Blockchain & IoT – How "Crypto" Is Likely Going To Herald Industry 4.0

Whilst most people only started to learn about “blockchain” because of Bitcoin, its roots – and applications – go much deeper than that.

Blockchain is a technology unto itself. It powers Bitcoin, and is essentially the reason why *so many* new ICO’s have flooded the market – creating an “ICO” is ridiculously easy (no barriers to entry).

The point of the system is to create a decentralized database – which essentially means that rather than relying on the likes of “Google” or “Microsoft” to store data, a network of computers (generally operated by individual people) are able to act in the same way as a larger company.

To understand the implications of this (and thus where the technology could take industry) – you need to look at how the system works on a fundamental level.

Created in 2008 (1 year before Bitcoin), it is an open source software solution. This means its source code can be downloaded edited by anyone. However, it must be noted that the central “repository” can only be changed by particular individuals (so the “development” of the code is not a free for all basically).

The system works with what’s known as a merkle tree – a type of data graph which was created to provide versioned data access to computer systems.

Merkle trees have been used to great effect in a number of other systems; most notably “GIT” (source code management software). Without getting too technical, it basically stores a “version” of a set of data. This version is numbered, and thus can be loaded any time a user wishes to recall the older version of it. In the case of software development, it means that a set of source code can be updated across multiple systems.

The way it works – which is to store a huge “file” with updates of a central data set – is basically what powers the likes of “Bitcoin” and all the other “crypto” systems. The term “crypto” simply means “cryptographic”, which is the technical term for “encryption”.

Irrespective of its core workings, the true benefit of wider “on-chain” adoption is almost certainly the “paradigm” that it provides to industry.

There’s been an idea called “Industry 4.0” floating around for several decades. Often conflated with “Internet of Things”, the idea is that a new layer of “autonomous” machinery could be introduced to create even more effective manufacturing, distribution and delivery techniques for businesses & consumers. Whilst this has often been harked to, it’s never really been adopted.

Many pundits are now looking at the technology as a way to facilitate this change. Reason being that the interesting thing about “crypto” is that – as especially evidenced by the likes of Ethereum – the various systems which are built on top of it can actually be programmed to work with a layer of logic.

This logic is really what IoT / Industry 4.0 has missed thus far – and why many are looking at “blockchain” (or an equivalent) to provide a base-level standard for the new ideas moving forward. This standard will provide companies with the ability to create “decentralized” applications that empower intelligent machinery to create more flexible and effective manufacturing processes.

Is Your Company Ready For Industry 4.0 Transformation?

What is Industry 4.0?

Industry 4.0 is the 4th industrial revolution. To give a little history, industries used steam to make the machine work which increased production and reduced cost in the industrial revolution. The next phase of the revolution was the mass production with implementing electricity and assembly lines. The third revolution introduced automation and computers. We are now here in the fourth revolution through digitizing and networking where we can connect the digital world with the physical world.

With hassle free wireless networking you educate the machine. Earlier the intelligence lied with the humans and machines just helped with the physical work, but now we can educate the machine and the products itself, also get a virtual image. Using Internet of Things (IOT) you can connect all the physical machines with software, networks and censors and they would exchange data with each other making human life and production much more simpler.

How many hours have you spent to hire a mechanic because your machine stopped working and the mechanic failed to understand what went wrong with the machine? With Industry 4.0, the machine will tell you what part has been failed and what has to be replaced. With artificial intelligence, it also tells you which spare parts need to be fixed.

Why Transform to Industry 4.0?

The Cyber ​​Physical systems enable your product to communicate with your machine. Your product will instruct the machine as to the quantity and the type of product that needs to be produced, and the machine is then produces and labels the products. After detecting the product, you can never go wrong with packaging, also your quality check has been performed by the machine while packaging itself.

Industry 4.0 allows you to have a flexible manufacturing process that will better react to customer demands. This new manufacturing technology reduces your cost of production, cost of wastage, reduces errors, increases efficiency due to use of robotics, yields higher revenue, improves customer service and increases innovation. It also allows you to create a virtual image of the real world using 3D printers and help you test your product and know your contingencies beforehand which would allow you to change the process in order to avoid the contingency before you even start your production.

You don't need to manually check your stock. You can add a censor to your forklift and your products, and while stacking up your goods, you get the data of the quality, description, weights and dimension as well as the location of the product. This would immensely reduce errors and damages.

Feed your machines, knowledge of automated systems with this new manufacturing trend and let them communicate with each other while you see your profits rise up high and costs go low.