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Both academia and industry have conducted several researches to arrive at a conclusion that Distributed Ledger and Blockchain technology can potentially play a crucial role to manage, control and secure all networked device. Schematic diagram of Blockchain empowered IoT Cloud is depicted at Figure 3.3. Accordingly, this can be seen as a promising security solution to counter the challenges with IoT related security issues. Some vital features of blockchain which are useful for IoT in general and IoT security specifically are described below.

For Addressing: Typically, Blockchain uses 160 bit address. As a standardized cryptographic function in Blockchain, it is capable to address 20 bytes or a 160 bit hash of the public key which is the output of Elliptic Curve Digital Signature Algorithm (ECDSA). Hence it is found to be a better addressing means than IP V6 (128 bit) for provisioning of Global Unique Identifier (GUI) at the time of allocating and assigning address for an IoT device.

Figure 3.3 Blockchain empowered IoT Cloud.

For Authentication: Smart contracts can be deployed with Blockchain to provide authentication using decentralized means. This can also be used to provide authentication to smart devices connected to the IoT system. Inherent advantages of Blockchain can also be suitably utilized for effective authentication establishment.

For Authorization: Using Smart contracts deployed over Blockchain and also integrating multiple smart contracts, effective authorization and access control mechanism for connected IoT devices can be established. This mechanism is found to be faster and efficient compared to commonly used protocols like Oath, Open ID, etc.

For Privacy: Smart contracts are such versatile tools, whereby using this over Blockchain enables ensuring data privacy. This technique can control access by enforcing a designated set of conditions and time to allow or deny access to users or group of users to control the acquired data or even transit data for the IoT system. Smart contracts can also be programmed to decide on patch updation. Using this means, changing of ownership and provisioning of IoT devices are found to be smooth exercises.

For Data Integrity: In a Blockchain based arrangement, the connected IoT devices are cryptographically safeguarded and signed by a verified and legitimate sender who is holding a unique public key and GUID. Secure storage mechanism along with its event time stamping of the distributed ledger facilitates data integrity for the interconnected IoT devices. For example, to maintain data integrity in a distributed system TrustChain is proposed with an aim to perform trusted transactions using blockchain.

For Identity of Things: Blockchain technology can be used to identify IoT devices with a set of attributes. Attribute management for the connected smart devices of IoT system holds a key factor for the Identity and Access Management (IAM). Attributes in terms of deployment location coordinates as registered by GPS, make, model and device serial no of IoT device along with its ownership, change or renovation of ownership play a crucial role with respect to identity of things.