstrated the IoT Blockchain that would be used to
authenticate the exchange of data between the IoT network’s nodes. The researchers issued an algorithm for
information exchange in blockchains and IoT.

nature of the communication devices makes them more vulnerable to cyber-attacks. IoT physical appliances are
often kept in unsecured entities that make them prone to hacking; hence the hackers can manipulate information to
suit their interest as they pass through the network. Consequently, the information route and device authorization is a
critical issue in IoT. Therefore, Blockchain becomes an important aspect of security. The Internet of Things IoT is
an expansive organization of things entrenched with computer programs, sensors, and comparative technologies
with the intention of exchanging data and information with other frameworks and gadgets over the web (Do-Hyeun
and Hang, 2019). The Internet of Things also entails a set of methods given by particular identifiers that empower
the movement of data and information over enormous systems without the help of people. The term IoT includes an
assortment of gadgets and systems that incorporate Wi-Fi, Cellular, Bluetooth gadgets, health wearable, LPWANs,
and ZigBee (Ahmad, Hang, Kim, 2018). The IoT is prone to vulnerability, and no doubt, the strategy and the intent
to hack diverse IoT frameworks may not solely target the consumer information, but to sabotage the data owners or
users in terms of financial incapacitating and putting their lives at risk by virtue the victims use the gadgets every
day to accomplish fundamental tasks. Also, the devices with the IoT framework are hacked and abused to assault the
web foundation of the provider companies. (Bhattacharjee, Salimitari, Chatterjee, Kwiat, Kamhoua, 2017).The
common assault or the risks of most IoT frameworks is the service denial attack, which is abridged as
DDOS(Distributed Denial of Service)

. In this assault, the culprit disrupts the web temporarily or completely to terminate the services the users offer to
their clients, and it is common among competing business entities. (Sicari, Rizzardi, Grieco, 2015). The
DDOS(Distributed Denial of Service)

attack happens when the cyber attacker sends a superfluous number of requests to the targeted machine or
internet resource with the intention to obstruct or halt the delivery of services to consumers by overloading the
System. There are two major sorts of denial of service attack; the network-centric assault, where an attacker or
hacker endeavors to over-burden a database or a service to cause a dissent of service. Second, the hacker may have
thousands or billions of hacked gadgets that act as its conduit to the hacking endeavors; the aggressor ordinarily
coordinates the gadgets hacked to conduct gigantic assaults on institutions, ventures, and merchants. (Khan, Salah,

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2018). Consequently, IoT framework becomes prone to an array of assorted security shortcomings and challenges
that make the framework unsustainable in the conveyance of critical services.

The process the Blockchain uses to execute its functions entails various steps. First, Nodes and blockchain
network communicate through public and private keys. The nodes utilize their private keys to sign their respective
transactions digitally then get the network access through the public key (Panarello, A., Tapas, N., Merlino, G.,
Longo, F., & Puliafito, A., 2018). The transactions, which have been signed by the nodes are broadcasted by the
same nodes then undergo verification by all the notes, which are within reach of the blockchain network with the
exception of the node, which does the transaction(Panarello, A., Tapas, N., Merlino, G., Longo, F., & Puliafito, A.,
2018). At that stage, any transaction, which is not valid, is discarded, and it is referred to as verification. All nodes
gather the transactions, which are valid at the right time and place them on a block, then conduct the implementation
of a proof-of-work to get its block's nonce (Panarello, A., Tapas, N., Merlino, G., Longo, F., & Puliafito, A., 2018).
The process is referred to as mining. The activity that takes place at the stage in each and every node is choosing a
block, which has been initially publicized, and authenticating it if it holds transactions, which are legal. Also, it
mentions the precise block present on blockchains via the hash (Panarello, A., Tapas, N., Merlino, G., Longo, F., &
Puliafito, A., 2018). After the verification, the nodes add the blocks to respective blockchains then apply the
activities they hold to update the blockchains. In the event the transactions are not authentic, the block projected is
discarded, thus terminating the mining round which exists (Panarello, A., Tapas, N., Merlino, G., Longo, F., &
Puliafito, A., 2018).
Notably, the security weakness of the Internet of Things arises when a device, which is connected to the internet
such as a surveillance camera, smart car, or intelligent lamp, has a system, which does a specific task (Fernandez-
Carames, Fraga-Lamas, 2018). The IoT is prone to hacking due to its weak System and easy to infiltrate-
infrastructure. The System's weaknesses entail privacy problems, which may risk the information of the users. Also,
it may cause damage to the materials due to the misuse of technology, tampering of the devices of the users, and
violation of privacy and confidentiality. Another risk associated with the IoT system is a violation of the location
data use. Such data include those of cars. Closely the IoT (Zheng, Xie, Dai, Wang, 2019). Vulnerabilities exist in
the interfaces of communication between the integrated into the System's weakness are vulnerabilities of security,
which depicts a serious challenge to user and the Internet of Thing. Others include inadequacy in the process of
authentication, inadequate strategies to recognize authorized users (Yuan, Wang, 2016). The inability to identify
authorized users results in an infiltration, which may pose a serious threat to data validity.
.

