Blockchain in IoT | Mobiloitte

How Blockchain Is Resolving IoT Security Issues

IoT since past some has transformed the world with its amazing capability of tapping each and every vertical. The growing popularity of IoT has encouraged many businesses to move towards providing IoT solutions.

As this technology has it’s own popularity and advantages but there are still some challenges which are concerning the security and privacy of data, as it can be collected over the cloud.

So there are more chances of losing data.

Some Major IoT Challenges:-

Attack on Encryption

 As we all know IoT involves the use of a machine to machine communication with no human interaction while transferring data from one device to another.

Due to weak encryption and stray credential keys, many hackers get a chance of accessing the data.

Attacks on Softwares

 As all the IoT devices are always connected to the internet, and sometimes they lack security. This gives a chance to malware and viruses to attack the device, leading to loss of control devices and software.

Unauthorized access to devices

 It is common that a single network is used by multiple IoT devices. Many hackers try to penetrate into that network and some get successful in doing so if one of the multiple devices connected to that network has not updated the security of the system.

Breaches in the Network

 Many devices and protocols make network implementation an ongoing process, leaving a gap for the hackers to easily identify the network and hack that. They can take control over that network and can do various types of loss.

Introduction of Blockchain the frame

Most people associate Blockchain with the cryptocurrency and bitcoin-based technology, But this technology is capable of eliminating threats to data privacy and security in the diverse management of IoT.

This technology removes all the threats and the challenges that are faced by IoT Solutions. Let’s see some of the Blockchain use cases which are widely employed to help IoT while facing the challenges.

Use Case – 1:- Safe Storing of Data

To solve this issue Blockchain creates a decentralized ledger along with an unalterable data record, which helps in protecting and controlling communication and any other activity taking place in the network system.

The protection of data is not just limited to cryptocurrency, this can also be very helpful in storing and protecting the patient’s information and improving the record management system.

Use Case – 2:- Transparency in Supply Chain

The supply chain management industry is facing lots of challenges and most of them are related to fake good and illegal transportation of goods, no proper data on the products and many more.

With the implementation of Blockchain, it provides a digital ID for each product and makes each and every stage of the supply chain more transparent. This reduces the possibility of frauds and counterfeit.

Use Case – 3:- Reducing Human Errors

The advantage of using Blockchain is that it reduces the need for Logins and passwords. Rather a device is issued with an encrypted identity which can be verified on the distributed ledger system.

This reduces human errors as most of the activities are done by ledger systems and also the potential threats are tracked and are instantly reported.

Use Case – 4:- Financial Transactions Security

Blockchain facilitates the recording and saving of each user login information and their confirmation status.

Each and every attempt to access is recorded, tracked and noted; eliminating the possibility of stealing of data on the ledger.

Use Case – 5:- Security of IoT devices and networks

Blockchain technology has the potential to monitor and record every communication between all devices connected to a network.

Blockchain provides access to data on the activity logs, suspicious login attempts. This helps in improving the glitch.

Is Blockchain the right platform for IoTs Security Management?

Blockchain has several features that make it the right platform to build trust and maintain the security issue of IoT. Let’s look at each of them.

Decentralized Public Blockchain

 This type of blockchain is more secure and transparent as compared to others.

Here there is no single person or organization have access over the transactions. This makes it more trustworthy.

Centralized Private Blockchain

This Blockchain creates an additional layer which helps in validating the rights of the users to make some changes in the ledger.

Proof Of Work

This algorithm is designed to authenticate each transaction or a block in the ledger to ensure it’s the eligibility of becoming a part of Blockchain.

Once it gains that eligibility, the transaction cannot be deleted, Reversed. This reduces the risk of loss of records and data.

Smart Contracts

 These are based on a set of protocols that each and every party follows while entering into the transaction. This eliminates the need for third parties which increase the reliability of every transaction.

By providing solutions to clear the issues of IoT like privacy, scalability, and reliability, Blockchain development helps in creating a more dependable ecosystem on which devices can connect to cloud and internet.

Blockchain can handle all the plagues that the Internet of Things (IoT) is facing and can provide efficient solutions to those problems, making it more secure and zero threat platform.

Also Read: 5 Cases How Blockchain Is Reshaping Agriculture