We have viewed how Blockchain has made a significant impact on businesses and industries. Select one industry and highlight the advancements Blockchain has had on that single industry. Resource: N. Mo

Applying Blockchain in Industry 4.0 Applications Nader Mohamed Middleware Technologies Lab. Pittsburgh, PA USA [email protected] Jameela Al-Jaroodi Department of Engineering Robert Morris University Moon Township, PA, USA [email protected] Abstract—by adopting the vision of Industry 4.0, many industrial sectors are eyeing the potential for advancing their systems to achieve higher productivity, cost-effectiveness, reliability, quality, and flexibility. One important sector that can greatly benefit from adopting Industry 4.0 principles and technologies is the manufacturing industry. This will help create the smart manufacturing era where advanced technologies and systems in Industry 4.0 will enhance the different processes within the manufacturing value chain and increase efficiency and profitability. However, Industry 4.0 requires effective integration of many technologies and systems and seamless operations across all components. This creates many challenges when creating applications for smart manufacturing including security, trust, traceability, reliability, and agreement automation within the manufacturing value chain. Several of these challenges can be addressed using blockchain. This paper discusses how blockchain can support smart manufacturing applications in manufacturing. In addition, the paper proposes a middleware approach for utilizing blockchain services and capabilities to enable more secure, trustable, traceable, reliable, and autonomous smart manufacturing applications. This approach will offer many advantages to secure and establish good trust among involved parties in the manufacturing value chain. In addition, this will enable a verity of new applications to realize the promising benefits of Industry 4.0 for smart manufacturing. Keywords- Industry 4.0, Smart Manufacturing, Blockchain, Middleware, Service-Oriented Middleware I. INTRODUCTION New technologies such as cloud computing, fog computing, Internet of Things (IoT), Internet of Services (IoS), cyber-physical systems (CPS), and data analytics opened the door for many opportunities for new businesses and new business models. At the same time, these technologies offer many advantages to enhance automation, productivity, cost-effectiveness, reliability, quality, and flexibility of different business and industrial sectors. With these potential benefits, the forth industrial revolution, Industry 4.0, started [1] aiming to enhance different industrial sectors including manufacturing. The main principle of smart manufacturing within the context of Industry 4.0 is that by enabling connectivity among various manufacturing units, facilities, machinery, suppliers and retailers as well as other manufacturing supporting industries, we form a valuable smart manufacturing network through the entire manufacturing value chain [2]. This will help automate, autonomize and optimize operations thus increasing flexibility, increasing safety and productivity leading to reduce costs and increased profitability. This smart manufacturing network (see Fig. 1) changes the manufacturing business models and enables the interactions throughout the value chain and within its components. These benefits make manufacturers more competitive and more flexible in producing new and enhanced products. In addition, it facilitates the introduction of customizable manufacturing facilities for more agile product development and introduction to the market. Although Industry 4.0 technologies can offer many advantages for the manufacturing sector, there are some challenges that need to be addressed to fully realize these benefits. These challenges are mainly related to the connectivity and information exchange among different machines, units, locations and across the various firms and entities involved in the manufacturing value chain. Some of these challenges are security, trust, reliability, traceability, and better integration of the value chain [3]. In the meantime, blockchain was introduced and initially used to provide a platform to enable and support the use of digital currency such as Bitcoin [4]. However, it was found that blockchain is applicable and useful for many other applications including manufacturing applications [5]. The main advantage of blockchain is that it enables a group of entities to reach an agreement on a certain activity and register that agreement without the need for a regulatory authority. Their agreed upon activities are registered, secured and shared among all parties using blockchain. Blockchain incorporates techniques from peer-to-peer networks and cryptography to support a distributed shared ledger among a group of entities or users (organizations, firms, individuals, robotics, autonomous cars, smart devices, software agents, etc.) such that all involved agree on its content, Fig. 1. A smart manufacturing network utilizes technologies like manufacturing CPS, industrial IoT, cloud manufacturing, fog manufacturing, manufacturing data analytics, and communication. Material Supplier Cloud Manufacturing Factory Factory Logist ics Energy Supplier Selling AgentConsumer Agent Storage Facility Fog Fog Fog Fog Smart Manufacturing Network Fog 978-1-7281-0554-3/19/$31.00©2019 IEEE