Among the security issues in IoT(internet of things) is data privacy. The data that is stored in a device faces
vulnerable to the data without the permission of the owner. Also, data integrity is a matter of security concern in
IoT. In a server model, which is centralized, the cyber attacker may access the network without permission and alter
the initial information or data then forward it to the parties of interest. For instance, someone sends data to another
person. A third person who is not a party to the communication might get access to the data, manipulate and
forward it to the second party in the communication. Data, which is collected in a setting that is centralized, is
controlled and stored by a third entity that is centralized as well. The person may misuse the information or gives it
to an unauthorized person.
In the IoT setting, it is not easy to know the source of data generated from a device, which is kept in the
whole network and prone to alteration by attackers. Also, the lack of access control poses a challenge to data
security in IoT. The continuous growth of centralized networks for the IoT based infrastructure could also expose
single-points-of-failure because all data of the entire network store and verified by a central authority. If the central
point fails or goes down, the whole network is likely to go down.
Regarding scalability, the Internet of Things links several devices and sensors so that information can be
shared among the parties of interest. The process entails many types of applications. Therefore, meeting scalability
is difficult due to the complex nature and rapid growth of the System (Do-Hyeun and Hang, 2019). The IoT also

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represents a cluster of techniques, in which specific identifiers enable large data and information to be conveyed
over wide networks in the absence of human beings to provide assistance, thus facilitating cyber-attacks.
The design of IoT and IoT is important with regard to latency and security since the architecture can
operate offline. However, the IoT appliances must have the capacity to pass information from one point to another.
Therefore, a segment of the IoT data is kept in the BC(Blockchain), and interactions in IoT happen in the absence of
Blockchain. The design is appropriate in a situation the IoT interactions happen at a low rate of latency. In the IoT,
all the interactions occur via the Blockchain system prior to going through a network, which has interactions that are
immutable. The model makes sure the records and interactions can be traced since Blockchain can query them. The
architecture of Blockchain allows the recording of the details of the user and the type of interactions. The System
can query the information at any time in order to give traceability and accountability (Bhattacharjee, Salimitari,
Chatterjee, Kwiat, Kamhoua, 2017). The capacity to trace interactions guarantees autonomy. The information
recorded is sent over IoT systems and would need more space of storage and wide bandwidth, which is a challenge
in Blockchain technology (Ahmad, Hang, Kim, 2018).
In the hybrid design, a fragment of the interactions occurs in the IoT applications as others happen in the
Blockchain. The approach integrates the capabilities of both Blockchain and IoT thus; it's able to draw realizations
that are meaningful (Panarello Alfonso et al., .2018). Among the most conspicuous challenges of the approach is
choosing a given interaction that would pass through the architecture of the Blockchain and making a decision
instantly (Panarello Alfonso et al., .2018). Therefore, in this scenario, cloud and fog computing come handy to take
charge of the challenges of Blockchain and IoT.
The security and protection in the correspondence among IoT gadgets gave an excess of consideration in the

time of 2017 and 2018. In the time of 1990, Stuart Haber and W. Scott Stornetta were composed an article [3] on

trading a report with security without putting away any data on the time-stepping administration. The possibility of

blockchains comes from [3] yet the first blockchains were introduced by Satoshi Nakamoto in 2008. He introduced a

paper where the squares were included a chain and structure a blockchain [4]. The writers introduced the

"IoTChain" for verification of data traded between two hubs in an IoT network. They have introduced a calculation

to trade the data in IoT and blockchains

In this paper, developers are centered around the approval part of the security in the IoTChain structure. In the

paper, we investigate the cloud system to associate the shrewd gadgets in middleware IoT gadgets. The paper give a

smart thought to give secure correspondence to the pleasant structure called web cloud system, it is security. In the

article writers speak to a the web of things and give correspondence system in the cloud design for getting to

information among the IoT gadgets.

III. Security considerations

Token security
IoTChain proposes a Proof-of-Possession (PoP) approach to link the client’s identity to an access token. When a
consumer requests a token, the authorization server joins a cryptographic key, dubbed the PoP-key, to the token. The
PoP-key is recognized by the consumer that originally ordered the token and can be gotten to by the resource server
that gets the token. Based on the PoP- key, the asset server makes a test-reply to authenticate if the client displaying
the proof is the genuine proprietor.

