Lightweight Blockchain Framework for Securing Internet of Things Payment Systems

A design combining Ethereum and AES-128 to secure resource-constrained IoT transactions

G. Iwasokun; Oluwaseyi Segun; Samuel Ogunlana; Michael Adegoke; J. Adeyiga; O. Aderibigbe· International Journal of Wireless Communications and Mobile Computing· 2025· DOI 10.11648/j.wcmc.20251202.13

The core problem

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 addresses this gap by designing a lightweight blockchain-based model to secure IoT payment systems, leveraging the Ethereum blockchain and AES-128 encryption. The model aims to provide decentralized transaction validation, immutability, and transparency while minimizing overhead for resource-limited devices.

Innovation

Analysis of results from the implementation established the minimization of computational overhead and robust security measures. The lightweight nature of the model makes it particularly beneficial where the scalability of decentralized systems is required alongside heightened security protocols. The use of AES-128 encryption ensures that tokens are protected even when stored in databases, and the blockchain's immutability and decentralized validation prevent tampering and fraud. The model successfully balances security and performance, making it suitable for resource-constrained IoT devices.

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 addresses this gap by designing a lightweight blockchain-based model to secure IoT payment systems, leveraging the Ethereum blockchain and AES-128 encryption. The model aims to provide decentralized transaction validation, immutability, and transparency while minimizing overhead for resource-limited devices.

The proposed model employs a decentralized digital ledger to record and validate transactions without a central authority. Transactions are grouped into blocks and linked to the preceding block through cryptographic hashes, forming an immutable chain that enhances transparency and security. To add an extra layer of security, the blockchain token is encrypted with AES-128 before being stored in a database. The distributed nature of the blockchain network ensures that multiple participants validate each transaction, minimizing the risk of fraudulent activities. Consensus is achieved through predefined protocols. The implementation utilizes the Ethereum blockchain platform, and the encryption process can be represented as:

Why it matters

The proposed framework addresses the critical need for secure and efficient payment systems in IoT environments. By combining Ethereum's decentralized ledger with AES-128 encryption, the model achieves a dual layer of security: the blockchain ensures transaction integrity and consensus, while encryption protects data at rest. The lightweight design minimizes computational and memory requirements, making it feasible for devices with limited resources. However, potential limitations include the energy consumption of blockchain consensus mechanisms and the need for efficient key management. Future work could explore alternative consensus algorithms or hybrid architectures to further reduce overhead. Overall, the model demonstrates a viable approach to securing IoT payments without sacrificing performance.

Who should read this

CS practitioners and researchers

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