0852 all transactions are secure and cannot be altered after being appended to the chain. Furthermore, the nature of block chain allows for creating traceable irreversible audit trails, measurable components, and access to detailed information regarding transactions recorded in the chain, thus it permits for detailed validations, tracking and measurements. This paper discusses the benefits of using blockchain for Industry 4.0 smart manufacturing and discusses how it can address some important challenges of smart manufacturing. The paper also purposes a middleware approach to utilize blockchain for smart manufacturing applications based on a service-oriented middleware specifically designed for smart manufacturing called Man4Ware [6]. Using blockchain as part of a middleware platform that integrates different aspects of manufacturing with other value chain components can provide many advantages to secure such applications and establish trust among the involved parties in the value chain. In addition, this approach enables many new applications capable to realize the benefits of Industry 4.0 for the manufacturing sector. The rest of the paper is organized as follows. Section II provides background information about Industry 4.0 smart manufacturing. Section III discusses information about blockchain and how blockchain is beneficial for Industry 4.0 applications. Section IV purposes Man4Ware, the developed middleware approach to apply blockchain to support smart manufacturing applications. The benefits of this approach are discussed in Section V, while Section VI concludes the paper. II. INDUSTRY 4.0 Industry 4.0 or as it also sometimes called smart manufacturing or Industrial IoT (IIoT) aims to facilitate better performance, lower costs, and higher quality in various fields of industry. In some context, it is also referred to as the creation of the smart factory. To achieve Industry 4.0, various components and systems such as CPS, IoT, the cloud and cognitive computing must be integrated to collaborate towards a common goal [7]. It is also considered the fourth generation of the industrial revolution in terms of the evolution of mechanization and automation of manufacturing. The concept is promising; however, there are pressing issues that currently impede its effective development such as integration and flexibility [8]. To consider a factory or system as Industry 4.0 it must include interoperability, technical assistance, information transparency, and decentralized decision making [9]. Putting it all together, with Industry 4.0 we allow humans, advanced manufacturing hardware, and sophisticated software, to collaborate effectively to optimize operations and autonomize manufacturing processes. As a result it is possible to offer advanced capabilities to: 1. Automate more tasks using customizable and adaptive devices and machines. 2. Incorporate new manufacturing processes, and technologies. 3. Reduce human interaction with the machines via digital sensing, controls and automated decisions. 4. Improve measurement and monitoring procedures using precision devices. 5. Enhance response times for more accurate control of processes. 6. Collect and store real-time data across all areas of the manufacturing plant continuously. 7. Elevate analysis capabilities using the collected data and advanced data analytics models. 8. Introduce intelligent algorithms using available data to allow the system to make autonomous decisions. 9. Reduce the reliance on humans for monitoring and decision making. 10. Provide better maintenance and repair operations based on predictive analysis of operational data. 11. Create safer and more comfortable working environments. 12. Enable the creation and utilization of new business models in manufacturing. 13. Facilitate the integration of different technologies, models, sectors, and organizations in the manufacturing industry. The success of Industry 4.0 is mainly based on the revolutionary innovations in various technologies in hardware and software. It is enabled by the collective advancements in several ICT (Information and Communications Technology) fields like: 1. Industrial Internet of Things (IoT), to enable connecting different manufacturing machines and devices in a network [10]. 2. Internet of Service (IoS), to enable providing services for manufacturing-related systems and organizations via the Internet. These services can be used by their owners and by other manufacturing systems that may need them [11]. 3. Manufacturing Cyber-Physical Systems (CPS), to facilitate useful interactions between the cyber world and the physical manufacturing world such as machines and robots, by providing continuous monitoring and control services [12]. 4. Cloud Manufacturing: to provide on demand scalable computation, data storage, and advanced smart services for different manufacturing-related applications [13]. 5. Fog Manufacturing: to provide low latency support, real-time control, location awareness, better mobility and security support, and streaming support for manufacturing applications [14]. 6. Manufacturing Data Analytics, to offer intelligent decisions based on gathered manufacturing data for enhancing manufacturing processes [15]. The concept of Industry 4.0 is generally based on six design principles. These principles offer a general framework to the main requirements of Industry 4.0 and are discussed here with specific references to smart manufacturing. 1. Interoperability: the ability of different manufacturing CPS, machines, robots, and workers to connect and communicate via a network such as IoT and IoS. 2. Service Oriented: the ability to present the functions of the manufacturing processes as a set of services. These services should be accessible over the IoS by other

