Whether you love it or hate it, Industry 4.0 is already in full effect. Some didn't notice the transition — it was slow and subtle, after all. It's a trend that's marked by widespread industrial automation, the rise of high-bandwidth mobile networks, and the development of the Internet of Things (IoT).
One technology in particular — blockchain — is generating a lot of buzz amid IT pros and enthusiasts alike. It's been in the news lately due to its connection with cryptocurrency, including the controversial and volatile bitcoin. However, different iterations and applications of blockchain have pertinent uses elsewhere — including Industry 4.0.
Exploring the Key Differences
According to recent stats, almost 60% of companies stationed in consumer products and manufacturing deployed a blockchain solution by the end of 2017. Although the fundamental technology behind the blockchain remains the same, it serves a different function when used in an industrial setting.
Instead of verifying the legitimacy of cryptocurrency-backed transactions, blockchain monitors processes and activities within the day-to-day workflow. This results in several benefits, including:
- Greater accountability and quality control. Blockchain records are capable of attaching a unique tag to every transaction that takes place, which adds new levels of accountability and quality assurance within a single, centralized digital record.
- Improved contract management and procurement. Blockchain introduces the concept of the modern smart contract. It's an automated system that instantly arranges the necessary logistics, like payments, shipping and more, to streamline operations on behalf of everyone involved.
- New options for scalability. In the past, many manufacturers operated at the whim of a bank or similar financial institution. It is these higher-ups who often dictate the launch of new projects, the acquisition of partnerships, and much more. Blockchain takes the brunt of this power away from these entities and puts it back directly into the hands of the manufacturer.
Blockchain technology is capable of doing much more than simple verification and records tracking. Given its rapid pace of development and its early level of acceptance among average computer users, it might not be long before it serves as the backbone of an entire business or enterprise.
Introducing New Security to the Supply Chain
While its current applications are quite rigid and very limited, blockchain is incredibly flexible. Highly creative and tech-savvy professionals are already working on new applications for this technology, including its use in supply chain management. Companies like IBM, SAP, and Oracle have already established blockchain platforms to support future applications.
However, for the most part, their blockchain platforms are sitting idle. There are some major concerns, including issues surrounding data security and confidentiality, which need to be addressed before blockchain can reach its full potential in Industry 4.0.
Some possible uses for the blockchain within Industry 4.0 include:
- Identifying and confirming IoT-connected devices remotely via blockchain
- Attaching tamper-proof dates and times to records to prevent editing or manipulation
- Switching to a private blockchain — instead of the traditional public format — to share classified or sensitive information among business partners and executive figureheads
Depending on the manufacturer's specific needs, there are plenty of creative uses for blockchain technology in an Industry 4.0 environment — there just needs to be some fine-tuning before the transition is complete.
Protecting Billions of Devices
According to the latest figures, approximately 24 billion devices will be online by 2020 — including billions of IoT-powered systems. Not only does this demand increased network security, but it also requires greater efficiency in processing data, monitoring online activities, and verifying records — all of which are offered by modern blockchain technology.
Megan Ray Nichols is a freelance technical writer and the editor of Schooled By Science. She enjoys writing about STEM topics and regularly contributes to Manufacturing.net, Food Safety Technology, and The Naked Scientists. Keep up with Megan by following her on Twitter or subscribing to her blog.