Blockchain can help solve IoT security issues and clean up the mess from last week’s DDoS attack

Rage Review : Last week, the Chinese electronics manufacturer Hangzhou Panda Company triggered a DDoS attack due to its product problems. Product recalls are a headache for many companies because they not only need to track each device, but also contact the owner of the device that is not returned. This process is very costly. Problems in the complex IoT supply chain and production chain process can be solved through blockchain technology. Blockchain can be used to track the flow of product information in the supply chain and enhance trust.

Translation: Nicole

Chinese electronics manufacturer Hangzhou Panda is in big trouble! Its products have been blamed for the DDoS attack last Friday that shut down access to important websites in the United States and Europe, raising concerns about the insecurity of the Internet of Things.

In addition to the damage to its reputation, the company also had to recall thousands of devices that could have facilitated the attacks, the researchers said. The problem is that product recalls are difficult and costly because each device must be tracked down and owners who don't return them must be contacted.

Furthermore, in the case of Panda, the company has manufactured thousands of white-label electronic components with vulnerabilities that have been embedded in various IoT products, according to a report by security researcher Brian Krebs. Tracking these devices will be even more challenging.

The task would take months to complete, during which time the devices would continue to fuel DDoS attacks. And the damage would continue because it would be nearly impossible to recall every single device and component in the phone, and some would still be connected to the internet with old vulnerabilities.

While the panda story made headlines this week, it's not the first time a company has recalled a product.

The company’s woes also illustrate the problems that exist in today’s complex supply and production chains, particularly in the technology and electronics industries, where products are assembled from components shipped around the world and change hands thousands of times before reaching their final destination.

At the end of the supply chain, it is difficult for manufacturers to know where their products are going and who owns them. On the other hand, it is difficult for consumers and customers to trace the source of the components of their devices.

This is exacerbated by the fact that vulnerabilities and flaws found in a single device across connected devices can have global implications.

While many IoT security issues need to be addressed through proper design and development practices, recall issues can be addressed through blockchain technology (the distributed ledger that powers digital currencies such as Bitcoin and Ethereum). Blockchain features allow participants to store transactions in a secure, transparent and publicly accessible manner, which is particularly suitable for complex workflows, such as technology production and supply chains.

A practical application of this concept would be to have a blockchain that can register the time, location, price, parties involved, and other relevant information after a product's ownership changes. The technology could be used to track the movement of raw materials through the supply chain before they are transformed into integrated circuit boards and electronic components and ultimately into products sold to consumers.

This blockchain model has several benefits. First, as a decentralized and tamper-proof architecture, the blockchain prevents any participant from taking ownership of the ledger or manipulating it in their own interests.

Likewise, publicly available information on a blockchain can provide unprecedented transparency into device ownership. Manufacturers can find and contact device owners, making product recalls much simpler.

For their part, consumers can get full details on the origin of components that have been used in their devices, which also helps them better identify whether their devices contain any potentially compromised components. Applications can automate the blockchain-related inspection process, allowing users to automatically check their products and newly discovered vulnerabilities.

Finally, blockchain ledgers can be extended to register updates, patches, and parts replacements throughout the lifecycle of any product or device. This can make it easier to track security vulnerabilities and send warnings and notifications to product owners.

Some companies are already integrating blockchain technology into production and supply chains, with efforts by large technology companies and startups being particularly evident.

IBM has made significant investments in blockchain and is using its massive cloud infrastructure to provide blockchain services for tracking high-value items, which can defeat complex supply chains. We are also seeing solutions from startups such as Provenance, which is using blockchain technology to provide transparent product logistics information from source to consumer, strengthening trust.

While blockchain is not the best solution to the complex IoT security problem, it is a key to solving it, and it will be interesting to see if Panda encourages companies to research this technology to improve the integrity of their supply chains.