0853 systems. These services can be provided both internally within the same manufacturing unit and externally beyond the manufacturing unit’s borders. 3. Decentralization: the ability of different manufacturing systems to make decisions on their own. This requires avoiding the use of centralized controls. Although, manufacturing systems can benefit from other facilities and systems like cloud manufacturing and fog manufacturing, they still need to be able to make their own decisions locally to effectively continue their operations. 4. Real-time Capability: the ability to immediately collect and analyze manufacturing data such that the right actions can be conducted timely. This enables accurate controls of machines operations and timely adjustments. In addition it facilitates the discovery of erroneous observations including possible manufacturing machine faults, wrong workers-machines interactions, and declines in production quality and reliability. 5. Modularity: the flexibility of changing, expanding, and enhancing individual modules to fit new requirements in the existing manufacturing processes or to build new processes. 6. Virtualization: the ability to monitor manufacturing processes such that virtual copies (digital twins) can be created for these processes. These virtual copies can be utilized as simulation and measurement environments for future enhancements of manufacturing processes. Achieving these principles is the key to a successful implementation and deployment of useful and highly beneficial smart manufacturing applications. Thus, it is important to consider the specifics of these principles in the design of these applications and find suitable techniques and technologies that can facilitate the seamless integration across all smart manufacturing applications components. III. BLOCKCHAIN FOR INDUSTRY 4.0 Blockchain is a growing distributed list of linked records, named blocks, which are connected and secured using encryption algorithms [16]. One of the strong advocates of blockchain and its viability in the general business and industrial domain is IBM, as they are investing heavily in the field and working on various blockchain enhancements and applications [17]. There are two keys to the effectiveness of this list: one is the required consensus among participating entities to add a block; and the links that are created from one block to the next, thus making it difficult to change any block after it is added to the list. Hence, we get the name “blockchain” as it builds a virtual chain of data blocks. An entity in this context represents any actors involved in a transaction to be validated and recorded. It can be a person, a group of people, an organization, or a compute component (robot, smart device, sensor, control device, software agent, etc.). A transaction is the record of the activity being performed. This list (or chain) represents a protected online registry for stating some agreed on and conducted transactions among different entities. The recorded transactions are usually generated as a result of certain activities such as financial, business, industrial, or system activities. The blocks that store the transactions are usually timestamped, encrypted and replicated on multiple sites, and cannot be altered. For example, several floor shop supervisors in a factory could negotiate and establish a specific procedure for implementation in specific conditions (e.g. specific safety or risk management procedures). In this case, the supervisors are the entities and the procedure after being accepted by all becomes the transaction. Upon agreement, the transaction gets appended to the blockchain, which includes having it time stamped, encrypted, and replicated in multiple locations. As a result, it becomes available for all the supervisors, however none of them can alter it. Since entities can collaboratively produce and link new blocks to the blockchain, it becomes easy to create detailed ledgers of transactions and activities. In addition, since no one can alter registered transactions, it is also possible to establish trust and rely on the blockchain to validate and audit activities. Moreover, this shared history offers high levels of traceability of any and all recorded transactions and transparency that allows everyone involved to view these transactions. Yet, it also provides assurances that these records (or blocks) have not been altered by anyone in the group who created it or anyone else, for that matter. The logical links created between the transactions are agreed upon by the group; yet, they are irreversible, thus making it impossible to change. Furthermore, using encryption to record all blocks further protects the data and only allow authorized entities to access it. An important feature introduced in blockchain is the enabling of two or more entities to securely record an agreement of certain actions over a public network such as the Internet without including a third party like an authorization entity or government office. The involved entities may or may not know each other and may not trust each other. Yet, they can still make the agreement, document it and have that transaction record appended to the chain. Hence, the record of the agreement after it is appended to the chain cannot be altered, canceled, or denied by any of the entities involved. A process called “mining” is used to guarantee the validity and consistency of the conducted agreements appended to the chain. This important feature was not available before introducing blockchain. Therefore, blockchain is the main enabler of the Internet of Transactions [18][19], which is needed to support many smart manufacturing applications. This feature can greatly reduce the time needed to complete and register a business agreement between the manufacturers and their suppliers. Smart contracts can be produced, agreed on and appended to the blockchain. Thus they become binding without having to go through a formal registration process. Another example is negotiated contracts with subcontractors, who will supply specific parts or prefabricated components. In the same manner, exact specifications of these components, pricing and delivery information can be negotiated and finalized by the entities involved then appended to the blockchain. There following are some of the various features and capabilities that blockchain offers. Some of these are fundamental to the applications smart manufacturing.

