Running head: Blockchain-based solution for Privacy and Security

Blockchain-based solution to enhance Privacy and Security in Smart

factory
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Blockchain-based solution for Privacy and Security

Abstract

In the digital era, traditional systems of data security are no longer applicable, and with

the advent of IoT or Internet of Things, the need for smart data security and privacy has

multiplied. Industries now find traditional systems as ineffective, and there is a growing need for

introducing blockchain-based technology. Security issues occur during data transfer, and

therefore, the existing system requires improvement. In this study, a brief introduction is

provided to highlight the chosen topic. Thereafter, various journals and books have been

reviewed to get insights regarding the usage of blockchain technology in IIoT. It was understood

that introducing the new architecture would help in optimizing the system and the future

generation can thrive upon fast and secure services. Lastly, research was conducted on the

importance of lightweight hash functions as it is an advanced form of blockchain technology

suitable for smart factories.

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Blockchain-based solution for Privacy and Security

Table of Contents

Abstract ........................................................................................................................................... 2
1. Proposal ................................................................................................................................... 4
1.1 Introduction ........................................................................................................................... 4
2. Research Significance and Scope ............................................................................................ 5
2.1 Literature Review ............................................................................................................. 5
2.2 Aim and Objective ........................................................................................................... 7
3. Methodology............................................................................................................................ 7
3.1 Research Approach .......................................................................................................... 7
3.2 Research Strategy ............................................................................................................. 8
4. Data Collection and Analysis .................................................................................................. 8
5. Ethical Consideration .............................................................................................................. 9
6. Conclusion ............................................................................................................................. 10
References ..................................................................................................................................... 11
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Blockchain-based solution for Privacy and Security

1. Proposal

Technological advancements have promoted the implementation of blockchain-based

solutions in smart factories (Paul et al., 2019). Security threats are rampant within

technologically driven industries, and it is now essential to build an architecture that can replace

the traditional system (Tama et al., 2017). Smart factories have adopted new means of ensuring

security as IIoT or Industrial Internet of Things has become obsolete.

1.1 Introduction

In the IoT age, intelligent factories have become an emerging topic. Proper functioning of

smart factories depends upon appropriate working from thousands of sensors. The automation

process will start after tracking down a massive amount of data. Privacy, along with security, is a

necessity because smart factories are vulnerable to malicious attacks. Blockchain is a tool that

enhances manufacturing in a smarter way. Since the protection of the firm is considered an

essential component, blockchain-based solutions are therefore implemented in smart factories.

Manufacturers now use Blockchain systems because it provides 3D digital instructions rather

than 2D blueprints. The requirement for human interpretation and data transfer is reduced, and it

saves money as well as time. The blockchain technology can increase transparency along with

efficiency. Consequently, the scalability of networks improves.

The research will be conducted to understand the importance of incorporating blockchain

solutions in smart factories. A comparison would be made between blockchain-based solutions

and traditional systems that used to provide security but is no longer relevant in today's rapidly

changing environment. A literature review will be conducted that will provide insights regarding

the chosen topic. Thereafter, a particular methodology will be outlined that will help in

conducting the research.

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Blockchain-based solution for Privacy and Security

2. Research Significance and Scope

2.1 Literature Review

According to Dai et al. (2019), IoT has been shaping the smart industry. The industry

always faces challenges and threats because it has to make data-driven decisions. Security issues

can be addressed by integrating blockchain technology with IoT. The authors have suggested the

importance of synthesizing IoT with Blockchain. The result would be BCoT or Blockchain of

Things. BCoT can solve the constraints of IoT. In the case of 5G networks, blockchain

technology can provide security. The authors emphasized that in the case of IoT, complexity and

challenges arise while preserving data. Therefore, BCoT can essentially offer a comprehensive

solution by ensuring security.

