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![4 Internet of Things: The Third Wave? 2 billion. The IoT has the potential to connect 10 times as many 20 billion “things” to the Internet by 2020, ranging from bracelets to cars [17]. Breakthroughs in the cost of sensors, processing power and bandwidth to connect devices are enabling ubiquitous connections at present. Smart products like smart watches and thermostats (Nest) are already gaining traction as stated in the Goldman Sachs Global Investment Research report. IoT has key attributes that distinguish it from the “regular” Internet, as captured by Goldman Sachs’s S-E-N-S-E framework: Sensing, Effi- cient, Networked, Specialized, Everywhere [1]. These attributes may change the direction of technology development and adoption, with significant implications for Tech companies – much like the transition from the fixed to the mobile Internet shifted the center of gravity from Intel to Qualcomm or from Dell to Apple. A number of significant technology changes have come together to enable the rise of the IoT. These include the following [1]: • Cheap sensors – Sensor prices have dropped to an average 60 cents from $1.30 in the past 10 years. • Cheap bandwidth – The cost of bandwidth has also declined precipitously, by a factor of nearly 40 times over the past 10 years. • Cheap processing – Similarly, processing costs have declined by nearly 60 times over the past 10 years, enabling more devices to be not just connected, but smart enough to know what to do with all the new data they are generating or receiving. • Smartphones – Smartphones are now becoming the personal gateway to the IoT, serving as a remote control or hub for the connected home, connected car or the health and fitness devices that consumers have increasingly started to wear. • Ubiquitous wireless coverage – With Wi-Fi coverage now ubiq- uitous, wireless connectivity is available for free or at a very low cost, given Wi-Fi utilizes unlicensed spectrum and thus does not require monthly access fees to a carrier.](https://image.slidesharecdn.com/secureandsmartiotusingblockchainandai-181102000615/75/Secure-and-Smart-IoT-using-Blockchain-and-AI-25-2048.jpg)
![1.1 Advantages and Disadvantages of IoT 5 • Big Data – As the IoT will, by definition, generate volumi- nous amounts of unstructured data, the availability of Big Data analytics is a key enabler. • IPv6 – Most networking equipment now support IPv6, the newest version of the Internet Protocol (IP) standard that is intended to replace IPv4. IPv4 supports 32-bit addresses, which translates to about 4.3 billion addresses – a number that has become largely exhausted by all the connected devices globally. In contrast, IPv6 can support 128-bit addresses, translating to approximately 3.4 × 1038 addresses – an almost limitless number that can amply handle all conceivable IoT devices. 1.1 Advantages and Disadvantages of IoT Many smart devices like laptops, smart phones and tablets commu- nicate with each other through the use of Wi-Fi Internet technology. Transfer these technological capabilities into ordinary household gad- gets like refrigerators, washing machines, microwave ovens, thermo- stat, door locks among others; equip these with their own computer chips, software and get access to the Internet, and a “smart home” now comes to life. The Internet of Things can only work if these gadgets and devices start interacting with each other through a networked system. The AllJoyn Open Source Project [2], a nonprofit organization devoted to the adoption of the Internet of Things, facilitates to ensure that com- panies like Cisco, Sharp and Panasonic are manufacturing products compatible with a networked system and to ensure that these products can interact with each other. The advantages of these highly networked and connected devices mean productive and enhanced quality of lives for people. For exam- ple, health monitoring can be rather easy with connected RX bottles and medicine cabinets. Doctors supervising patients can monitor their medicine intake as well as measure blood pressure and sugar levels and alert them when something goes wrong to their patients online.](https://image.slidesharecdn.com/secureandsmartiotusingblockchainandai-181102000615/75/Secure-and-Smart-IoT-using-Blockchain-and-AI-26-2048.jpg)
![6 Internet of Things: The Third Wave? In the aspect of energy conservation, household appliances can suggest optimal setting based on the user’s energy consumption like turning the ideal temperature just before the owner arrives home as well as turning on and off the lights whenever the owner is out on vacation just to create the impression that somebody is still left inside the house to prevent burglars from attempting to enter. Smart refrigerators, on the other hand, can suggest food supplies that are low on inventory and needs immediate replenishment. The suggestions are based on the user’s historical purchasing behavior and trends. Wearable technology are also part of the Internet of Things, where these devices can monitor sleeping patterns, workout measure- ments, sugar levels, blood pressure and connecting these data to the user’s social media accounts for tracking purposes. The most important disadvantage of the Internet of Things is with regard to the privacy and security issue. Smart home devices have the ability to devour a lot of data and information about a user. These data can include personal schedules, shopping habits, medicine intake schedule and even location of the user at any given time. If these data fall are misused, great harm and damage can be done to people. The other disadvantage is the fact that most devices are not yet ready to communicate with another brand of devices. Specific products can only be networked with their fellow products under the same brand name. It is good that The AllJoyn Open Source Project [2], is ensuring connectivity, but the reality of a “universal remote control” for all these devices and products is still in its infancy.](https://image.slidesharecdn.com/secureandsmartiotusingblockchainandai-181102000615/75/Secure-and-Smart-IoT-using-Blockchain-and-AI-27-2048.jpg)
Uploaded byAhmed Banafa
Secure and Smart IoT using Blockchain and AI
This document discusses securing and enabling smart capabilities for Internet of Things (IoT) devices using blockchain and artificial intelligence. It covers challenges facing IoT implementation including lack of standardization, security and privacy issues, and integrating diverse data formats from different sensors and devices. The document proposes that combining blockchain and AI can help address these challenges by decentralizing IoT networks, adding an extra layer of security to device authentication and data transmission, and powering smart analytics on the large volumes of data generated by IoT. Overall, the document argues that blockchain and AI will be important technologies to realize the full potential of a secure, smart IoT.
