01CE0720– Blockchain Technology

Unit - 4
IoT (Internet of
Things) and Blockchain

Dr. Sushil Kumar Singh

Associate Professor,
Computer Engineering Department
Office Location: MA252
Topics (Unit-4)
• IoT (Internet of Things) and Blockchain

➢ Introduction of IoT,
➢ Layer Architecture of IoT,
➢ Characteristics of IoT,
➢ Layer-wise Security Issues and Attacks,
➢ IoT Smart City’s Challenges,
➢ Blockchain-based Security Solutions for IoT Applications,
➢ Convergence of blockchain, IoT, smart city, and 5G,
➢ Blockchain as a Services (BaaS)

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What is IoT (Internet of Things) (Definition)
● Interconnection of Things such as
Sensors, Actuators, Electronic
Devices, and Home appliances is
revolutionizing our everyday lives.
• IoT offers advanced connectivity
of devices and services that go
beyond machine to machine
(M2M).
• It covers various protocols,
domains, and applications, such as
Smart grid, Smart Healthcare, and
Intelligent manufacturing.

IoT = IoE (Internet of Everything)

IoT (Internet of Things) = Things (Objects) + Communication networks (Medium) + Raw data from objects4
Introduction to IoT
Definition
• The Internet of Things (IoT) refers to the interconnected system of physical devices embedded with sensors,
software, and other technologies to collect and exchange data over the Internet.
• These "things" can be anything from home appliances and vehicles to industrial machines and smart city
infrastructure.

Key components of IoT

• Devices/Sensors: Physical objects that gather environmental data (e.g., temperature, motion, pressure).
• Connectivity: The communication network (Wi-Fi, cellular, Bluetooth, etc.) that connects the devices to the
cloud or each other.
• Data Processing: Software systems that analyze and process the collected data to make sense of it, often
through cloud platforms.
• User Interface: How end-users interact with the IoT system, such as through mobile apps, web portals, or
voice assistants.

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Introduction to IoT
How IoT Works
• Data Generation: Devices collect and generate data using sensors.
• Data Transmission: This data is transmitted over a network (e.g., 5G, Wi-Fi) to a central cloud or server.
• Data Analysis: The collected data is analyzed to provide insights, trigger actions, or generate reports.
• Action/Feedback Loop: Based on data analysis, actions are taken (e.g., turning on a light or adjusting a thermostat).

Applications of IoT
• Smart Homes: Devices like smart thermostats, security cameras, and voice assistants.
• Wearables: Fitness trackers and smartwatches.
• Smart Cities: Intelligent traffic management, street lighting, and waste management.
• Industrial IoT (IIoT): Machines in manufacturing plants connected to optimize processes.
• Healthcare: Remote health monitoring, smart medical devices.

Essential for IoT

• IoT Protocols: Common protocols include MQTT (Message Queuing Telemetry Transport), CoAP (Constrained
Application Protocol), and HTTP.
• IoT Security Solutions: Security measures include encryption, secure boot, and firewalls tailored for IoT devices.
• Environmental Impact: While IoT devices can reduce energy consumption, their production and disposal
contribute to electronic waste.
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Introduction to IoT
Advantages of IoT
• Increased Efficiency: Automates processes and reduces human error.
• Data-Driven Insights: Provides real-time information that helps optimize operations.
• Improved Quality of Life: Devices that make everyday life more convenient (e.g., smart locks, personal
health trackers).
• Cost Savings: Energy-efficient systems, predictive maintenance in industries.

Future of IoT
• 5G Integration: The rollout of 5G will enable faster, more reliable connections, supporting the growth of
IoT devices and networks.
• Edge Computing: Processing data closer to the source (on the "edge") rather than sending everything to the
cloud will reduce latency.
• AI and Machine Learning: These technologies will make IoT systems more autonomous, intelligent, and
responsive.
• Smart Cities and Infrastructure: IoT will drive advancements in smart infrastructure, improving efficiency
in transportation, energy, and urban living.
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IoT Layer Architecture
IoT has Six layers
1. Physical Layer: Identifying data such as temperature, location, weather, motion,
and others. Used sensors and actuator devices.

2. Communication Layer: This is the bridge that connects one device to another,
fostering a network of interconnected devices. It's where Wi-Fi, ZigBee, and
infrared waves come into play, enabling seamless data sharing.

3. Link Control Layer: This is the guardian of data flow, ensuring it moves
smoothly and without errors. It's the backbone of reliable communication in IoT.

4. Service Layer: Provide various services such as decision support, database

support, composition, and organization.

5. Management Layer: Manage the data, software, protocols, network

infrastructure, security, and privacy.

