IoT and Blockchain Integration: Applications, Opportunities, and Challenges
Abstract
:1. Introduction
Motivation and Contribution
- precisely defines and exemplifies IoT, blockchain technology-related, and relevant security terminologies.
- examines the importance of IoT and Blockchain security as evolving technologies.
- explains the challenges of IoT and Blockchain integration.
2. Architecture of IoT
2.1. Sensor Layer
2.2. Gateway Layer
2.3. IoT Sink Layer
2.4. IoT Application, Visualization, Command, and Control Layer
3. Applications and Categories of IoTs
- (1)
- Climate and Environmental (Aquatic/Terrestrial) IoT: Environmental IoTs are composed of sensors employed for different purposes, such as detecting pathogens, chemicals, gas, temperature, and(or) other variables in an environment, such as land or water bodies [21]. For instance, regulatory bodies such as Environment Protection Agency (EPA) often employ IoT to monitor the risk factors that affect human and environmental health. Similarly, industries based on land and water resources have benefited from the IoTs for various business needs. For instance, climate and environmental IoTs have been used for real-time monitoring and forecasting of weather, and climatic conditions in an area [8].
- (2)
- (3)
- Industrial IoT: The use of IoTs has been profitable in industries of varying kinds, such as hospitals [2], manufacturing industries, and retail and whole-shale markets, among others. Everyday use cases of an industrial IoT include remote condition monitoring, digital work instructions, predictive mainteisce, and disaster management. Using industrial IoTs brings several benefits, such as maximizing revenue, reducing time to market, and lowering operational costs.
- (4)
- Smart Home IoT An IoT find(s) is one of its most popular applications inside a home setting. Automating lighting, sound, and kitchen work such as cooking and washing are automated by using different connected devices. Controlling and maintaining home climate can also be performed effectively using sensors such as thermostats [1,4,21].
- (5)
- Wearable IoT: Wearable IoT comprises wearable technologies such as Fitbit, Holter monitor, personal alarm devices, smartwatches, etc. The sensing devices have become so small that they have been integrated into normal clothing items such as bras or vests, caps, shoes, and travel/school backpacks [21,24,25]. Wearable IoT has helped monitor personal health and supports remote health services [3].
- (6)
- Smart City IoT: Smart city IoTs are an extended version of the smart home IoT [1]. It comprises many sensor technologies to sense an urban environment, streets, highways, traffic, and vehicle mobility. Smart retail shopping, intelligent health services, and smart parking are also an integral part of a smart city (https://en.wikipedia.org/wiki/Smart_city (accessed on 22 July 2022)) [4].
- (7)
- Vehicular IoT: Vehicular IoT can be considered one of the components of a smart city IoT. Sensors that collect data from terrestrial and aerial vehicular devices constitute vehicular IoT. The data may be helpful to route the vehicular devices efficiently or may be helpful to collect environmental data such as temperature and humidity. For instance, United Parcel Service (UPS), a shipping company, deploys sensors in its transport vehicles to collect data such as mileage, speed, fuel cost, etc., for big data analysis [26,27]. Unmanned aerial vehicles (UAVs) also use different sensor data to optimize their route and operations to support “collaborative autonomous driving, and advanced transportation [28]”.
4. Blockchain Technology
4.1. Overview of Blockchain Network
4.2. Types of Blockchain Networks
4.3. Applications of Blockchain Technology
- Financial Transactions and Trusted Digital Payment:In conventional digital payments, intermediaries such as banks, finances, and credit card companies act as a trusted party between a payee and a payer for any digital transactions [33]. It involves several tasks, such as bank balance verification of the payee, transaction validation, and payment verification. However, the network automates verification and validation with blockchain-based payment systems such as Bitcoin and Ethereum. As its main advantage, it reduces intermediaries’ fees and transaction completion time [30].
- Process Automation: Blockchain networks may also support “smart contracts”. Smart contracts are similar to regular business contracts except for the contract rules, terms (agreements), and transactions are encoded as a computer program and are executed automatically, in real-time, on blockchain network nodes [10]. The blockchain miners validate the outputs of the execution. Smart contracts save business operation time and cost and guarantee contract compliance. They have a higher potential for automating financial payments, financial audits, online transactions, document signature and approval, supply-chain operations, and so on [10].