Secure and Smart IoT using Blockchain and AI
- 2. Secure and Smart Internetof Things (IoT) Using Blockchain and AI
- 3. RIVER PUBLISHERS SERIESIN INFORMATION SCIENCE AND TECHNOLOGY Series Editors: K. C. CHEN SANDEEP SHUKLA National Taiwan University Virginia Tech Taipei, Taiwan USA and and University of South Florida, USA Indian Institute of Technology Kanpur, India Indexing: All books published in this series are submitted to the Web of Science Book Citation Index (BkCI), to CrossRef and to Google Scholar. The “River Publishers Series in Information Science and Technology” covers research which ushers the 21st Century into an Internet and multimedia era. Multimedia means the theory and application of filtering, coding, estimating, analyzing, detecting and recognizing, syn- thesizing, classifying, recording, and reproducing signals by digital and/or analog devices or techniques, while the scope of “signal” includes audio, video, speech, image, musical, multimedia, data/content, geophysical, sonar/radar, bio/medical, sensation, etc. Networking suggests transportation of such multimedia contents among nodes in communication and/or computer networks, to facilitate the ultimate Internet. Theory, technologies, protocols and standards, applications/services, practice and imple- mentation of wired/wireless networking are all within the scope of this series. Based on network and communication science, we further extend the scope for 21st Century life through the knowledge in robotics, machine learning, embedded systems, cognitive science, pattern recognition, quantum/biological/molecular computation and information processing, biology, ecology, social science and economics, user behaviors and interface, and applications to health and society advance. Books published in the series include research monographs, edited volumes, handbooks and textbooks. The books provide professionals, researchers, educators, and advanced students in the field with an invaluable insight into the latest research and developments. Topics covered in the series include, but are by no means restricted to the following: • Communication/Computer Networking Technologies and Applications • Queuing Theory • Optimization • Operation Research • Stochastic Processes • Information Theory • Multimedia/Speech/Video Processing • Computation and Information Processing • Machine Intelligence • Cognitive Science and Brian Science • Embedded Systems • Computer Architectures • Reconfigurable Computing • Cyber Security For a list of other books in this series, visit www.riverpublishers.com
- 4. Secure and Smart Internetof Things (IoT) Using Blockchain and AI Ahmed Banafa Professor at San Jose State University USA and Instructor at Stanford University USA River Publishers
- 5. Published, sold anddistributed by: River Publishers Alsbjergvej 10 9260 Gistrup Denmark River Publishers Lange Geer 44 2611 PW Delft The Netherlands Tel.: +45369953197 www.riverpublishers.com ISBN: 978-87-7022-030-9 (Hardback) 978-87-7022-029-3 (Ebook) c 2018 River Publishers All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, mechanical, photocopying, recording or otherwise, without prior written permission of the publishers.