6. Application Layer: It ensures the global management of applications used in

IoT, including Self-management, Self-Automation, and Self-Production.

IoT Layer Architecture = Physical Layer + Edge Layer + Fog Layer + Cloud Layer 8
9
Challenges in IoT
1. Limited data storage (Big Data)
2. Less communication capabilities
3. Connectivity of devices
4. Security and Privacy
5. Inter Operability
6. Accuracy of data
7. Communication Latency
8. Traffic Jamming
9. Business Model in IoT applications
 Integration of IoT and ● Convergence of IoT
Cloud Computing and Cloud Computing
To mitigate IoT challenges by integration of IoT and
Cloud Computing.

• Cloud based IoT handles more data and resources

generated by IoT devices.

• Offers smart gateway platform for easily processing

the task in the network.

• Provide Distributed and decentralized methods for

security and privacy.

• Providing a trustworthy cloud computing

environment with IoT.
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Sou rce : http s://cloud-hosting-in-india .tumblr.com/po st/184032 531781 /cloud-computing-trends-that-will-amaze-
you-in-201 9
Layer-wise Security Issues and Attacks

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Layer-wise Security Issues and Attacks
• IoT has four parent layers: physical, edge, fog, and cloud. To better understand the concept of the IoT, we are
transforming these layers into some other layers, such as the physical, communication, link control, service,
management, storage, and application layer.
• Security issues in IoT and existing solutions are also discussed and illustrated in back Fig.
• Network and IoT security is fortified by seven crucial properties or features: access control, confidentiality, integrity,
authentication, availability, and non-repudiation. Understanding and implementing these features is key to ensuring a
secure and protected IoT environment, which provides a sense of security and peace of mind.

Denial of service (DoS) attacks:

• A distributed denial of service (DDoS) attack is a cyber-attack that involves several devices attacking a single server.
Usually, it is accomplished by overloading the server's connection and stopping it from receiving new information
data. IoT and sensor devices, systems, servers, and personal electronic devices, like smartphones in IoT and smart
city applications, may be used to launch this attack. But they all have one thing in common: they are all linked to the
internet.

Sybil attack:
• The development of IoT applications is vulnerable to Sybil or spoofing attacks, in which malicious users can
manipulate false identities to impair the performance of the IoT systems. As a result, IoT systems may produce
inaccurate reports in the context of Sybil attacks, and users risk receiving spam and losing their privacy.
• Since most Sybil attackers behave similarly to ordinary users, finding out whether an account is Sybil is extremely
difficult, making Sybil's defense of paramount importance in the IoT.
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Layer-wise Security Issues and Attacks
Routing attack:
• Routing attacks are utilized in the IoT network in which unauthorized users may divert, misdirect, spoof, or discard
IoT data packets using a long route.
• With the routing attacks, IoT data is not transferred in actual time duration and may be hacked by attackers, who
may change the IoT data in the IoT applications.

Man-in-the-middle (MITM) attack:

• In an MITM attack, the hacker discreetly intercepts and communicates IoT data information between two
application parties who believe in each other.
• An attack is also a form of eavesdropping in which the hacker intercepts and controls the entire IoT data
conversation in an IoT application. As a result, cybercriminals place themselves in the center of IoT data transfers in
the application during MITM attacks.
Sensor tracking attack:
• In this attack, attackers can employ real-time location service on devices to gather user locations, breaching user
privacy in IoT applications.
• These gadgets have GPS tracking sensors that broadcast the user's position in an emergency. If the device is
susceptible, the attacker may be able to fake GPS data and discover the user's position.
• Sensors regularly exit or join the network due to inadvertent failure of sensors in the wireless network and malicious
activity done by external attackers.
• In this instance, a skilled attacker may easily replace the sensor with a genuine one, access the network, and carry
out harmful operations.
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Layer-wise Existing Solutions
Network intrusion detection system (N-IDS):
• The intrusion detection system (IDS), which detects vulnerability or attack exploits against a target node in
IoT applications, is a fundamental component of network security paradigms.
• A network IDS is a sensor-based warning system that monitors IoT networks for harmful activity using
statistical IoT data.
• In IoT applications, the sensors provide data to numerous organizations. They start by collecting network or
host information (traffic analyses, management requirements, calls of working framework, and information
framework transforms).
• The analytical engine then analyzes the data that the sensors have acquired and finds any emerging issues.
• Finally, the notification framework notifies the system administrator whenever a disturbance is found during
the investigation.
Signature intrusion detection system (S-IDS):
• The most effective use of signature-based detection is often for locating known threats.
• First, it employs a pre-programmed list of known attacks and their indicators of compromise (IOC).
• For example, an IOC might be a specific behavior that generally precedes a malicious network attack, file
hashes, malicious domains, known byte sequences, or even the content of email subject headings.
• Then, the network packets are monitored by a signature-based IDS, which compares these packets to a
database of known IOCs or attack signatures to indicate any unusual activity.
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Layer-wise Existing Solutions
Elliptic-ElGamal-based authentication scheme:
• Cryptographic-based solutions are utilized to address Rogue Base Station, Routing, and sensor tracking
threats in the IoT environment for security and privacy.
• For example, Abro et al. proposed an Elliptic-ElGamal-based authentication scheme for D2D
communication in an IoT environment based on selecting pair keys.
• In this scheme, the ElGamal method transfers the secret key between the user equipment and the station and
addresses rogue Base Station, Routing, and sensor tracking attacks.