Figure 1: Blockchain technology that helps in detecting threats

(Source: engineering.com, 2019)

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Blockchain-based solution for Privacy and Security

Fernandez-Carames & Fraga-Lamas in 2019 have conducted a review on the application

of blockchain systems and have found that blockchain-based solutions can ensure cybersecurity

in smart factories. The authors have made a comparison between the evolution of blockchain

systems and traditional systems used in factories. The emerging production needs can be met by

the application of blockchain solutions. The authors have introduced Industry 4.0 smart factory

components. It mainly involves big data, cloud computing, robots and AGVs, cybersecurity,

simulation software and integration systems. The paper emphasized the importance of

blockchain in ensuring cybersecurity. Sensitive data can be securely shared using block-based

AR or VR solutions.

Ji & Zu in 2019 conducted a review of applying blockchain technology in smart

industries and suggested that privacy and protection of systems need to be ensured within

industries due to constant cyber attacks and security threats. Multiple issues might arise due to

the rapid growth of technology. The problems might occur during payment transactions, data

sharing, data storing and IoT. Therefore, the authors have emphasized the importance of

choosing appropriate protection technology that will provide blockchain based solutions.

Seok, Park & Park in 2019, suggested a new blockchain-based solution known as the

Lightweight Hash architecture that would be appropriate for smart industries. According to the

authors, blockchain technology ensures the integrity of data within the distributed network.

Combination of IoT with blockchain technology can solve privacy issues within industries. The

importance of Industrial IoT or IIoT has been empahsized in this paper. IIoT can ensure effective

data management. Cryptographic techniques form the basis of blockchain technology. Hence, the

authors conducted research on a hash function, which is an essential component of cryptography.

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Blockchain-based solution for Privacy and Security

They suggested the usage of lightweight hash functions as it can help to reduce network traffic as

well as during mining adjustments.

2.2 Aim and Objective

The aim of the research is to identify the significance of blockchain-based solutions that

develops the operations within smart factories. The ways by which blockchain solutions detect

threats and ensure the privacy of networks shall be studied as well. The objective is to

understand the impact of using a lightweight hash architecture that can provide security and

privacy in smart factories.

3. Methodology

The research requires a detailed observation to understand the impact of lightweight hash

blockchain architecture in ensuring privacy and security. Smart factories require smart solutions

when it confronts digital threats (Crosby et al., 2016). The existing IoT solutions based upon

blockchain technology will be surveyed. Lightweight hash functions will be surveyed to propose

a new architecture for IIoT.

3.1 Research Approach

Research on the chosen issue is done by using Quantitative approach and therefore, the

statistical tool is used for finding objective measurements. The quantitative approach is useful in

finding accurate data and numerical analysis elevates the research process (Bell, Bryman &

Harley, 2018). Using the deductive method, data has been analysed. The mentioned research

approaches helped in identifying current challenges faced by smart factories. The importance of
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Blockchain-based solution for Privacy and Security

implementing lightweight hash blockchain architecture has been understood. The usage of

quantitative approach has helped in attaining accurate and objective results (Walliman, 2017).

The questionnaire technique has been considered, and the critical questions for

completing the research have been listed below-

a) Mention the current challenges faced by smart factories while using traditional

architecture.

b) What is the importance of incorporating lightweight hash blockchain technology for IoT

and does it make any noticeable difference?

c) Does the research add any value in solving the issues faced by smart factories?

3.2 Research Strategy

The strategy helped in directing the thoughts and systematically conducting the research.

In the case of smart factories, data privacy and security can be ensured by using the lightweight

hash architecture. A Case study on the implication of using lightweight hash architecture has

been analysed. The results of the research have been analysed by comparing the collected data.