- 6. Contents Foreword xi Preface xv Listof Figures xvii List of Abbreviations xix PART I: What Is IoT? 1 Internet of Things: The Third Wave? 3 1.1 Advantages and Disadvantages of IoT . . . . . . . . . . . . 5 2 The Industrial Internet of Things (IIoT): Challenges, Requirements and Benefits 7 2.1 IIoT, IoT and M2M . . . . . . . . . . . . . . . . . . . . . . 9 2.1.1 IIoT Challenges . . . . . . . . . . . . . . . . . . . 9 2.1.2 IIoT Requirements . . . . . . . . . . . . . . . . . . 9 2.1.3 IIoT Benefits . . . . . . . . . . . . . . . . . . . . . 10 2.2 The Future of the Industrial Internet of Things . . . . . . . 11 3 Internet of Things: Security, Privacy and Safety 13 3.1 IoT’s Threats . . . . . . . . . . . . . . . . . . . . . . . . . 15 3.2 Threats Are Real . . . . . . . . . . . . . . . . . . . . . . . 16 3.3 What Can We Do . . . . . . . . . . . . . . . . . . . . . . . 17 4 Internet of Things: More than Smart “Things” 19 4.1 Industrial Internet . . . . . . . . . . . . . . . . . . . . . . . 21 4.2 The IoT Value Chain . . . . . . . . . . . . . . . . . . . . . 23 4.3 Internet of Things Predictions . . . . . . . . . . . . . . . . 23 4.4 Challenges Facing IoT . . . . . . . . . . . . . . . . . . . . 24 v
- 7. vi Contents 5 Internetof Things: Myths and Facts 25 5.1 IoT and Sensors . . . . . . . . . . . . . . . . . . . . . . . . 26 5.2 IoT and Mobile Data . . . . . . . . . . . . . . . . . . . . . 27 5.3 IoT and the Volume of Data . . . . . . . . . . . . . . . . . 28 5.4 IoT and Datacenters . . . . . . . . . . . . . . . . . . . . . 28 5.5 IoT Is a Future Technology . . . . . . . . . . . . . . . . . . 28 5.6 IoT and Current Interoperability Standards . . . . . . . . . 29 5.7 IoT and Privacy & Security . . . . . . . . . . . . . . . . . . 30 5.8 IoT and Limited Vendors . . . . . . . . . . . . . . . . . . . 30 5.9 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . 31 PART II: IoT Implementation & Standardization Challenges 6 Three Major Challenges Facing IoT 35 6.1 Technology . . . . . . . . . . . . . . . . . . . . . . . . . . 36 6.2 Technological Challenges . . . . . . . . . . . . . . . . . . 37 6.3 Business . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 6.4 Society . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 6.5 Privacy . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 6.6 Regulatory Standards . . . . . . . . . . . . . . . . . . . . . 43 7 IoT Implementation and Challenges 45 7.1 Components of IoT Implementation . . . . . . . . . . . . . 46 7.1.1 Sensors . . . . . . . . . . . . . . . . . . . . . . . . 46 7.1.2 Networks . . . . . . . . . . . . . . . . . . . . . . . 47 7.1.3 Standards . . . . . . . . . . . . . . . . . . . . . . . 48 7.1.4 Intelligent Analysis . . . . . . . . . . . . . . . . . 49 7.1.5 Intelligent Actions . . . . . . . . . . . . . . . . . . 51 8 IoT Standardization and Implementation Challenges 53 8.1 IoT Standardization . . . . . . . . . . . . . . . . . . . . . . 54 8.2 IoT Implementation . . . . . . . . . . . . . . . . . . . . . 55 8.2.1 Sensors . . . . . . . . . . . . . . . . . . . . . . . . 55 8.2.2 Networks . . . . . . . . . . . . . . . . . . . . . . . 56 8.2.3 Standards . . . . . . . . . . . . . . . . . . . . . . . 57 8.2.4 Intelligent Analysis . . . . . . . . . . . . . . . . . 57 8.2.5 Intelligent Actions . . . . . . . . . . . . . . . . . . 58 8.3 The Road Ahead . . . . . . . . . . . . . . . . . . . . . . . 58
- 8. Contents vii 9 ChallengesFacing IoT Analytics Success 59 9.1 Data Structures . . . . . . . . . . . . . . . . . . . . . . . . 61 9.2 Combining Multiple Data Formats . . . . . . . . . . . . . . 61 9.3 The Need to Balance Scale and Speed . . . . . . . . . . . . 61 9.4 IoT Analytics at the Edge . . . . . . . . . . . . . . . . . . 62 9.5 IoT Analytics and AI . . . . . . . . . . . . . . . . . . . . . 63 PART III: Securing IoT 10 How to Secure the Internet of Things 69 10.1 Challenges to Secure IoT Deployments . . . . . . . . . . . 72 10.2 Dealing with the Challenges and Threats . . . . . . . . . . 74 10.3 The Optimum Platform . . . . . . . . . . . . . . . . . . . . 74 10.4 Last Word . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 11 Using Blockchain to Secure IoT 77 11.1 Challenges to Secure IoT Deployments . . . . . . . . . . . 77 11.2 Dealing with the Challenges and Threats . . . . . . . . . . 78 11.3 The Optimum Platform . . . . . . . . . . . . . . . . . . . . 78 11.4 Decentralizing IoT Networks . . . . . . . . . . . . . . . . . 79 11.5 The Blockchain Approach . . . . . . . . . . . . . . . . . . 80 11.5.1 What Is Blockchain? . . . . . . . . . . . . . . . . . 81 11.5.2 What Are Some Advantages of Blockchain? . . . . 