Differentiating Blockchain Technology to optimize the Processes Quality in Industry 4.0

Abstract

The complexity of supply chains increase, especially due to the geographical spread of supplier and customer networks. In the connected and automated supply chains of the industry 4.0, even more nodes are incorporated in supply chains. This paper discusses the possible improvement of process quality in the industry 4.0 through the different blockchain and distributed ledger technologies. We derived hypotheses from a literature review and asked German blockchain experts from the industry to validate and discuss the hypotheses. We find that the different blockchain technologies and consensus algorithms have different strength with regard to quality improvement. One central finding is that IOTA, developed especially for the IoT and deemed the 'next evolutionary step' is scalable and hence may increases the process efficiency, but at the same time is more vulnerable than other blockchain implementations, which again may reduce the overall process quality.