![Preface
Blockchain (BC) and the Internet ofThings (IoT) are two trendy and powerful
technological names that have already proven their importance in various
fields. The blockchain was born for the security of a magical cryptocurrency,
“Bitcoin (BTC),” while the Internet of Things justifies its name. The Internet
of Things is a fast-growing and easy-to-use technology that has also caught
on in a concise period of time; and it covers almost all areas of life. The
Internet of Things is now involved from everyday to high-level technical
scenarios, so security is becoming a crucial issue.
The authors of this book come from research and academia, and their
work demonstrates the power of knowledge. The chapters in this book are
well written, easy to understand, and technically rich. They present knowl
edge about these two technologies, explaining them in different aspects.
It gives us immense pleasure to introduce to you the first edition of the
book entitled Applications of Blockchain and Big IoT Systems: Digital Solu-
tions for Diverse Industries. The primary intent of this book is to explore
the various applications of blockchain and big IoT systems. It presents the
rapid advancement in the existing business model by applying blockchain,
big data, and IoT techniques. Several applications of blockchain, IoT, and
big data in different industries are incorporated in the book. The wide variety
of topics it presents offers readers multiple perspectives on various disci
plines. This book will help the data scientists, blockchain engineers, big data
engineers, and analytics managers.
Each chapter presents blockchain/big data and IoT use in application
areas like agriculture, education, IoT, medical, smart city, and supply chain.
The idea behind this book is to simplify the journey of aspiring engineers
across the world. This book will provide a high-level understanding of
various Blockchain algorithms, along with big data and IoT techniques in
different application areas.
This book contains 19 chapters. Chapter 1 elaborates on these two catego
ries as well. Further, it covers the consensus mechanism, and it is working
along with an overview of the Ethereum (ETH) platform. Chapter 2 provides
an in-depth analysis of IoT security issues and how federated learning along
with BC technology can be used to solve them. Chapter 3 discusses the
following consensus algorithms-PoW [2], proof of stake, delegated proof](https://image.slidesharecdn.com/21892726-250529193618-64bb2354/85/Applications-Of-Blockchain-And-Big-Iot-Systems-Digital-Solutions-For-Diverse-Industries-1st-Edition-Arun-Solanki-Editor-24-320.jpg)
![4 Applications of Blockchain and Big IoT Systems
in the conciliation of billions of accounts [1]. After doing the security-related
research on many companies, it observed that 65% of the data infringement
has happened because of a weak or reeved password. Further, it is found that
many times sensitive information stealing was done by phishing e-mails.
Blockchain (BC) technology was conceived mainly to address the secu
rity issue of cryptocurrency bitcoin (BTC). It has several benefits and is well
suited to handle the security issue. In the BC system, there is no central
database, and it is a kind of system that does not trust the people. This system
assumes that anyone can attack on the system, whether part of the system
or outsider, can attack the system; therefore, it is a system that is devoid
of human consuetude. Moreover, it is enabled with cryptographic features,
which can be like hashing and digital signature. BC is immutable [1] also,
therefore, anyone can store the data. Finally, as many users are involved in
the BC system, changing or adding new blocks in the system needs to be
validated by the majority of the users.
BTC is one of the first digital currency [2], created in 2009, underlying
BC technology. As BTC is known as the first cryptocurrency, it was marked
as a spire performing currency in the year 2015 and considered a spanking
commodity in 2016. Nowadays, besides BTC, BC is applied in many other
areas like medicine, economics, the Internet of Things (IoT), software engi
neering, and many more.
BC technology is getting popular for offering better and foolproof
security by removing intermediaries. It also results in reducing the cost of
transactions. It is a shared data structure that is amenable for collecting all
the transactional history. In BC technology, blocks are connected in the form
of chains. The beginning block of the BC is recognized as the Genesis block
[3]. All other blocks are simple blocks. The chain in the BC is the link or the
pointers connecting the blocks. Blocks, in turn, keeps the transactions that
take place in the system.
Many organizations have defined BC technology in different ways. The
Coinbase, the bulkiest cryptocurrency exchange across the globe, has estab
lished the BC as “a distributed, public ledger that contains the history of
every BTC transaction” [3]. Oxford dictionary bestows a familiar definition
stated as “a digital ledger in which transactions made in BTC or another
cryptocurrency are recorded chronologically and publicly” [4]. Another
description is given by Sultan et al., which narrates a very general definition
of BC technology as “a decentralized database containing sequential, cryp
tographically linked blocks of digitally signed asset transactions, governed
by a consensus model” [4].](https://image.slidesharecdn.com/21892726-250529193618-64bb2354/85/Applications-Of-Blockchain-And-Big-Iot-Systems-Digital-Solutions-For-Diverse-Industries-1st-Edition-Arun-Solanki-Editor-29-320.jpg)
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Blockchain Technology: Introduction, Integration, and Security Issues with IoT
Fundamentals of BC technology are supposed to lie in between the 1980s
and 1990s of the 20th
century [1] though it gained popularity very recently. It
is widely recognized in 2008 after the inquisition of cryptocurrency BTC. BC
became widely prevalent after the legendary work of Nakamoto [5], though
it is a fictitious name and still has not been explored who the actual person
is. Nakamoto proposed a technique to replace the centralized architecture
with a pear-to-pear network-based architecture. Initially, BC technology was
named as two words, “block” and “chain;” however, at the end of the year
2016, these two words have been combined to make its BC.
BC uses the concept of a ledger which may be seen as a database to
maintain the records or a list of transactions. This is similar to the ledger
of a hotel. For example, when you check-in in a hotel, the receptionist asks
your identity and enters the record in a hardbound register (called ledger).
This entry is maintained date and time-wise. One cannot add or remove the
entries in between and can only append in the ledger. Thus, the entries cannot
be made in between the two entries as well as cannot be deleted in between.
One can consider the entry as a transaction and pages of the ledger as a block.
So, it becomes a chain of blocks in the ledger. In case of any eventuality, this
hotel ledger is to be consulted for security purposes. Though, this type of
ledger is a centralized database of the hotel.
Intermediation is one of the prominent solutions for screening the owner
ship of assets or transaction processing. Intermediaries’ role is to check and
validate the participating parties along with the chain of intermediaries. This
validation process, apart from time taking, incurs a significant amount of
cost. In case the validation fails, it has credit risk too. The BC technology
promises a way to overcome, representing “a shift from trusting people to
trusting math” [6], i.e., free from human intervention or minimum human
involvement.
IoTs is an upcoming technology that indicates the billions of tangible
devices across the globe agglutinated to the Internet which collects and
shares the information. IoT is the term coined by Kevin Ashton of MIT in
1999 during his work at Procter and Gamble (company) [7]. It promises
the world to make it perceptive and proactive by enabling the things to talk
with each other [8, 9]. In the IoTs, the collected data from the sensors [42]
are maintained in central servers, which may lead to many intricacies when
the devices try to communicate with each other through the internet [10].
Centralized locations may also suffer from security issues resulting in their
misuses. BC technology can provide a solution in the form of a decentral
ized model. A distributed model can execute billions of operations between](https://image.slidesharecdn.com/21892726-250529193618-64bb2354/85/Applications-Of-Blockchain-And-Big-Iot-Systems-Digital-Solutions-For-Diverse-Industries-1st-Edition-Arun-Solanki-Editor-30-320.jpg)
![8 Applications of Blockchain and Big IoT Systems
BC. When it is rehashed, it ensures the difficulty level of antagonism. The
Nonce is the number for which BC miners solve a complex problem. It is
also associated with the timestamp to limit its lifetime; that is why if one
performs duplicate transactions, even then a different Nonce is required.
1.2.4 USER AND MINER
A computationally advanced node that tries to solve a complex problem
(which requires high computation power) to retrace a new block which is
recognized as a miner. The miners are capable of working alone or in a
collective routine in order to find the solution to the given mathematical
problem. The process of locating a novel block is opened by sharing new
transaction information among every user in the BC network. It is the
responsibility of each user to collect the new transactions into blocks and put
their efforts to find the proof-of-work of the block. Proof-of-work is defined
as a user is required to solve a computational complex puzzle for publishing
a new block, and the solution of the puzzle will be its proof. This whole
phenomenon is known as proof of work (PoW).
1.2.5 CHAIN AND HEIGHT
In BC technology, the chain is a virtual string that connects the miners in the
accrescent set of blocks with hashes [11]. The chain keeps growing as and
when a new block is appended. Blocks in the chain are generally indicated
by their block height in the chain which is nothing but a sequence number
starting from zero. The height of a block is defined as the number of blocks
in the chain between the genesis block and the given block (for which height
is to be calculated).
1.2.6 TRANSACTION
A BC transaction is represented in the form of a smaller unit of the tasks;
and is warehoused in public records. After verification by more than 50%
of the users of the BC network, records get implemented and executed. Its
outcomes are stored in the BC. Previously stored records can be reviewed
at any time, but the updation of the records are not permitted. The size of
the transaction is a crucial parameter for the miners because the bigger size](https://image.slidesharecdn.com/21892726-250529193618-64bb2354/85/Applications-Of-Blockchain-And-Big-Iot-Systems-Digital-Solutions-For-Diverse-Industries-1st-Edition-Arun-Solanki-Editor-33-320.jpg)
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Blockchain Technology: Introduction, Integration, and Security Issues with IoT
transaction requires larger storage space in the block. It also requires signifi
cantly more power, whereas the smaller size transaction requires less power.
The structure of the BC [3] is shown in Table 1.1.
TABLE 1.1 Blockchain’s Structure
Field Size
Magic number 4 bytes
Block size 4 bytes
Header: Next 80 bytes
Version 4 bytes
Previous block hash 32 bytes
Merkle root 32 bytes
Timestamp 4 bytes
Difficulty target 4 bytes
Nonce 4 bytes
Rest of Blockchain
Transaction counter Variable: 1 to 9
Transaction list Transaction size-dependent: up to 1 MB
1.3 TYPES OF BLOCKCHAIN (BC)
Centered on the uses of BC technology for various applications in a different
scenario, it is broadly categorized into two categories: permissioned and
permissionless [1].
1.3.1 PERMISSIONED
In this, one is required to take some sort of permission from that particular
organization or owner of the BC to access any or parts of the BC. For
example, to read a BC would not allow us to perform any other operations
in the block. One needs to take permission to access or transact the block.
Permissioned BC is categorized into two categories, as follows.
1.3.1.1 PRIVATE BLOCKCHAIN (BC)
The private BC is fully permissioned, and if a node is willing to join, it has
to be a member of that single organization. This new node needs to send an](https://image.slidesharecdn.com/21892726-250529193618-64bb2354/85/Applications-Of-Blockchain-And-Big-Iot-Systems-Digital-Solutions-For-Diverse-Industries-1st-Edition-Arun-Solanki-Editor-34-320.jpg)
![10 Applications of Blockchain and Big IoT Systems
original transaction and required to take part in the consensus mechanism.
The private BC is useful and is generally favored for individual enterprise
solutions to record the track of data transfer between different departments
[12]. Examples of private BC are Ripple and Hyperledger.
1.3.1.2 FEDERATED BLOCKCHAIN (FEDBLOCK)
Federated blockchain (FedBlock), also known as a consortium BC, shares
a lot of similarity to a private BC. It is a ‘semi-private’ system that has a
controlled user group. A FedBlock is taken as an auditable and credibly
synchronized dispersed database that preserves the track of data exchange
information between consortium members taking part in the system. Like
a private BC, it does not annex the processing fee and incurs a low compu
tational cost to publish new blocks. FedBlock ensures the auditability and
contributes comparatively lower latency in transaction processing. Examples
of FedBlock s are EWF, R3, Quorum, and Hyperledger, etc.
If we compare with the public BC (mentioned in Section 1.3.2.1),
private is more comfortable because of less number of users. It requires less
processing power and time for verifying a new block. It also provides better
security because the nodes, which are within the organization, can read the
transactions.
1.3.2 PERMISSIONLESS
A permissionless BC is simple, with no restriction for entry to use it. As
the name indicates, anyone and anything can be a part of it without taking
permission.
1.3.2.1 PUBLIC BLOCKCHAIN (BC)
A public BC is a permissionless BC in which the validation of transactions
depends on consensus. Mostly it is distributed, in which all the members take
part in publishing the new blocks and retrieving BC contents. Ina public BC,
every block is allowed to keep a copy of the BC, which is used in endorsing
the new blocks [12]. A few popular applications of public BC execution are
cryptocurrency networks which are like BTC, ethereum (ETH), and many](https://image.slidesharecdn.com/21892726-250529193618-64bb2354/85/Applications-Of-Blockchain-And-Big-Iot-Systems-Digital-Solutions-For-Diverse-Industries-1st-Edition-Arun-Solanki-Editor-35-320.jpg)
![11
Blockchain Technology: Introduction, Integration, and Security Issues with IoT
others. It has an open-source code maintained by a community and is open
for everyone to take part in [1, 13].
A public BC is difficult to hack because for adding a new block, it
involves either high computation-based puzzle-solving or staking one’s
cryptocurrency. In this, every transaction is attached to some processing fee.