81 11.5.3 How Does It Work? . . . . . . . . . . . . . . . . . 82 11.6 The Blockchain and IoT . . . . . . . . . . . . . . . . . . . 83 12 IoT and Blockchain: Challenges and Risks 85 12.1 The Blockchain Model . . . . . . . . . . . . . . . . . . . . 86 12.2 Principles of Blockchain Technology . . . . . . . . . . . . 87 12.3 Public vs. Private Blockchain . . . . . . . . . . . . . . . . 88 12.4 Challenges of Blockchain in IoT . . . . . . . . . . . . . . . 88 12.5 Risks of Using Blockchain in IoT . . . . . . . . . . . . . . 89 12.6 The Optimum Secure IoT Model . . . . . . . . . . . . . . . 91 13 DDoS Attack: A Wake-Up Call for IoT 93 13.1 Security Is Not the Only Problem . . . . . . . . . . . . . . 95 13.1.1 Security Concerns . . . . . . . . . . . . . . . . . . 95 13.1.2 Privacy Issues . . . . . . . . . . . . . . . . . . . . 96 13.1.3 Inter-Operatability Standard Issues . . . . . . . . . 96
- 9. viii Contents 13.1.4 LegalRegulatory and Rights Issues . . . . . . . . . 97 13.1.5 Emerging Economy and Development Issues . . . . 97 13.2 How to Prevent Future Attacks? . . . . . . . . . . . . . . . 97 PART IV: AI, Fog Computing and IoT 14 Why IoT Needs Fog Computing 101 14.1 The Challenge . . . . . . . . . . . . . . . . . . . . . . . . 101 14.2 The Solution . . . . . . . . . . . . . . . . . . . . . . . . . 102 14.3 Benefits of Using Fog Computing . . . . . . . . . . . . . . 103 14.4 Real-Life Example . . . . . . . . . . . . . . . . . . . . . . 103 14.5 The Dynamics of Fog Computing . . . . . . . . . . . . . . 104 14.6 Fog Computing and Smart Gateways . . . . . . . . . . . . 105 14.7 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . 105 15 AI Is the Catalyst of IoT 107 15.1 Examples of IoT Data . . . . . . . . . . . . . . . . . . . . 109 15.2 AI and IoT Data Analysis . . . . . . . . . . . . . . . . . . 110 15.3 AI in IoT Applications . . . . . . . . . . . . . . . . . . . . 110 15.4 Challenges Facing AI in IoT . . . . . . . . . . . . . . . . . 111 15.5 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . 112 PART V: The Future of IoT 16 IoT, AI and Blockchain: Catalysts for Digital Transformation 115 16.1 Digital Transformation . . . . . . . . . . . . . . . . . . . . 116 16.2 Internet of Things (IoT) . . . . . . . . . . . . . . . . . . . 117 16.3 Digital Transformation, Blockchain and AI . . . . . . . . . 118 16.4 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . 118 17 Future Trends of IoT 121 17.1 Trend 1 – Lack of Standardization Will Continue . . . . . . 122 17.2 Trend 2 – More Connectivity and More Devices . . . . . . . 122 17.3 Trend 3 – “New Hope” for Security: IoT & Blockchain Convergence . . . . . . . . . . . . . . . . . . . . . . . . . 123 17.4 Trend 4 – IoT Investments Will Continue . . . . . . . . . . 124 17.5 Trend 5 – Fog Computing Will Be More Visible . . . . . . . 124 17.6 Trend 6 – AI & IoT Will Work Closely . . . . . . . . . . . 125
- 10. Contents ix 17.7 Trend7 – New IoT-as-a-Service (IoT-a-a-S) Business Models . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125 17.8 Trend 8 – The Need for Skills in IoT’s Big Data Analysis and AI Will Increase . . . . . . . . . . . . . . . . . . . . . . . 126 PART VI: Inside look at Blockchain 18 Myths about Blockchain Technology 129 18.1 Myth 1: The Blockchain Is a Magical Database in the Cloud . . . . . . . . . . . . . . . . . . . . . . . . . . 132 18.2 Myth 2: Blockchain Is Going to Change the World . . . . . 132 18.3 Myth 3: Blockchain Is Free . . . . . . . . . . . . . . . . . . 133 18.4 Myth 4: There Is Only One Blockchain . . . . . . . . . . . 133 18.5 Myth 5: The Blockchain Can be Used for Anything and Everything . . . . . . . . . . . . . . . . . . . . . . . . . . 133 18.6 Myth 6: The Blockchain Can be the Backbone of a Global Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . 134 18.7 Myth 7: The Blockchain Ledger Is Locked and Irrevocable . 134 18.8 Myth 8: Blockchain Records Can Never be Hacked or Altered 134 18.9 Myth 9: Blockchain Can Only be Used in the Financial Sector 135 18.10 Myth 10: Blockchain Is Bitcoin . . . . . . . . . . . . . . . 135 18.11 Myth 11: Blockchain Is Designed for Business Interactions Only . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136 18.12 Myth 12: Smart Contracts Have the Same Legal Value as Regular Contracts . . . . . . . . . . . . . . . . . . . . . . . 136 19 Cybersecurity & Blockchain 137 19.1 Implementing Blockchain in Cybersecurity . . . . . . . . . 138 19.2 Advantages of Using Blockchain in Cybersecurity . . . . . 139 19.2.1 Decentralization . . . . . . . . . . . . . . . . . . . 139 19.2.2 Tracking and Tracing . . . . . . . . . . . . . . . . 140 19.2.3 Confidentiality . . . . . . . . . . . . . . . . . . . . 140 19.2.4 Fraud Security . . . . . . . . . . . . . . . . . . . . 140 19.2.5 Sustainability . . . . . . . . . . . . . . . . . . . . 141 19.2.6 Integrity . . . . . . . . . . . . . . . . . . . . . . . 141 19.2.7 Resilience . . . . . . . . . . . . . . . . . . . . . . 141 19.2.8 Data Quality . . . . . . . . . . . . . . . . . . . . . 141
