The Internet of Things  (IoT) as a concept is fascinating and exciting, but one of the major  challenging aspects of IoT is having a secure ecosystem encompassing all  building blocks of IoT-architecture. Understanding the different  building blocks of IoT, identifying the areas of vulnerability in each  block and exploring technologies needed to counter each of the  weaknesses are essential in dealing with the security issue of IoT.
       
   Figure 1: IoT Architecture
   IoT architecture can be represented by four building blocks:
- Things: These are defined as uniquely  identifiable nodes, primarily sensors that communicate without human  interaction using different connectivity methods. 
- Gateways: These act as intermediaries between things and the cloud to provide the needed connectivity, security, and manageability. 
- Network infrastructure: This is comprised of routers, aggregators, gateways, repeaters and other devices that control and secure data flow. 
- Cloud infrastructure: Cloud infrastructure  contains large pools of virtualized servers and storage that are  networked together with computing and analytical capabilities. 
   Challenges to secure IoT deployments
  Existing security technologies will play a role in mitigating IoT  risks but they are not enough. The goal is to get data securely to the  right place, at the right time, in the right format. It’s easier said  than done for many reasons, and here is a list of some of the  challenges:
-  Many IoT Systems are poorly designed and implemented, using  diverse protocols and technologies that create complex and sometimes  conflicting configurations. 
-   Limited guidance for life cycle maintenance and management of IoT devices 
-   IoT privacy concerns are complex and not always readily evident. 
-   There is a lack of standards for authentication and authorization of IoT edge devices. 
-   Security standards, for platform configurations, involving virtualized IoT platforms supporting multi-tenancy is immature. 
- The uses for Internet of Things technology are expanding and changing—often in uncharted waters. 
  In addition to the above list, new security technologies will be  required to protect IoT devices and platforms from both information  attacks and physical tampering, to encrypt their communications, and to  address new challenges such as impersonating “things” or denial-of-sleep  attacks that drain batteries, to denial-of-service attacks (DoS). But  IoT security will be complicated by the fact that many “things” use  simple processors and operating systems that may not support  sophisticated security approaches.
  A prime example of the urgent need for such new security technologies  is the recent massive distributed denial of service attack (DDoS) that  crippled the servers of popular services like Twitter, Netflix, NYTimes,  and PayPal across the U.S. on October 21st, 2016. It was the result of  an immense assault that involved millions of internet addresses and  malicious software. One source of the traffic for the attacks was  devices infected by the Mirai malware. The attack comes amid heightened  cybersecurity fears and a rising number of internet security breaches.  All indications suggest that countless IoT devices that power everyday  technology like closed-circuit cameras and smart-home devices were  hijacked by the malware, and used against the servers.
  The problem with the current centralized model
  Current IoT ecosystems rely on centralized, brokered communication  models, otherwise known as the server/client paradigm. All devices are  identified, authenticated and connected through cloud servers that sport  huge processing and storage capacities. Connections between devices  have to exclusively go through the internet, even if they happen to be a  few feet apart.
  While this model has connected generic computing devices for decades  and will continue to support small-scale IoT networks as we see them  today, it will not be able to respond to the growing needs of the huge  IoT ecosystems of tomorrow.
  Existing IoT solutions are expensive because of the high  infrastructure and maintenance cost associated with centralized clouds,  large server farms, and networking equipment. The sheer amount of  communications that will have to be handled when there are tens of  billions of IoT devices will increase those costs substantially.
  Even if the unprecedented economic and engineering challenges are  overcome, cloud servers will remain a bottleneck and point of failure  that can disrupt the entire network.
  Decentralizing IoT networks
  A decentralized approach to IoT networking would solve many of the  issues above. Adopting a standardized peer-to-peer communication model  to process the hundreds of billions of transactions between devices will  significantly reduce the costs associated with installing and  maintaining large centralized data centers and will distribute  computation and storage needs across the billions of devices that form  IoT networks. This will prevent failure in any single node in a network  from bringing the entire network to a halting collapse.
  However, establishing peer-to-peer communications will present its  own set of challenges, chief among them the issue of security. And as we  all know, IoT security is much more than just about protecting  sensitive data. The proposed solution will have to maintain privacy and  security in huge IoT networks and offer some form of validation and  consensus for transactions to prevent spoofing and theft.
