Ways Blockchain Privacy-Enhancement Can Build Trust in IoT Ecosystems

When we talk about the Internet of Things (IoT ecosystems), we’re referring to a vast network of different gadgets and devices that chat with each other. Imagine your smart fridge sending a message to your smartphone to tell you that you’re out of milk or your smart thermostat adjusting the room temperature based on your preferences. Sounds futuristic, right?

But here’s the catch: these devices, as advanced as they may sound, aren’t as powerful or resourceful as the computers we use daily. They’re like tiny messengers with limited energy, always on the go.

Why IoT devices are different from your regular computer

  • Limited Resources: Unlike the big, powerful servers or computers we’re used to, IoT devices often have just a little memory and processing power.
  • Different Communication Channels: Instead of the more secure channels our computers use, IoT devices often communicate over less secure wireless channels, like ZigBee or LoRa. Think of it like choosing a flimsy bike lock instead of a sturdy one.
  • Unique Language & Functions: Each IoT device is like a unique individual. They have their functions, and they communicate in their ways. It’s like having many people from different countries, each speaking their language, trying to have a conversation. This makes it hard to come up with a one-size-fits-all security protocol for them.

Why is this a problem?

Well, because of these unique challenges, IoT devices can be easy targets for cyber-attacks. It’s a bit like a city. The bigger the city, the more opportunities for something to go wrong. And just like in a big city with many different types of people, IoT devices from different companies have to find ways to talk to each other. Sometimes, this requires a middleman, a trusted third party, to help them understand each other.

Furthermore, because these devices are limited in power, they’re not as equipped to defend against sophisticated cyber threats. It’s like sending someone with a slingshot to fend off a modern army.

Breaking down the vulnerabilities

IoT vulnerabilities can be split into two main categories

  • IoT-specific Vulnerabilities: Issues like battery drainage attacks, challenges with standardization, or trust issues belong here. Think of them as problems only these devices face.
  • Common Vulnerabilities: These are issues inherited from the larger Internet world. The typical problems most online devices face.

Understanding Security Threats in IoT

When diving into the world of cybersecurity, especially in the realm of IoT (Internet of Things), it’s common to hear about the CIA triad. This doesn’t refer to a secretive agency but instead stands for Confidentiality, Integrity, and Availability. These are three principles that underpin most of cybersecurity.

The first, Confidentiality, is about ensuring your private data stays just that: private. Think of it like a diary you keep under your bed. Only you (and perhaps a trusted few) should have the key. In the digital world, this translates to personal information, photos, or even a chat you’re having with a friend over a smart device.

Integrity, on the other hand, is ensuring that whatever you wrote in that diary stays as you left it. It means that your data, whether it’s a message, a video, or a document, isn’t altered by someone else without your knowledge.

Lastly, there’s Availability. This principle is akin to always having your diary available when you want to pen down your thoughts. In the digital realm, this could mean accessing a website when needed or retrieving your smart home settings from the cloud.

With these principles in mind, let’s delve deeper into the threats facing IoT. When it comes to IoT, our everyday devices, like refrigerators, thermostats, and even cars, are interconnected. And while this interconnectivity brings convenience, it also ushers in unique vulnerabilities.

A common threat is the Denial of Service (DoS) attack. Picture this: you’re at a concert, and you’re trying to get through a door, but a group of pranksters keeps blocking the way, not letting anyone through. This is what a DoS does to networks. It overwhelms them with fake requests so that real users like you and me can’t get in. A more menacing version is the Distributed DoS (DDoS) where it’s not just one group blocking the door but multiple groups blocking several doors at the same time.

Another sneaky threat is the Man-in-the-Middle (MiTM) attack. It’s akin to someone secretly listening in on your phone call, and sometimes even pretending to be the person you think you’re talking to. In the digital space, these attackers secretly relay and might even alter the communication between two parties.

Then we have malware, the digital equivalent of a cold virus but often with more harmful intentions. These are software crafted to infiltrate and sometimes damage our devices. As our world gets filled with more smart devices, the risk of malware infections grows.

But here’s the silver lining: as numerous as these threats sound, experts worldwide are working tirelessly to combat them. They’re employing advanced techniques, like Artificial Intelligence, to detect and counteract these attacks. They’re also refining how our devices communicate, ensuring they can genuinely recognize and trust each other. So, while the digital age has its challenges, we’re not navigating them blindfolded.


