Blockchain-based Security Framework for IoT Devices in Industrial Automation: A Comprehensive Review
Blockchain-based Security Framework for IoT Devices in Industrial Automation: A Comprehensive Review
1,2AssociateProfessor, Electronics and Communication Engineering, Balaji Institute of Technology and Science, Warangal,
Telangana, India.
3Assistant Professor, Electronics and Communication Engineering, Sree Chaitanya College of Engineering, Karimnagar,
Telangana, India.
Received: 11 Jul 2025; Received in revised form: 04 Aug 2025; Accepted: 08 Aug 2025; Available online: 11 Aug 2025
Abstract— The widespread use of industrial automation Internet of Things (IoT) devices has seen great
transformation in operational efficiency and decision-making. But these interconnected environments have
nevertheless raised a major concern about their security challenges. Blockchain technology is a promising
solution to the challenges of infrastructure because of its decentralized, transparent and tamper proof
characteristics. We discuss in this paper how blockchain based security frameworks are being used in IoT
devices for industrial automation right now. It first conducts an in depth analysis of existing approaches
and their pros and cons before concluding with research gaps. In addition, it explores integration of
blockchain with involving technologies for IIoT ecosystems’ security.
Keywords— Blockchain, Security, IoT, IIoT, Industrial Automation, Smart Contracts.
ensure data integrity, confidentiality, and In this paper, we propose to discuss in detail
authenticity that is exchanged between IoT devices. about blockchain based security framework for IoT
The removal of central authority centralizes the devices in industrial automation. It assesses the
authority in the blockchain, which improves present picture, acknowledges problems and
transparency and accountability in IIoT networks, envisages directions for research and policy work.
which is important for the identification of the
malicious actors. One of the major security
II. IOT SECURITY CHALLENGES IN
advantages of blockchain, enabling secure and
INDUSTRIAL AUTOMATION
verifiable transactions between devices, makes it a
perfect tool to satisfy some, if not all, key security The complex interplay of devices, networks and
concerns: device authentication, data integrity, and systems makes IoT security in industrial automation
secure communication. a challenging problem. In the IoT ecosystem,
industrial automation systems can proactively
This review goes through the potential
significantly enhance their security posture by
advantages blockchain based security framework
solving these challenges.
provides for IoT devices in Industrial automation
specifically with respect to security requirements of
the IIoT environments. In the review of the current
state of blockchain technologies for industrial
automation is considered a range of use cases,
advantages and thorny issues when using them.
Additionally, it presents ideas on the critical
components of a blockchain based security system
including consensus mechanisms, smart contracts
and decentralized identity management, as means of
improving IoT devices security. This review
identifies existing gaps in the research and specifies
future directions to give an overall view of how
blockchain can revolutionize IoT security in the
industrial automation in order to ensure safe and
protected industrial systems. Fig.1. Security challenges in IoT
At the time the industrial sector has turned
to IoT technologies and the need for robust and 2.1 Data Integrity and Confidentiality
scalable security solutions has never been bigger. The
Data integrity and confidentiality in industrial
combination of blockchain based security
automation are of great importance to ensure
frameworks is a potential, mature and effective
operational stability, protection of sensitive data, and
solution to address these requirements as it provides
data access or manipulation integrity. Suffice it to
the decentralized trust, increased resilience and
say, IoT devices produce a ton of sensitive data,
transparency at IIoT network level. While technically
making them attractive points of cyber attack. A first
possible, implementation of blockchain in this
priority is to guarantee data integrity and
domain faces questions that need to be addressed,
confidentiality when data is transmitted and stored.
including technical, operational, and regulatory
Data integrity ensures that data is accurate,
barriers, these being the subjects to be covered by this
consistent and that it hasn’t been copied, tampered,
review. Reviewing the challenges and solutions to
or damaged while a message is being transmitted or
integration of blockchain in obtaining security for IoT
being stored. Wired attackers intercept and modify
devices on industrial automation system can lead to a
data that is being transmitted between IoT devices
body of knowledge to support the integration of
and control systems. During transmission of data
blockchain in securing IoT devices in industrial
some noise or interference in the communication
automation system.
channels corrupt the data [5]. There may be
weaknesses in access controls in industrial systems, remote or unattended locations. Physical tampering
causing insiders, or strangers, to be able to modify with or theft of devices, inserting rogue devices into
critical data within such systems. Legacy systems the network, and not having surveillance and
often use outdated and unencrypted protocols, monitoring, are the challenges.
making data vulnerable to tampering. Data 2.3 Scalability and Interoperability
confidentiality ensures that sensitive information is
Industrial IoT networks are complex and, as such,
accessible only to authorized users and entities. Data
offer great opportunity and challenge in security for
transmitted over insecure channels (e.g., HTTP
the uniformity of security measures. They also
instead of HTTPS) can be intercepted. Weak
transmit and store enormous masses of sensitive
authentication mechanisms can allow hackers to
operational data, and breaches are a gaping
access sensitive industrial data. Industrial IoT often
vulnerability for them. Data breaches and
relies on cloud platforms, which can be targets for
exfiltration. Manipulation or corruption of data
data breaches. Attackers can exploit compromised
impacting decision-making. Non-compliance with
devices to extract sensitive data.