0854 A. Digital Identities A government issued identification like a driver’s license or passport is generally adequate to prove our identity when conducting official activities like using airports to travel, opening a bank account, or buying a car. Blockchain offers a digital equivalent that can be used to identify not only people but also different entities like organizations [20]. This feature enables authenticating the identities of people and entities involved in any industrial activities over a public network. In addition, a digital identity can be expanded to include property, possessions and objects. Therefore, machines, sensing and actuating devices, software agents and any other entities involved in the manufacturing process can be issues a digital identity. These digital identities can be issued by a governmental organization in a way like issuing driver’s licenses, passports, company registrations, and property titles. This feature had already been under consideration in many countries and many are working on the methodologies and logistics of creating, managing and protecting digital identities. B. Distributed Security One of the key success factors of blockchain is its ability to protect the data and transactions recorded in the shared ledger using a compartmentalized and distributed approach [21]. This protection is not only done through simple encryptions that hide and protect individual transactions. It also includes high levels of replications and chained series of encryptions or digital signatures that make it impossible to alter any record that has already been appended to the chain. Every newly added transaction, after being validated by the participating entities, is linked with the chain of previous transactions, thus no one record can be altered in any way. In addition, relying on the verified digital identities and that each transaction is recorded with a full agreement among all entities involved, it becomes practically impossible for any of these entities to later deny being involved or in agreement [22]. The approach used allows for better protection of transactions, lower risks of exposure in case of security breaches, and higher confidence levels in the validity of the recorded transactions. C. Smart Contracts The recording, validation and security features of blockchain in the addition to the digital identity support enable what is known as smart contracts [23]. Smart contracts permit the conducting of credible contracts over a public network without a third party. A smart contract is trackable, secure and unalterable. Blockchain-based smart contracts have the prospective to advance many industrial sectors in different ways. One of these advancements is by automating agreement processes between companies and their partners and between companies and their customers in the Industry 4.0 context. This will considerably reduce the administrative costs and create a more efficient model to initiate, negotiate and finalize contracts without the need to rely on third party registrations or heavy documentation. Many areas of agreements across the smart manufacturing value chain can be conducted using smart contracts. Agreements with suppliers, transportation and warehousing services providers, distributers and subcontractors can be negotiated and recorded as smart contracts. These can be done faster, at lower cost, yet still carry the authenticity and credibility of regular contracts. D. Micro-Controls Another area where blockchain features can positively impact smart manufacturing is the ability to facilitate micro-metering, micro-measurements and dynamic adjustments at fine grain details. The ability to securely record events and activities without the need for third party confirmations and external assurances, will increase the amount of recorded data and activities and will allow organizations to build detailed ledgers of their activities and processes. These can be easily analyzed to provide measurements and quality controls at any level of detail. In addition, it allows for accurate records that can be easily used as audit trails and evaluation factors of a manufacturer’s activities, market position, and financial standing to name a few examples [24]. In smart manufacturing, this will allow for continuous recording of processes and activities performed within the smart manufacturing facility and across the whole value chain. Data on safety incidents for example can be collected continuously and with fine details in blockchain. This will guarantee the authenticity of the data, ensure its validity and create an unalterable record. This data can then be mined to analyze incidents, implications, responses and any other information recorded. The analysis will lead to better understanding of these incidents, the identification of trends and sources of problems and eventually using this information to create better safety processes and improve operations. IV. MIDDLEWARE APPROACH FOR APPLYING BLOCKCHAIN FOR INDUSTRY 4.0 In this section, we discuss our approach in integrating blockchain in a middleware framework to provide solutions for many Industry 4.0 challenges and to enable smooth implementation and integration of Industry 4.0 systems. Smart manufacturing applications usually involve distributed resources and services available on different technologies such as manufacturing CPS, cloud manufacturing, fog manufacturing, and other hardware and software based systems. These resources and services may belonging to one large manufacturing firm or multiple related firms that are linked together to support a desired value-chain. smart manufacturing applications cannot operate effectively without a suitable and flexible development and execution environment supporting their operations, as well as good mechanisms supporting the integration of all distributed resources and services. Man4Ware [6] can be used as the supporting development and execution framework and to provide the integration mechanisms for these applications. Man4Ware is a service-oriented middleware (SOM) [25] [26] designed to develop, execute, and support distributed services for smart manufacturing applications. It offers the essential services to provision the development of the proposed model for smart manufacturing. It can be used to integrate the different technologies needed for complete smart manufacturing solutions that include various components like industrial IoT, manufacturing CPS, fog manufacturing, and cloud manufacturing as shown in Fig. 2.