- E-governance: E-governance is the practice of using information communication technology to provide government services, including issuing citizenship certificates, collecting taxes, delivering social securities, conducting elections, and crowd-sourcing [34,35]. Blockchain technology adds advantages to e-governance by automating most of the administrative services. Countries, including Estonia and China, have invested in research on the use of blockchain in e-governance to promote efficiency and effectiveness in the provision of public services [36,37].
- Data Redundancy: One of the chief features of a blockchain network is distributed data storage [16]. Both private and public blockchain networks enforce that the computing nodes securely keep a copy of application-related data. Any alteration of data in a store can be easily detected and recovered by importing from the network peers. For instance, DokChain (https://bit.ly/3QYRws1 (accessed on 13 July 2022)) project uses blockchain as a distributed data storage to store and process financial and clinical data. Such application enhances data integrity, auditability, and efficiency for healthcare and other related transactions and processes.
5. Materials and Methods
5.1. Research Questions
5.2. Data Sources
5.3. Search Criteria
5.4. Quality Evaluation
- Q1: Does this resource refer to both the {internet of Things, IoT} and {blockchain network, blockchain}?
- Q2: Does this resource refer to an {challenges, application} of {internet of Things, IoT} and/or {blockchain network, blockchain}?
- Q3: Does this resource’s title, abstract, or any portion of body refer to an {application, combination, merging, issues, challenges} of {Internet of Things, IoT} and/or {blockchain network, blockchain}?
6. Security Assurances and IoT Threat Model
6.1. Definitions of Security Assurances
6.1.1. Confidentiality
6.1.2. Authentication and Authorization
6.1.3. Integrity
6.1.4. Availability
6.1.5. Physical Security
6.1.6. Anonymity
6.1.7. Trustworthiness
6.2. IoT Threat Model
6.2.1. Threat and Attacks on Confidentiality
6.2.2. Threat and Attacks on Availability
6.2.3. Threat and Attacks on Integrity
6.2.4. Threat and Attacks on Authentication and Authorization
7. IoT and Blockchain Integration
- Sensor devices as Transaction Issuer (SaTi): In this integration model(see the interaction (a) between sensor node s and BCN in Figure 6), IoT devices such as sensors take part in issuing transactions to the external BCN. Such IoT devices should be designed to accommodate computational power and bandwidth requirements. However, the typical IoT devices do not have the storage capacity to store a complete blockchain. In many use cases, such as industrial IOTs, this model may be too costly and ineffective for sensors to communicate with an external BCN. In that case, edge devices such as IoT gateways may be employed to issue transactions on behalf of all the low-power, resource constraint IoT devices.
- Edge devices as Transaction Issuer (EaTi): In this integration model (see the interaction (b) between edge device g and BCN in Figure 6), specially designed IoT edge devices such as gateway routers may be actively issuing transactions to an external BCN, without actually storing a copy of the blockchain ledger. This integration model is efficient, given that it requires a limited number of edge devices for interacting with the BCN.
- Edge devices as Transaction Verifier (EaTv): This integration model extends the EaTi model, where specially designed IoT edge devices issue transactions to the BCN and maintain an entire blockchain ledger for active block validations. In many cases, edge devices could handle both issues and validate transactions being an active node for a BCN. However, unless business interests require it, an industry may not use edge devices for transaction validations, which are computationally intensive and require higher storage and bandwidth. In the figure, interaction (c) is part of this integration model.
- Hybrid: In a hybrid integration model, IoT and blockchain interact through edge devices and specially designed IoT sensor devices. It depends on the applications whose interactions go through edge and IoT devices. In the figure, interactions (a), (b), and (c) are part of the hybrid integration model. In other words, sensor devices issue transactions, and edge devices issue, and validate transactions for a BCN. Nonetheless, this model imposes redundancy in issuing transactions for a BCN, which is costly in terms of bandwidth.
7.1. Application Areas of IoT and BCN Integration
7.1.1. IoT Devices and IoT Applications’ Security Enforcement
- Trust Platform: As discussed in the previous section, a blockchain network is a platform that supports transaction and process verification and public audit of the data stored in the temper-detectable blockchain ledger. Thus, the blockchain network has the potential to be used as a trusted platform for several IoT-related applications. Dedeoglu et al. [54] presented a blockchain-based trust architecture for building end-to-end trust for various IoT-based applications. Tang et al. [55] proposed a decentralized trust framework called IoT Passport for cross-platform collaborations using blockchain to enforce trusted interactions between IoT devices across platforms.