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Client privacy
A consumer can secure blockchain protection by producing unused addresses for each exchange. Doing so permits
the consumer to separate each of its transactions in such a state that it is almost impossible for an invader to link
them all jointly.

Denial-of -service
A pernicious client might intend to dispatch a DoS(Disk Operating System)

assault on the network by continually activating smart contracts. Because all the exchanges have to be transmitted
to the other networks and each authorization server confirms these transactions, the network may end up immersed.
A classic defense could be to compel each client to illuminate a cryptographic puzzle before each exchange.

Bootstrapping Key Server

Unused hubs ought to contact boot nodes to synchronize to the Blockchain to prevent assault; the boot nodes ought
to use certificates that permit the unused hubs to verify their genuineness.

Secure Communications
The individual keys are traded over DTLS(Datagram Transport Layer Security) channels between the key server,
the asset servers, and the consumers. It accomplishes authentication between the asset servers and the key server on
the premise of certificates, and between the consumers and the key server, through a test-reply. Exchanges sent
within the Blockchain have signatures to secure their integrity.

IV. Characteristics of Blockchain

Decentralization

Each transaction should be validated in a processing setting, which is centralized. The process occurs by means of
the centralized party that is trusted like the banking system and results in the performance and cost decrees at the
central location. Regarding the model of centralized IoT, the third party does not need Blockchain. The data
consistency and integrity are maintained in the Blockchain (Christidis, & Devetsikiotis, 2016).

Persistency
Immediately a record of transaction undergoes validation by a miner node, which is a unique node that validates
transactions in a blockchain; transfer of its copy occurs on the whole network, then the record is not rolled back or
deleted from the blockchain system (Christidis, & Devetsikiotis, 2016).
Anonymity
An interaction between blockchain nodes and the network occurs through a public key, which addresses the nodes
on the whole network of Blockchain, though it does not acknowledge the user's real identity( Christidis, &
Devetsikiotis, 2016).
Security
Blockchain utilizes asymmetric cryptography to make the whole network secure (Christidis, & Devetsikiotis, 2016).
Public or asymmetric key cryptography has one private and public key, respectively. The node uses the latter to
communicate with the blockchain network while using the former to sign the transactions it had initiated (Christidis,

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& Devetsikiotis, 2016). The remaining types of nodes utilize public keys and authenticate them upon hashing to the
respective signatures of their own while screening the identification of the initiator node.
Scalability
Blockchain has an address space of 160-bit. The IPV6(Internet Protocol version 6) address has an address space
of 128-bit, and the general public key has a 160-bit hash. The spacing is produced by the Elliptic Curve Digital
Signature Algorithm). Finally, Blockchain has 4.3 billion extra addresses compared to 1PV6 (Christidis, &
Devetsikiotis, 2016).

Resilient backend
In the Blockchain's IoT network, all distributed nodes conserve the entire ledger's replica. The process safeguards
the network from any possible attacks or failures (Panarello, A., Tapas, N., Merlino, G., Longo, F., & Puliafito, A.,
2018).
High efficiency
The transactions, which involve Blockchain, eliminate the third party and may go on in a low-trust situation. The
number of times a person spends is decreed as the efficiency enhances (Panarello, A., Tapas, N., Merlino, G.,
Longo, F., & Puliafito, A., 2018).

Transparency
Changes made to the public blockchain network are publicly viewable by all participants in the network. Moreover,
all transactions are immutable, meaning they cannot be altered or deleted (Panarello, A., Tapas, N., Merlino, G.,
Longo, F., & Puliafito, A., 2018).

Smart contract
This is among the most efficient components of Ethereum. Nick Szabo introduced the concept in the year 1994 (8).
Several languages of programming are given support by Ethereum, like Solidity. The most utilized compiler and
language in programming is Solidity. Smart contract programming enables various policies and access rights to be
defined in blockchain IoT (Panarello, A., Tapas, N., Merlino, G., Longo, F., & Puliafito, A., 2018).

V. Propose Architectural design

This project focuses on direct communication and the IoT(internet of things) devices are classified as
actuators and sensors. Sensors collect data like humidity level while actuators do specific tasks like turning on
the light depending on the commands they get from the users. Figure. 1 shows a conceptual scenario of an IoT
Blockchain platform. Figure 2. Depicts the IoT Blockchain( Layer-Based). The architecture is modular as
every layer is not coupled with other layers to enable us to delete or add novice modules without tampering
with the entire system. Figure 3. The diagram gives a description of the workflow of the system and provides
an in-depth understanding of each unit of the IoT Blockchain platform proposed. Finally, fig 4 gives an
illustration of the in-depth process of executing transactions in the Blockchain network.