4. Data Collection and Analysis

Blockchain-based technology has been successful in solving privacy and security related

issues. It is possible by storing blocks within the IoT network. In comparison to traditional

systems, blockchain systems provide better and advanced solutions. IoT devices can be managed

by introducing a decentralized access control technique (Mushtaq & Haq, 2019). The integration

of IoT and blockchain has successfully resulted in the formation of BIoT technology. It can solve

the security issues within the smart industries. The new system is transparent, scalable and
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Blockchain-based solution for Privacy and Security

ensures effective performance. It adds a modern edge to the thriving point. The importance of

cryptography should be noted as well. Within the IoT network, advanced blockchain architecture

can solve issues related to data safety and protection (Wan et al., 2019). Lightweight hash

functions are an aspect of blockchain technology that using this architecture has been beneficial

for IIoT.

Lightweight architecture involves a blockchain network between the control layer and the

field device layer (Shackelford, 2018). Consequently, it ensures data integrity and transparency.

Collected data suggest that lightweight hash function is a great opportunity that can be used to

develop the lightweight blockchain. Notably, in smart factories, the lightweight architecture will

provide essential solutions (Nguyen & Dang, 2018). The design of a new lightweight consensus

algorithm would help in reducing the issues in the industrial field. Smart factories use multiple

devices, and the usage of the lightweight hash function will ensure the privacy of data (Liu et al.,

2019). It will be easier to authenticate, authorizing and governing data within the industry.

Lastly, the research suggests that malicious attacks and unwanted invasions can be prevented by

implementing lightweight blockchain systems.

5. Ethical Consideration

The research was done by strategically studying multiple scientific resources, and

therefore the need for ethical considerations did not arise. Various journals and books have been

reviewed to understand the depth of the chosen issue. The collected information has been used

for research purposes only. Breach of information has been avoided.

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Blockchain-based solution for Privacy and Security

6. Conclusion

The research has been conducted to study the issue of privacy and security faced by smart

industries and the significance of using blockchain-based technological solutions. Building a

safe, secure and reliable business network is essential for smooth business operations. Therefore,

the study is conducted to analyse the positive side of using blockchain solutions. The era of

traditional systems has gone, and security has become a significant concern for most industries.

The results suggest that using a lightweight hash blockchain technology would ensure data

privacy. The integration of blockchain and IoT will provide more significant opportunities by

building BIoT. Hence, smart factories require smart combination of various blockchain solutions.
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Blockchain-based solution for Privacy and Security

References

Bell, E., Bryman, A., & Harley, B. (2018). Business research methods. Oxford university press.

Blockchain: A Tool for Enhancing Smart Manufacturing. (2019). Engineering.com. Retrieved 11

October 2019, from

https://www.engineering.com/AdvancedManufacturing/ArticleID/18552/Blockchain-A-

Tool-for-Enhancing-Smart-Manufacturing.aspx

Crosby, M., Pattanayak, P., Verma, S., & Kalyanaraman, V. (2016). Blockchain technology:

Beyond bitcoin. Applied Innovation, 2(6-10), 71.

Dai, H. N., Zheng, Z., & Zhang, Y. (2019). Blockchain for the internet of things: A survey. arXiv

preprint arXiv:1906.00245.

Fernández-Caramés, T. M., & Fraga-Lamas, P. (2019). A Review on the Application of

Blockchain to the Next Generation of Cybersecure Industry 4.0 Smart Factories. IEEE

Access, 7, 45201-45218.

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Ubiquitous Computing (pp. 664-674). Springer, Cham.

Liu, Y., Wang, K., Lin, Y., & Xu, W. (2019). LightChain: A Lightweight Blockchain System for

Industrial Internet of Things. IEEE Transactions on Industrial Informatics.

Mushtaq, A., & Haq, I. U. (2019, February). Implications of Blockchain in Industry 4. O.

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(ICEET) (pp. 1-5). IEEE.

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Blockchain-based solution for Privacy and Security

Nguyen, Q. K., & Dang, Q. V. (2018, November). Blockchain Technology for the Advancement

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Sustainable Development (GTSD) (pp. 483-486). IEEE.

Paul, R., Ghosh, N., Sau, S., Chakrabarti, A., & Mahaoatra, P. (2019). IoT based Smart Access

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