Besides the aforementioned security threats, IoT devices and the data they handle face risks tied to privacy, including data sniffing, unmasking anonymous data (de-anonymization), and drawing conclusions based on that data (inference attacks). These attacks primarily target the confidentiality of data, regardless of whether it’s stored or being transmitted. This section explores these privacy threats in detail.

MiTM in Privacy Context

It’s suggested that MiTM attacks can be divided into two categories: Active MiTM Attacks (AMA) and Passive MiTM Attacks (PMA). Passive MiTM attacks involve discreetly monitoring the data exchanges between devices. These attacks may not tamper with the data, but they can compromise privacy. Consider someone with the capability to secretly monitor a device; they could do this for a prolonged period before launching an attack. Given the prevalence of cameras in IoT devices ranging from toys to smartphones and wearables, the potential consequences of passive attacks, like eavesdropping or data sniffing, are substantial. Conversely, active MiTM attacks play a more direct role, utilizing the acquired data to engage deceptively with a user or accessing user profiles without permission.

Data Privacy and Its Concerns

Similar to the MiTM framework, data privacy threats can also be categorized into Active Data Privacy Attacks (ADPA) and Passive Data Privacy Attacks (PDPA). Concerns surrounding data privacy touch upon issues like data leakage, unauthorized data alterations (data tampering), identity theft, and the process of unmasking seemingly anonymous data (re-identification). Specifically, re-identification attacks, which are sometimes referred to as inference attacks, revolve around methods like de-anonymization, pinpointing locations, and accumulating data from diverse sources. The core aim of such attacks is to assemble data from various places to uncover an individual’s identity. This pooled data might be then used to masquerade as the target individual. Attacks that directly modify data, like data tampering, fall under the ADPA category, whereas those associated with re-identification or data leakage are considered PDPA.

Blockchain as a Potential Solution

Blockchain, commonly abbreviated as BC, is a resilient network characterized by its transparency, fault tolerance, and the ability to be verified and audited. Often described with terms such as decentralized, peer-to-peer (P2P), transparent, trust-less, and immutable, blockchain stands out as a reliable alternative compared to traditional centralized client-server models. A notable feature within the blockchain is the “smart contract”, a self-executing contract where the terms of agreement or conditions are written into code. The blockchain’s inherent design ensures data integrity and authenticity, presenting a strong defense against data tampering in IoT devices.

Efforts in Bolstering Security

Various blockchain-based strategies have been suggested for diverse sectors like supply chains, identity and access management, and, particularly, IoT. Some existing models, however, fail to honor the time constraints and are not optimized for resource-limited IoT devices. Contrarily, certain studies have primarily focused on enhancing the response time of IoT devices, neglecting security and privacy considerations. A study by Machado and colleagues introduced a blockchain architecture divided into three segments: IoT, Fog, and Cloud. This structure emphasized establishing trust among IoT devices using protocols based on proof methods, leading to data integrity and security measures such as key management. However, these studies didn’t directly address user privacy concerns.

Another study explored the concept of “DroneChain”, which focused on data integrity for drones by securing data with a public blockchain. Though this method ensured a robust and accountable system, it employed proof-of-work (PoW), which may not be ideal for real-time IoT applications, especially drones. Additionally, the model lacked features to guarantee data provenance and overall security for users.

Blockchain as Shield to IoT Devices

As technology continues to advance, the susceptibility of systems to attacks, such as Denial-of-Service (DoS) attacks, increases. With the proliferation of affordable IoT devices, attackers can control multiple devices to launch formidable cyber-attacks. Software-defined networking (SDN), though revolutionary, can be compromised through malware, making it vulnerable to various attacks. Some researchers advocate for the utilization of blockchain to shield IoT devices from these threats, citing its decentralized and tamper-proof nature. Still, it’s noteworthy that many of these solutions remain theoretical, lacking practical implementation.

Further studies have aimed to address the security lapses in different sectors using blockchain. For instance, to counteract potential manipulation in a smart-grid system, one study proposed the use of cryptographic data transmission combined with blockchain. Another study championed a proof of delivery system using blockchain, streamlining the logistics process. This system proved resilient against common attacks like MiTM and DoS but had shortcomings in user identity and data privacy management.

Distributed Cloud Architecture

In addition to addressing familiar security challenges like data integrity, MiTM, and DoS, several research efforts have explored multi-faceted solutions. For example, a research paper by Sharma and team introduced a cost-effective, secure, and ever-available blockchain technique for distributed cloud architecture, emphasizing security and reduced transmission delays. However, there were oversight areas, including data privacy and key management.