data protection regulations. The absence of uniform
2.2 Device Authentication and Authorization security standards in IoT devices and protocols
For a successful industrial automation network, creates compatibility and security gaps. The various
authentication and authorization are necessary to challenges are difficulty in integrating devices from
secure the network against unauthorized access and different vendors securely, use of outdated or
network operation only by trusted devices. These proprietary protocols and Inconsistent
security mechanisms thwart foreign entities implementation of security features. As the number
accessing until the integrity, reliability, and of IoT devices grows, ensuring security becomes
confidentiality of industrial systems [6]. IoT device increasingly challenging. There may be difficulty in
needs to authenticate, that is if it is different from managing and monitoring large-scale deployments,
what it says it is. Without the proper strong increased risk of DDoS attacks and insufficient
authentication mechanisms, malicious actors can resources to handle real-time threat detection [7].
bring rouge devices into the network. So many IoT 2.4 Fault Tolerance and Reliability
devices ship with default and often useless username
System failures or attacks on centralized security
and passwords which attackers can easily break into.
architectures can lead to significant operational
Although devices may authenticate a server, the
disruptions. Decentralized approaches are crucial for
server may not authenticate itself to the device and
maintaining reliability and fault tolerance. Industrial
become susceptible to vulnerabilities. When the
automation often involves third-party vendors and
number of IoT devices grows, we cannot manage
systems. The different challenges includes supply
authentication for thousands of devices easily. It
chain attacks through compromised components,
decides the extent , above what the device is allowed
lack of transparency in vendor security practices and
to operate within the blanket network. If
risk of backdoors or malware from external
authorization mechanisms are not used properly, it
integrations. Many industrial automation systems are
can result in too much, or in no access at all, thereby
built on legacy infrastructure not designed for IoT
endangering the security. We often also grant
integration. They are incompatibility with modern
devices blanket access as opposed to having a device
security solutions, unpatched vulnerabilities due to
restrict itself to roles or functions. In an industrial
outdated software and high cost and complexity of
automation environment, many times devices will
upgrading legacy systems. Industrial systems require
join or leave the network and maintaining updated
low latency and high reliability, often limiting the
authorization policies becomes difficult. With the
implementation of heavy security measures. But
abundance of IoT devices comes the need for robust
performance and security comes at a trade of price,
authentication mechanisms to protect against
the problem of finding real time intrusion detection
unauthorized access as well as to only allow trusted
is hard, and there is a risk of system downtime if a
devices talk within the network. Current
security breach occurs.
deployments of IoT in industrial settings are in
Authority) and hybrid architectures that offload AI to analyze the blockchain data and detect
critical blockchain function to more capable nodes, anomalies or any fraudulent activities. Moreover, AI
are being developed. Combing blockchain and edge can improve consensus mechanisms that would scale
computing opens up a powerful security, and improve the blockchain networks. For example,
transparency, and efficiency-enhancing weapon in machine learning algorithms can forecast and
decentralized systems. With this integration poised counteract any network bottlenecks that may already
to help advance applications ranging from exist, in real time. While there is much promise to
autonomous vehicles, to industrial automation and integrating blockchain and AI, as with all de-
to next generation smart infrastructures, it promises centralized technologies there are inherent hurdles
to become indispensable. such as the computational requirements for both and
5.2 Artificial Intelligence (AI) the integration with infrastructures being used. But
lightweight blockchain protocols and edge AI are
Putting blockchain data through an AI algorithm
helping these problems.
which detects anomalies and can predict potential
security threats improves proactive defense. The Blockchain AI integration has the potential to be
combination of blockchain with AI enables powerful revolutionary by combining the trust and security of
synergy by improving data security, transparency, blockchain with the intelligence and efficiency of AI.
and decision making within most applications. It is creating a powerful combination that is
Blockchain’s intrinsic decentralized and immutable reshaping industries in order to provide smarter and
characteristics are leveraged to solve many of the more secure solutions to an array of applications.
challenges surrounding AI, like data provenance, 5.3 5G Connectivity
sourcing of trust, and participatory transparency, 5G networks’ high-speed and low latency
while AI helps optimize functions like consensus communication complements blockchain’s capability,
mechanisms, and fraud identification. Together, allowing the seamless industrial automation.
these technologies’ solutions are more secure, more Blockchain integration with 5G connectivity has the
reliable, and more efficient. prospect to revolutionize industries by delivering
Some great benefits of this integration are data greater security, better efficiency and greater
integrity. Vast amounts of high quality data are scalability for next generation networks as 5G
needed to train and make decisions in AI systems, provides faster data transfer speeds, lower latency
and determining authenticity and origin of data can and scales support massively connected devices -
be difficult. The data used by AI models is proven applications like autonomous vehicles, smart cities
accurate and reliable due to blockchain’s tamper and industrial automated products. But, with more
proof record of data provenance [13]. In healthcare, devices and data flows, security, data privacy and
finance and supply chain management, this is network management problems also increase. To
important because data integrity is critical. overcome this challenge, Blockchain can offer a
Improving transparency and accountability of AI decentralized, secure and transaparent solution for
algorithm is another important advantage for others. the management of the complex interactions within
And many AI systems fall into the category of "black 5G networks [14].
box" systems, a reality which makes it difficult to Augmenting blockchain with 5G has one of the
understand or audit their decision making processes. biggest advantages as it boosts the security.