- Authentication and Access Control: Access control is a mechanism of mapping computational resources with users with appropriate access, including reading, writing, and executing. Because the blockchain network guarantees the integrity of stored data, access control mechanisms for IoT devices and applications are built and encoded on the blockchain ledger. Ji et al. [56] used an identify-based data access control model, BDAC, to provide fine-grained data access control for IoT systems. Muzammal et al. [57] proposed an enhanced authentication and access control method for IoT devices to add features, such as decentralization, secured authentication, authorization, and scalability. Zhang et al. [58] proposed an attribute-based collaborative access control scheme on top of a blockchain for IoT devices. Recently, Pal et al. [59] proposed blockchain-based IoT access control mechanisms that are claimed to provide critical features, including resource management, access rights transfer, permission enforcement, attribute management, and scalability. Košťál et al. [60] proposed using the blockchain network to manage and monitor IoT devices. Previous works from [61,62,63] were heavily focused on using Blockchain for IoT access control management.
- Privacy and Integrity of IoT data: Privacy and integrity are the essential properties of the IoT ecosystem. Tan et al. [64] proposed Shamir’s threshold cryptography for protecting the privacy of the IoT data stored in the cloud. In this model, the end-users request decryption keys from the blockchain network to decrypt the encrypted data in the cloud. Negka et al. [65] proposed using hardware-derived functions known as physical unclonable functions (PUFs) to detect counterfeit IoT devices. Wu et al. [66] simulated a system of assuring and detecting IoT data integrity using a distributed blockchain system. Naresh et al. discussed a blockchain-based method to monitor the topographic integrity of an IoT network.
7.1.2. Industrial IoT Devices and Identity Management
7.1.3. Industrial IoT Data Management and Resource Sharing/Trading
8. Challenges of IoT, Blockchain and the Integration
8.1. Network and Communication Security
8.2. Scalability
8.3. Interoperability, Standardization, Regulation, and Governance
8.4. Deployment and Detection
8.5. Performance and Resource Constraints
8.6. Maintenance and Patching
9. Meeting the IoT-BCN Challenges: Tools, Techniques and Strategies
9.1. Physical Security of IoT Devices
9.2. Confidentiality through Encryption
9.3. Authentication
9.4. Anonymizing the IoT Data
9.5. Authorization
9.6. Availability
9.7. Trustworthiness
9.8. IoT Security Controls and Policies
- Implement IoT devices and firmware version inventory management: This control encourages network owners to create an effective inventory of authorized network and sensor devices. This inventory assists in establishing authorized network devices and detecting unauthorized devices.
- Implement IoT application services and version management: This control provides a mechanism to create an inventory of software or firmware packages used by IoT devices. Such inventory is valuable during firmware/software vulnerability fixing and patch management.
- Implement IoT network or device access control management: Access control mechanism is one of the crucial techniques to provide operational and other permissions over IoT devices. It also assists in monitoring IoT device access by different users. Proper authentication mechanisms should also be implemented to avoid leaking or reusing user credentials such as usernames and passwords.
- Implement IoT network and application isolation: It is crucial to establish a distinction between an IoT network and an application (or analysis) layer. While an IoT network is a network of devices contributing to harvesting sensor data, the application layer consists of services used by end users to support organization decisions. A stringent isolating boundary should be created to mitigate risks of vulnerabilities affecting each other.
- Implement IoT network and access Log management: This control encourages network owners to collect, alert, review and retain events logs that could assist in detecting, comprehending, and recovering from any attack on an IoT system.
- Data protection and recovery management: Critical asset produced by an IoT is the vast set of application-specific data. Implementing adequate data backup procedures is crucial to avoid data loss during an attack or a disaster. User access and data encryption should also be properly managed to prevent information leaks.