- 11. x Contents 19.2.9 SmartContracts . . . . . . . . . . . . . . . . . . . 141 19.2.10 Availability . . . . . . . . . . . . . . . . . . . . . . 141 19.2.11 Increase Customer Trust . . . . . . . . . . . . . . . 142 19.3 Disadvantages of Using Blockchain in Cybersecurity . . . . 142 19.3.1 Irreversibility . . . . . . . . . . . . . . . . . . . . 142 19.3.2 Storage Limits . . . . . . . . . . . . . . . . . . . . 142 19.3.3 Risk of Cyberattacks . . . . . . . . . . . . . . . . . 142 19.3.4 Adaptability Challenges . . . . . . . . . . . . . . . 142 19.3.5 High Operation Costs . . . . . . . . . . . . . . . . 143 19.3.6 Blockchain Literacy . . . . . . . . . . . . . . . . . 143 19.4 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . 143 20 Future Trends of Blockchain 145 20.1 Blockchain Tracks . . . . . . . . . . . . . . . . . . . . . . 146 20.2 Blockchain Technology Future Trends . . . . . . . . . . . . 147 20.3 Blockchain Skills in Demand . . . . . . . . . . . . . . . . 147 20.4 Blockchain and Enterprise Applications . . . . . . . . . . . 148 20.5 Blockchain and IoT Security . . . . . . . . . . . . . . . . . 149 20.6 Blockchain and Zero-Trust Model . . . . . . . . . . . . . . 150 20.7 Final Words . . . . . . . . . . . . . . . . . . . . . . . . . . 150 References 151 Index 159 About the Author 163
- 12. Foreword The Internet ofThings (IoT) connects everything on our bodies, in our homes, cities, and factories to the Internet to create a new reality of a connected world. Imagine a person driving an autonomous vehicle driving though con- nected traffic lights wearing a connected pacemaker. Every connected thing comes with security risk with the potential for hackers to target the person. Even security updates of AI inference models on these devices can be hacked when the device makers send an OTA or Over the Air update. Blockchain gives you a distributed ledger in the cloud that is secure from tampering because it is cryptographically secured with transparent access to everyone equally. Blockchain is used with the Internet of Thing (IoT) systems to track every access point of the device thereby ensuring security. Blockchain offers additional transparency to a supply chain or logistics process by offering new insights to where the products originated and how it traveled to the endpoint. Imagine knowing which farm produced the coffee you are drinking and every step it traveled to reach your Barista. Blockchain also helps secure complex systems such as mines, hospitals and critical infrastructures such as water and energy systems. I have watched Prof. Banafa’s passion for IoT over the past years as he researched IoT markets with special focus on Industrial IoT with his articles, talks, and teaching. Read this book to understand IoT solutions, as Prof. Banafa demystifies the grey areas of Edge, Fog and Cloud and drills down to provide clarity to the integration of new technologies such as Blockchain and Artificial Intelligence on how they fit to make IoT secure. Treasure this book as you will be re- reading and coming back to it several times as you build the connected world of the Internet of Things. Sudha Jamthe CEO, Author IoTDisruptions & Stanford Continuing Studies IoT and AV Business Instructor xi
- 13. xii Foreword We livein exciting times where technology emergence is making us reinvent the world around us. There is no single technology that can help this transformation, but the confluence of many emerging technologies such as IoT, AI, Blockchain, AR/VR, Edge Computing will enable the current generation to visualize and discover new ways of doing things, that were earlier not possible. And this transformation will cut across every aspect of our life: Consumer to Enterprise, Community to Government, Homes to Hospitals, Art to Law, Engineering to Medicine, Infants to Elderly, Poor to Rich, impacting every form of life and resource on this planet and beyond. And that bring us face to face with the challenges that it will bring relating to privacy and security, and the associated vulnerabilities that the new technologies bring. The human mind has, however, always fought these challenges and emerged successful, rather than letting these challenges con- sume us. The Blockchain is an ingenious approach that provides secure and trustless decentralized framework that holds the