Blockchain + IoT: A Perfect Match

With the number of connected devices set to the top 20 billion this year, businesses must act quickly to ensure their IoT breach detection is as effective as possible.

According to a study by digital security firm Gemalto, 

• 48% of IoT companies can accurately detect whether or not their devices experienced a breach. 
• 99% of IoT-focused companies currently not using blockchain technology are interested in exploring its future integration. 
• 23% of respondents indicated that blockchains present ideal security boons for IoT devices.

As more devices connect to the internet, more data will be exposed to opportunistic attackers. A massive mesh of interconnected devices can transfer anything from personal information to authentication keys, which hackers can easily extract.

In the past few years, centralized services have been seeing quite a lot of IoT security flaws. Still, blockchain, which started as the technology behind Bitcoin, has grown into a promising mitigation technology for cybersecurity. The technology has been credited for its information integrity assurance as designed and intended. With IoT and blockchain, enterprises, SMEs and individual users can create a reliable, secure network that protects data from attackers. 

How blockchain + IoT enhances cybersecurity

According to the Gemalto report, 59% of respondents in the study were unclear on who is responsible for IoT security and sought clarification from governments. The primary problem with IoT security is the lack of ability to identify when a device is compromised, sensitive data leaks occur, and hackers take control of devices remotely. 

Decentralized Storage and Recordkeeping

A blockchain is a digital ledger of transactions duplicated and distributed across the entire network of computer systems on the blockchain. Each block in the chain contains several transactions, and every time a new transaction occurs on the blockchain, a record of that transaction is added to the participant’s ledger. A decentralized database managed by multiple participants is distributed ledger technology (DLT).

Blockchain technology records transactions with an immutable cryptographic signature called a hash. Hackers planning to corrupt a blockchain system must change every block in the chain across all the distributed versions.  

Prevents Fraud and Data Theft

Blockchain prevents potential fraud and decreases the chance of data being stolen or compromised. To corrupt a blockchain, a cybercriminal must destroy the data stored on every user’s computer in the global network. It can be millions of computers, each storing a copy of some or all of the data. Unless the hacker brings down an entire network in one go, nodes (undamaged computers) will continue to verify and keep a record of all the data on the network. The bigger the blockchain network, the lower the risk of getting attacked by hackers.

For instance, Bitcoin operates on blockchain technology. The entire blockchain is retained on a huge network of computers and no single individual has control over history. Even if a user learns cryptocurrency-related information from Crypto Head, buys bitcoins and pays another using bitcoins, computers on the Bitcoin blockchain network check the accuracy of the transaction. This step certifies everything that has happened in the chain. So, the blockchain can’t be easily tampered with.

Using Blockchains to Prevent DDoS Attacks

Implementing blockchain technology decentralizes DNS, distributing the contents to many nodes and making it nearly impossible for hackers to attack. Domain editing rights will only be granted to those who need them (specifically to the domain owners); no one else can make changes. This practice will reduce the risk of data being accessed or changed by unauthorized parties. A system can be protected from hackers using blockchain to protect the data. 

Smart Contracts Enhancement

With the help of blockchain technology, one can easily integrate business logic into a platform-controlled or asset-controlled wallet. A smart contract will allow the independent execution of business logic among stakeholders, and embedding business logic into the blockchain will also make sure your intellectual property is protected. Blockchain will ensure both the logged data and the business logic become tamper-proof due to the distributed and cryptographic nature of the technology.  

Also Read: Why Identity Security Should Be the Foundation of Modern Cybersecurity

To require a comprehensive approach and creative solutions, the security of IoT devices and networks has become a complex problem. By applying blockchain technology, an individual or an SME can enhance the security and reliability within an IoT ecosystem. Decentralizing IoT networks with blockchain technology will eliminate the single point of failure, and the extra protection of the connected devices would become less sensitive to malware and other attacks. Another advantage of decentralized IoT infrastructure is autonomous operations and lower network and infrastructure maintenance costs.