10. Discussion and Conclusions
Author Contributions
Funding
Acknowledgments
Conflicts of Interest
Abbreviations
ABE | Attribute-Based Encryption |
AES | Advanced Encryption Standards |
BC | Blockchain |
BCN | Blockchain Network |
CIS | Center for Internet Security |
CVSS | Common Vulnerability Scoring System |
DES | Data Encryption Standard |
DoS | Directory of open access journals |
ECDSA | Elliptic Curve Digital Signature Algorithm |
FDI | False Data Injection |
IIRA | The Industrial Internet Reference Architecture |
LTE-M | data |
LoRa | Long Range |
MAC | Mandatory Access Control |
MIM | Man-in-the-Middle |
NFC | Near Field Communication |
OWL | Web Ontology Language |
PASTA | Process for Attack Simulation and Threat Analysis |
PoS | Proof of Stake |
PoW | Proof of Work |
RBAC | Role Based Access Control |
RFID | Radio Frequency Identification |
RSA | Rivest–Shamir–Adleman Algorithm |
TCP | Transport Control Protocol |
TLS/SSL | Transport Layer Securuirty/Socket Layer Security |
TXN | Transactions (Plr. TXNs) |
Temp. | Temperature |
UAV | Unmanned Aerial Vehicle |
WIMAX | Worldwide Interoperability for Microwave Access |
WWW | World Wide Web |
ZB | Zettabytes |
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Capability | Public BCN | Private BCN | Consortium BCN |
---|---|---|---|
Decentralization 1 | Yes | Yes | Yes |
Distributed Computing | No | No | No |
TXNs 2 Verification | Performed by all (or majority) of nodes | Random or selected node | Random or selected node |
Network Participation | Open to any node | Approved by network manager | Approved by network manager |
TXNs (Data) Privacy | Not protected | Not-protected | Not-protected |
TXNs Traceability | Pseudo-anonymous | Traceable or Pseudo-anonymous | Traceable or Pseudo-anonymous |
Data Immutability | Highly immutable | Limited | Limited |
Fault Tolerance | Yes | Limited | Limited |
Trustworthy Execution | Yes | No | No |
Consensus Mechanism | PoW, PoS, etc. | PoW, PoS, etc. | PoW, PoS, etc. |
Smart Contract | Optional (mostly supported) | Optional | Optional |
Cost | TXNs execution fee | Free to the internal TXNs | Free to the internal TXNs |
S.N. | Research Questions | Objectives |
---|---|---|
RQ.1 | What are the security assurances of an IoT? | To explore the chief security assurances pertinent to IoT systems |
RQ.2 | What is the threat model of IoT? | To explore different events that pose threats to the security requirements. |
RQ.3 | What are the application scenarios of an IoT in isolation to new technology such as blockchain technology? | To explore applications of IoT without considering blockchain technologies. |
RQ.4 | What are the advantages and disadvantages that come with the integration of IoT with blockchain technology? | To discuss various integration models and their merits. |
RQ.5 | What are the challenges for IoT and blockchain integration? | To discuss technical and non-technical problems and challenges that need to be overcome for the successful integration of IoT and blockchain technology. |
Terminologies 1 |
---|
“{Internet of Things, IoT} for Blockchain {Networks, technology }” |
“Integration of {Internet of Things, IoT} and Blockchain {Networks, technology}” |
“Challenges of {Internet of Things, IoT} and Blockchain {Networks, technology}” |
“Issues in {Internet of Things, IoT} and Blockchain {Networks, technology} integration” |
“Applications of Challenges of {Internet of Things, IoT} and Blockchain {Networks, technology}” |
“Merging Challenges of {Internet of Things, IoT} and Blockchain {Networks, technology}” |
“Combining Challenges of {Internet of Things, IoT} and Blockchain {Networks, technology}” |
“Combination of Challenges of {Internet of Things, IoT} and Blockchain {Networks, technology}” |
“{Using, Use of} Blockchain network for {health, hospitals, farm, farming, poultry, fishery}” |
“{Using, Use of} Blockchain network for {agriculture, forestry, smart city, smart driving}” |
“{Using, Use of} Blockchain network for {parking, war, smart grid, battle}” |
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Adhikari, N.; Ramkumar, M. IoT and Blockchain Integration: Applications, Opportunities, and Challenges. Network 2023, 3, 115-141. https://doi.org/10.3390/network3010006
Adhikari N, Ramkumar M. IoT and Blockchain Integration: Applications, Opportunities, and Challenges. Network. 2023; 3(1):115-141. https://doi.org/10.3390/network3010006
Chicago/Turabian StyleAdhikari, Naresh, and Mahalingam Ramkumar. 2023. "IoT and Blockchain Integration: Applications, Opportunities, and Challenges" Network 3, no. 1: 115-141. https://doi.org/10.3390/network3010006
APA StyleAdhikari, N., & Ramkumar, M. (2023). IoT and Blockchain Integration: Applications, Opportunities, and Challenges. Network, 3(1), 115-141. https://doi.org/10.3390/network3010006