promise to provide an impregnable and transparent transaction system. “Secure and Smart Internet of Things (IoT): Using Blockchain and AI” by Prof Banafa is one such book that has covered various types of emerging technologies, their convergence, and the supporting technologies like Mist and Fog Computing, that have emerged to take AI from the cloud to the edge. I have known Prof Banafa for many years and have a deep appreciation for his ability to mix academics with industry use-cases to make them relevant for applications in various domains. Apart from being a “#1 Voice to Follow in Tech” on LinkedIn, his prophecies of technology evolution have been very accurate. In this book, he shares his valuable technology insights that will be very useful to aspiring innovators to set them thinking on the right path. My advice to readers is to relate the technologies discussed here, in context of their own ideas and visions, to discover how they can play an instrumental role in building the emerging new world that will bring peace, joy, and happiness to all. Sudhir Kadam Startup Alchemist, Silicon Valley Emerging Tech Expert Board Member at IIT Startups
- 14. Foreword xiii In Secureand Smart Internet of Things (IoT) using Blockchain and AI, Ahmed, a seasoned and revered stalwart on IoT and cybersecurity chronicles the vanguard of what science fictionists once called Skynet: the set of tech- nologies converging at warp speed to create a massive intelligent machine or device network. The revolution of “Internet of Things” is amassing to some 28 billion devices by 2020 according to some experts. This ubiquity presents a Cambrian explosion: an unprecedented economic opportunity and is consequently poised to spark an arms race in cybercrime or cyberwars. It is crucial to grasp the magnitude of the cybersecurity risks and the challenge device manufacturers face. Imagine for a moment the chaos that would ensue when a rogue entity commandeers a system of autonomous vehicles operating in a smart city. Worse yet, imagine a world of interconnected healthcare systems being hijacked and mission critical information for patient treatment is held ransom or is compromised. There is no question that we approach a world where cybercrime and cyberwar is dire. Its no longer science fiction. Thanks to Ahmed who has done most of the homework for us in presenting a cogent methodology to counter this formidable threat. To anyone from (smart)home-owners to business-owners and in between - Secure and Smart Internet of Things using Blockchain and AI is the call to action! Abood Quraini Sr. Manager, Hardware Engineering at NVIDIA
- 16. Preface By 2020, expertsforecast that up to 28 billion devices will be connected to the Internet with only one third of them being computers, smartphones, smartwatches, and tablets. The remaining two thirds will be other “devices” – sensors, terminals, household appliances, thermostats, televisions, automo- biles, production machinery, urban infrastructure and many other “things”, which traditionally have not been Internet enabled. This “Internet of Things” (IoT) represents a remarkable transformation of the way in which our world will soon interact. Much like the World Wide Web connected computers to networks, and the next evolution mobile devices connected people to the Internet and other people, IoT looks poised to interconnect devices, people, environments, virtual objects and machines in ways that only science fiction writers could have imagined. In a nutshell the Internet of Things (IoT) is the convergence of connecting people, things, data and processes; it is transforming our life, business and everything in between. This book Secure and Smart IoT explores many aspects of the Internet of Things and explains many of the complicated principles of IoT and the new advancements in IoT including using Fog Computing, AI and Blockchain technology. This book is divided into 6 parts: Part 1: What Is IoT? Part 2: IoT Implementation & Standardization Challenges Part 3: Securing IoT Part 4: AI, Fog Computing and IoT Part 5: The Future of IoT Part 6: Inside Look at Blockchain Audience This book is for everyone who would like to have a good understanding of IoT and its applications and its relationship with business operations xv
- 17. xvi Preface including: C-Suiteexecutives, IT managers, marketing & sales people, lawyers, product & project managers, business specialists, students. It’s not for programmers who are looking for codes or exercises on the different components of IoT. Acknowledgment I am grateful for all the support I received from my family during the stages of writing this book, thank you all!