A comparison of various available technologies [11] is shown in Table 1.2.
TABLE 1.2 Comparison of Blockchain Technologies
Public Blockchain Private Blockchain Consortium/
Federated
Blockchain
Participation in
Consensus
Every node Solo organization Some specified
nodes in multiple
organizations
Access Read/write access
allowed to all
High access restriction Comparatively lower
access restriction
Identity Pseudo-anonymous Accepted participants Accepted
participants
Immutability Fully immutable Partially immutable Partially immutable
Transaction
Processing Speed
Low High High
Permission Required No Yes Yes
1.4 SMART CONTRACT
The smart contract is the term, introduced by Szabo in 1997 [11, 14], which
combines computer protocols with users to run the terms of the contract. A
smart contract is a self-enforcing agreement (an agreement enforced by the
party itself) embedded in computer code managed by the BC. It is governed
by the computer protocols under which the performance of a reliable transac
tion occurs without the participation of any third parties. The transactions
performed under the smart contract can be tracked and is irreversible. A
smart contract basically consists of the following components: lines of code,
storage file, and account balance. It can be created by a node to initiate a
transaction to the BC. The lines of code, i.e., program code is immutable and
cannot be moderated once it is created.
Figure 1.3 shows the contract’s storage file associated with the miner and
stored in the public BC. The network of miners is responsible for executing
the program logic and acquiring the consensus on the execution’s output.](https://image.slidesharecdn.com/21892726-250529193618-64bb2354/85/Applications-Of-Blockchain-And-Big-Iot-Systems-Digital-Solutions-For-Diverse-Industries-1st-Edition-Arun-Solanki-Editor-36-320.jpg)
![12 Applications of Blockchain and Big IoT Systems
Only that particular node (miner) is enabled to hold, access, and modify the
data in the BC. The contract’s code follows a reactive approach, i.e., it is
executed whenever it receives a message from the user or any other nodes in
the chain. While during the execution of the code, the contract may access
the storage file for performing the read/write operations.
FIGURE 1.3 Structure of the distributed cryptocurrency system with smart contracts [14].
1.5 CONSENSUS MECHANISM
Consensus mechanisms [1] are the protocols that ensure the synchronization
of all the nodes with each other in the BC. It validates the transaction if it
is legitimate before adding it to the BC. This mechanism plays an essential
character in the smooth and correct functioning of BC technology. It also
ensures that all the nodes use the same BC and all the nodes must continu
ously check all performed transactions.
Many consensus mechanisms are available today. However, a few
known prevalent BC consensus mechanisms are PoW, proof of stake (PoS),
Delegated PoS, Ripple, and Tendermint [15]. The key difference among
numerous consensus mechanisms can be identified, the way they depute and
payoff the authentication of multiple transactions.
Even after the availability of the number of consensus mechanisms,
many existing BC systems, including BTC and ETH uses PoW. PoW is the
first and popular consensus mechanism. Its use is widely accepted in many](https://image.slidesharecdn.com/21892726-250529193618-64bb2354/85/Applications-Of-Blockchain-And-Big-Iot-Systems-Digital-Solutions-For-Diverse-Industries-1st-Edition-Arun-Solanki-Editor-37-320.jpg)
![13
Blockchain Technology: Introduction, Integration, and Security Issues with IoT
of BC-based systems. It is mandatory for the users, participation in the BC
network, to prove that the work is done for them to qualify and obtain the
aptitude to add a new block to the ledger [1]. In the BC network, nodes are
expected to receive the consensus and agree that the block hash provided by
the miner is a valid PoW.
Figure 1.4 illustrates the working of the PoW mechanism in the BC. In
this mechanism, every miner is first required to define and create a PoW
puzzle in the BC. The created puzzle will be visible and accessible to every
other node taking part in the system. However, the node, which can solve the
PoW puzzle, is able to hold, access, and modify the data in the BC.
FIGURE 1.4 Working of consensus mechanism in blockchain.
1.6 ETHEREUM (ETH)
ETH is a distributed computing platform, used for public BC systems with
an operating system featuring smart contract functionalities. It is an open-
source platform proposed by VitalikButerin, a programmer and cryptocur
rency researcher in late 2013 [16].
ETH is also a validated platform used to deliver and execute smart
contracts (SCs) reliably. It supports a modified form of the Nakamoto-
consensus mechanism, which works on “Memory Hardness” despite fast
computing power machines. ETH is a permissionless network, i.e., any node](https://image.slidesharecdn.com/21892726-250529193618-64bb2354/85/Applications-Of-Blockchain-And-Big-Iot-Systems-Digital-Solutions-For-Diverse-Industries-1st-Edition-Arun-Solanki-Editor-38-320.jpg)
![14 Applications of Blockchain and Big IoT Systems
can join the network by creating an account on the ETH platform. Moreover,
it uses its consensus model, which is identified as EthHash PoW. It is compe
tent to run the scripts using a global network of public nodes. Miner nodes
are ETH Virtual Machines provided by ETH BC. These nodes are adequate
for providing cryptographic tamper-proof tenacious execution, and its imple
mentation is called contracts. ETH reinforces its digital currency known
as Ether [17]. ETH is one of the well-recognized platforms for executing
SCs, though, it can execute other decentralized applications (DApps) and
compatible to interact with many other BC s. It is also categorized as Turing-
complete [18], a mathematical concept giving a hint that ETH programming
language can be used as a platform to simulate other languages.
ETH platform may be used to regulate and configure various IoT devices
[43–45]. Security keys are managed using the RSA algorithm, where private
keys are stored on the devices, and BC controls public keys.
1.7 BLOCKCHAIN (BC) TECHNOLOGY IN IoT
BC technology can play a vital role for various privacy and security issues of
the IoT. In IoT, sensing devices usually send the data at a centralized location
for processing purposes. BC technology replaces the central server concept
of IoT by introducing the concept of distributed ledger for every transaction
with legitimate authentication [10]. It ensures that storing the transaction
details with the intermediaries is no longer necessary because transaction
records will be available on many computers of the chain. This system
rejects the updation and breaching of one computer. However, to make it
successful, multi-signature protection is required to authorize a transaction.
If a hacker tries to steal the information by penetrating the network, multiple
duplicate copies are available on many computers worldwide. For hacking
the BC network successfully, the consensus of more than 50% of systems in
the network is required [19].
1.7.1 BLOCKCHAIN (BC) INTEGRATION
Integration of BC with IoT opens a new door and wider domain of research
and development in the area of IoT applications [16, 20, 21]. Over the last
few years, unprecedented growth in the field of IoT has been observed,
which enables wide opportunities like access and share of the information.
Many times, accessing, and sharing information can induce challenges like](https://image.slidesharecdn.com/21892726-250529193618-64bb2354/85/Applications-Of-Blockchain-And-Big-Iot-Systems-Digital-Solutions-For-Diverse-Industries-1st-Edition-Arun-Solanki-Editor-39-320.jpg)
![15
Blockchain Technology: Introduction, Integration, and Security Issues with IoT
security, privacy, and trust among the communicating parties. BC can solve
various issues of IoT like privacy, security, and reliability. The distributed
nature of BC technology can eliminate single point failure and makes it
reliable.
We are all aware that BC has already proven its importance in financial
transactions with the help of cryptocurrencies, such as BTC and ETH. It
removed the third-party requirement between P2P payment services [18]. A
few IoT enablers have chosen the BC technology and formed a consortium
for standardization and reliable integration of BIoT (Blockchain-IoT). It is a
group of 17 companies aimed to enable security, scalability, heterogeneity,
privacy, and trust in distributed structure with the help of BC technology
[16].
IoT devices can communicate with one another either directly, device to
device, or through BC technology. There are three types of communication
models in an integrated BC and IoT environment, which are as follows.
1.7.1.1 IoT-IoT COMMUNICATION
In IoT-IoT communication, IoT devices communicate directly without the
involvement of the BC. This type of communication is also known as inter-
IoT devices communication. It is the fastest communication model that does
not associate high computation and time-consuming BC algorithms.
Figure 1.5 shows that BC is not involved in inter IoT communications
that is why the system is not able to ensure data integrity, privacy, and secu
rity mechanisms. In this model, BC stores the communication/transaction
history of the IoT devices. This is one of the fast communication models
between IoT devices.
1.7.1.2 IoT-BLOCKCHAIN (BC) COMMUNICATION
In this model, all transactions among the IoT devices go through the BC.
This model is enriched with the capability to ensure the data privacy, reli
ability, and safety of both data and transactions.
Figure 1.6 shows the IoT device communication model through BC,
which ensures that stored records of each transaction will be immutable,
and transaction details are traceable as its features can be verified in the BC.
Although, BC upsurges the autonomy of IoT devices but it may suffer from
BC overhead which causes latency.](https://image.slidesharecdn.com/21892726-250529193618-64bb2354/85/Applications-Of-Blockchain-And-Big-Iot-Systems-Digital-Solutions-For-Diverse-Industries-1st-Edition-Arun-Solanki-Editor-40-320.jpg)
![17
Blockchain Technology: Introduction, Integration, and Security Issues with IoT
partially or most of the computation load, such as encryption, hashing, and
compression, from IoT devices to Fog nodes.
Figure 1.7 shows an IoT integrated with BC technology, which can
transfer high computation load and time-consuming algorithm to Fog node.
In this way, fog, and cloud computing comes into play and complement the
shortcoming of BC and IoT [21].
FIGURE 1.7 Hybrid communication model.
1.7.2 SECURITY IN BLOCKCHAIN (BC) AND IoT
The IoTs is a structure of machine-to-machine (M2M) associations, with no
human involvement at all. Hence establishing faith with the participation
of machines is a formidable challenge that IoT equipment still has not met
broadly. The BC can take steps as a medium in this process, for improved
scalability, protection of data, dependability, and privacy. This process can be
done by BC technology to follow all devices which are connected to the IoT
environment, and after that, it is used to make possible and/or synchronize
all transaction processing. By using the BC function, we can fully remove a
single point of failure (SPF) in IoT structure. In BC, data is encrypted using
various algorithms like cryptographic algorithms and hashing techniques.](https://image.slidesharecdn.com/21892726-250529193618-64bb2354/85/Applications-Of-Blockchain-And-Big-Iot-Systems-Digital-Solutions-For-Diverse-Industries-1st-Edition-Arun-Solanki-Editor-42-320.jpg)
![18 Applications of Blockchain and Big IoT Systems
Therefore, the function of BC provides improved security services in an IoT.
The function of BC technology is to repair the digital market. It has a guarantee
and retaining both main and preliminary concerns of the function of the BC.
The BC keeps the record of a group of sequential and sequence of informa
tion transactions since it can be read as a massive networked time-stamping
system. The controllers are too concerned in BC’s capability to recommend
protected, confidential, immediately perceptible monitoring of transactions.
Therefore, the BC can facilitate us to avoid the tampering and spoofing of
data by the organization and securing the industrial IoT devices [22].
The BC records every transaction and provides a cross-border overall
distributed confidence. Many times, it is possible that Trusted Third Party
systems or central location-based services can be vitiated or hacked. In BC,
when transactions are confirmed by consensus, then the block data are accept
able to all. The BC can be constructed as: (1) permissioned network, which
is generally a private network; and (2) permissionless, a public network.
Permissioned BC offers new privacy and improved access functionality.
The BC can resolve these types of challenges effortlessly, strongly, and
competently. It has been generally used for providing reliable and certified
uniqueness registration, possession track, and monitor of products, supplies,
and resources. IoT devices are not exempted, BC is able to identity all the
connected IoT devices [17]. For security purposes, the BC supports the IoT
as mentioned below.
1.7.2.1 DATA AUTHENTICATION AND INTEGRITY
The data transmission through IoT devices is linked to the BC network and
it will be cryptographically proofed and signed via the correct correspondent
to hold an exclusive public key and GUID (global unique identifier) which
do not require any verification for its uniqueness, and thus it guarantees the
verification and truthfulness of transmitting data. Additionally, all transac
tions complete toward or through an IoT device. Its transaction details are
recorded on the BC ledger, which enables it to be tracked easily [17].
1.7.2.2 AUTHENTICATION, AUTHORIZATION, AND PRIVACY
In BC, SCs can offer a decentralized verification policy and sense to be
capable of providing a particular and combined verification to an IoT device.
The SCs are able to provide another effective permission access policy to link](https://image.slidesharecdn.com/21892726-250529193618-64bb2354/85/Applications-Of-Blockchain-And-Big-Iot-Systems-Digital-Solutions-For-Diverse-Industries-1st-Edition-Arun-Solanki-Editor-43-320.jpg)
![19
Blockchain Technology: Introduction, Integration, and Security Issues with IoT
IoT devices, employing a smaller amount of complexity while one compares
among fixed approval protocols such as role-based access management
(RBAC) [23], OpenID, etc. Nowadays, these protocols are generally used
for managing, authorization, and verification of IoT devices [17].
