How to ensure the security of IoT through Blockchain

Blockchain technology has changed the trend of staying safe. Increase the level of automation and ensure a secure data transmission process. There are many ways to protect IoT devices, such as biometrics, two-factor authentication, password, etc. Blockchain is a comprehensive solution for this. It is the most effective technology to protect IoT devices from external attacks.

IoT is about connecting various types of equipment and devices that are responsible for transferring data. Like, hardware equipment related to servers, software and sensors. Artificial intelligence, machine learning, cloud computing, and sensor technologies are some examples that have made it practical.

Blockchain plays a vital role in the security of cryptocurrencies running around the world. Industry verticals like healthcare, finance, and e-commerce use blockchain to maintain privacy in their customer database. It plays a vital role in protecting IoT on a large scale. Blockchain technology has four elements that increase its value in the market, which are Consensus, Ledger, Cryptography and Smart Contact. Blockchain’s Enhanced Privacy Provides Massive Help To entrepreneurs and large organizations that use more devices to manage their work.

Most common IoT challenges

Most industries face cybersecurity attacks on their systems, and blockchain works as a shield that prevents them from threats to data privacy. You need to address the issues and challenges that IoT solutions face. To better understand the IoT, we first have to go through the challenges that usually occur.

Unauthorized access to devices

Multiple IoT devices connected to a single network allow hackers to interfere with the system through a single device. Risk can come from anywhere if your IoT devices are not protected. Employees can log into the network with their devices and can access the data. It doesn’t matter if your devices have weak authentication, they can do any negligence by logging into the centralized database. Computing devices used in the workplace can be hacked by simple encryption in no time.

Encryption attacks

The chances of hacking increase, as data transferred through IoT devices does not require any human intervention. Weak encryption keys and authentication credentials allow cybercriminals to hack into systems and access data.


IoT devices are quite expensive to operate and maintain. It requires ongoing maintenance, which is not an economical option. Businesses often adopt blockchain technology to save costs.

Gaps in the network

The network breach problem occurs most often when the IT department is busy configuring the necessary protocols, devices, and standards. Taking advantage of this, the hackers had the opportunity to intervene in the system. In all device deployment processes, hackers have the opportunity to penetrate the network, resulting in a data breach.

Software attack

Software attack is the most common problem faced by companies. It is necessary to guarantee the security of all devices connected to the internet, if it is not, it will increase the possibility of having Malware attacks and Phishing attacks.

Centralized security infrastructure is difficult to manage in large organization configurations. It’s easy to hack, and DDoS attacks can happen anytime between work. Most companies use Blockchain technology to meet these challenges. It has the ability to minimize hacking problems and brings efficiency to daily work. The IT department has to take care of many things where security is the most important, Blockchain can be considered as an asset for them.

Advantages of strengthening the IoT with Blockchain

Security of every transaction

The traceability and security of all daily financial transactions are improved with Blockchain. The entire transaction process depends on the confirmation of the interested party. If they don’t allow it, the transaction won’t go through. It requires confirmation from the sender, miner, and receiver to process any transaction. Blockchain technology provides a secure environment to record and store confidential data and user credentials. Blockchain is responsible for storing and recording data, which eliminates the possibility of data theft and ensures smooth data transmission.

Built-in security

Blockchain technology is decentralized and distributed ledgers are replicated across multiple computers. It increases the challenges of hackers who often interfere with the computer system to access confidential data. Blockchain technology provides additional storage security and ensures data accessibility as users can store their data on different devices and can also retrieve it. IoT devices rely on server models that require centralized administration to manage networks. If we talk about scalability, nothing can beat Blockchain technology. The chances of success are very high here. It is inviolable, which increases its value more in maintenance cyber security.

Eliminate human errors

The chances of human error are reduced at a significant rate with advanced blockchain features. It’s easy to avoid manual mistakes like wrong document collection, wrong data entry, and accidental file loss. Sometimes people forget the main login details, which sometimes leads to data loss. Blockchain provides a secure work environment by eliminating the requirement to fill in login credentials. An encrypted identity is available on all devices, helping to identify distributed ledgers. Organizations can find the exact system from where the human violation occurred. It’s easy to avoid manual mistakes because every activity on an IoT network can be detected and tracked at any time with the help of Blockchain technology.

Secure communication

Its decentralized database records every transaction that occurs on a network. Blockchain ensures secure and efficient communication between stakeholders. IoT devices run with encryption keys connected to the blockchain. It helps to share confidential data and ensures collaboration between various departments.

Create a trusted IoT environment

Users must fill in the unique code to access the IoT network, which means that sensitive data can not be easily used by anyone. The network is fully protected and user identities can be protected at every step. Central security management costs companies that rely on IoT a lot. It uses encryption algorithms to keep data private. In all respects, Blockchain is reliable in maintaining privacy within the organization.

Benefits of IoT and Blockchain for companies

  • Build trust– IoT and blockchain build trust within the organization as the data transfer process is simplified within the organization. Each transaction is recorded and stored in blocks that hackers cannot easily modify or trace.
  • Transparency– Blockchain provides transparency by giving the leverage to track the few previous transactions that happened unknowingly. This helps companies find the exact source of data exchange.
  • Additional security– Provides additional data security, giving you the ability to analyze, personalize and share the data with customers or your partners.
  • Great flexibility– Provides great flexibility to carry out day-to-day transactions and transmit information. By using this technology, you can maximize the level of security in your organization.
  • Strong level of encryption– One thing that can be assured here is the highly secure encryption tools that protect confidential company information. It adds multiple layers of security that cannot be easily hacked. Hackers have to bypass these layers to access the network.
  • Cost savings– This is one of the most cost-effective technologies you can implement for data privacy. Eliminate additional overhead related to IoT gateways, which help businesses reduce IT costs.
  • Fast transaction processing– Blockchain ensures fast transaction processing which is something appreciable. Proper coordination between multiple devices can be maintained between multiple devices at the same time.


In recent years, companies have started to use Blockchain technology for their business. They implement Blockchain to secure IoT and to address other business problems. Blockchain is encrypted and protected, which is why most people prefer to implement it in their companies. Blockchain handles a large amount of data and deals with data privacy issues on a large scale with appropriate and standardized methods. You should think about its use in your business.

Ankit patel

Ankit Patel is Head of Sales / Marketing at XongoLab Technologies LLP Y PeppyOcean, which offer world-class mobile application development services. As a hobby, she loves writing about new and future technologies, web and mobile devices, business and marketing, and more. His articles are seen on some of the big platforms like TechTarget, SmallBizDaily, JaxEnter, Social-Hire, TorqueMag, and more.

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