- 18. List of Figures Figure2.1 IIoT Challenges. . . . . . . . . . . . . . . . . . . . 10 Figure 2.2 IIoT Requirements. . . . . . . . . . . . . . . . . . 10 Figure 2.3 IIoT Benefits. . . . . . . . . . . . . . . . . . . . . 11 Figure 4.1 IoT Key Attributes. . . . . . . . . . . . . . . . . . 22 Figure 6.1 Three Major Challenges Facing IoT. . . . . . . . . 36 Figure 6.2 Technological Challenges Facing IoT. . . . . . . . 36 Figure 6.3 Categories of IoT. . . . . . . . . . . . . . . . . . . 42 Figure 7.1 Components of IoT implementation. . . . . . . . . 46 Figure 7.2 New trends of sensors. . . . . . . . . . . . . . . . 47 Figure 8.1 Hurdles facing IoT standardization. . . . . . . . . . 54 Figure 8.2 Components of IoT implementations. . . . . . . . 56 Figure 9.1 Challenges facing IoT analytics. . . . . . . . . . . 60 Figure 9.2 AI and IoT Data Analysis. . . . . . . . . . . . . . 64 Figure 10.1 IoT architecture. . . . . . . . . . . . . . . . . . . . 70 Figure 11.1 Advantages of Blockchain. . . . . . . . . . . . . . 81 Figure 12.1 Challenges of Blockchain in IoT. . . . . . . . . . . 89 Figure 12.2 Risks of using Blockchain in IoT. . . . . . . . . . . 90 Figure 13.1 How to prevent future attacks. . . . . . . . . . . . 98 Figure 15.1 Challenges facing AI in IoT. . . . . . . . . . . . . 112 Figure 16.1 Digital Transformation Areas. . . . . . . . . . . . 116 Figure 17.1 Future Trends of IoT. . . . . . . . . . . . . . . . . 121 Figure 18.1 Types of Blockchains. . . . . . . . . . . . . . . . . 131 Figure 19.1 Advantages of Using Blockchain in Cybersecurity. . . . . . . . . . . . . . . . . . . . . 140 Figure 19.2 Disadvantages of Using Blockchain in Cybersecurity. . . . . . . . . . . . . . . . . . . . . 142 Figure 20.1 Tracks of Blockchain Technology. . . . . . . . . . 146 Figure 20.2 Blockchain Technology Future Trends. . . . . . . . 147 xvii
- 20. List of Abbreviations AIArtificial Intelligence BYOD Bring Your Own Device CEP Complex Event Processing CSA Cloud Security Alliance DDoS Distributed Denial of Service DoS Denial of Service DX Digital Transformation E-a-a-S Elevator as a Service ETL Extract, Transform and Load FIPP Fair Information Practice Principles FTC Federal Trade Commission HIPAA Health Insurance Portability and Accountability Act HTTP Hypertext Transfer Protocol IaaS Infrastructure as a Service IDC International Data Corporation IEEE Institute of Electrical and Electronics Engineering IIoT Industrial Internet of Things IoT Internet of Things IP Internet Protocol IPv6 Internet Protocol Version 6 ISA International Society of Automation ISOC Information Security Operations Center IT Information Technology L-a-a-S Lighting as a Service LAN Local Area Network Li-Fi Light Fidelity LTE Long-Term Evolution M2H Machine to Human M2M Machin to Machine MAN Merto Area Network OEM Original Equipment Manufacturer xix
- 21. xx List ofAbbreviations OWASP Open Web Application Security Project PaaS Platform as a Service PSS Privacy, Security, Safety R-a-a-S Rail as a Service SaaS Software as a Service UI User Interface UX User Experience VUI Voice User Interface W3C World Wide Web Consortium WAN Wide Area Network Wi-Fi Wireless Fidelity ZTM Zero Trust Model
- 22. PART I What IsIoT?