1.7.2.3 SAFE AND PROTECTED CONNECTIONS
In general, communication protocols that are used by IoT applications;
HTTP, MQTT, XMPP, and many other routing protocols that are not
protected in design. These protocols are required to be wrapped with the new
security protocols for providing secure communications. The new security
protocols can be enriched with BC technology; which are DTLS (datagram
transport-level security) or TLS [24] with the BC. Key management and
identity allocation are completely removed from all IoT devices because it
would contain its own single and distinctive GUID and the asymmetric key
pair values once mounted and associated to the BC system [17].
Although the BC provides a strong approach for protected IoT, the
consensus method depending on the miner’s hashing control can be
conceded, thus permit the hacker/attacker to host the BC. Also, the private
keys among restricted uncertainty can be dried up to compromise the BC
accounts. Efficient methods up till now need to be distinct to make sure the
privacy of transactions and keep away from race attack, which can affect
inside dual spending throughout the transactions [17].
The IoT device has very limited storage and computing power; it can
still produce safe and protected keys. Once a key is created, the public key
is attached to the Public Key data field in addition to the elected IoT receiver
and mined with the BC. While protected data communication via BC is
not suggested because access to all nature of a broadcast BC on a server, a
BC-based public key swap permitted for IoT to set-up non-interactive key
managing protocols [25]. With a Non-Interactive Protocol, session key series
utilizing a mixture of BC data fields as ‘salt’ may provide an effective solu
tion for updating the IoT session keys for safe and secure data transfer. Still,
this research field is required to be explored further for better outcomes [26].
A few other aspects of BC technology are; it can resolve the IoT security
issues considering its limited storage and low computation power. Because
efficient, lightweight, integrated blockchain (ELIB) [27] with IoT devices,
protects it from security breaches. ELIB easily copes with the computational](https://image.slidesharecdn.com/21892726-250529193618-64bb2354/85/Applications-Of-Blockchain-And-Big-Iot-Systems-Digital-Solutions-For-Diverse-Industries-1st-Edition-Arun-Solanki-Editor-44-320.jpg)
![20 Applications of Blockchain and Big IoT Systems
complexity and several other issues like low bandwidth, delay, and overhead,
etc.
The BC structure is offering a trustful background used for data storage
and access. This structure has two characters. One is data integrity, and
another is role-based data access characters. In data integrity, the structure
avoids data stored within if it is being altered. In role-based data access, it is
a guarantee that the structure recommends special data access permissions
toward different users and IoT devices [28, 29].
Compared to the cloud-based centralized system, the BC system is a
decentralized system that has a benefit in protecting certain specific attacks
(e.g., distributed denial of service (DDOS) attacks). The BC system does
concern with the particular point of failure problem, which can occur in
the cloud-based centralized system. The centralized system is typically
controlled by a manager. If the hacker/attacker pinch the manager’s account,
they can randomly change the system data. While we were well-known, the
data or conversion in the BC system is altered conflict [29].
Privacy and security are most essential in the IoT environment. Within
the cloud-based centralized system, user’s data are stored randomly, which
can simply be hacked by the attackers/hackers. The BC system can offer the
independence service by the public-key cryptography method. Furthermore,
communication in the IoT environment accepts the AES encryption algo
rithm, which is extremely flexible to the resource-constrained IoT mecha
nism. Access control is also an essential mechanism in the IoT system; the
smart contract of the BC system be able to offer this type of security service
[28].
Researchers have observed that associating BC with IoT is beneficial
to handle security and privacy issues, which can probably transform many
industries. It is pertinent to mention here that IoT security has always been a
pressing concern. To explain this, let us take an example of six IoT devices;
the Chamberlain MyQ Garage, the Chamberlain MyQ Internet Gateway, the
SmartThings Hub, the Ubi from Unified Computer Intelligence Corporation,
the Wink Hub, and the Wink Relay; that are tested by a US-based applica
tion security company “Veracode” in 2015. The Veracode team found five
devices, out of six, had serious security issues. The team was responsible for
observing the implementation and various security issues of the communi
cation protocol used in IoT systems. The front-end (services between user
and cloud) and back-end (between IoT devices and cloud) were examined,
and it is found that except SmartThings Hub, the devices even unsuccessful
to have a robust password. Besides, Ubi is deficient in encryption for user](https://image.slidesharecdn.com/21892726-250529193618-64bb2354/85/Applications-Of-Blockchain-And-Big-Iot-Systems-Digital-Solutions-For-Diverse-Industries-1st-Edition-Arun-Solanki-Editor-45-320.jpg)
![21
Blockchain Technology: Introduction, Integration, and Security Issues with IoT
connection. These security breaches can cause to a man-in-the-middle attack.
When the team examined the back-end connection, results were even worst.
They also lacked the protection from replay attacks.
In the era of technological automation, hacking of IoT devices has severe
consequences. The incorporation of BC technology in IoT [8] is being well
adopted through a broad perspective of measures purported to reinforce
security. Narrowband Internet of Things (NB-IoT) is one of the novel types
of IoT which is built on cellular networks. It can directly be deployed on
long-term evolution (LTE) architecture. BC technology is applied [30] to
ensure reliable data integrity and authentication.
Several mission-critical [31] applications, moving towards automation,
are getting popular. Ocado, an online supermarket in Britain, is fully equipped
with IoT to stringently improve the warehouse. Installed RFID chips into
the Ocado warehouse can sense when the new stock requirements are to be
ordered or the status of the remaining number of items in the warehouse. BC
technology is used to ensure data integrity, and its decentralized replication
technique alienates the requirement to have entire IoT data collected at a
central location. This is possible because SCs, stored on the BC, would not
allow any modification to the contracts.
Although BC technology can protect from vulnerabilities, it still suffers
from some issues. SCs in BC are visible to all the users that can cause bugs
and vulnerabilities; these are the bugs that cannot be fixed in the stipulated
time duration. Some other drawback includes its complexity, high computa
tion, and sometimes resource wastage.
1.8 A COMPARATIVE STUDY
This section includes a comparative study on the previously developed system
with the BC-IoT-based system. BC technology and IoT can be considered
as emerging realities in the current epoch, and these two technologies can
transform civilization at a rapid pace [32]. From Table 1.3, one can see that
wireless sensor networks (WSN) [33] and the IoTs based on systems are not
immutable, IoT-Cloud is partially immutable. At the same time, IoT-BC is a
completely immutable system.
IoT-Cloud allows participant to participant (P2P) sharing while IoT-BC
supports P2P as well as a participant to machine (P2M) and M2M sharing
also. All other systems support limited sharing only. Table 1.3 lists the
BC-enabled IoT system with respect to certain properties.](https://image.slidesharecdn.com/21892726-250529193618-64bb2354/85/Applications-Of-Blockchain-And-Big-Iot-Systems-Digital-Solutions-For-Diverse-Industries-1st-Edition-Arun-Solanki-Editor-46-320.jpg)
![TABLE 1.3 A Comparison of Blockchain-IoT based System with Traditional SHM Systems
Simple [34] WSN [33, 35] IoT [36, 37] IoT-Cloud [30, 38] IoT-Blockchain [32]
De-centralize
1. Completely Completely Completely Mostly decentralized Entirely decentralized
centralized centralized centralized
Reliability
2. Highly not reliable High data Data tampering is Data tampering is Tempering is not possible
tempering possible easily possible easily
Storage, Privacy, Security,
3. Low Low Intermediate Intermediate Considerably higher
and Confidentiality
Immutable Behavior
4. Not immutable Not immutable Not immutable Partially immutable Fully immutable
Real-time
5. Nearly-real time Real-time Real-time Real-time Nearly-real time
Communication and
6. Confined Confined Data processing and Data processing, P2M and M2M
Transparent information monitoring monitoring monitoring monitoring, and P2P communications,
Sharing information sharing autonomous decision
making using Smart
contract-based analysis
Interoperability
7. Lower Lower Intermediate level Intermediate level High
Re-Active Maintenance
8. Lower Low Medium Medium Effectively high
22
Applications
of
Blockchain
and
Big
IoT
Systems](https://image.slidesharecdn.com/21892726-250529193618-64bb2354/85/Applications-Of-Blockchain-And-Big-Iot-Systems-Digital-Solutions-For-Diverse-Industries-1st-Edition-Arun-Solanki-Editor-47-320.jpg)
![23
Blockchain Technology: Introduction, Integration, and Security Issues with IoT
Observations from Table 1.3 show that the BC-enabled IoT system is
the most suitable system to ensure reliability, immutability, interoperability,
and security, etc., as indicated in the table. Therefore, one can conclude that
BC technology is the most suited technology for IoT-enabled systems. A
BC-based decentralized system is most suitable for IoT networks; which is
validated by a study of Rathore et al. [39]. In this, a review is done on central
ized, distributed, and decentralized systems using various measures like
accuracy, F-score, detection rate, etc. [40, 41]. Therefore, we can conclude
that decentralized BC system is the most suitable system of IoT networks.
1.9 CONCLUSION
This chapter defines the fundamentals of BC technology, along with its
components. A comparative study of various BC technology is also high
lighted. Various application areas are mentioned in this chapter. A BC
technology, ETH, is described that can be used to implement the public BC.
It ensures the transparency of the information. The importance of BC is also
explained with the help of the relevant examples.
IoT is an upcoming technology that is being introduced for a smart
environment. With such a prevalent environment, security is a measure of
concern. This chapter also introduces how BC can be used for security in
IoT. BC, being a distributive technology, plays a good role in IoT security.
The comparative study section of the chapter infers the same.
KEYWORDS
• blockchain
• central database
• cryptography
• distributed denial of service
• Ethereum
• Internet of Things
REFERENCES
1. Atlam, H. F., & Wills, G. B., (2019). Technical aspects of blockchain and IoT. In:
Advances in Computers (Vol. 115, pp. 1–39). Elsevier.
](https://image.slidesharecdn.com/21892726-250529193618-64bb2354/85/Applications-Of-Blockchain-And-Big-Iot-Systems-Digital-Solutions-For-Diverse-Industries-1st-Edition-Arun-Solanki-Editor-48-320.jpg)
![28 Applications of Blockchain and Big IoT Systems
and merged to create a global model. Finally, this global model is sent as an
update to the individual clients independently. Despite having advantages
like being able to provide security and ensure privacy, and benefits of appli
cation to power constraint scenarios of sensor devices, there are still some
areas that need proper attention like vulnerability of having a single central
ized optimization at main server and scalability issues, etc. Moreover, the
IoT devices are statistically heterogeneous and vulnerable due to insecure
design, implementation, and configuration making it a challenging task to
deploy Federated Learning directly. It is for this task blockchains (BCs) can
be effectively used owing to their fault tolerance, transaction integrity and
authentication, decentralization, etc.
In this chapter, the intent is to provide an in-depth analysis of IoT security
issues and how Federated Learning along with BC technology can be used
to solve them.
2.1 INTRODUCTION
In today’s world, one can never forego the role of the Internet as an infor
mation provider and information disseminator. The growth of Web 3.0 and
Web 4.0 at an exponential rate have witnessed an enormous growth in the
number of internet users, where the data is no more the regular structured
one, but is an unstructured Big Data. The term Big Data, coined in the 1990s,
specifies the huge unstructured or semi-structured data sets that cannot be
captured, stored, managed, processed, and analyzed by typical software tools
[1]. These datasets have data in varying formats that span over text, sound,
image, and/or video, and thus, it is a challenging task to process this data so
as to have some useful outcomes. Essentially, nowadays, the rate of creation
of this Big Data has captured the scenario in such a way that this accounts
for almost 90% of all the data being actually created [2]. Talking about the
Big Data, it can be characterized by seven Vs: Volume, Variety, Veracity,
Velocity, Variability, Visualization, and Value. There are many enabling
technologies that have contributed to the proliferation of Big Data, such as
Internet of Things (IoT), Information, and Communication Technologies
(ICTs), artificial intelligence (AI), etc.
With the advent of technology, we are witnessing huge potential in devices
enabled with sensors having advanced processing/computing capabilities.
The Internet, as a supporting technology has further helped the research
community to gain momentum in the field of inter-sensor communication.](https://image.slidesharecdn.com/21892726-250529193618-64bb2354/85/Applications-Of-Blockchain-And-Big-Iot-Systems-Digital-Solutions-For-Diverse-Industries-1st-Edition-Arun-Solanki-Editor-53-320.jpg)
![Blockchain-Based Federated Machine Learning for Solving IoT Security Problems 29
The IoTs basically consist of interrelated computing devices, which can be
some mechanical or digital machines, objects, animals, or people that are
having unique identifiers (UIDs). They have the ability to transfer data over
a network without any human-to-human or human-to-computer interaction
happening. Nowadays, IoTs has widely penetrated different aspects of our
life. As a result, many intelligent IoT services and applications are now
emerging. However, due to insecure design, implementation, and configu
ration, these devices have potential vulnerabilities which can be potential
problems.
IoTs generates huge sets of data. In order to have some useful results
or outcome from this data, it has to be pre-processed, scaled, classified,
and analyzed. Machine learning (ML) or AI have proved to be very useful
for this purpose, where we can use the enormous data to design and train a
model for some analytics.
