Lightweight Blockchain Framework for Securing Internet of Things Payment Systems

Abstract

The integration of Internet of Things (IoT) devices into modern payment systems has introduced innovative functionalities, but also significant security and performance challenges. IoT devices, such as smart sensors, wearables, and automated vending machines, are typically resource-constrained yet handle sensitive financial transactions that demand robust security mechanisms. Conventional cryptographic solutions are often unsuitable for these environments due to their high computational and memory requirements. This paper presents the design of a lightweight blockchain-based model to secure IoT payment systems by leveraging the Ethereum blockchain and AES-128 encryption. The blockchain token is encrypted with AES-128 to add layer of security before being stored in a database. The model is designed to employ a decentralised digital ledger to record and validate transactions without a central authority, and the transaction is grouped into a block and linked to the preceding block through cryptographic hashes. The chain of blocks forms an immutable record that enhances transparency and security, and the distributed nature of blockchain networks, wherein multiple participants validate each transaction, minimises the risk of fraudulent activities while ensuring consensus is achieved through predefined protocols. Analysis of results from the implementation established the minimization of computational overhead and robust security measures, and was particularly beneficial where the scalability of decentralized systems is required alongside heightened security protocols.