IPG GROUP Senior Partner René Brugger gave an interview for Digitale Welten website (digitalewelten.ch) and printed publication of Tages-Anzeiger about the possibilities of Blockchain technology and its key role in combination with Industrial Internet of Things (IIoT).
Blockchain enables device autonomy and anonymity. The individual identity and the integrity of the data are secured.
Where does the industry stand in terms of Blockchain and its combination with the Industrial Internet of Things?
The Industrial Internet of Things (IIoT) is already a reality in many industries around the globe. But the potential of combining it with the Blockchain technology is currently only employed by few players.
I regard that the combined use of both will be fundamental to make digital business models trustworthy in the future. Therefore, I recommend learning already today about the potential of the two merged technologies in order to be able to play a leading role on the market.
What will happen in the future?
Especially for new digital business models, the combination of IIoT and Blockchain will be essential. Highest data integrity and availability will be crucial to business success and serve as a differentiator for companies.
The technology provides the trust between business partners peer-to-peer, without the necessity of third parties. Traditional and centralized database systems will become too insecure in many digital business models, and one day we will look back with astonishment to today’s traditional architectures.
What does it take for the industry to get started?
Firstly, easy to understand use cases which are far from cryptocurrencies are needed. For example, applications to ensure the traceability of pharmaceuticals, food or even critical equipment such as aircraft engines, will accelerate the topic in the industry soon.
Do business directly
Currently, conventional systems require centralized devices and software to enable the storage and transmission of data between the various players in a network. There are also many intermediate points included in the loop, which are vulnerable and cost time and often money.
Only the combination with the Blockchain technology eliminates intermediaries, makes the process secure and creates the necessary trust among the business partners. In regard to IIoT the technology can provide unmutable identification of the devices and their possible modifications of hardware and software. Also, i.e. changes of owners, locations, etc. can be made traceable and if wanted visible for the stakeholders. The characteristic of a specific combination can vary depending on the purpose and is subject to the detailed implementation.
A further example of a simple smart contract could be an energy meter charging the power consumption in real time to the consumer where supplier could automatically shut down the supply if the consumer does not pay. Sure, this also could work with traditional concepts but does not include the same security, availability and integrity as with the Blockchain technology.
What would you recommend to the industry?
Sustainable customer value and security are amongst the most important keys to the success of new business models based on the principles of Industry 4.0 and the use of IIoT. Anyone who pursues product innovation and intends to manufacture IIoT devices, or who also wants to operate them safely, must deal with the Blockchain technology and evaluate its implementation.
The interview was originally published by Digitale Welten website (digitalewelten.ch) and Tages-Anzeiger and is translated analogous into English.
Go to the original interview on the following LINK.