0855 Man4Ware views all resources in the smart manufacturing environment including sensors, actuators, and IoT devices as services that can be requested and deployed by other services in smart manufacturing applications. For example, it can view all manufacturing CPS resources in a smart factory as services with standard interfaces that can be accessed uniformly by other services and applications. Man4Ware also offers essential services such as broker, invocation, location-based, and basic security services. The broker services are responsible for other IoT, fog computing, and cloud computing services advertisement, discovery, and registration. There are two kinds of broker services in Man4Ware: a global broker service available on the cloud and local broker services offered on each fog node or local compute nodes. The global broker is used to cover the whole environment and the local brokers offer fast brokering services for the local compute and fog nodes they reside on. The invocation services provide support for local and remote service calls. Moreover, the main functions of the security services in Man4Ware are to integrate different security mechanisms among all local compute and fog nodes, IoT devices, and cloud systems and confirm that the essential security measures are applied properly. Different kinds of smart manufacturing applications can be developed utilizing the services of Man4Ware along with the application specific services needed. Man4Ware is a service-oriented middleware, thus its capabilities can be easily extended by adding more core services and creating the capabilities to support additional advanced applications services. Man4Ware is extended to cover a key set of blockchain services that are becoming increasingly useful for smart manufacturing applications, services that provide blockchain functionality (see Fig. 3). These Man4Ware services can be integrated to form new advanced services within these applications. For example, if Man4Ware is to integrate an application spanning multiple manufacturing firms to exchange information and perform various shared transactions, then Man4Ware services will enable exchanging the data and collaborate to complete he required transactions correctly and safely. These services can be linked with other distributed ledger services to build verifiable and immutable transaction logs. In addition, other integrated blockchain services related to digital identities can be used to authenticate these transactions. The distributed ledgers created and maintained through Man4Ware services can be used as trusted and traceable records and source for verifying the correctness of these transactions. Now, smart manufacturing applications can be built using the available services defined in Man4Ware. These applications can engage their local broker to perform a certain transaction with one or more entities integrated with the application (these may be within the same organization or external) that can provide the needed service. The local broker service will identify and connect the required entities services. Then, the application will use these services to work with the entities on negotiating, validating and finalizing the desired transaction. When the transaction is formalized and agreed upon the blockchain services will append it to the ledger. The blockchain service in Man4Ware will support the entire process and encrypt and append the finalized transaction to the chain and replicate and distribute it among the participating entities. Man4Ware can also offer services to mine the blockchain to find specific transactions and support analysis and micro-control services on the chain’s content for authorized services in the smart manufacturing applications. Other smart manufacturing applications can use smart contracts services to automate negotiation and agreement processes needed by the applications. Thus, instead of building detailed codes for such negotiation and agreement, the blockchain services of Man4Ware can be used for this task. All finalized contracts are also encrypted and appended to the blockchain for secure and reliable storage and mining. In addition, based on the features built into blockchain, all entities involved will have to accept the smart contract before being appended and will not be able to modify or deny it later. Moreover, other blockchain based services can be added to extend the functionality and offer the applications a wider set of blockchain services through the same framework. Services for auditing, micro-measurement, dynamic controls and pricing, building trust models are examples that can be used by smart manufacturing applications. V. DISCUSSION Integrating service-oriented middleware like Man4Ware and blockchain capabilities in one platform can provide a powerful environment for implementing and operating many smart manufacturing applications that integrate multiple manufacturing and value chain entities. The features of Man4Ware provide a flexible and extensible environment to implement and operate smart manufacturing applications. While this can form an Internet of Services environment for smart manufacturing applications, blockchain enriches this environment with the Internet of Transactions