In some ways, the term “Industry 4.0” is unfortunate. It appears to be just another buzzword coined by a marketing firm looking to capitalize on the rapidly growing digital trend and our increasing reliance on computing devices. However, upon closer examination, the term accurately describes what the next industrial revolution might be like.

1. Definition of Industry 4.0 

Blockchain fuelling the next revolution: industry 4.0

So, how did the term “Industry 4.0” come about? It was, in fact, part of a German automated manufacturing strategy developed in the first half of the previous decade. The concept gained traction in the years since its introduction, with various companies and national governments launching their projects, with each new project broadening and enriching the Industry 4.0 definition. The multiple interpretations of Industry 4.0 share a common thread: the computerization and digital transformation of manufacturing through emerging technologies, smart devices, and sensors. 

2. Benefits of blockchain in Industry 4.0

Blockchain fuelling the next revolution: industry 4.0


Blockchain’s design ethos is based on one of Industry 4.0’s design concepts. Information sharing among interconnected nodes is central to blockchain-based systems, and the technology can meet automated manufacturing demands. For instance, a peer-to-peer blockchain network may be used to create a smart factory where each machine functions as a node and freely connects with other nodes. Another benefit of this strategy is that if constructed on the identical blockchain, two or more systems (for example, multiple smart factories) can readily communicate information.

Transparency and immutability

The ability of blockchain to ensure information transparency and its resistance to data manipulation are two of the technology’s most valuable characteristics. So it is ideal for supporting Industry 4.0 processes, which require information transparency and reliable data.


Another of blockchain’s distinguishing features corresponds to an Industry 4.0 design principle. Blockchain systems are known for not relying on central authorities; pursuing decentralization has arguably been the primary driver for both the invention of the blockchain and its subsequent development. Blockchain networks use consensus mechanisms to ensure that their members abide by rules. This method can significantly improve smart machines’ ability to operate autonomously. Another intriguing feature of blockchain technology complements this.


Some blockchain protocols, such as Ethereum and EOS, support self-executing programs known as smart contracts, which can perform operations automatically if certain conditions are met. This means that the logic underlying many smart factory operations could be coded into smart contracts, reducing the need for human oversight even further.


Blockchain systems have a built-in mechanism for dealing with the economic side of Industry 4.0 in crypto tokens. For example, Tokens can be used by entities outside a smart factory to trigger smart contracts and make other payments to the factory. This could allow for a high degree of customization, which was one of the original Industry 4.0 strategy goals.

In a broader sense, DLT and tokens could form the foundation of a future machine economy, allowing smart devices to communicate with and pay for other intelligent machines.


Industry 4.0 appears to bear all of the hallmarks of an industrial revolution. It builds on the previous industrial revolution’s foundation by utilizing emerging technologies. These new technologies work in tandem to enable powerful new applications and manufacturing methods. It may also have an impact on many aspects of daily life. While it remains to be seen whether this will occur, blockchain, IoT, and other Industry 4.0 technologies appear to be ideal tools for realizing this potential. Contact SmartOSC if you need a top-tier Blockchain development service.

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