Traditionally, the ML approaches used to send the data to a central server
where the data is processed and then the model is trained. But it created issues
related to the communication overhead, delay in processing, and privacy and
security concerns because each device may have different computing capa
bilities and power. As a result, Google in 2016 has proposed a new method
called federated ML [3] in which, we have numerous clients distributed over
different environments. Every client train itself on the data that is locally
available to it and creates a model. All such local models are then sent to the
centralized server, which merges them to create a global model. Finally, this
global model is sent as an update to the individual clients independently.
There are many advantages of Federated Machine Learning like being
able to ensure security and privacy, and ability to being deployed to power
constraint scenarios of sensor devices, there are some areas that need proper
attention like vulnerability of having a single centralized optimization at
main server and scalability issues, etc. Moreover, the IoT devices are statisti
cally heterogeneous and vulnerable due to insecure design, implementation,
and configuration making it a challenging task to deploy Federated Learning
directly.
Blockchain (BC), as the name suggests, is a chain of blocks wherein each
block contains transaction information, hash of the previous block, and a
timestamp. Although BC was initiated originally as a financial transaction
protocol but due to benefits like fault tolerance, transaction integrity and
authentication, decentralization, etc. It is seen as a promising candidate to
ensure security and privacy in a variety of applications including IoT.](https://image.slidesharecdn.com/21892726-250529193618-64bb2354/85/Applications-Of-Blockchain-And-Big-Iot-Systems-Digital-Solutions-For-Diverse-Industries-1st-Edition-Arun-Solanki-Editor-54-320.jpg)
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- 6. APPLICATIONS of BLOCKCHAIN and BIG IoT SYSTEMS Digital Solutions for Diverse Industries
- 8. APPLICATIONS of BLOCKCHAIN and BIG IoT SYSTEMS Digital Solutions for Diverse Industries Edited by Arun Solanki, PhD Vishal Jain, PhD Loveleen Gaur, PhD
- 9. First edition published 2023 Apple Academic Press Inc. CRC Press 1265 Goldenrod Circle, NE, 6000 Broken Sound Parkway NW, Palm Bay, FL 32905 USA Suite 300, Boca Raton, FL 33487-2742 USA 4164 Lakeshore Road, Burlington, 4 Park Square, Milton Park, ON, L7L 1A4 Canada Abingdon, Oxon, OX14 4RN UK © 2023 by Apple Academic Press, Inc. Apple Academic Press exclusively co-publishes with CRC Press, an imprint of Taylor & Francis Group, LLC Reasonable efforts have been made to publish reliable data and information, but the authors, editors, and publisher cannot assume responsibility for the validity of all materials or the consequences of their use. The authors, editors, and publishers have attempted to trace the copyright holders of all material reproduced in this publication and apologize to copyright holders if permission to publish in this form has not been obtained. If any copyright material has not been acknowledged, please write and let us know so we may rectify in any future reprint. Except as permitted under U.S. Copyright Law, no part of this book may be reprinted, reproduced, transmitted, or utilized in any form by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying, microfilming, and recording, or in any information storage or retrieval system, without written permission from the publishers. For permission to photocopy or use material electronically from this work, access www.copyright.com or contact the Copyright Clearance Center, Inc. (CCC), 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400. For works that are not available on CCC please contact mpkbookspermissions@tandf.co.uk Trademark notice: Product or corporate names may be trademarks or registered trademarks and are used only for identification and explanation without intent to infringe. Library and Archives Canada Cataloguing in Publication Title: Applications of blockchain and big IoT systems : digital solutions for diverse industries / edited by Arun Solanki, PhD, Vishal Jain, PhD, Loveleen Gaur, PhD. Names: Solanki, Arun, 1985- editor. | Jain, Vishal, 1983- editor. | Gaur, Loveleen, editor. Description: First edition. | Includes bibliographical references and index. Identifiers: Canadiana (print) 20220171262 | Canadiana (ebook) 20220171297 | ISBN 9781774637456 (hardcover) | ISBN 9781774637463 (softcover) | ISBN 9781003231332 (ebook) Subjects: LCSH: Blockchains (Databases)—Industrial applications. | LCSH: Internet of things—Industrial applications. | LCSH: Big data—Industrial applications. Classification: LCC QA76.9.B56 A67 2023 | DDC 005.74—dc23 Library of Congress Cataloging-in-Publication Data CIP data on file with US Library of Congress ISBN: 978-1-77463-745-6 (hbk) ISBN: 978-1-77463-746-3 (pbk) ISBN: 978-1-00323-133-2 (ebk)
- 10. About the Editors Arun Solanki, PhD Assistant Professor, Department of Computer Science and Engineering, Gautam Buddha University, Greater Noida, India Arun Solanki, PhD, is an Assistant Professor in the Department of Computer Science and Engineering, Gautam Buddha University, Greater Noida, India, where he has also held various additional roles over the years. He is the Co-Convener of the Center of Excellence in Artificial Intelligence. He has supervisedmorethan60MTechdissertations.Hisresearchinterestsspanexpert systems, machine learning (ML), and search engines. He has published many research articles in SCI/Scopus-indexed international journals and has partici pated in many international conferences. He has been a technical and advisory committee member of many conferences and has chaired and organized many sessions at an international conferences, workshops, and seminars. Dr. Solanki is working as an Associate Editor for the International Journal of Web-Based Learning and Teaching Technologies (IJWLTT). He has also been working as a guest editor for special issues in Recent Patents on Computer Science. Dr. Solanki is the editor of many books and is working as the reviewer for journals published by Springer, IGI Global, Elsevier, and others. He received an MTech degree in computer engineering from YMCA University, Faridabad, Haryana, India. He has received his PhD in Computer Science and Engineering from Gautam Buddha University, Greater Noida, India. Vishal Jain, PhD Associate Professor, Department of Computer Science and Engineering, School of Engineering and Technology, Sharda University, Greater Noida, U.P. India Vishal Jain, PhD, is presently working as anAssociate Professor at the Depart ment of Computer Science and Engineering, School of Engineering and Technology, Sharda University, Greater Noida, U.P. India. Before that, he has worked for several years as an Associate Professor at Bharati Vidyapeeth’s Institute of Computer Applications and Management (BVICAM), New Delhi. He has more than 14 years of experience in academics. He obtained a PhD
- 11. vi About the Editors (CSE), MTech (CSE), MBA(HR), MCA, MCP, and CCNA. He has more than 370 research citation indices with Google Scholar (h-index score 9 and i-10 index 9). He has authored more than 70 research papers in reputed confer ences and journals, including Web of Science and Scopus. He has authored and edited more than 10 books with various reputed publishers, including Springer, Apple Academic Press, CRC, Taylor and Francis Group, Scrivener, Wiley, Emerald, and IGI-Global. His research areas include information retrieval, semantic web, ontology engineering, data mining, ad hoc networks, and sensor networks. He received a YoungActive MemberAward for the year 2012–2013 from the Computer Society of India, Best FacultyAward for the year 2017, and Best Researcher Award for the year 2019 from BVICAM, New Delhi. Loveleen Gaur, PhD Professor and Program Director (Artificial Intelligence and Business Intelligence and Data Analytics), Amity International Business School, Amity University, Noida, India Loveleen Gaur, PhD, is a Professor cum Program Director (Artificial Intel ligence and Business Intelligence and Data Analytics) at Amity International Business School, Amity University, Noida, India. She is also a senior IEEE member and series editor. An established author and researcher, she has filed three patents in the area of IoT. For over 18 years she served in India and abroad in different capacities. Prof. Gaur has significantly contributed to enhancing scientific understanding by participating in over 300 scientific conferences, symposia, and seminars; by chairing technical sessions; and by delivering plenary and invited talks. She has specialized in the fields of information sciences IoT, data analytics, e-commerce and e-business, data mining, and business intelligence. Prof. Gaur has authored and co-authored around 10 books with Elsevier, Springer, and Taylor and Francis. She is invited as a guest editor for Springer NASA journals and Emerald Q1 jour nals. She has chaired various committees for international conferences and is a reviewer with IEEE, SCI, and ABDC journals. She is actively involved in various projects of the Government of India and abroad. She has been honored with prestigious national and international awards, such as the Senior Women Educator & Scholar Award by the National Foundation for Entrepreneurship Development on Women’s Day, the Sri Ram Award from the Delhi Management Association (DMA), and a Distinguished Research Award by Allied Academies, which was presented in Jacksonville, Florida, and an Outstanding Research Contributor award by Amity University.
- 12. Contributors............................................................................................................xi Abbreviations ......................................................................................................... xv Preface .................................................................................................................. xix PART I: BLOCKCHAIN MECHANISMS FOR IoT SECURITY ...................1 1. Blockchain Technology: Introduction, Integration, and Security Issues with IoT ................................................................................3 Sunil Kumar Singh and Sumit Kumar 2. Blockchain-Based Federated Machine Learning for Solving IoT Security Problems ...................................................................27 Divya, Vikram Singh, and Naveen Dahiya 3. Blockchain-Based Security Solutions for Big Data and IoT Applications...........................................................................................57 Rajdeep Chakraborty, Abhik Banerjee, and Sounak Ghosh 4. Intelligence on Situation Awareness and Cyberthreats Based on Blockchain and Neural Network..............................................101 S. Porkodi and D. Kesavaraja 5. WVOSN Algorithm for Blockchain Networks ........................................133 Nada M. Alhakkak 6. Blockchain-Based Authentication and Trust Computation Security Solution for Internet of Vehicles (IoV)......................................157 Sunilkumar S. Manvi and Shrikant Tangade PART II: SMART CITY ECOSYSTEM USING BLOCKCHAIN TECHNOLOGY.................................................................................................179 7. Blockchain for Smart Cities: The Future of City Management ............181 Arun Solanki and Tarana Singh 8. Application of Blockchain Technology to Make Smart Cities Smarter............................................................................................. 211 Yogita Borse, Purnima Ahirao, Kunal Bohra, Nidhi Dedhia, Yash Jain, Rohit Kasale, and Unmesh Madke Contents
- 13. PART III: BLOCKCHAIN TECHNOLOGIES: OPPORTUNITIES FOR SOLVING REAL-WORLD PROBLEMS IN HEALTHCARE AND BIOMEDICAL SCIENCE.......................................................................243 9. Blockchain Technology for Biomedical Engineering Applications........245 Dinesh Bhatia, Animesh Mishra, and Anoop Kumar Prasad 10. Decentralized and Secured Applications of Blockchain in the Biomedical Domain....................................................................................267 Meet Kumari, Meenu Gupta, and Chetanya Ved 11. Blockchain-Enabled Secure Platforms for Management of Healthcare Data..........................................................................................283 Nimrita Koul and Sunilkumar S. Manvi PART IV: FUTURE APPLICATIONS OF BLOCKCHAIN IN BUSINESS AND MANAGEMENT..................................................................305 12. Key Drivers of Blockchain Technology for Business Transformation...........................................................................................307 Shivani A. Trivedi and Okuogume Anthony 13. Development of Blockchain-Based Cryptocurrency...............................341 Deepak Kumar Sharma, Anuj Gupta, and Tejas Gupta 14. Blockchain as a Facilitator Technology in the Digital Era: Analysis of Enablers ..................................................................................373 Ravinder Kumar 15. Identifying Applications of Blockchain Technology in the Construction Industry and Project Management...................................389 Priyanka Singh 16. Mitigating the Supply Chain Wastages Using Blockchain Technology..................................................................................................409 Dhritiman Chanda, Shantashree Das, Nilanjan Mazumdar, and D. Ghose 17. Traceable and Reliable Food Supply Chain Through Blockchain- Based Technology in Association with Marginalized Farmers ..............431 Sanjukta Ghosh and Sujata Pudale PART V: APPLICATIONS OF BLOCKCHAIN IN EDUCATION AND AGRICULTURE ......................................................................................459 18. Agro-Chain: Blockchain Powered Micro-Financial Assistance for Farmers.................................................................................................461 G. M. Roopa, N. Pradeep, and G. H. Arun Kumar viii Contents
- 14. 19. Transformation of Higher Education System Using Blockchain Technology..............................................................................499 Pradeep Tomar, Harshit Bhardwaj, Uttam Sharma, Aditi Sakalle, and Arpit Bhardwaj Index....................................................................................................................525 ix Contents
- 16. Contributors Purnima Ahirao Faculty of Department of Information Technology, K.J. Somaiya College of Engineering, Mumbai, Maharashtra, India Nada M. Alhakkak Computer Science Department, Baghdad College for Economic Science University, Baghdad, Iraq, E-mails: nadahakkak@hotmail.com; dr.nada@baghdadcollege.edu.iq Okuogume Anthony Lapland University of Applied Sciences, Tornio, Finland, E-mail: Anthony.Okuogume@lapinamk.fi Abhik Banerjee Department of Computer Science and Engineering, Netaji Subhash Engineering College, Kolkata, West Bengal, India, E-mail: abhik.banerjee.1999@gmail.com Arpit Bhardwaj Associate Professor, Department of Computer Science and Engineering, BML Munjal University, Haryana, India, Email Id: arpit.bhardwaj@bmu.edu.in Harshit Bhardwaj Department of Computer Science and Engineering, University School of Information and Communication Technology, Gautam Buddha University, Greater Noida, Uttar Pradesh, India, E-mail: hb151191@gmail.com Dinesh Bhatia Department of Biomedical Engineering, North Eastern Hill University, Shillong – 793022, Meghalaya, India, E-mail: bhatiadinesh@rediffmail.com Kunal Bohra UG Student of Department of Information Technology, K.J. Somaiya College of Engineering, Mumbai, Maharashtra, India Yogita Borse Faculty of Department of Information Technology, K.J. Somaiya College of Engineering, Mumbai, Maharashtra, India, E-mail: yogitaborse@somaiya.edu Rajdeep Chakraborty Department of Computer Science and Engineering, Netaji Subhash Engineering College, Kolkata, West Bengal, India, E-mail: rajdeep_chak@rediffmail.com Dhritiman Chanda Assistant Professor, Faculty of Commerce and Management, Vishwakarma University, Pune, India, Email: operationsdchanda@gmail.com Naveen Dahiya Department of Computer Science and Engineering, MSIT, New Delhi, India Shantashree Das Software Research Analyst, SelectHub, Denver, United States, Email: dshantashree26@gmail.com