features. This Internet of Transactions can establish a more secure, trusted, and controlled environment to build and operate smart manufacturing applications. Service calls can be associated with transactions that are authenticated and recorded by blockchain facilities. These service calls/transactions can represent different smart manufacturing activities such as material orders, payments, manufacturing procedures, machines configuration activities, safety incidents activities, research and development data, monitoring activities, storage logs, shipment orders, and energy-related orders. Fig. 2. Man4Ware integrates different technologies to enable smart manufacturing applications. Man4Ware Manufacturing Industry 4.0 Applications Cloud Manufacturing Services Fog Manufacturing Services Other System Services Manufacturing CPS Services Cloud

0856 Fig. 3. Man4Ware services with blockchain capabilities. This can significantly enhance the development process of smart manufacturing applications. In addition, it can build new types of applications to support new business models and business ideas in smart manufacturing. One of these models is providing detailed interactive monitoring services for manufacturing machines to provide smart and cost-effective maintenance information to prevent long unscheduled shutdowns for these machines. With blockchain features, the data collected can be safely shared with authorized entities and protected from tampering. In addition, the same services can be augmented with the capabilities to trigger smart contracts for the required maintenance work and create the necessary workload, scheduling and payment transactions. Another example is using blockchain services to safely create a shared historical record of energy consumption across multiple facilities and with other similar manufacturing facilities. The data can be shared as aggregated and anonymized sets to facilitate large scale energy use analysis across all manufacturers to detect faults and areas of energy waste. Man4Ware and possibly more service-oriented middleware platforms simplify and streamline smart manufacturing applications, while blockchain helps add value to these applications. Value gained in terms of security, traceability, trustworthiness, distribution through the shared ledger. Many advancements are possible based on the use of these two technologies. Powerful smart manufacturing applications will become more feasible to build and deploy based on better cost effectiveness and higher return to investment. In addition, blockchain will make it possible to achieve inter-organizational collaboration as it will help establish trust, validate transactions, secure data and enforce non-repudiation. All these capabilities will help new business models appear, create efficient smart manufacturing processes, support flexibility and agility in products development and manufacturing, and create more adaptive and customized product creations. VI. CONCLUSION When the Industry 4.0 vision began to take hold, various smart manufacturing applications were foreseen to achieve that vision. Unfortunately, the high complexity of these applications due to the various working parts make it hard to achieve the vision. These parts include CPS, robotics, machines, smart devices, compute nodes, fog and cloud commuting services and several others. The integration process becomes difficult and coordination to create a harmonious application becomes hard to achieve. Furthermore, smart manufacturing applications usually need to integrate several systems and components that may not always be owned by a single entity. Thus, sharing data and securing interactions to protect all parties involved is also an important issue. Moreover, a lot of interactions between multiple entities and organizations across the manufacturing value chain need to be supported adequately to create cost effective and efficient processes. Middleware solutions and blockchain features come in as useful method to provide a development and execution environment to address several of these difficulties. In this paper, we proposed Man4Ware with the additional blockchain services. As a service-oriented middleware, Man4Ware abstracts components, devices and software functionalities as services accessible to smart manufacturing applications via the Man4Ware core services. In addition, the added blockchain services in Man4Ware will further enhance the environment and facilitate more secure, traceable and immutable features in smart manufacturing applications. As a result, developing smart manufacturing applications aligning with the Industry 4.0 vision with the support of Man4Ware will create ample opportunities for advanced and smart features. The next step is to further enhance Manufacturing CPS Cloud Manufacturing Fog Manufacturing Digital Identity Services Authentication Services Distributed Security Services Smart Contract Services Micro-Controls Services Distributed Ledger Services Broker Services Invocation Services Real-time Services Industry 4.0 (Smart Manufacturing) Applications Layer Infrastructure Layer Logistics Application Maintenance Application Planning Application Man4Ware Layer

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