The rapid proliferation of interconnected devices within the Internet of Things (IoT) continues to generate vast amounts of sensitive, context-rich data, raising significant concerns regarding data confidentiality, verifiability, trust management, and systemic resilience. Traditional IoT network architectures typically rely on centralised third-party entities. This reliance creates single points of failure and elevates the risk of unauthorised data access. To address these limitations, this paper proposes a confidential and verifiable IoT network based on a decentralised security architecture that integrates blockchain with proxy re-encryption. The framework uses threshold cryptography and zero-knowledge proofs to enable privacy-preserving transformations of ciphertext across consensus nodes. This design protects sensitive data while preserving transaction verifiability and integrity. As a result, the system effectively counters threats such as node collusion, Sybil attacks, and metadata leakage. Comprehensive simulations and performance evaluations underscore that the presented model substantially diminishes dependence on centralised proxies while delivering enhanced scalability, robust security, and increased trustworthiness, making it particularly well-suited for practical implementation in confidential IoT environments.
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