- 17. xii Contributors Nidhi Dedhia UG Student of Department of Information Technology, K.J. Somaiya College of Engineering, Mumbai, Maharashtra, India Divya Department of Computer Science and Applications, CDLU, Sirsa, Haryana, India; Department of Computer Science and Engineering, MSIT, New Delhi, India, E-mail: divyajatain@msit.in D. Ghose Associate Professor, Department of Business Administration, Assam University, Silchar, India, E-mail: operationsdghosh@gmail.com Sanjukta Ghosh Srishti Manipal Institute of Art Design and Technology, Bangalore, India Sounak Ghosh Department of Computer Science and Engineering, Netaji Subhash Engineering College, Kolkata, West Bengal, India, E-mail: sounakghosh.official@gmail.com Anuj Gupta Department of Information Technology, Netaji Subhas University of Technology (Formerly known as Netaji Subhas Institute of Technology), New Delhi, India, E-mail: ganuj32@gmail.com Meenu Gupta Department of Computer Science and Engineering, Chandigarh University, Punjab, India, E-mail: gupta.meenu5@gmail.com Tejas Gupta Department of Information Technology, Netaji Subhas University of Technology (Formerly known as Netaji Subhas Institute of Technology), New Delhi, India Yash Jain UG Student of Department of Information Technology, K.J. Somaiya College of Engineering, Mumbai, Maharashtra, India Rohit Kasale UG Student of Department of Information Technology, K.J. Somaiya College of Engineering, Mumbai, Maharashtra, India D. Kesavaraja Associate Professor, Department of Computer Science and Engineering, Dr. Sivanthi Aditanar College of Engineering, Tiruchendur, Tamil Nadu, India, Tel.: 9865213214, E-mail: dkesavraj@gmail.com Nimrita Koul School of Computing and Information Technology, REVA University, Bangalore, Karnataka – 560064, India, E-mails: nimritakoul@reva.edu.in; emailnk1@gmail.com G. H. Arun Kumar Department of Computer Science and Engineering, Bapuji Institute of Engineering and Technology, Davangere, Karnataka, India (Affiliated to Visvesvaraya Technological University, Belagavi, Karnataka, India) Ravinder Kumar Department of Mechanical Engineering, Amity University, Noida, Uttar Pradesh, India, E-mail: rkumar19@amity.edu Sumit Kumar Gopal Narayan Singh University, Bihar, India, E-mail: sumit170787@gmail.com
- 18. xiii Contributors Meet Kumari Department of Electronics and Communication Engineering, Chandigarh University, Punjab, India, E-mail: meetkumari08@yahoo.in Unmesh Madke UG Student of Department of Information Technology, K.J. Somaiya College of Engineering, Mumbai, Maharashtra, India Sunilkumar S. Manvi School of Computing and Information Technology, REVA University, Bengaluru, Karnataka – 560064, India, E-mail: ssmanvi@reva.edu.in Nilanjan Mazumdar Assistant Professor, Department of Business Administration, University of Science and Technology Management, Guwahati, India, Email: nilanjanmazumdar@ustm.ac.in Animesh Mishra Department of Cardiology, North Eastern Indira Gandhi Regional Institute of Health and Medical Sciences, Shillong, Meghalaya, India, E-mail: animesh.shillong@gmail.com S. Porkodi Scholar, Department of Computer Science and Engineering, Dr. Sivanthi Aditanar College of Engineering, Tiruchendur, Tamil Nadu, India, Tel.: 7339464560, E-mail: Ishwaryaporkodi6296@gmail.com N. Pradeep Department of Computer Science and Engineering, Bapuji Institute of Engineering and Technology, Davangere, Karnataka, India (Affiliated to Visvesvaraya Technological University, Belagavi, Karnataka, India) Anoop Kumar Prasad Royal School of Engineering and Technology, Assam Science and Technology University, Guwahati, Assam, India, E-mail: anoopkprasad@rgi.edu.in Sujata Pudale Srishti Manipal Institute of Art Design and Technology, Bangalore, India G. M. Roopa Department of Computer Science and Engineering, Bapuji Institute of Engineering and Technology, Davangere, Karnataka, India (Affiliated to Visvesvaraya Technological University, Belagavi, Karnataka, India), E-mail: roopa.rgm@gmail.com Aditi Sakalle Department of Computer Science and Engineering, University School of Information and Communication Technology, Gautam Buddha University, Greater Noida, Uttar Pradesh, India, E-mail: aditi.sakalle@gmail.com Deepak Kumar Sharma Department of Information Technology, Netaji Subhas University of Technology (Formerly known as Netaji Subhas Institute of Technology), New Delhi, India, E-mail: dk.sharma1982@yahoo.com Uttam Sharma Department of Computer Science and Engineering, University School of Information and Communication Technology, Gautam Buddha University, Greater Noida, Uttar Pradesh, India, E-mail: uttamsharma.usc@gmail.com Priyanka Singh Department of Civil Engineering, Amity School of Engineering and Technology, Amity University Uttar Pradesh, Noida, Uttar Pradesh, India, E-mail: priyanka24978@gmail.com
- 19. xiv Contributors Sunil Kumar Singh Mahatma Gandhi Central University, Bihar, India, E-mails: sksingh@mgcub.ac.in; sunilsingh.jnu@gmail.com Tarana Singh Gautam Buddha University, Greater Noida, Uttar Pradesh, India Vikram Singh Department of Computer Science and Applications, CDLU, Sirsa, Haryana, India Arun Solanki Gautam Buddha University, Greater Noida, Uttar Pradesh, India Shrikant Tangade School of Electronics and Communication Engineering, REVA University, Bengaluru, Karnataka, India Pradeep Tomar Department of Computer Science and Engineering, University School of Information and Communication Technology, Gautam Buddha University, Greater Noida, Uttar Pradesh, India, E-mail: parry.tomar@gmail.com Shivani A. Trivedi S.K. Patel Institute of Management and Computer Science-MCA, Kadi Sarva Vishwavidyalaya, Gujrat, India, E-mail: satrivedi@gmail.com Chetanya Ved Department of Information Technology, Bharati Vidyapeeth’s College of Engineering, Maharashtra, India, E-mail: chetanyaved@gmail.com
- 20. Abbreviations ADG direct acyclic graph AE autoencoder AI artificial intelligence AoI age of information APO area post office ARL army research laboratory ATA Agent of Trusted Authority BAT basic attention token BC blockchain BFT Byzantine fault tolerance BIM building information modeling BIoT blockchain-based IoT BTC bitcoin CAESAIR collaborative analysis engine for situational awareness and incident response CCC contract-compliance-checker CCMSNNB cyberthreat classification and management system using neural network and blockchain CE circular economy CRM customer relationship management CS cloud server CTI cyber threat intelligence CV computer vision CVE common vulnerability and exposure DApp decentralized application DBT direct bank transfer DDOS distributed denial of service DEC design, engineering, and construction DEMB decentralize electronic-medical blockchain-based system DL deep learning DLT distributed ledger technology DNS domain name system DoS denial of services DPoS delegated proof-of-stack
- 21. xvi Abbreviations DSRC dedicated short-range communication DTC distributed time-based consensus algorithm DTLS datagram transport-level security EAB education consultative board ECDSA digital signature elliptical curve algorithm EHRs electronic healthcare records ELIB efficient, lightweight, integrated blockchain ERP enterprise resource planning ETH Ethereum ETSI European Telecommunications Standards Institute FedBlock federated blockchain GDP gross domestic product GDPR general data protection regulation GUID global unique identifier HER electronic health record ICO initial coin offering ICS indicator centric schema ICTs information and communication technologies ID-MAP identity-based message authentication using proxy vehicles IERC European research cluster on the Internet of Things IIoT industrial internet of things IoBT internet of battlefield things IoC indicators of corruption IoMT internet of medical things IoTs Internet of things IoV internet of vehicles IPO initial public offering ITS intelligent transportation system KB knowledge base LPoS leased proof-of-stack LTE long-term evolution M2M machine-to-machine MCDM multi-criteria decision making MHR medication health record MIN miner identifier number MISP malware information sharing platform ML machine learning NB-IoT narrowband internet of things NPV negative predictive value
- 22. Abbreviations xvii OBU on-board-unit OSINT open-source intelligence OSU open-source university P2M participant to machine P2P participant to participant P2P peer-to-peer PBFT practical Byzantine fault tolerance PHR personal health records PII personally identifiable information PKI public-key infrastructure PoA proof of authority PoB proof-of-burn PoC proof-of-capacity PoET proof-of-elapsed time PoI proof-of-importance PoL proof-of-luck PoS proof of stack PoSp proof-of-space PoV proof-of-vote PoW proof of work PoX proof-of-eXercise PPV positive predictive value PRISMA-SGR preferred reporting items for systematic reviews and meta-analysis RBAC role-based access management RFQ request for quotation RIRN Rencana Induk Riset Nasional RPL routing protocol for low-power RSP rock-scissor-paper RSUs roadside units RTO regional transport office SCM supply chain management SCs smart contracts SMR state machine replication SMS short message service SOC security operation center SPF single point of failure SPV simplified-payment-verification SSCM sustainable supply chain management
- 23. xviii Abbreviations SSOT single source of truth SVM support vector machine TA trusted authority TCA tournament consensus algorithm TEE trusted execution environment UAI unique address identifier UIDs unique identifiers V2I vehicle to infrastructure V2P vehicle to people VANET vehicular ad hoc network WAVE wireless access in vehicular environment WHO World Health Organization WSN wireless sensor network XT eXercise transaction
- 24. Preface Blockchain (BC) and the Internet ofThings (IoT) are two trendy and powerful technological names that have already proven their importance in various fields. The blockchain was born for the security of a magical cryptocurrency, “Bitcoin (BTC),” while the Internet of Things justifies its name. The Internet of Things is a fast-growing and easy-to-use technology that has also caught on in a concise period of time; and it covers almost all areas of life. The Internet of Things is now involved from everyday to high-level technical scenarios, so security is becoming a crucial issue. The authors of this book come from research and academia, and their work demonstrates the power of knowledge. The chapters in this book are well written, easy to understand, and technically rich. They present knowl edge about these two technologies, explaining them in different aspects. It gives us immense pleasure to introduce to you the first edition of the book entitled Applications of Blockchain and Big IoT Systems: Digital Solu- tions for Diverse Industries. The primary intent of this book is to explore the various applications of blockchain and big IoT systems. It presents the rapid advancement in the existing business model by applying blockchain, big data, and IoT techniques. Several applications of blockchain, IoT, and big data in different industries are incorporated in the book. The wide variety of topics it presents offers readers multiple perspectives on various disci plines. This book will help the data scientists, blockchain engineers, big data engineers, and analytics managers. Each chapter presents blockchain/big data and IoT use in application areas like agriculture, education, IoT, medical, smart city, and supply chain. The idea behind this book is to simplify the journey of aspiring engineers across the world. This book will provide a high-level understanding of various Blockchain algorithms, along with big data and IoT techniques in different application areas. This book contains 19 chapters. Chapter 1 elaborates on these two catego ries as well. Further, it covers the consensus mechanism, and it is working along with an overview of the Ethereum (ETH) platform. Chapter 2 provides an in-depth analysis of IoT security issues and how federated learning along with BC technology can be used to solve them. Chapter 3 discusses the following consensus algorithms-PoW [2], proof of stake, delegated proof
- 25. xx Preface of stake, Byzantine fault tolerance (BFT), crash fault tolerance, hashgraph consensus algorithm, proof of elapsed time, and proof of authority (PoA). Chapter 4 discusses blockchain technology in support of auto encoder deep neural networks, which is evaluated for managing and classifying the incidents and for validating its performance and accuracy. Chapter 5 proposes a hybrid algorithm that manages the decentralized network starting from joining the network as a new node until adding a new authorized block to the blockchain of network nodes. Chapter 6 proposes a blockchain-based security solution for IoV to authenticate vehicles, calculate reward points, and compute new trust value. Chapter 7 discusses the general architecture of smart cities using blockchain technology, applications, opportunities, and the future scope of blockchain technology in implementing smart cities. Chapter 8 talks about the recent implementation of a few major sectors in a city: healthcare, governance, energy, and social benefits. Chapter 9 discusses elaborate blockchain technology for biomedical engineering applications. Chapter 10 discusses the decentralized and secured applications of block- chain in the biomedical domain. Chapter 11 discusses various use case studies of blockchain in the management of healthcare data. Chapter 12 discusses the future applications of blockchain in business and management. Chapter 13 discusses the development of blockchain-based cryptocurrency. Chapter 14 analyzes the enablers of blockchain technology by using DEMATEL techniques. Chapter 15 presents an overview of and motive for enabling blockchain technology in the construction industry and project management, for the smooth functioning without much duplicity in the system. Chapter 16 discusses the mitigation of various wastages generated across the supply chain. Chapter 17 shows system-level thinking pertaining to the current food supply chain; it than elaborates on multiple steps associated with service design, followed by integrated supply chain information and secured block- chain frameworks. Chapter 18 adopts distributed ledger technology (DLT) that allows the recorded data in the system to fan-out amongst the farmers, consumers, and all the actors involved in the system. Chapter 19 discusses the transformation of higher education system using blockchain technology. We hope that readers make the most of this volume and enjoy reading this book. Suggestions and feedback are always welcome. —Arun Solanki, PhD Vishal Jain, PhD Loveleen Gaur, PhD
- 26. PART I Blockchain Mechanisms for IoT Security
- 28. CHAPTER 1 Blockchain Technology: Introduction, Integration, and Security Issues with IoT SUNIL KUMAR SINGH1 and SUMIT KUMAR2 1 Mahatma Gandhi Central University, Bihar, India, E-mails: sksingh@mgcub.ac.in; sunilsingh.jnu@gmail.com 2 Gopal Narayan Singh University, Bihar, India, E-mail: sumit170787@gmail.com ABSTRACT Blockchain (BC) was mainly introduced for secure transactions in connec tion with the mining of cryptocurrency bitcoin (BTC). This chapter discusses the fundamental concepts of BC technology and its components, such as block header, transaction, smart contracts (SCs), etc. BC uses the distrib uted databases, so this chapter also explains the advantages of distributed BC over a centrally located database. Depending on the application, BC is broadly categorized into two categories; permissionless and permissioned. This chapter elaborates on these two categories as well. Further, it covers the consensus mechanism, and it is working along with an overview of the Ethereum (ETH) platform. BC technology has been proved to be one of the remarkable techniques to provide security to IoT devices. An illustration of how BC will be useful for IoT devices has been given. A few applications are also illustrated to explain the working of BC with IoT. 1.1 INTRODUCTION With the emergence of new communication and information technology, security always has been a major concern. In recent, many well-known organizations have faced security breaches. For example, a well popular search engine Yahoo experienced a major attack in the year 2016, resulting