Network functions virtualization (NFV) method:

• Virtualization is an essential service for IoT applications, addressing numerous attack issues in network and
IoT security, such as tapering and eavesdropping.
• So, Porambage et al. propose a secure keying scheme-based network slicing architecture in which third-
party applications access network slices in a 5G architecture dependent on a multi-party computation
mechanism.

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Layer-wise Existing Solutions
End-to-end encryption:
• The main objective of this encryption is to guarantee that data transmitted by the source system is received
reliably by the final approach and can be encrypted at any other end without the assistance of a third party.
• Ibrahim offered a solution for the post-quantum-enabled public-key signature and verification for security.
• It maintains IoT technology security for adequate point-to-point protection and is preferable to encrypt
information data using Advanced Encryption Standards.

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Sou rce : https://le ontech nologies.in/security_solutions.ph p, h ttps://kepsure.com/cyber-security/
Blockchain-based Security Solutions for IoT
Applications
Blockchain technology can significantly enhance the security of Internet of Things (IoT) applications in various
ways.
1. Decentralization and Distributed Trust:
• No Central Point of Failure (Decentralized Architecture): Traditional IoT systems often rely on
centralized servers, which can be vulnerable to attacks. Blockchain’s decentralized nature means there’s no
single point of failure, making it harder for attackers to compromise the entire system.
• Distributed Ledger: Each IoT device can maintain its own copy of the blockchain, ensuring that all
transactions and data exchanges are verified and recorded.
• Trustless Environment
2. Data Integrity and Authentication:
• Immutable Records: Once data is recorded on a blockchain, it cannot be altered without consensus from the
network. This ensures the integrity of data transmitted from IoT devices.
• Cryptographic Hashing: Data from IoT devices can be hashed and recorded on the blockchain, providing a
secure way to verify that the data has not been tampered with.
• Secure Device Identification: Blockchain can enable secure and unique identities for IoT devices,
preventing unauthorized access.
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Blockchain-based Security Solutions for IoT
Applications
3. Smart Contracts for Automation and Security Enforcement:
• Automated Transactions: Smart contracts can automate processes based on predefined conditions,
reducing the need for human intervention and minimizing the potential for human error.
• Conditional Access Control: Smart contracts can enforce security policies, ensuring that devices only
interact under certain conditions, which enhances overall system security.
4. Enhanced Privacy:
• Data Sharing Control: Users can control who has access to their data and under what conditions, improving
privacy for individuals and organizations.
• Anonymity: Blockchain can enable pseudonymous transactions, allowing devices to interact without
revealing their identities.
5. Resilience to Attacks:
• DDoS Attack Mitigation: Blockchain's decentralized nature can help distribute the load across the network,
making it harder for Distributed Denial of Service (DDoS) attacks to succeed.
• Secure Firmware Updates: Blockchain can ensure the integrity of firmware updates for IoT devices,
making it more difficult for attackers to exploit vulnerabilities in outdated software.
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Blockchain-based Security Solutions for IoT
Applications
6. Secure and Scalable IoT Data Management:
• Scalable Consensus Mechanisms: Permissioned blockchain networks can handle the scalability demands
of IoT-based smart cities by using efficient consensus algorithms like Practical Byzantine Fault Tolerance
(PBFT) or Proof of Authority (PoA) rather than energy-intensive Proof of Work (PoW).
• Data Privacy: Blockchain enables granular control over who can access or view specific data. Sensitive
data like citizen information, traffic surveillance, and energy usage can be protected, allowing only
authorized parties to access the data through permissioned blockchains.

7. IoT Device Security and Firmware Updates

• Secure Firmware Updates: Blockchain can provide a secure platform for verifying and distributing
firmware updates to IoT devices in smart cities. This ensures that the updates are authentic and have not
been tampered with by malicious actors.
• Device Monitoring: The blockchain can be used to track the operational status of IoT devices and detect
potential security breaches or malfunctioning devices, ensuring quick and reliable responses.