A recurrent theme in these studies is the prevalent use of PoW as the consensus mechanism, which might not be the most efficient for real-time IoT applications due to its energy-intensive nature. Furthermore, a significant number of these solutions overlooked vital aspects like user anonymity and comprehensive data integrity.

Challenges of Implementing Blockchain in IoT

Delay and Efficiency

While blockchain (BC) technology has been around for over ten years, its true advantages have only been tapped into recently. Numerous initiatives are underway to integrate BC in areas like logistics, food, smart grids, VANET, 5G, healthcare, and crowd sensing. Nonetheless, the prevalent solutions don’t address BC’s inherent delay and aren’t suitable for IoT devices with limited resources. The predominant consensus mechanism in BC is Proof-of-Work (PoW). PoW, despite its widespread use, is comparatively slow (processing just seven transactions per second in contrast to Visa’s average of two thousand per second) and is energy-intensive.

Computation, Data Handling, and Storage

Running a BC demands significant computational resources, energy, and memory, especially when spread across a vast peer network. As highlighted by Song et al., by May 2018, the size of the Bitcoin ledger exceeded 196 GB. Such constraints raise concerns about scalability and transaction velocity for IoT devices. One potential workaround could be to delegate their computational tasks to centralized clouds or semi-decentralized fog servers, but this introduces added network delays.

Uniformity and Standardization

Like all nascent technologies, BC’s standardization is a challenge that may require legislative adjustments. Cybersecurity remains a formidable challenge, and it’s overly optimistic to expect a single standard that can mitigate all risks of cyber threats against IoT devices in the near future. However, a security standard can guarantee devices adhere to certain acceptable security and privacy benchmarks. Any IoT device should encompass a range of essential security and privacy features.

Security Concerns

Even though BC is characterized by being unchangeable, trust-free, decentralized, and resistant to tampering, the security of a blockchain-based setup is only as robust as its entry point. In systems built on public BC, anyone can access and scrutinize the data. While private blockchains could be a remedy to this, they introduce new challenges like reliance on a trusted intermediary, centralization, and legislative issues surrounding access control. Fundamentally, blockchain-facilitated IoT solutions must fulfill security and privacy criteria. These include ensuring data storage aligns with confidentiality and integrity needs; ensuring secure data transmission; facilitating transparent, secure, and accountable data sharing; maintaining authenticity and non-disputability; guaranteeing a platform that allows for selective data disclosure; and always obtaining explicit sharing consent from participating entities.


Blockchain, a technology with immense potential and promise, has been heralded as a transformative tool for various sectors, including the vast and ever-evolving landscape of the Internet of Things (IoT). With its decentralized nature, blockchain can provide enhanced security, transparency, and traceability – features highly coveted in IoT implementations. However, as with any technological fusion, the combination of blockchain with IoT doesn’t come without challenges. From issues related to speed, computation, and storage, to the pressing need for standardization and addressing vulnerabilities, there are multiple facets that require attention. It’s essential for stakeholders in both the blockchain and IoT ecosystems to address these challenges collaboratively and innovatively to fully harness the synergistic potential of this union.


What potential benefits can blockchain bring to IoT?

Blockchain can introduce enhanced security, traceability, and transparency to IoT networks. Its decentralized nature can also mitigate single points of failure and reduce risks associated with centralized control.

Why is standardization such a crucial issue for blockchain integration with IoT?

Standardization ensures that there's a consistent framework for development and deployment. It can help address compatibility issues, streamline cybersecurity efforts, and establish benchmarks for security and privacy.

Are private blockchains always a better solution for IoT than public blockchains?

Not necessarily. While private blockchains offer more controlled access, they introduce challenges such as reliance on a trusted intermediary and potential centralization. The best choice often depends on the specific IoT application and its requirements.

How do the computational demands of blockchain impact IoT devices?

IoT devices, especially those with limited resources, can struggle with the computational, energy, and storage demands of blockchain. This can affect transaction speeds, scalability, and the overall efficiency of the IoT network.

Is it possible to make blockchain-based IoT systems completely secure?

No system can be made entirely immune to threats. However, with blockchain, certain inherent security features like decentralization, immutability, and transparency can bolster security. It's essential to combine blockchain's strengths with other security measures to create a robust defense against potential threats.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Shummas Humayun

Shummas is an aspiring Web 3.0 developer and a technical research writer interested in renewable energy, blockchain, and cybersecurity. He also enjoys coffee and gaming in his free time.

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