- 29. 4 Applications of Blockchain and Big IoT Systems in the conciliation of billions of accounts [1]. After doing the security-related research on many companies, it observed that 65% of the data infringement has happened because of a weak or reeved password. Further, it is found that many times sensitive information stealing was done by phishing e-mails. Blockchain (BC) technology was conceived mainly to address the secu rity issue of cryptocurrency bitcoin (BTC). It has several benefits and is well suited to handle the security issue. In the BC system, there is no central database, and it is a kind of system that does not trust the people. This system assumes that anyone can attack on the system, whether part of the system or outsider, can attack the system; therefore, it is a system that is devoid of human consuetude. Moreover, it is enabled with cryptographic features, which can be like hashing and digital signature. BC is immutable [1] also, therefore, anyone can store the data. Finally, as many users are involved in the BC system, changing or adding new blocks in the system needs to be validated by the majority of the users. BTC is one of the first digital currency [2], created in 2009, underlying BC technology. As BTC is known as the first cryptocurrency, it was marked as a spire performing currency in the year 2015 and considered a spanking commodity in 2016. Nowadays, besides BTC, BC is applied in many other areas like medicine, economics, the Internet of Things (IoT), software engi neering, and many more. BC technology is getting popular for offering better and foolproof security by removing intermediaries. It also results in reducing the cost of transactions. It is a shared data structure that is amenable for collecting all the transactional history. In BC technology, blocks are connected in the form of chains. The beginning block of the BC is recognized as the Genesis block [3]. All other blocks are simple blocks. The chain in the BC is the link or the pointers connecting the blocks. Blocks, in turn, keeps the transactions that take place in the system. Many organizations have defined BC technology in different ways. The Coinbase, the bulkiest cryptocurrency exchange across the globe, has estab lished the BC as “a distributed, public ledger that contains the history of every BTC transaction” [3]. Oxford dictionary bestows a familiar definition stated as “a digital ledger in which transactions made in BTC or another cryptocurrency are recorded chronologically and publicly” [4]. Another description is given by Sultan et al., which narrates a very general definition of BC technology as “a decentralized database containing sequential, cryp tographically linked blocks of digitally signed asset transactions, governed by a consensus model” [4].
- 30. 5 Blockchain Technology: Introduction, Integration, and Security Issues with IoT Fundamentals of BC technology are supposed to lie in between the 1980s and 1990s of the 20th century [1] though it gained popularity very recently. It is widely recognized in 2008 after the inquisition of cryptocurrency BTC. BC became widely prevalent after the legendary work of Nakamoto [5], though it is a fictitious name and still has not been explored who the actual person is. Nakamoto proposed a technique to replace the centralized architecture with a pear-to-pear network-based architecture. Initially, BC technology was named as two words, “block” and “chain;” however, at the end of the year 2016, these two words have been combined to make its BC. BC uses the concept of a ledger which may be seen as a database to maintain the records or a list of transactions. This is similar to the ledger of a hotel. For example, when you check-in in a hotel, the receptionist asks your identity and enters the record in a hardbound register (called ledger). This entry is maintained date and time-wise. One cannot add or remove the entries in between and can only append in the ledger. Thus, the entries cannot be made in between the two entries as well as cannot be deleted in between. One can consider the entry as a transaction and pages of the ledger as a block. So, it becomes a chain of blocks in the ledger. In case of any eventuality, this hotel ledger is to be consulted for security purposes. Though, this type of ledger is a centralized database of the hotel. Intermediation is one of the prominent solutions for screening the owner ship of assets or transaction processing. Intermediaries’ role is to check and validate the participating parties along with the chain of intermediaries. This validation process, apart from time taking, incurs a significant amount of cost. In case the validation fails, it has credit risk too. The BC technology promises a way to overcome, representing “a shift from trusting people to trusting math” [6], i.e., free from human intervention or minimum human involvement. IoTs is an upcoming technology that indicates the billions of tangible devices across the globe agglutinated to the Internet which collects and shares the information. IoT is the term coined by Kevin Ashton of MIT in 1999 during his work at Procter and Gamble (company) [7]. It promises the world to make it perceptive and proactive by enabling the things to talk with each other [8, 9]. In the IoTs, the collected data from the sensors [42] are maintained in central servers, which may lead to many intricacies when the devices try to communicate with each other through the internet [10]. Centralized locations may also suffer from security issues resulting in their misuses. BC technology can provide a solution in the form of a decentral ized model. A distributed model can execute billions of operations between
- 31. 6 Applications of Blockchain and Big IoT Systems different IoT devices. An IoT with BC has been depicted in Figure 1.1, wherein distributed BC replaces the concept of the central server and big data processing at a centralized location. This minimizes the building and maintenance costs associated with the centralized location server. It also reduces the single point failure in the absence of a third party. This chapter deliberates on the BC and its relevance concerning IoT. FIGURE 1.1 Data flow in the IoT-blockchain. 1.2 COMPONENTS OF BLOCKCHAIN (BC) TECHNOLOGY BC is a network of blocks (nodes) that are connected with one another following some topology rather than being connected with a central server. It has the potential to store the transactions in the ledger effectively and confirming transparency, security, and auditability. Few crucial components of BC technology are as follows. 1.2.1 BLOCK Block in the BC technology is the decentralized nodes/miners equipped with the databases, and it contains the digital piece of information. Blocks are linked together containing the hash value of the previous block into the current block. In general, block structure can be visualized into two parts: block header and a list of transactions. Block header equipped with the following information: • Version number indicates the version number of the block and uses 4 bytes for its representation. • Previous block hash is a pointer between the previous and current block and uses 32 bytes.
- 32. FIGURE 1.2 Diagram of a block. 7 Blockchain Technology: Introduction, Integration, and Security Issues with IoT • Timestamp uses 4 bytes and stores the time of the creation of the block. • Merkle tree is represented by 32 bytes and is a hash of every transac tion that takes place in a block. • Difficulty target is indicated by 4 bytes and basically it is used to measure the intricacy target of the block. • Nonce also uses 4 bytes and computes the different hashes. Figure 1.2 shows a generic diagram of a block with its important compo nents. It also shows the working Merkle root which is generated from the hash values of the transaction. In Figure 1.2, A, B, C, and D are the transac tions and H(A), H(B), H(C), and H(D) are their respective hash values. 1.2.2 GENESIS BLOCK In a BC, genesis block is considered as a foundered block because it is the first block in the chain. The block height of the first block is always zero, and no block precedes the genesis block. Every block which is the part of the BC comprises of a block header along with transaction counter, and transactions. 1.2.3 NONCE A nonce, an abridgment for “number only used once” is a one-time code in cryptography. It is a number appended to the hashed (encrypted) block in a
- 33. 8 Applications of Blockchain and Big IoT Systems BC. When it is rehashed, it ensures the difficulty level of antagonism. The Nonce is the number for which BC miners solve a complex problem. It is also associated with the timestamp to limit its lifetime; that is why if one performs duplicate transactions, even then a different Nonce is required. 1.2.4 USER AND MINER A computationally advanced node that tries to solve a complex problem (which requires high computation power) to retrace a new block which is recognized as a miner. The miners are capable of working alone or in a collective routine in order to find the solution to the given mathematical problem. The process of locating a novel block is opened by sharing new transaction information among every user in the BC network. It is the responsibility of each user to collect the new transactions into blocks and put their efforts to find the proof-of-work of the block. Proof-of-work is defined as a user is required to solve a computational complex puzzle for publishing a new block, and the solution of the puzzle will be its proof. This whole phenomenon is known as proof of work (PoW). 1.2.5 CHAIN AND HEIGHT In BC technology, the chain is a virtual string that connects the miners in the accrescent set of blocks with hashes [11]. The chain keeps growing as and when a new block is appended. Blocks in the chain are generally indicated by their block height in the chain which is nothing but a sequence number starting from zero. The height of a block is defined as the number of blocks in the chain between the genesis block and the given block (for which height is to be calculated). 1.2.6 TRANSACTION A BC transaction is represented in the form of a smaller unit of the tasks; and is warehoused in public records. After verification by more than 50% of the users of the BC network, records get implemented and executed. Its outcomes are stored in the BC. Previously stored records can be reviewed at any time, but the updation of the records are not permitted. The size of the transaction is a crucial parameter for the miners because the bigger size
- 34. 9 Blockchain Technology: Introduction, Integration, and Security Issues with IoT transaction requires larger storage space in the block. It also requires signifi cantly more power, whereas the smaller size transaction requires less power. The structure of the BC [3] is shown in Table 1.1. TABLE 1.1 Blockchain’s Structure Field Size Magic number 4 bytes Block size 4 bytes Header: Next 80 bytes Version 4 bytes Previous block hash 32 bytes Merkle root 32 bytes Timestamp 4 bytes Difficulty target 4 bytes Nonce 4 bytes Rest of Blockchain Transaction counter Variable: 1 to 9 Transaction list Transaction size-dependent: up to 1 MB 1.3 TYPES OF BLOCKCHAIN (BC) Centered on the uses of BC technology for various applications in a different scenario, it is broadly categorized into two categories: permissioned and permissionless [1]. 1.3.1 PERMISSIONED In this, one is required to take some sort of permission from that particular organization or owner of the BC to access any or parts of the BC. For example, to read a BC would not allow us to perform any other operations in the block. One needs to take permission to access or transact the block. Permissioned BC is categorized into two categories, as follows. 1.3.1.1 PRIVATE BLOCKCHAIN (BC) The private BC is fully permissioned, and if a node is willing to join, it has to be a member of that single organization. This new node needs to send an
- 35. 10 Applications of Blockchain and Big IoT Systems original transaction and required to take part in the consensus mechanism. The private BC is useful and is generally favored for individual enterprise solutions to record the track of data transfer between different departments [12]. Examples of private BC are Ripple and Hyperledger. 1.3.1.2 FEDERATED BLOCKCHAIN (FEDBLOCK) Federated blockchain (FedBlock), also known as a consortium BC, shares a lot of similarity to a private BC. It is a ‘semi-private’ system that has a controlled user group. A FedBlock is taken as an auditable and credibly synchronized dispersed database that preserves the track of data exchange information between consortium members taking part in the system. Like a private BC, it does not annex the processing fee and incurs a low compu tational cost to publish new blocks. FedBlock ensures the auditability and contributes comparatively lower latency in transaction processing. Examples of FedBlock s are EWF, R3, Quorum, and Hyperledger, etc. If we compare with the public BC (mentioned in Section 1.3.2.1), private is more comfortable because of less number of users. It requires less processing power and time for verifying a new block. It also provides better security because the nodes, which are within the organization, can read the transactions. 1.3.2 PERMISSIONLESS A permissionless BC is simple, with no restriction for entry to use it. As the name indicates, anyone and anything can be a part of it without taking permission. 1.3.2.1 PUBLIC BLOCKCHAIN (BC) A public BC is a permissionless BC in which the validation of transactions depends on consensus. Mostly it is distributed, in which all the members take part in publishing the new blocks and retrieving BC contents. Ina public BC, every block is allowed to keep a copy of the BC, which is used in endorsing the new blocks [12]. A few popular applications of public BC execution are cryptocurrency networks which are like BTC, ethereum (ETH), and many
- 36. 11 Blockchain Technology: Introduction, Integration, and Security Issues with IoT others. It has an open-source code maintained by a community and is open for everyone to take part in [1, 13]. A public BC is difficult to hack because for adding a new block, it involves either high computation-based puzzle-solving or staking one’s cryptocurrency. In this, every transaction is attached to some processing fee. A comparison of various available technologies [11] is shown in Table 1.2. TABLE 1.2 Comparison of Blockchain Technologies Public Blockchain Private Blockchain Consortium/ Federated Blockchain Participation in Consensus Every node Solo organization Some specified nodes in multiple organizations Access Read/write access allowed to all High access restriction Comparatively lower access restriction Identity Pseudo-anonymous Accepted participants Accepted participants Immutability Fully immutable Partially immutable Partially immutable Transaction Processing Speed Low High High Permission Required No Yes Yes 1.4 SMART CONTRACT The smart contract is the term, introduced by Szabo in 1997 [11, 14], which combines computer protocols with users to run the terms of the contract. A smart contract is a self-enforcing agreement (an agreement enforced by the party itself) embedded in computer code managed by the BC. It is governed by the computer protocols under which the performance of a reliable transac tion occurs without the participation of any third parties. The transactions performed under the smart contract can be tracked and is irreversible. A smart contract basically consists of the following components: lines of code, storage file, and account balance. It can be created by a node to initiate a transaction to the BC. The lines of code, i.e., program code is immutable and cannot be moderated once it is created. Figure 1.3 shows the contract’s storage file associated with the miner and stored in the public BC. The network of miners is responsible for executing the program logic and acquiring the consensus on the execution’s output.
