The industrial Internet of Things (IIoT) is both a significant boon and a major security risk for heavy industries. On one hand, this connected infrastructure can drive new standards of efficiency and error reduction, but on the other, it greatly expands attack surfaces.
Securing IIoT networks can be difficult, given limited device functionality and their expansive, diverse nature. Blockchain is emerging as a potentially promising solution. While it may be most recognizable as the underlying technology behind cryptocurrency, blockchain has several cybersecurity implications for IIoT.
Restricting Data Access
Blockchain is the optimal platform for IIoT transactions because all exchanges on these networks are encrypted by default. That alone is a needed step forward, as 98% of all IoT traffic today is unencrypted.
Industrial workplaces can also use blockchain to minimize general access to IIoT, not just to prevent data interception. One option is to use the blocks themselves as storage mechanisms, which locks them behind layers of encryption and strict permissions. Another is to use automated blockchain processes to send IIoT data to different databases based on the information’s confidentiality.
A 2024 study explored such use of blockchain technology, diverting data of varying sensitivity to appropriately restricted storage areas. The proof of concept was able to do so while significantly reducing transmission time and data sizes. As a result, the added protection wouldn’t create bottlenecks in IIoT functions.
Authenticating IIoT Communications
Similarly, blockchain could bring needed transparency and trust into IIoT networks. Every record in the chain undergoes verification and cryptographic proof on each side before registering. It’s what makes cryptocurrency promising for financial security, but it can also prevent tampering and unauthorized connections within the IIoT.
Verifying IIoT devices’ identity in the blockchain would enable secure over-the-air updates and keep transmissions exclusive to pre-authorized devices. Doing so on the blockchain also allows such authentication without needing more advanced IIoT hardware, which may otherwise pose an obstacle.
Hacking past these protections would be extremely difficult. Blockchain’s distributed nature means an attacker would need to control 51% of the devices on the network to alter it. That’s unlikely to happen on a large enough blockchain, and private chains are not susceptible to this kind of attack.
Enabling Security at Scale
Blockchain’s scalability is also worth considering in light of IIoT growth. The world will host more than 32 billion IoT devices by 2030, so any applicable cybersecurity solution must be able to support such expansion. Conventional platforms may fall short, but blockchain is scalable by nature.
IIoT networks are both large and complex. Consequently, hosting them on a consolidated server may introduce challenges in scalability and accounting for varying hardware capabilities. By contrast, blockchains’ decentralization provides additional capacity, and much of the computationally heavy work in authentication happens outside of the IIoT devices themselves.
Integrating a new device into a blockchain does not require adjusting the entire system. Consequently, it becomes easier for industrial organizations to scale up their IIoT infrastructure without jeopardizing their existing security measures.
Preventing Human Error
IIoT cybersecurity must account for human errors, too. Device misconfigurations, social engineering and other missteps by authorized users can all endanger IIoT setups, but blockchain can minimize them through automation technology.
Smart contracts are blockchain-based agreements that automatically execute once pre-defined conditions are met. Businesses can use these to automate IIoT processes, like recording certain events or sending data to the right person or application. Such automation technology is designed to protect sensitive workflows and remove the risk of human error.
Of course, smart contracts are not invulnerable. However, their security flaws typically arise from poorly written code and similar mistakes. Because many larger blockchains are open-source, firms often work around this by using open-source resources to verify the trustworthiness of their smart contract code before implementing them.
Increasing Auditability
Another key blockchain feature that benefits IIoT security is its transparency. While all sensitive information in blocks on the chain is encrypted, the records of each transaction are easily viewable by any authorized user, enhancing auditability.
Regular cybersecurity and compliance audits are a crucial aspect of IIoT security, especially when it comes to ensuring conformance with regulations. However, inspecting a conventional network can be slow, and records can go missing through error or malicious action. Blockchain ledgers are immutable, so they resolve these issues.
Even if an attacker was able to perform a 51% attack, changing historical blocks is impossible on a blockchain. Anything that has happened previously on the network is auditable. In addition to streamlining regulatory compliance, this transparency enables more informed post-mortem investigations should a breach, however unlikely, take place.
Will the Future of Industrial IoT Include the Blockchain?
Attacks against IIoT devices can do more than just compromise sensitive data. They can cause physical harm, depending on the infrastructure in question. Consequently, heavy industries must do all they can to raise IIoT security standards.
Blockchain is still a developing technology, but early signs are promising. As blockchain solutions develop and more real-world case studies emerge, companies will learn how they can better apply this technology.
