How Will Blockchain Work in Industry 4.0?

Industry 4.0 can be described as the present trend of data automation and exchange in the creation or establishment and improvement of latest technologies in our society. Industry 4.0 is merely a confirmation that technology had developed greatly since the 19th century, marking the commencement of mass production.

This is a trend marked by extensive industrial automation, development of Internet of Things (IoT), and the increase of high-bandwidth mobile networks.

Blockchain

The blockchain is regarded as an improvement or originality capable of holding the key to cybersecurity risk management for Industry 4.0. Blockchain technology is generally connected with cryptocurrencies such as Bitcoin, even though it has a lot of other use cases, like in Industry 4.0 cybersecurity.

Blockchain technology will work in industry 4.0 because it is able to do much more than mere confirmation and tracking of records. It may not be long before blockchain will turn out to be the pillar of a whole business or organization, considering its rapid pace of growth and early stage of acceptance among average computer users.

Benefits of Blockchain Technology

Better Contract Management and Procurement

Blockchain provides the benefit of enhanced contract procurement and management. This is because it establishes the theory of modern smart contract. In other words, it is an automated system that arranges the required logistics such as payment, shipping, and lots more right away. This is to make operations simpler on behalf of all those who are involved.

Effective Quality Control and Greater Accountability

The blockchain records are able to attach an exclusive tag to every transaction that takes place in industry 4.0. This will incorporate new levels of quality assurance and accountability in a single, centralized digital record.

Blockchain Serves as New Options for Scalability

Before, quite a lot of manufacturers functioned at the impulse of a bank or other related financial institution. It is these higher-ups who dictate the acquisition of partnerships, the launch of new projects, and much more frequently.

Blockchain gets the brunt of this power from these entities and handed it back to the manufacturers directly.

Due to the connection of blockchain with the volatile bitcoin and cryptocurrency, it has been in the news recently. As a matter of fact, different applications and iterations of blockchain have pertinent uses in another place such as Industry 4.0.

Likely Uses of Blockchain Technology within Industry 4.0

There are quite a lot of creative uses for blockchain technology within Industry 4.0 setting, depending on the particular needs of the manufacturer. However, prior to the completion of the transition, there should be some modifications.

Here are some of the possible uses of blockchain technology in industry 4.0.

– Recognizing and Authenticating IoT– In this situation, devices are remotely connected through blockchain.

– Add Tamper-This is done to confirm the dates and times to records in order to avoid manipulation or editing.

– Change Over to a Private Blockchain — This is necessary as a replacement for the conventional public format — to share receptive information or classified among executive figureheads and business partners.

Final Thoughts

The introduction of Industry 4.0 has actually pointed out the need for many things and the search for most ends at blockchain. For example, accomplishing autonomous machines is one of the aims of Industry 4.0. At present, machines can securely and autonomously initiate an order if you place blockchain between your ERP and parts supplier as well as the cyber-physical system, thereby creating your factory.

As the industrial systems enter a more cyber-physical sphere, built on automation and hyper-connectivity, it brings new security challenges with it. Industry 4.0 provides us with the power to develop more resourceful, smarter and sustainable machines. On the other hand, making use of ground-breaking methods to alleviate security risks and boost buoyancy, we need to be smart in our approach to protecting these hyper-related infrastructures.

Blockchain technology has the possibility of helping us innovate cybersecurity, providing a vigorous mechanism inherently confirmed and pseudonymized. The instinctive procedures in blockchain technology give the stylish industry ecosystem the opportunity to cross-check its own devices and suppliers while giving the assurance of confidentiality of sensitive information.

Author: Marko Vidrih

@cryptomarks

Image via pixabay


How Will Blockchain Work in Industry 4.0? was originally published in Data Driven Investor on Medium, where people are continuing the conversation by highlighting and responding to this story.