- 37. 12 Applications of Blockchain and Big IoT Systems Only that particular node (miner) is enabled to hold, access, and modify the data in the BC. The contract’s code follows a reactive approach, i.e., it is executed whenever it receives a message from the user or any other nodes in the chain. While during the execution of the code, the contract may access the storage file for performing the read/write operations. FIGURE 1.3 Structure of the distributed cryptocurrency system with smart contracts [14]. 1.5 CONSENSUS MECHANISM Consensus mechanisms [1] are the protocols that ensure the synchronization of all the nodes with each other in the BC. It validates the transaction if it is legitimate before adding it to the BC. This mechanism plays an essential character in the smooth and correct functioning of BC technology. It also ensures that all the nodes use the same BC and all the nodes must continu ously check all performed transactions. Many consensus mechanisms are available today. However, a few known prevalent BC consensus mechanisms are PoW, proof of stake (PoS), Delegated PoS, Ripple, and Tendermint [15]. The key difference among numerous consensus mechanisms can be identified, the way they depute and payoff the authentication of multiple transactions. Even after the availability of the number of consensus mechanisms, many existing BC systems, including BTC and ETH uses PoW. PoW is the first and popular consensus mechanism. Its use is widely accepted in many
- 38. 13 Blockchain Technology: Introduction, Integration, and Security Issues with IoT of BC-based systems. It is mandatory for the users, participation in the BC network, to prove that the work is done for them to qualify and obtain the aptitude to add a new block to the ledger [1]. In the BC network, nodes are expected to receive the consensus and agree that the block hash provided by the miner is a valid PoW. Figure 1.4 illustrates the working of the PoW mechanism in the BC. In this mechanism, every miner is first required to define and create a PoW puzzle in the BC. The created puzzle will be visible and accessible to every other node taking part in the system. However, the node, which can solve the PoW puzzle, is able to hold, access, and modify the data in the BC. FIGURE 1.4 Working of consensus mechanism in blockchain. 1.6 ETHEREUM (ETH) ETH is a distributed computing platform, used for public BC systems with an operating system featuring smart contract functionalities. It is an open- source platform proposed by VitalikButerin, a programmer and cryptocur rency researcher in late 2013 [16]. ETH is also a validated platform used to deliver and execute smart contracts (SCs) reliably. It supports a modified form of the Nakamoto- consensus mechanism, which works on “Memory Hardness” despite fast computing power machines. ETH is a permissionless network, i.e., any node
- 39. 14 Applications of Blockchain and Big IoT Systems can join the network by creating an account on the ETH platform. Moreover, it uses its consensus model, which is identified as EthHash PoW. It is compe tent to run the scripts using a global network of public nodes. Miner nodes are ETH Virtual Machines provided by ETH BC. These nodes are adequate for providing cryptographic tamper-proof tenacious execution, and its imple mentation is called contracts. ETH reinforces its digital currency known as Ether [17]. ETH is one of the well-recognized platforms for executing SCs, though, it can execute other decentralized applications (DApps) and compatible to interact with many other BC s. It is also categorized as Turing- complete [18], a mathematical concept giving a hint that ETH programming language can be used as a platform to simulate other languages. ETH platform may be used to regulate and configure various IoT devices [43–45]. Security keys are managed using the RSA algorithm, where private keys are stored on the devices, and BC controls public keys. 1.7 BLOCKCHAIN (BC) TECHNOLOGY IN IoT BC technology can play a vital role for various privacy and security issues of the IoT. In IoT, sensing devices usually send the data at a centralized location for processing purposes. BC technology replaces the central server concept of IoT by introducing the concept of distributed ledger for every transaction with legitimate authentication [10]. It ensures that storing the transaction details with the intermediaries is no longer necessary because transaction records will be available on many computers of the chain. This system rejects the updation and breaching of one computer. However, to make it successful, multi-signature protection is required to authorize a transaction. If a hacker tries to steal the information by penetrating the network, multiple duplicate copies are available on many computers worldwide. For hacking the BC network successfully, the consensus of more than 50% of systems in the network is required [19]. 1.7.1 BLOCKCHAIN (BC) INTEGRATION Integration of BC with IoT opens a new door and wider domain of research and development in the area of IoT applications [16, 20, 21]. Over the last few years, unprecedented growth in the field of IoT has been observed, which enables wide opportunities like access and share of the information. Many times, accessing, and sharing information can induce challenges like
- 40. 15 Blockchain Technology: Introduction, Integration, and Security Issues with IoT security, privacy, and trust among the communicating parties. BC can solve various issues of IoT like privacy, security, and reliability. The distributed nature of BC technology can eliminate single point failure and makes it reliable. We are all aware that BC has already proven its importance in financial transactions with the help of cryptocurrencies, such as BTC and ETH. It removed the third-party requirement between P2P payment services [18]. A few IoT enablers have chosen the BC technology and formed a consortium for standardization and reliable integration of BIoT (Blockchain-IoT). It is a group of 17 companies aimed to enable security, scalability, heterogeneity, privacy, and trust in distributed structure with the help of BC technology [16]. IoT devices can communicate with one another either directly, device to device, or through BC technology. There are three types of communication models in an integrated BC and IoT environment, which are as follows. 1.7.1.1 IoT-IoT COMMUNICATION In IoT-IoT communication, IoT devices communicate directly without the involvement of the BC. This type of communication is also known as inter- IoT devices communication. It is the fastest communication model that does not associate high computation and time-consuming BC algorithms. Figure 1.5 shows that BC is not involved in inter IoT communications that is why the system is not able to ensure data integrity, privacy, and secu rity mechanisms. In this model, BC stores the communication/transaction history of the IoT devices. This is one of the fast communication models between IoT devices. 1.7.1.2 IoT-BLOCKCHAIN (BC) COMMUNICATION In this model, all transactions among the IoT devices go through the BC. This model is enriched with the capability to ensure the data privacy, reli ability, and safety of both data and transactions. Figure 1.6 shows the IoT device communication model through BC, which ensures that stored records of each transaction will be immutable, and transaction details are traceable as its features can be verified in the BC. Although, BC upsurges the autonomy of IoT devices but it may suffer from BC overhead which causes latency.
- 41. 16 Applications of Blockchain and Big IoT Systems FIGURE 1.5 IoT-IoT communication model. FIGURE 1.6 IoT-blockchain communication model. 1.7.1.3 HYBRID COMMUNICATION The last communication model is a hybrid communication model, in which IoT communication involves the CLOUD/FOG networks. This model shifts
- 42. 17 Blockchain Technology: Introduction, Integration, and Security Issues with IoT partially or most of the computation load, such as encryption, hashing, and compression, from IoT devices to Fog nodes. Figure 1.7 shows an IoT integrated with BC technology, which can transfer high computation load and time-consuming algorithm to Fog node. In this way, fog, and cloud computing comes into play and complement the shortcoming of BC and IoT [21]. FIGURE 1.7 Hybrid communication model. 1.7.2 SECURITY IN BLOCKCHAIN (BC) AND IoT The IoTs is a structure of machine-to-machine (M2M) associations, with no human involvement at all. Hence establishing faith with the participation of machines is a formidable challenge that IoT equipment still has not met broadly. The BC can take steps as a medium in this process, for improved scalability, protection of data, dependability, and privacy. This process can be done by BC technology to follow all devices which are connected to the IoT environment, and after that, it is used to make possible and/or synchronize all transaction processing. By using the BC function, we can fully remove a single point of failure (SPF) in IoT structure. In BC, data is encrypted using various algorithms like cryptographic algorithms and hashing techniques.