- 24. 1 Internet of Things:The Third Wave? The Internet of Things (IoT) is the network of physical objects accessed through the Internet. These objects contain embedded tech- nology to interact with internal states or the external environment. In other words, when objects can sense and communicate, it changes how and where decisions are made, and who makes them, for example, Nest thermostats. The Internet of Things (IoT) emerged as the third wave in the development of the Internet. The Internet wave of the 1990s connected 1 billion users, while the mobile wave of the 2000s connected another 3
- 25. 4 Internet ofThings: The Third Wave? 2 billion. The IoT has the potential to connect 10 times as many 20 billion “things” to the Internet by 2020, ranging from bracelets to cars [17]. Breakthroughs in the cost of sensors, processing power and bandwidth to connect devices are enabling ubiquitous connections at present. Smart products like smart watches and thermostats (Nest) are already gaining traction as stated in the Goldman Sachs Global Investment Research report. IoT has key attributes that distinguish it from the “regular” Internet, as captured by Goldman Sachs’s S-E-N-S-E framework: Sensing, Effi- cient, Networked, Specialized, Everywhere [1]. These attributes may change the direction of technology development and adoption, with significant implications for Tech companies – much like the transition from the fixed to the mobile Internet shifted the center of gravity from Intel to Qualcomm or from Dell to Apple. A number of significant technology changes have come together to enable the rise of the IoT. These include the following [1]: • Cheap sensors – Sensor prices have dropped to an average 60 cents from $1.30 in the past 10 years. • Cheap bandwidth – The cost of bandwidth has also declined precipitously, by a factor of nearly 40 times over the past 10 years. • Cheap processing – Similarly, processing costs have declined by nearly 60 times over the past 10 years, enabling more devices to be not just connected, but smart enough to know what to do with all the new data they are generating or receiving. • Smartphones – Smartphones are now becoming the personal gateway to the IoT, serving as a remote control or hub for the connected home, connected car or the health and fitness devices that consumers have increasingly started to wear. • Ubiquitous wireless coverage – With Wi-Fi coverage now ubiq- uitous, wireless connectivity is available for free or at a very low cost, given Wi-Fi utilizes unlicensed spectrum and thus does not require monthly access fees to a carrier.
- 26. 1.1 Advantages andDisadvantages of IoT 5 • Big Data – As the IoT will, by definition, generate volumi- nous amounts of unstructured data, the availability of Big Data analytics is a key enabler. • IPv6 – Most networking equipment now support IPv6, the newest version of the Internet Protocol (IP) standard that is intended to replace IPv4. IPv4 supports 32-bit addresses, which translates to about 4.3 billion addresses – a number that has become largely exhausted by all the connected devices globally. In contrast, IPv6 can support 128-bit addresses, translating to approximately 3.4 × 1038 addresses – an almost limitless number that can amply handle all conceivable IoT devices. 1.1 Advantages and Disadvantages of IoT Many smart devices like laptops, smart phones and tablets commu- nicate with each other through the use of Wi-Fi Internet technology. Transfer these technological capabilities into ordinary household gad- gets like refrigerators, washing machines, microwave ovens, thermo- stat, door locks among others; equip these with their own computer chips, software and get access to the Internet, and a “smart home” now comes to life. The Internet of Things can only work if these gadgets and devices start interacting with each other through a networked system. The AllJoyn Open Source Project [2], a nonprofit organization devoted to the adoption of the Internet of Things, facilitates to ensure that com- panies like Cisco, Sharp and Panasonic are manufacturing products compatible with a networked system and to ensure that these products can interact with each other. The advantages of these highly networked and connected devices mean productive and enhanced quality of lives for people. For exam- ple, health monitoring can be rather easy with connected RX bottles and medicine cabinets. Doctors supervising patients can monitor their medicine intake as well as measure blood pressure and sugar levels and alert them when something goes wrong to their patients online.
- 27. 6 Internet ofThings: The Third Wave? In the aspect of energy conservation, household appliances can suggest optimal setting based on the user’s energy consumption like turning the ideal temperature just before the owner arrives home as well as turning on and off the lights whenever the owner is out on vacation just to create the impression that somebody is still left inside the house to prevent burglars from attempting to enter. Smart refrigerators, on the other hand, can suggest food supplies that are low on inventory and needs immediate replenishment. The suggestions are based on the user’s historical purchasing behavior and trends. Wearable technology are also part of the Internet of Things, where these devices can monitor sleeping patterns, workout measure- ments, sugar levels, blood pressure and connecting these data to the user’s social media accounts for tracking purposes. The most important disadvantage of the Internet of Things is with regard to the privacy and security issue. Smart home devices have the ability to devour a lot of data and information about a user. These data can include personal schedules, shopping habits, medicine intake schedule and even location of the user at any given time. If these data fall are misused, great harm and damage can be done to people. The other disadvantage is the fact that most devices are not yet ready to communicate with another brand of devices. Specific products can only be networked with their fellow products under the same brand name. It is good that The AllJoyn Open Source Project [2], is ensuring connectivity, but the reality of a “universal remote control” for all these devices and products is still in its infancy.