  To perform the functions of traditional IoT solutions without a  centralized control, any decentralized approach must support three  foundational functions:
-     Peer-to-peer messaging; 
-    Distributed file sharing; 
- Autonomous device coordination. 
  The Blockchain Approach
  Blockchain, the “distributed ledger” technology, has emerged as an  object of intense interest in the tech industry and beyond. Blockchain  technology offers a way of recording transactions or any digital  interaction in a way that is designed to be secure, transparent, highly  resistant to outages, auditable, and efficient; as such, it carries the  possibility of disrupting industries and enabling new business models.  The technology is young and changing very rapidly; widespread  commercialization is still a few years off. Nonetheless, to avoid  disruptive surprises or missed opportunities, strategists, planners, and  decision makers across industries and business functions should pay  heed now and begin to investigate applications of the technology.
  What is Blockchain?
  Blockchain is a database that maintains a continuously growing set of  data records. It is distributed in nature, meaning that there is no  master computer holding the entire chain. Rather, the participating  nodes have a copy of the chain. It’s also ever-growing — data records  are only added to the chain.
   A blockchain consists of two types of elements:
-   Transactions are the actions created by the participants in the system. 
- Blocks record these transactions and make sure they are in the correct sequence and have not been tampered with. 
  What are some advantages of blockchain?
  The big advantage of blockchain is that it’s public. Everyone  participating can see the blocks and the transactions stored in them.  This doesn’t mean everyone can see the actual content of your  transaction, however; that’s protected by your private key.
  A blockchain is decentralized, so there is no single authority that  can approve the transactions or set specific rules to have transactions  accepted. That means there’s a huge amount of trust involved since all  the participants in the network have to reach a consensus to accept  transactions.
  Most importantly, it’s secure. The database can only be extended and  previous records cannot be changed (at least, there’s a very high cost  if someone wants to alter previous records).
  How does it work?
  When someone wants to add a transaction to the chain, all the  participants in the network will validate it. They do this by applying  an algorithm to the transaction to verify its validity. What exactly is  understood by “valid” is defined by the blockchain system and can differ  between systems. Then it is up to a majority of the participants to  agree that the transaction is valid.
  A set of approved transactions is then bundled in a block, which gets  sent to all the nodes in the network. They, in turn, validate the new  block. Each successive block contains a hash, which is a unique  fingerprint, of the previous block.
   The blockchain and IoT
       
   Figure 2: Key Benefits of Using Blockchain for IoT
  Blockchain technology is the missing link to settle privacy and  reliability concerns in the Internet of Things. Blockchain technology  could perhaps be the silver bullet needed by the IoT industry. It can be  used in tracking billions of connected devices, enabling the processing  of transactions and coordination between devices; this allows for  significant savings for IoT industry manufacturers. This decentralized  approach would eliminate single points of failure, creating a more  resilient ecosystem for devices to run on. The cryptographic algorithms  used by blockchains would make consumer data more private.
  The ledger is tamper-proof and cannot be manipulated by malicious  actors because it doesn’t exist in any single location, and  man-in-the-middle attacks cannot be staged because there is no single  thread of communication that can be intercepted. Blockchain makes  trustless, peer-to-peer messaging possible and has already proven its  worth in the world of financial services through cryptocurrencies such  as bitcoin, providing guaranteed peer-to-peer payment services without  the need for third-party brokers.
  The decentralized, autonomous, and trustless capabilities of the  blockchain make it an ideal component to become a foundational element  of IoT solutions. It is no surprise that enterprise IoT technologies  have quickly become one of the early adopters of blockchain technology.
  In an IoT network, the blockchain can keep an immutable record of the  history of smart devices. This feature enables the autonomous  functioning of smart devices without the need for centralized authority.  As a result, the blockchain opens the door to a series of IoT scenarios  that were remarkably difficult, or even impossible to implement without  it.
  For example, by leveraging the blockchain, IoT solutions can enable  secure, trustless messaging between devices in an IoT network. In this  model, the blockchain will treat message exchanges between devices  similar to financial transactions in a bitcoin network. To enable  message exchanges, devices will leverage smart contracts which then  model the agreement between the two parties.
  One of the most exciting capabilities of the blockchain is the  ability to maintain a duly decentralized, trusted ledger of all  transactions occurring in a network. This capability is essential to  enable the many compliances and regulatory requirements of industrial  IoT (IIoT) applications without the need to rely on a centralized model.
