Identity Management in Internet of Things with Blockchain
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transactions in the network, each cryptographically chained with the next. The peers
are responsible for running the necessary code and coming to a consensus regarding
actions changing the ledger only through additions and never by deleting something
that is already there.
Cryptographic techniques are vital for building trust between the unknown partic-
ipants of the system [10]. Except for their use in binding the ledger blocks to form
a chain, cryptographic tools and protocols are used in order to provide anonymity
through private keys, which are held by every entity participating in the network.
These keys provide anonymity as they are usually never combined with personal
attributes, as well as the validity and authorization of any entity to interact with the
network and change the ledger’s state of data.
Lastly,governanceisaconceptrathernewfortheblockchainworldbut,ultimately,
of extreme importance when it comes to building a hierarchy of trust and managing
permissions and actions within an environment. Governance is used for applying
rules and policies in decision-making within a closed environment where different
actor roles exist.
1.4
The Benefits of Blockchain-Enhanced IAM
The current identity and access management mechanisms do succeed in providing
the functionality needed for IoT identification of users and devices, however, the
scalability of devices, services and applications are being cut off by the limitations
of those mechanisms. A single IdP can only offer so much, while at the same time the
centralization of IAM systems, working as centralized authorities, makes the whole
IoT system vulnerable as they constitute a single point of failure (SPF). A more
decentralized approach is less demanding in terms of performance for completing
the tasks of IAM, while at the same time an identity can be validated and authenticated
by any node from the blockchain network [11].
A blockchain-enhanced solution has the ability to natively remove any intermedi-
aries (such as an IdP) or any service provider for that matter, whether it relates to IAM
or not. Consequently, the interaction of users and devices, at least for authentication
purposes can become more immediate and independent of a single service. It is worth
noting that the removal of these services and their replacement with a blockchain
network does not compromise security or privacy; on the contrary, it increases them
by adding more cryptography algorithms and anonymity [12] (Fig. 2).
The immutability of the ledger can benefit the integrity of the logging process
for the devices’ interactions. Moreover, by giving the ownership of their identity to
the users, they gain full control and management over their identity as well as the
visibility of the data related to them. An example of such an implementation is the
uPort short demonstration via the uPortlandia Demo [13]. In this demo, the user is
called to download and use the uPort wallet application and go through the process
of issuing a driver’s license or a university diploma. Afterward, the user can choose
to use one of the services offered in uPortlandia, but in order to do that they must