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How blockchain could ease IoT implementation for telcos

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By Author: Santanu Mukherjee, Blockchain CoE Lead Architect, Mindtree

The onset of the 5G network is poised to be the catalyst for next-gen telecommunications. Experts have already forecasted how this disruptive 5G wave will bring about an explosion in the usage of IoT (Internet of Things) devices in the telecom ecosystem—and beyond. The higher usage of IoT devices introduces two key challenges: Data handling and handling a significantly high number of IoT devices introduced within the ecosystem.

Think of a scenario: When the usage of IoT increases massively in the future, and a large number of IoT devices are connected to a single centralized server, the authorization and authentication of each IoT device will be time-consuming and slow.

However, when we assign a global level unique identification number to each IoT device, it helps identify the device quickly, establishes the connection faster, and receives data almost instantly—saving time and increasing efficiency. Self-sovereign identity (SSI) can help manage IoT devices in large numbers efficiently. Let’s evaluate how!

Key challenges with IoT implementation and its recommended solutions

  1. Problem: Secure federated devices
    Solution: Use encryption and decryption process
  2. Problem: Authorize and authenticate devices
    Solution: Use security for high assurance
  3. Problem: Security glitches
    Solution: Enable patches managed by updates
  4. Problem: Establish secure communication
    Solution: Use TLS or DTLS communication
  5. Problem: Data privacy and integrity risk
    Solution: Use fingerprinting or encryption-based data
  6. Problem: Secure web, mobile, and cloud applications
    Solution: Use proper hub architecture
  7. Problem: Ensuring high availability
    Solution: Ensure un-interrupted data access for authorized users
  8. Problem: Predict vulnerabilities and incidents
    Solution: Detect, measure, manage and predict

A decentralized IoT system is the future

Currently, the IoT ecosystems are architected as centralized server/client structure, which is non-distributed. Hence, it is connected and authenticated by a common server. This model is not scalable and hence fails to effectively support or manage the ever-growing global demand for IoT devices. Therefore, a decentralized IoT system model/architecture may be the right choice. One of the most popular decentralized, distributed, tokenized, encrypted, and immutable platforms is blockchain. Blockchain-based on the SSI platform is even more authentic.

Why SSI in IoT?

The IoT is growing very fast. International Data Corporation (IDC) predicts that by 2025 around 55.7 billion IoT devices will be connected globally. Hence, a robust mechanism is required for scaling and securing networks to manage billions of IoT devices. For data security, we require a stringent access management framework that can be integrated and interoperated with the existing legacy systems. A unique identifier should be assigned to each IoT device, and a system that controls and manages access to the devices should be in place. Hence, SSI in IoT is needed now more than ever.

Defining self-sovereign identity

SSI creates a wrapper for the identity of things, which is enabled by key encryption methodologies and promotes low-cost compliance with GDPR, CCPA, etc. The identity of applications, data, and IoT devices is validated and verified by SSI, a decentralized model.

We propose using any distributed ledger framework (R3 Corda or Hyperledger Fabric along with Hyperledger Indy for the decentralized devices). These two frameworks enable comprehensive IoT device ID and access management (IAM).

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Figure 1: Universally accepted SSI process framework

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Figure 2: Quantifiable benefits of SSI to telcos (Source: Ledger-Insights)

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Figure 3: High-level architecture overview of IoT ecosystem

IoT ecosystem and benefits of SSI

The IoT devices are provided with a specific key called Decentralized Identifier (DID) when the devices are onboarded on the system. This DID coordinates within the network to introduce the device to the receiver system before communicating between each other—reducing the authentication time. The immutability feature of blockchain and tokenization increases the assurance of secure and identified devices that establish communication with the IoT platform—thereby reduces the risk of credential-compromise factor.

The potential SSI wrapper creates value for any organization, such as:

  • Helps reduce operational costs
  • Makes IoT networks faster by streamlining and optimizing IoT device lifecycle management.
  • Reduces data liabilities and cybersecurity threats for diverse IoT devices and enables them to communicate securely.
  • SSI enables new IoT ecosystems and higher value use cases based on the value of verifiable data and enhanced trust and security derived from deploying SSI.

The Mindtree blockchain practice

Our blockchain practice comes with a myriad of accelerators, frameworks, partnerships with the world’s leading providers of blockchain frameworks. Acting as a systems integrator, Mindtree collaborates with leading platform startups to propel the development and significantly reduces the go-to-market time for any business prototype for clients. We provide the following blockchain services:

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Figure 4: Blockchain practice overview

As a proven fact, we have partnered with an agro-tech startup in the U.S. Mindtree Blockchain Practice architected, developed, and onboarded a track and trace blockchain platform for the client. After the platform went from production to live in 2019, IoT was added.

Mindtree for the communications industry

Mindtree provides digital engineering and innovation at scale to transform customer experiences for communication services providers (CSPs) in the 5G era. The telecom industry is at the forefront of transformation with the rollout of 5G across the world, and new possibilities of products and services have emerged with technology advancements delivered by 5G. OEMs and CSPs are looking to drive innovation. They continuously differentiate themselves through investments in 5G solutions, AI-infused platforms, hyper-scale cloud-native services, edge computing, and IoT.

Mindtree, born as a digital enterprise and a business transformation partner to Communication OEMs and Service Providers, has grown organically, building a solid core around at-scale digital services and engineering prowess. We understand the needs of our communication customers and have invested in the best of talent, solutions, and partner ecosystem to help across multiple dimensions: product engineering, 4G/5G enablement, and reimagining customer experience. The communications industry is part of the communications, media, and technology (CMT) industry group at Mindtree.

Conclusion

The digital disruptor, blockchain technology can also offer breathing space for many challenges in the 5G telecom world, such as Roaming & settlements, Identity management, SLA monitoring, Prevention of Phone theft, Mobile number portability, etc. Hence, blockchain technology’s relevance for telecom operators and CSPs have moved beyond concept for day-to-day identified use-cases. However, the ecosystem needs to take a strategy to evolve beyond the horizon around digital transformation and explore blockchain as an instrument to resolve pertinent problems and drive futuristic goals.

References:

  1. https://www.hyperledger.org/tag/telecom
  2. https://www.ledgerinsights.com/gartner-iot-blockchain-complementary/
  3. https://www.infosys.com/insights/other-insights/documents/blockchain-5g.pdf
  4. https://www2.deloitte.com/content/dam/Deloitte/za/Documents/technology-media-telecommunications/za_TMT_Blockchain_TelCo.pdf
  5. IoT Security Issues: Top 10 Challenges – Build Smart. Build Secure
  6. R3 Corda Telecom Journal
  7. I.J. Intelligent Systems and Applications, 2018, 6, 40-48 Published Online June 2018 in MECS (http://www.mecs-press.org/) DOI: 10.5815/ijisa.2018.06.05
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