A Threshold Homomorphic Blockchain Architecture for Secure and Scalable IoT Sensor Data Aggregation

Abstract

Homomorphic-encryption blockchain frameworks for IoT sensor aggregation generally rely on classical cryptographic hardness assumptions and seldom account for network topology in liveness and performance analysis. This work introduces Phi-PHE-BC, a topology-aware homomorphic blockchain architecture for secure and privacy-preserving IoT sensor data aggregation. The framework combines threshold Paillier decryption with graph-parameterized security and performance analysis, linking protocol behavior to the validator graph. On-chain Paillier ciphertexts support homomorphic aggregation while providing IND-CPA confidentiality under the Decisional Composite Residuosity assumption, and authentication signatures provide EUF-CMA transaction integrity. Threshold partial-decryption shares are protected by a noise-flooding wrapper that provides information-theoretic privacy under the configured statistical-hiding condition. Under partial synchrony and Byzantine fault-tolerance assumptions, liveness requires validator connectivity kappa(Gv) >= f+1. We derive topology-dependent throughput bounds for tree, star, mesh, and scale-free networks, together with a per-block communication-cost model. A game-theoretic analysis shows that honest validator participation is a dominant strategy under the stated utility model, yielding an all-honest Nash equilibrium. Experiments on Hyperledger Fabric 2.5 show lower end-to-end latency than the selected traditional PHE-blockchain baseline while maintaining controllable threshold-decryption overhead. Results across topology scaling, validator sensitivity, threshold decryption, and Byzantine-load experiments indicate that Phi-PHE-BC is a practical architecture for secure, privacy-preserving, and topology-aware IoT sensor aggregation.