Merits

Diminish the Cost: This methodology will lessen the expense since it conveys straightforwardly

without the outsider. It takes out all the outsider hubs between the sender and the beneficiary. It

gives direct correspondence.

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 Reduce Time: This methodology is diminished the time a ton. It lessens the time taken in

exchanges from days to second.

Security and Privacy: It gives security and protection to the gadgets and data.

Social Services: This methodology offers public and social types of assistance to the associated

gadgets. All associated gadgets can impart and trade data between them.

Monetary Services: This methodology move assets in a safe route without the outsider. It gives

quick, secure and private monetary assistance. It decreased exchange cost and time.isk the

executives: This methodology is assumed the significant parts to dissect and diminish the danger

of bombing the assets and exchanges.

Demerits

Adaptability: The blockchain can become hang due to its hefty heap of the exchange. The

Bitcoin stockpiling is getting in excess of 197 GB stockpiling in envision in the event that IoT

incorporates with blockchain, at that point the heap will be heavier than the current circumstance.

Capacity: The computerized record will be put away on each IoT hub. When, it will increment

in its stockpiling size that will be a difficult assignment and become a weighty burden on every

single associated gadget.

Absence of Skills: The blockchain is another innovation. It is known by not many individuals on

the planet. Thus, it is likewise a test to prepare the individuals about the innovation.

Disclosure and Integration: Actually, blockchain isn't intended for IoT. It is an exceptionally

provoking undertaking for the associated gadgets to find another gadget in blockchain and IoT.

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Protection: The record is disseminated openly to each associated hub. They can see the record

exchanges. In this way, protection is additionally a difficult errand in the coordinated

methodology.

Interoperability: The blockchain can be public or private. In this way, the interoperability among

public and private blockchains is likewise a test in the blockchain-IoT approach.

Rules and Regulation: The IoT-blockchain will act worldwide, so it faces numerous principles

and guidelines for actualizing this methodology internationally.

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VI. Code Design and Implementation
Transaction process functionality is utilized in the integration of the IoT and Blockchain. Depicted in the
code below, the task of the transaction processor has a JavaScript function; the processor function gives an update
on the actuator value based on the readings from the input devices, then the new value gets updated in the registry
before departing the event (Alharbi et al. 2015).

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 The extraction of data from the Blockchain will be attainable by queries. Each of the queries will contain
two sections; the query description and query statement. The former describes the function the query performs,
while the statement part entails the regulation of query functioning.

VII. Implementation

The hosting of the IoT device server uses the Raspberry Pi that is integrated with different actuators
and sensors. Then hyper ledger Fabric Framework is used to develop the blockchain network in which
an ordered node and four peers run images in the ducker container. All the peers have data storage and
smart contract to write on transactions on a ledger using blocks. The couch DB(data base) is utilized to
act as the state database, which gives an in-depth query report then gives support to smart contract data
that is shown as JavaScript Object Notation. It gives the support a variety of query types like put, get,
and delete together with a state key that allows the application to invoke a smart contract to have
access through APIs(Application Programming Interface).

The couch DB gives support to a modest state value with a composite state value, single key-value pair, and several
key-value pairs. Contrary to a state database, the blockchain is incorporated physically in a given file, and the
structure of the blockchain data utilized to keep records of small data set of operations that are not complex. The
REST server gives different restful APIs, which disclose the functions the blockchain network defines. A physical
gadget or a web client can invoke the entire service directly. Further, it gives a host to Fabric client that uses system
calls of Google remote procedure to engage Hyperledger Fabric network in communication. The blockchain plays
the role of a transaction log, which keeps records of all the state changes, the transactions are further gathered into
blocks, which are joined together cryptographically to generate a chain sequence in which all the ledger transactions
are classified in order of time. Therefore, the user can tell the history of the transactions. Finally, ordered node I and
PBFT (Practical Byzantine Fault Tolerance) algorithm is incorporated to make sure there is consistency in all the
copies of the parent ledger.

Performance/ Conclusion

Blockchain provides secure data storage solutions to individuals and organizations. Further, it also avails a
chance for the complex IoT systems to function optimally in a secure setting. The technology enriches the network
and System of IoT by availing the service that enables the sharing of the network by a third party. In the System,

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information is easily traceable and reliable. The IoT can immensely benefit from the communication functionality
blockchain provides. Further, the integration of the Blockchain and IoT has several benefits, including scalability
and Decentralization, which means the move to peer service from a centralized architecture will deter data insecurity
(Panarello Alfonso et al. .2018). Scalability and Decentralization will also happen by reducing the scenario where a
few powerful enterprises control a huge amount of data of individual consumers.

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