  What are the challenges?
       
   Figure 3: IoT and Blockchain Challenges
  In spite of all its benefits, the blockchain model is not without its flaws and shortcomings:
-     Scalability issues pertaining to the blockchain that might lead  to centralization, which is casting a shadow over the future of the  cryptocurrency. 
-    Processing power and time required to perform encryption for all  the objects involved in a blockchain-based ecosystem. IoT ecosystems  are very diverse. In contrast to generic computing networks, IoT  networks are comprised of devices that have very different computing  capabilities, and not all of them will be capable of running the same  encryption algorithms at the desired speed. 
-    Storage too will be a hurdle. Blockchain eliminates the need for  a central server to store transactions and device IDs, but the ledger  has to be stored on the nodes themselves. And the ledger will increase  in size as time passes. That is beyond the capabilities of a wide range  of smart devices such as sensors, which have very low storage capacity. 
-    Lack of skills: few people understand how blockchain technology  really works and when you add IoT to the mix that number will shrink  drastically. 
- Legal and compliance issues: It’s a new territory in all aspects  without any legal or compliance code to follow, which is a serious  problem for manufacturers and service providers. This challenge alone  will scare off many businesses from using blockchain technology. 
  The Optimum Platform
  Developing solutions for the Internet of Things requires  unprecedented collaboration, coordination, and connectivity for each  piece in the ecosystem, and throughout the ecosystem as a whole. All  devices must work together and be integrated with all other devices, and  all devices must communicate and interact seamlessly with connected  systems and infrastructures. It’s possible, but it can be expensive,  time-consuming, and difficult.
   The optimum platform for IoT can:
-  Acquire and manage data to create a standards-based, scalable, and secure platform. 
-  Integrate and secure data to reduce cost and complexity while protecting your investment. 
- Analyze data and act by extracting business value from data, and then acting on it. 
  Security needs to be built in as a foundation of IoT systems, with  rigorous validity checks, authentication, data verification, and all the  data needs to be encrypted. At the application level, software  development organizations need to be better at writing code that is  stable, resilient and trustworthy, with better code development  standards, training, threat analysis and testing. As systems interact  with each other, it’s essential to have an agreed interoperability  standard, which is safe and valid. Without a solid bottom-top structure  we will create more threats with every device added to the IoT. What we  need is a secure and safe IoT with privacy protected. That’s a tough  trade off but not impossible and blockchain technology is an attractive  option if we can overcome its drawbacks.
  Ahmed Banafa Named No. 1 Top VoiceTo Follow in Tech by LinkedIn in 2016
  This article was published on IEEE-IoT : http://iot.ieee.org/newsletter/january-2017/iot-and-blockchain-convergence-benefits-and-challenges.html
  Further reading
  http://tech.economictimes.indiatimes.com/news/internet/5-challenges-to-internet-of-things/52700940
  http://www.mindanalytics.es/2016/03/01/gartners-top-10-internet-of-things-technologies-for-2017-2018/?lang=en
  http://www.cnbc.com/2016/10/22/ddos-attack-sophisticated-highly-distributed-involved-millions-of-ip-addresses-dyn.html
  https://www.spiceworks.com/marketing/reports/iot-trends/
  http://www.cio.com/article/3027522/internet-of-things/beyond-bitcoin-can-the-blockchain-power-industrial-iot.html
  https://techcrunch.com/2016/06/28/decentralizing-iot-networks-through-blockchain/
  http://www.blockchaintechnologies.com/blockchain-internet-of-things-iot
  https://postscapes.com/blockchains-and-the-internet-of-things/
  https://bdtechtalks.com/2016/06/09/the-benefits-and-challenges-of-using-blockchain-in-iot-development/
  https://blogs.thomsonreuters.com/answerson/blockchain-technology/
  http://www.i-scoop.eu/internet-of-things/blockchain-internet-things-big-benefits-expectations-challenges/
  https://www.linkedin.com/pulse/20140403055037-246665791-bitcoin-accepted-here?trk=mp-author-card
  https://www.linkedin.com/pulse/securing-internet-things-iot-ahmed-banafa?trk=mp-author-card
  https://www.linkedin.com/pulse/industrial-internet-things-iiot-challenges-benefits-ahmed-banafa?trk=mp-author-ca