Blockchain, what it is and how to apply it in the Industrial world

[shukla7789]

The potential of blockchain has been widely applied in the digital currency ( cryptocurrency ) and payment methods sector, emerging as a relatively recent trend at the business level, where blockchain presents itself as the security and immutability infrastructure for a set of emerging applications including Industry 4.0 or the Industrial Internet of Things (IIoT). But let's start at the beginning.

Blockchain, what is it?
In simplistic terms, a blockchain system consists of a digital ledger distributed and shared by all participants in the system: transactions or events are validated and recorded in the ledger and cannot be subsequently altered or removed.

In this community, resources maintain their own copy of the ledger and jamaica whatsapp number database collectively validate all new transactions through a consensus process before they are accepted into the ledger. These simple features represent the first practical answers to deep computer science problems based on node trust in a decentralized network. One of the most popular and oldest problems that can be solved by blockchain is the “Byzantine Generals Problem.”

Quoting the original article defining the PGB:

"[Imagine] a group of Byzantine generals camped with their troops around an enemy city. Communicating only by messenger, the generals must agree on a common battle plan. However, one or more of them may be traitors who will try to confuse the others. The problem is to find an algorithm to ensure that the loyal generals reach an agreement.”

Blockchain can solve PGB because it provides, for the first time, the infrastructure for one user to directly transfer a piece of property (e.g. money) to another user in a safe and secure way where everyone on the network knows about the transfer and no one can doubt its legitimacy.

Blockchain and IoT in the industrial sector (IIoT)
Blockchain clearly functions as a decentralized system due to the number of nodes or people working together to verify that what is being stored in the ledger is true. Although this architecture differs from that of typical IoT systems due to their reliance on a client-server or hub-and-spoke architecture (which is a centralized authority), blockchain’s decentralized, autonomous, and trustless capabilities make it ideal for becoming a key element of industrial IoT solutions, known as the Industrial Internet of Things (IIoT). It is therefore no surprise that enterprise IoT technologies have quickly become one of the first to adopt blockchain technologies.

Applicability of Blockchain in IIoT systems
In an IoT network, blockchain can maintain an immutable record of the history of smart devices. This capability enables the autonomous operation of smart devices without the need for a centralized authority. As a result, blockchain opens the door to a range of IoT scenarios that were previously extremely difficult, if not impossible, to implement without it. By introducing new standards for data transparency and peer-to-peer communication, blockchain can add a new level of security to IoT systems and provide organizations with better management practices.

1 – Health industry
In the healthcare sector, critical patient data can be effectively shared using blockchain, which can potentially improve healthcare service delivery, for example by reducing errors in patient care. Interoperability between systems can also be improved using blockchain, for example by providing access to patient health records in an authentic and secure manner. Implementing IIoT systems with blockchain enables clinical drugs to be tracked during their research, verifying their efficacy as well as their side effects, without the risk of modified results.

2 – Logistics
As we have seen, through blockchain, exchanges and transactions are permanently recorded in a decentralized ledger. These transactions are monitored transparently and securely, ensuring the reduction of human errors and delays. They also help verify the authenticity of items by tracking their origin. In supply chains , blockchain can verify the provenance or traceability of products and track assets as it creates trusted relationships between suppliers and buyers, generating encrypted and immutable records. The areas with the greatest applicability are particularly traceability in the food sector, enhancing the resolution of problems of inefficiency and product management.

3 – E-commerce and retail industry
E-commerce and retail could also reap the benefits of advances in blockchain technology soon. In this industry, researchers have already begun exploring the applicability of blockchain technology.

These are just a few examples of IoT and industrial management solutions that are already beginning to take advantage of blockchain capabilities, although we are still in the early stages of the evolution of blockchain technologies. Despite the path already taken, exciting times are ahead indeed!