What happens when the Internet of Things hits the blockchain

The Internet of Things (IoT, Internet of Thing) has been associated with major cyber attacks, usually involving abuse of vulnerable networking devices (such as surveillance cameras) to assist in malicious activities. Of course, all walks of life have expressed doubts about the IoT's ability to ensure the security of billions of devices connected to the vast Internet, and requested that feasible solutions be provided to fill this security gap. At this time, the debut of the blockchain is a relatively new technology, which is expected to reduce the risk of invasive Internet of Things (IoT) devices through central agencies and at the same time improve the scalability of IoT implementations. In principle, it can protect the Internet of Things network in a variety of ways, such as forming a community consensus on abnormal network behavior and isolating any node that does not operate according to regulations.

Two key enablers combined into one: When the Internet of Things meets the blockchain

Over the decades, the Internet of Things has dramatically expanded and connected devices and networks, including homes, workplaces, transportation systems, and even entire cities. On the other hand, the 10-year blockchain will revolutionize the business model through its encrypted and distributed ledgers to create real-time records that can prevent tampering. Through the coordinated operation of the Internet of Things and blockchain, the latter is expected to provide verifiable and secure recording methods for the former devices and programs.

The blockchain operates as a distributed ledger and will record every delete or modify action of the data. As more data (blocks) are added, a longer chain of events will be established. Every transaction that is made is digitally signed and can never be changed or deleted. Due to the decentralized nature of the blockchain, it is theoretically possible to prevent vulnerable devices from pushing false information and damaging the network environment, whether it is a smart home or a smart factory.

In a recent and notable IoT security incident, the blockchain can reduce the risk of Distributed Blocking Service (DDoS) attacks that can affect multiple devices at the same time: a device disruption should not affect other devices . We are aware of this issue in the protection of smart city security. Such expedient measures are very important for maintaining the online and functional aspects of services, especially key systems.

With blockchain, each device will have strong encryption capabilities to further secure communications with other devices and provide anonymity in the most important privacy-use IoT use cases. Adopters will be able to better track devices and post security updates to help strengthen potentially vulnerable devices.

Blockchain: The necessary link between security and IOT (Internet of Things)?

What happens when the Internet of Things hits the blockchain

Figure 1: Blockchain in the Internet of Things: Potential Benefits

The combination of blockchain and the Internet of Things is expected to also solve regulatory issues. For example, transactions from multiple sources in an enterprise can be managed through constant and transparent records, tracking data and physical goods throughout the supply chain. In the event of a wrong decision or system overload, blockchain records should identify problem points (such as devices or sensors) and businesses can take immediate action. The blockchain also helps reduce operating costs because it does not require an intermediary or middleman.

IoT blockchain implementation and use cases

Blockchain is not only a distributed ledger based on cryptocurrency (most notably Bitcoin). In fact, it has been used in different industries, including retailing, to simplify and ensure the safety of products moving in the supply chain, while in the pharmaceutical industry it is used to ensure the integrity of contracts, clinical trials and the drugs themselves. With the integration of blockchain into these and other industries, the quality of products and services can be closely monitored.

In the field of Internet of Things, blockchains are also gaining popularity. A company has started to provide blockchain protection security platforms for Industrial Internet of Things (IIoT). This solution is hailed as the first and only solution. Its goal is to allow more participants to control consensus and improve the system's backup capacity to address the broad attack surface of the Internet of Things. A blockchain-focused research center has also been formed to promote the development and commercialization of this technology, as well as to innovate the capabilities of the Internet of Things ecosystem.

The challenge of integrating blockchain into the Internet of Things

The blockchain in the Internet of Things is indeed rapidly developing, but it is not without obstacles. First of all, the key concept of the blockchain is a series of completed transactions and how they form a chain. This chain is established by retaining the reference data of past transactions and then forming a block. However, building a block requires a lot of calculations and requires multiple processors and a lot of time to generate. Since it is difficult to create a block, it is equally difficult to tamper with it: the tamperer must tamper with the previous block and follow the established chain to completely change it.

This mechanism seems to be an ideal choice to protect the security of the Internet of Things. However, it must be noted that the computing power of the IoT device is relatively insufficient, and the underlying blockchain communication protocol will bring overhead traffic and generate blocks that may cause delays. The above situation does not bode well for devices with limited resources and limited bandwidth, as well as operations that require real-time updates or fast response.

In terms of security risks, researchers have classified threats related to accessibility, anonymity, and identity verification and access control. Malicious actors may be able to access data or services by means of blocking service (DoS) attacks and cloud storage intrusions, which poses a threat to accessibility. In addition, they can also search for links between users' anonymous transactions and other public information, trying to identify specific users. They will also try to obtain data as legitimate users, but the system can detect the threat of identity verification and access control, because all transactions will be recorded and verified by users in the blockchain.

In addition, in this year's security forecast, we predict that the blockchain will be used by threat actors to expand its escape technology. It is inferred that the IoT sensors and devices may be threatened because they send error messages to the blockchain. With this technique, if a piece of data is authenticated, it will be recorded in the blockchain. Therefore, the adopter needs to ensure that the sensors and devices are prepared for coverage when they are compromised, and only grant access to the user responsible for control.

Safety advice

In normal operation, the blockchain can bring great benefits to the IoT system by reducing costs and improving efficiency. Even so, there is still a long way to go before this technology penetrates into the IoT environment. For example, it is expected that up to 10% of production blockchain ledgers will be integrated into IoT sensors by 2020. Moreover, there is still a long way to go before most of the IoT system's computing power can handle the massive blockchain implementation.

Although the elimination of single points of failure has not yet been achieved, the focus of the security of the Internet of Things still lies in the continuous and secure deployment of all networked devices. In addition to updating software in a timely manner to prevent downtime, individuals and organizations using the Internet of Things should focus on complete multi-level security protection, from the gateway to the endpoint, to prevent any potential network intrusion and destruction. this needs:

Change the default credentials. The original default credentials cause the Internet of Things to become notoriously a botnet and intruding on connected devices. Therefore, users are advised to enable password protection and use unique and complex passwords to reduce the risk of device compromise.

Strengthen router security. Vulnerable routers lead to vulnerable networks. Protecting the router's security with a complete security solution allows users to control all connected devices while maintaining privacy and productivity.

Set up the device to ensure safety. The default settings of the device should be checked and modified according to the user's needs. It is recommended to customize features and disable unnecessary features to improve security.

Monitor network traffic. Actively scan the network for abnormal behaviors and help users prevent any malicious attempts. Real-time scanning provided by security solutions can also implement automatic and efficient malware detection.

Implement additional security measures. Users are advised to enable the firewall and use the Wi-Fi Protected Access II (WPA2) secure communication protocol to increase protection. Using Web Reputation Ratings and application-controlled solutions can also provide better visibility for the Web.

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