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to these related technologies: Internet of Things (IoT), Internet of Everything (IoE), and cyber–physical systems (CPS). We discuss how these technologies impact security of Smart Grid systems and how security controls should be increased at higher levels.

      2.1.1 Internet of Things

      In simple terms, the IoT refers to the networked interconnection of everyday objects. The IoT is a general evolution of the Internet from a network of interconnected computers to a network of interconnected objects [IntSoc 2015a].

      Since the term IoT was first coined by the Auto‐ID center in 1999 [AUTO‐ID 1999], the development of the underlying concepts has ever increased its pace [Santucci 2010]. Nowadays, the IoT presents a strong focus of research with various initiatives working on the (re)design, application, and usage of standard Internet technologies in the IoT technology.

      Despite being a buzzword, IoT technology denotes a trend where a large number of embedded devices employ communication services offered by communication protocols. The embedded electronics, software, sensors, and network connectivity enable the objects to collect and exchange data. Many of these devices, often called smart objects, are not directly operated by humans but exist as components spread out in the environment [RFC 7452]. Such devices have been used in the industry for decades, usually in the form of non‐ Internet Protocol (IP)/proprietary protocols that are connected to IP‐based networks by way of protocol translation gateways.

      The IoT is defined as a global infrastructure for the information society, enabling advanced services by interconnecting (physical and virtual) things based on existing and evolving interoperable information and communication technologies [ITU‐T 2012]. The IoT refers broadly to the extension of network connectivity and computing capability to objects, devices, sensors, and items not ordinarily considered to be computers [IntSoc 2015a]. The IoT technology assumes the interconnection of highly heterogeneous networked entities and networks following a number of communication patterns such as human to human (H2H), human to thing (H2T), thing to thing (T2T), or thing to things (T2Ts).

With many definitions, but similar concepts, there is no single, universally accepted definition for the term. Different definitions are used by various groups to describe or promote a particular view of what IoT means and its most important attributes. Some definitions specify the concept of the Internet, while others do not [IntSoc 2015a], and others define the connection of things on a multipoint basis [ABI Research 2015a]. The various definitions of IoT emphasize different aspects of the IoT phenomenon from different focal points and use cases, but there are concerns such as the following:

       The disparate definitions could be a source of confusion in dialogue on IoT issues, particularly in discussions between stakeholder groups or industry segments.

       Different perspectives that could be factored into discussions create a vulnerable technology that may not be able to deal with several threats (e.g. economic, cyber, natural, etc.).

      Some fuzziness still exists in these definitions, but one argues that every physical object has a virtual component that can produce and consume services and collaborate toward a common goal [Roman 2011]. Things have identities and virtual personalities operating in smart spaces using intelligent interfaces to connect and communicate within social, environmental, and user contexts [EC‐EPoSS 2008]. These characteristics enable IoT to extend anywhere, anyhow, anytime computing to anything, anyone, any service [EC‐EPoSS 2008], [Roman 2011]. In the IoT paradigm, everything real becomes virtual, which means that each person and thing has a locatable, addressable, and readable counterpart on the Internet.

      2.1.1.1 Characteristics of Objects

      The interconnected objects have main characteristics [Roman 2011]:

       Existence – Things exist in the physical world with the aid of specific technologies, such as an embedded communication device becoming a virtual persona.

       Sense of self – Things have, either implicitly or explicitly, an identity that describes them and can process information, make decisions, and behave autonomously.

       Connectivity – Things can initiate communication with other entities and an element in their surroundings; a remote entity can locate and access them.

       Interactivity – Things can interoperate and collaborate with a wide range of heterogeneous entities, whether human or machine or real or virtual such that they produce and consume a wide variety of services.

       Dynamicity – Things can interact with other things at any time, any place, and in any way; they can enter and leave the network at will, no need to be limited to a single physical location, and can use a range of interface types.

      An optional sixth characteristic is environmental awareness. Sensors can enable a thing to perceive physical and virtual data about its environment, such as water radiation or network overhead (this characteristic is optional because not all things will exhibit it, such as an object enhanced with a lower‐end radio‐frequency identification (RFID) tag).

      2.1.1.2 Technologies

The vision of the IoT has evolved due to a convergence of multiple technologies, ranging from wireless communication to the Internet and from embedded systems to microelectromechanical systems (MEMS). This means that the traditional fields of embedded systems, wireless sensor networks, control systems, automation (including home and building automation), and others all have made contributions to the development of IoT technology (see technology roadmap; Figure 2.1).

Figure 2.1 Technology road map.

      Source: [WikiTech]. Public Domain.

      Energy‐efficient microcontrollers act as brains due to objects with embedded intelligence. A sensor is a special device that perceives certain characteristics of the real world and transfers them into a digital representation.

      Sensor technology provides objects with sensory receptors, and RFID provides a way for them to distinguish one another, much as people recognize a face. Finally, low‐energy wireless technology, such as specified in the IEEE 802.15.4 standard, supplies the virtual counterparts of voice and hearing. Multiple applications already use these and other technologies, such as machine‐to‐machine (M2M) communication, virtual worlds, and robotics.

      The IoT is a vision that encompasses and surmounts several technologies at the confluence of nanotechnology, biotechnology, information technology (IT), and cognitive sciences [Santucci 2010]. However, to be a virtual being, an IoT object needs only enough technology to realize its role and complete its mission.

The combination of various technologies has enabled objects to exhibit these characteristics, allowing them to become virtual beings. IoT technology mixes with social aspects, big data, and cloud computing and as an enabler for CPS. As a result of these technologies and the cross integration of all the technologies, a new level of control and feedback mechanisms is being developed in order to enhance the processes.

      2.1.1.3 IoT Applications

      IoT technology is expected to offer advanced connectivity of devices, systems, and services that goes beyond M2M communications and covers a variety of protocols, domains, and applications.

      By 2025, Internet nodes may reside in everyday things – food packages, furniture, paper documents, and more [SRI BI 2008]. The emergence of various applications includes building and industrial automation and cars that can interconnect millions of objects for sensing things like power quality, tire pressure, and temperature and that can actuate engines and lights. This trend quickly made it of the

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