In the era of Industry 4.0, Cyber-Physical Systems (CPS) have become integral to various domains, with the Digital Twin (DT) concept playing a crucial role in mirroring and optimising these systems’ behaviours. The Digital Twin emulates the physical device behaviour based on the Internet of Things (IoT) sensor readings within CPSs. However, managing the CPS configurations presents significant challenges in terms of security, integrity, and traceability. This paper proposes an innovative integration of blockchain technology with Digital Twin systems to address these challenges. Blockchain’s decentralised and immutable ledger allows for the secure storage and management of IoT sensor properties and CPS configurations. Furthermore, a threshold signature scheme is employed to enable the Digital Twin to autonomously modify CPS behaviour, with changes being verified through smart contracts. This approach ensures that configuration changes are applied only if authorised by the Digital Twin components, improving the security and resilience of the CPS. The proposed solution improves the security and integrity of sensor management while enabling more dynamic and adaptive responses to real-time data.