With the ability to record AI Decisions and process Blockchain’s decentralized properties mean there are
on the blockchain, organizations can create an no single points it can be attacked from. It can be
irreplicable audit trail that increases trust and applied to secure authentication of devices, identity
ensures that regulations are followed. It is managing and the verification of transactions among
particularly useful for autonomous vehicles, credit devices in a 5G enabled ecosystem. This assures that
scoring and legal decision making. only the allowed devices can access the network and
AI also helps Blockchain by optimising its thereby reduces the risk of cybercrime, data breach,
functioning. Blockchain can be further secured using and also fraudulence. Blockchain can also serve as a
secure and tamper proof ledger for network authentication and access control. In today’s
transactions and data exchange, then providing yet interconnected world, where cyberattacks are
another layer of trust and transparency. becoming more sophisticated and pervasive, this
Moreover, blockchain makes it easier to manage integration offers a robust defense mechanism to
network resources. Bandwidth, management safeguard sensitive data and prevent unauthorized
becomes tricky and Quality of Service (QoS) more access [16].
complex with growing number of devices in 5G One of the key advantages of combining blockchain
network. According to Bisgaard, blockchain’s smart with cybersecurity is its ability to ensure data
contracts can execute the allocation and management integrity. Blockchain provides a tamper-proof ledger,
of network resources according to certain conditions, making it nearly impossible for attackers to alter or
which eliminates the requirement of manual manipulate data once it is recorded. This is
interference and enhances the operation of the particularly valuable in industries where data
network. This is also possible by Blockchain: to integrity is critical, such as finance, healthcare, and
support Decentralized and dynamic pricing models supply chains. Blockchain can also be used to
for network services that would allow users to pay securely store logs of system events and network
for services in real time. transactions, creating an immutable audit trail that
In addition, blockchain boosts the potential of 5G can be analyzed for signs of malicious activity.
with regard to IoT, where billions of IoT devices will Another significant benefit is in the area of identity
have to communicate securely and in a scalable and access management. Blockchain enables
manner. From a data exchange perspective, decentralized identity management, where users
blockchain can form the backbone for the secure control their own identities using cryptographic
exchange of IoT data amongst IoT devices in a 5G keys. This reduces the risk of identity theft, phishing,
network while at the same time guaranteeing data and unauthorized access. Blockchain-based solutions,
integrity, privacy and communication across devices such as self-sovereign identities, ensure that user
[15]. But blockchain integration with 5G networks credentials are stored securely and that
remains a challenge, as 5G networks require high authentication processes are transparent and tamper-
computation from blockchain consensus mechanism resistant [17].
and blockchain integration with different blockchain Blockchain can also help mitigate DDoS attacks and
platforms need interoperability. To make the other forms of network disruption. By decentralizing
integration more feasible these issues, solutions such the flow of data and distributing it across a network
as lightweight consensus algorithms and hybrid of nodes, blockchain makes it more difficult for
blockchain architectures are developed. Using 5G attackers to target a single point of failure.
connectivity in combination with the blockchain Additionally, blockchain can be integrated with
ensures that the network management deployed is smart contracts to automatically enforce security
secure, efficient and scalable and leaves open the policies, detect anomalies, and respond to threats in
path for full potential of next generation applications. real time, further enhancing the system's ability to
The integration of autonomous vehicles and smart defend against cyber threats.
cities is only starting and the possibilities are endless
However, integrating blockchain with cybersecurity
in everything from audio systems to food delivery.
is not a walk in the park. Consensus algorithms may
5.4 Cybersecurity be computationally expensive, or blockchain
The integration of blockchain with cybersecurity networks may be overly scaled for a high traffic
provides a powerful solution to address the environment. For this, while lightweight blockchain
increasing threats and vulnerabilities in digital protocols and hybrid solutions which integrate
systems. Blockchain’s decentralized, immutable, and blockchain with conventional approaches of security
transparent nature enhances traditional cybersecurity are being made.
measures by ensuring data integrity, securing By integrating blockchain, traditional security
communications, and enabling decentralized frameworks gain both decentralized, verified and
immutable solutions to prevent fraud, maintain data integrity, authentication and fault tolerance is the
integrity as well as improve identity management. architecture which is decentralized, with features like
Together, this combination has the potential to secure immutability and smart contracts. Although great
digital assets, and mitigate against many cyber progress has been made, scaling, interoperability,
threats. and energy efficiency remain as challenges. There are
gaps to be addressed in future research and the
synergies with emerging technologies to unlock the
VI. RESEARCH GAPS AND FUTURE
full potential of blockchain in IIoT ecosystems should
DIRECTIONS
be once investigated.
For the past few years, we have seen a lot of attention
paid to the integration of blockchain with IIoT for
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