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Convergence of Blockchain, IoT, Smart city, and
5G

Blockchain-Empowered
Intelligence Architecture for
Secure Smart City

Overview Architecture
for IoT-enabled Smart
City.

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Convergence of Blockchain, IoT, Smart city, and
5G

Blockchain-Empowered
Intelligence Architecture for
Secure Smart City

Technical flow for

proposed architecture to
IoT-enabled smart city.

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Convergence of Blockchain, IoT, Smart city, and
5G

https://www.algoworks.com/blog/blockchain-in-gaming/
Convergence of Blockchain, IoT, Smart city, and
5G

https://www.algoworks.com/blog/blockchain-in-gaming/
Convergence of Blockchain, IoT, Smart city, and
5G

https://www.algoworks.com/blog/blockchain-in-gaming/
Convergence of Blockchain, IoT, Smart city, and
5G

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Convergence of Blockchain, IoT, Smart city, and
5G

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Blockchain as a Services (BaaS)
Blockchain as a Services (BaaS):
• Blockchain as a Service (BaaS) is a cloud-based solution that allows businesses and developers to build,
host, and manage blockchain applications and smart contracts using a third-party cloud infrastructure.
• Much like Software as a Service (SaaS), BaaS provides the tools and infrastructure necessary to deploy
blockchain technology without requiring companies to build or maintain their own blockchain environments.

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Blockchain as a Services (BaaS)
Key Components of Blockchain as a Services (BaaS):
1. Cloud Infrastructure
• BaaS providers offer cloud-based environments where users can create, run, and monitor their blockchain applications. The infrastructure is fully
managed, including network management, resource allocation, and storage.
2. Blockchain Platform Management
• BaaS providers handle blockchain nodes' setup, configuration, and maintenance, including aspects like network governance, node monitoring, and
performance optimization. Users don’t need to manage the technical details of blockchain platform maintenance.
3. Smart Contracts
• BaaS typically includes tools for creating, deploying, and managing smart contracts. Smart contracts are self-executing contracts with the terms of the
agreement directly written into code. BaaS simplifies smart contract creation, offering templates or developer tools that lower the barrier to entry.
4. APIs and SDKs
• BaaS platforms often provide Application Programming Interfaces (APIs) and Software Development Kits (SDKs) that enable users to interact with
the blockchain and integrate blockchain functionalities into existing applications.
5. Security and Compliance
• BaaS providers ensure that blockchain networks are secure by implementing encryption, secure authentication, and other security best practices. They
also help organizations adhere to industry-specific regulations and compliance standards, like GDPR or financial sector regulations.
6. Monitoring and Analytics
• Most BaaS platforms offer dashboards and analytics tools that allow users to monitor the performance of their blockchain applications in real-time.
This includes transaction tracking, node health, and error monitoring.
7. Interoperability
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Some BaaS platforms provide solutions for interoperability between different blockchain networks, enabling users to work with multiple blockchains
or integrate blockchains with legacy systems.
Blockchain as a Services (BaaS)
Benefits of Blockchain as a Services (BaaS):
1. Faster Deployment
• Since the infrastructure is already in place, businesses can quickly deploy blockchain applications, accelerating their
time-to-market. The pre-configured environments make it easy to prototype and test blockchain-based solutions.
2. Reduced Complexity
• Blockchain development and management can be complex, involving tasks such as node configuration, consensus
management, and network security. BaaS abstracts away much of this complexity, allowing businesses to focus on
their core functionalities and services.
3. Scalability
• BaaS allows businesses to scale their blockchain infrastructure as needed. As a business grows or as the use case for
blockchain expands, BaaS providers offer the flexibility to scale the network and storage capacity without requiring
significant new investments.
4. Maintenance-Free Infrastructure
• BaaS providers handle all infrastructure-related issues, including uptime, updates, patches, and monitoring. This
ensures that blockchain applications run smoothly and efficiently, without interruptions.
5. Cost-Efficiency
• By outsourcing blockchain infrastructure management, companies can save on costs related to hardware, software,
and personnel. BaaS typically operates on a subscription or pay-per-use model, allowing companies to pay only for
the resources they need.
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Blockchain as a Services (BaaS)
Popular BaaS Providers:
1. Microsoft Azure Blockchain
2. Amazon Managed Blockchain
3. IBM Blockchain
4. Oracle Blockchain Platform
5. SAP Cloud Platform Blockchain

Use Cases for BaaS:

1. Supply Chain Management
2. Financial Services
3. Healthcare
4. Internet of Things (IoT)
5. Identity Management
6. Digital Assets and Tokenization

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