- 43. 18 Applications of Blockchain and Big IoT Systems Therefore, the function of BC provides improved security services in an IoT. The function of BC technology is to repair the digital market. It has a guarantee and retaining both main and preliminary concerns of the function of the BC. The BC keeps the record of a group of sequential and sequence of informa tion transactions since it can be read as a massive networked time-stamping system. The controllers are too concerned in BC’s capability to recommend protected, confidential, immediately perceptible monitoring of transactions. Therefore, the BC can facilitate us to avoid the tampering and spoofing of data by the organization and securing the industrial IoT devices [22]. The BC records every transaction and provides a cross-border overall distributed confidence. Many times, it is possible that Trusted Third Party systems or central location-based services can be vitiated or hacked. In BC, when transactions are confirmed by consensus, then the block data are accept able to all. The BC can be constructed as: (1) permissioned network, which is generally a private network; and (2) permissionless, a public network. Permissioned BC offers new privacy and improved access functionality. The BC can resolve these types of challenges effortlessly, strongly, and competently. It has been generally used for providing reliable and certified uniqueness registration, possession track, and monitor of products, supplies, and resources. IoT devices are not exempted, BC is able to identity all the connected IoT devices [17]. For security purposes, the BC supports the IoT as mentioned below. 1.7.2.1 DATA AUTHENTICATION AND INTEGRITY The data transmission through IoT devices is linked to the BC network and it will be cryptographically proofed and signed via the correct correspondent to hold an exclusive public key and GUID (global unique identifier) which do not require any verification for its uniqueness, and thus it guarantees the verification and truthfulness of transmitting data. Additionally, all transac tions complete toward or through an IoT device. Its transaction details are recorded on the BC ledger, which enables it to be tracked easily [17]. 1.7.2.2 AUTHENTICATION, AUTHORIZATION, AND PRIVACY In BC, SCs can offer a decentralized verification policy and sense to be capable of providing a particular and combined verification to an IoT device. The SCs are able to provide another effective permission access policy to link
- 44. 19 Blockchain Technology: Introduction, Integration, and Security Issues with IoT IoT devices, employing a smaller amount of complexity while one compares among fixed approval protocols such as role-based access management (RBAC) [23], OpenID, etc. Nowadays, these protocols are generally used for managing, authorization, and verification of IoT devices [17]. 1.7.2.3 SAFE AND PROTECTED CONNECTIONS In general, communication protocols that are used by IoT applications; HTTP, MQTT, XMPP, and many other routing protocols that are not protected in design. These protocols are required to be wrapped with the new security protocols for providing secure communications. The new security protocols can be enriched with BC technology; which are DTLS (datagram transport-level security) or TLS [24] with the BC. Key management and identity allocation are completely removed from all IoT devices because it would contain its own single and distinctive GUID and the asymmetric key pair values once mounted and associated to the BC system [17]. Although the BC provides a strong approach for protected IoT, the consensus method depending on the miner’s hashing control can be conceded, thus permit the hacker/attacker to host the BC. Also, the private keys among restricted uncertainty can be dried up to compromise the BC accounts. Efficient methods up till now need to be distinct to make sure the privacy of transactions and keep away from race attack, which can affect inside dual spending throughout the transactions [17]. The IoT device has very limited storage and computing power; it can still produce safe and protected keys. Once a key is created, the public key is attached to the Public Key data field in addition to the elected IoT receiver and mined with the BC. While protected data communication via BC is not suggested because access to all nature of a broadcast BC on a server, a BC-based public key swap permitted for IoT to set-up non-interactive key managing protocols [25]. With a Non-Interactive Protocol, session key series utilizing a mixture of BC data fields as ‘salt’ may provide an effective solu tion for updating the IoT session keys for safe and secure data transfer. Still, this research field is required to be explored further for better outcomes [26]. A few other aspects of BC technology are; it can resolve the IoT security issues considering its limited storage and low computation power. Because efficient, lightweight, integrated blockchain (ELIB) [27] with IoT devices, protects it from security breaches. ELIB easily copes with the computational
- 45. 20 Applications of Blockchain and Big IoT Systems complexity and several other issues like low bandwidth, delay, and overhead, etc. The BC structure is offering a trustful background used for data storage and access. This structure has two characters. One is data integrity, and another is role-based data access characters. In data integrity, the structure avoids data stored within if it is being altered. In role-based data access, it is a guarantee that the structure recommends special data access permissions toward different users and IoT devices [28, 29]. Compared to the cloud-based centralized system, the BC system is a decentralized system that has a benefit in protecting certain specific attacks (e.g., distributed denial of service (DDOS) attacks). The BC system does concern with the particular point of failure problem, which can occur in the cloud-based centralized system. The centralized system is typically controlled by a manager. If the hacker/attacker pinch the manager’s account, they can randomly change the system data. While we were well-known, the data or conversion in the BC system is altered conflict [29]. Privacy and security are most essential in the IoT environment. Within the cloud-based centralized system, user’s data are stored randomly, which can simply be hacked by the attackers/hackers. The BC system can offer the independence service by the public-key cryptography method. Furthermore, communication in the IoT environment accepts the AES encryption algo rithm, which is extremely flexible to the resource-constrained IoT mecha nism. Access control is also an essential mechanism in the IoT system; the smart contract of the BC system be able to offer this type of security service [28]. Researchers have observed that associating BC with IoT is beneficial to handle security and privacy issues, which can probably transform many industries. It is pertinent to mention here that IoT security has always been a pressing concern. To explain this, let us take an example of six IoT devices; the Chamberlain MyQ Garage, the Chamberlain MyQ Internet Gateway, the SmartThings Hub, the Ubi from Unified Computer Intelligence Corporation, the Wink Hub, and the Wink Relay; that are tested by a US-based applica tion security company “Veracode” in 2015. The Veracode team found five devices, out of six, had serious security issues. The team was responsible for observing the implementation and various security issues of the communi cation protocol used in IoT systems. The front-end (services between user and cloud) and back-end (between IoT devices and cloud) were examined, and it is found that except SmartThings Hub, the devices even unsuccessful to have a robust password. Besides, Ubi is deficient in encryption for user
- 46. 21 Blockchain Technology: Introduction, Integration, and Security Issues with IoT connection. These security breaches can cause to a man-in-the-middle attack. When the team examined the back-end connection, results were even worst. They also lacked the protection from replay attacks. In the era of technological automation, hacking of IoT devices has severe consequences. The incorporation of BC technology in IoT [8] is being well adopted through a broad perspective of measures purported to reinforce security. Narrowband Internet of Things (NB-IoT) is one of the novel types of IoT which is built on cellular networks. It can directly be deployed on long-term evolution (LTE) architecture. BC technology is applied [30] to ensure reliable data integrity and authentication. Several mission-critical [31] applications, moving towards automation, are getting popular. Ocado, an online supermarket in Britain, is fully equipped with IoT to stringently improve the warehouse. Installed RFID chips into the Ocado warehouse can sense when the new stock requirements are to be ordered or the status of the remaining number of items in the warehouse. BC technology is used to ensure data integrity, and its decentralized replication technique alienates the requirement to have entire IoT data collected at a central location. This is possible because SCs, stored on the BC, would not allow any modification to the contracts. Although BC technology can protect from vulnerabilities, it still suffers from some issues. SCs in BC are visible to all the users that can cause bugs and vulnerabilities; these are the bugs that cannot be fixed in the stipulated time duration. Some other drawback includes its complexity, high computa tion, and sometimes resource wastage. 1.8 A COMPARATIVE STUDY This section includes a comparative study on the previously developed system with the BC-IoT-based system. BC technology and IoT can be considered as emerging realities in the current epoch, and these two technologies can transform civilization at a rapid pace [32]. From Table 1.3, one can see that wireless sensor networks (WSN) [33] and the IoTs based on systems are not immutable, IoT-Cloud is partially immutable. At the same time, IoT-BC is a completely immutable system. IoT-Cloud allows participant to participant (P2P) sharing while IoT-BC supports P2P as well as a participant to machine (P2M) and M2M sharing also. All other systems support limited sharing only. Table 1.3 lists the BC-enabled IoT system with respect to certain properties.
- 47. TABLE 1.3 A Comparison of Blockchain-IoT based System with Traditional SHM Systems Simple [34] WSN [33, 35] IoT [36, 37] IoT-Cloud [30, 38] IoT-Blockchain [32] De-centralize 1. Completely Completely Completely Mostly decentralized Entirely decentralized centralized centralized centralized Reliability 2. Highly not reliable High data Data tampering is Data tampering is Tempering is not possible tempering possible easily possible easily Storage, Privacy, Security, 3. Low Low Intermediate Intermediate Considerably higher and Confidentiality Immutable Behavior 4. Not immutable Not immutable Not immutable Partially immutable Fully immutable Real-time 5. Nearly-real time Real-time Real-time Real-time Nearly-real time Communication and 6. Confined Confined Data processing and Data processing, P2M and M2M Transparent information monitoring monitoring monitoring monitoring, and P2P communications, Sharing information sharing autonomous decision making using Smart contract-based analysis Interoperability 7. Lower Lower Intermediate level Intermediate level High Re-Active Maintenance 8. Lower Low Medium Medium Effectively high 22 Applications of Blockchain and Big IoT Systems
- 48. 23 Blockchain Technology: Introduction, Integration, and Security Issues with IoT Observations from Table 1.3 show that the BC-enabled IoT system is the most suitable system to ensure reliability, immutability, interoperability, and security, etc., as indicated in the table. Therefore, one can conclude that BC technology is the most suited technology for IoT-enabled systems. A BC-based decentralized system is most suitable for IoT networks; which is validated by a study of Rathore et al. [39]. In this, a review is done on central ized, distributed, and decentralized systems using various measures like accuracy, F-score, detection rate, etc. [40, 41]. Therefore, we can conclude that decentralized BC system is the most suitable system of IoT networks. 1.9 CONCLUSION This chapter defines the fundamentals of BC technology, along with its components. A comparative study of various BC technology is also high lighted. Various application areas are mentioned in this chapter. A BC technology, ETH, is described that can be used to implement the public BC. It ensures the transparency of the information. The importance of BC is also explained with the help of the relevant examples. IoT is an upcoming technology that is being introduced for a smart environment. With such a prevalent environment, security is a measure of concern. This chapter also introduces how BC can be used for security in IoT. BC, being a distributive technology, plays a good role in IoT security. The comparative study section of the chapter infers the same. KEYWORDS • blockchain • central database • cryptography • distributed denial of service • Ethereum • Internet of Things REFERENCES 1. Atlam, H. F., & Wills, G. B., (2019). Technical aspects of blockchain and IoT. In: Advances in Computers (Vol. 115, pp. 1–39). Elsevier.
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- 52. CHAPTER 2 Blockchain-Based Federated Machine Learning for Solving IoT Security Problems DIVYA,1,2 VIKRAM SINGH,1 and NAVEEN DAHIYA2 1 Department of Computer Science and Applications, CDLU, Sirsa, Haryana, India, E-mail: divyajatain@msit.in (Divya) 2 Department of Computer Science and Engineering, MSIT, New Delhi, India ABSTRACT With the advent of technology, we are witnessing huge potential in devices enabled with sensors having advanced processing/computing capabilities. The internet, as a supporting technology has further helped the research community to gain momentum in the field of inter-sensor communication. Internet of things (IoT) has widely penetrated different aspects of our lives. As a result, many intelligent IoT services and applications are now emerging. However, due to insecure design, implementation, and configuration, these devices have potential vulnerabilities which can be potential problems. IoTs generate huge sets of data that need to be pre-processed, scaled, classified, and analyzed before putting to some use. Machine learning (ML) or artificial intelligence (AI) have proved to be very useful for this purpose, where we can use the enormous data to design and train a model for some analytics. Traditional ML approaches were centralized and thus created issues related to the communication overhead, delay in processing, and privacy and security concerns owing to different computing capabilities and power of the connected devices. As a result, Google in 2016 has proposed a new method called federated ML, in which, we have numerous clients distributed over different environments that train on the data that is locally available to create a model. All such local models are then sent to the centralized server
- 53. 28 Applications of Blockchain and Big IoT Systems and merged to create a global model. Finally, this global model is sent as an update to the individual clients independently. Despite having advantages like being able to provide security and ensure privacy, and benefits of appli cation to power constraint scenarios of sensor devices, there are still some areas that need proper attention like vulnerability of having a single central ized optimization at main server and scalability issues, etc. Moreover, the IoT devices are statistically heterogeneous and vulnerable due to insecure design, implementation, and configuration making it a challenging task to deploy Federated Learning directly. It is for this task blockchains (BCs) can be effectively used owing to their fault tolerance, transaction integrity and authentication, decentralization, etc. In this chapter, the intent is to provide an in-depth analysis of IoT security issues and how Federated Learning along with BC technology can be used to solve them. 2.1 INTRODUCTION In today’s world, one can never forego the role of the Internet as an infor mation provider and information disseminator. The growth of Web 3.0 and Web 4.0 at an exponential rate have witnessed an enormous growth in the number of internet users, where the data is no more the regular structured one, but is an unstructured Big Data. The term Big Data, coined in the 1990s, specifies the huge unstructured or semi-structured data sets that cannot be captured, stored, managed, processed, and analyzed by typical software tools [1]. These datasets have data in varying formats that span over text, sound, image, and/or video, and thus, it is a challenging task to process this data so as to have some useful outcomes. Essentially, nowadays, the rate of creation of this Big Data has captured the scenario in such a way that this accounts for almost 90% of all the data being actually created [2]. Talking about the Big Data, it can be characterized by seven Vs: Volume, Variety, Veracity, Velocity, Variability, Visualization, and Value. There are many enabling technologies that have contributed to the proliferation of Big Data, such as Internet of Things (IoT), Information, and Communication Technologies (ICTs), artificial intelligence (AI), etc. With the advent of technology, we are witnessing huge potential in devices enabled with sensors having advanced processing/computing capabilities. The Internet, as a supporting technology has further helped the research community to gain momentum in the field of inter-sensor communication.
- 54. Blockchain-Based Federated Machine Learning for Solving IoT Security Problems 29 The IoTs basically consist of interrelated computing devices, which can be some mechanical or digital machines, objects, animals, or people that are having unique identifiers (UIDs). They have the ability to transfer data over a network without any human-to-human or human-to-computer interaction happening. Nowadays, IoTs has widely penetrated different aspects of our life. As a result, many intelligent IoT services and applications are now emerging. However, due to insecure design, implementation, and configu ration, these devices have potential vulnerabilities which can be potential problems. IoTs generates huge sets of data. In order to have some useful results or outcome from this data, it has to be pre-processed, scaled, classified, and analyzed. Machine learning (ML) or AI have proved to be very useful for this purpose, where we can use the enormous data to design and train a model for some analytics. Traditionally, the ML approaches used to send the data to a central server where the data is processed and then the model is trained. But it created issues related to the communication overhead, delay in processing, and privacy and security concerns because each device may have different computing capa bilities and power. As a result, Google in 2016 has proposed a new method called federated ML [3] in which, we have numerous clients distributed over different environments. Every client train itself on the data that is locally available to it and creates a model. All such local models are then sent to the centralized server, which merges them to create a global model. Finally, this global model is sent as an update to the individual clients independently. There are many advantages of Federated Machine Learning like being able to ensure security and privacy, and ability to being deployed to power constraint scenarios of sensor devices, there are some areas that need proper attention like vulnerability of having a single centralized optimization at main server and scalability issues, etc. Moreover, the IoT devices are statisti cally heterogeneous and vulnerable due to insecure design, implementation, and configuration making it a challenging task to deploy Federated Learning directly. Blockchain (BC), as the name suggests, is a chain of blocks wherein each block contains transaction information, hash of the previous block, and a timestamp. Although BC was initiated originally as a financial transaction protocol but due to benefits like fault tolerance, transaction integrity and authentication, decentralization, etc. It is seen as a promising candidate to ensure security and privacy in a variety of applications including IoT.
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