The Fourth Industrial Revolution (Industry 4.0), which refers to technological developments on account of global data interconnectivity, is expected to set new future standards. Now, the question which seems to be asked is how technologies such as blockchain can be a benefactor towards it. From what it’s understood, blockchain-backed Industry 4.0 can set the trend for upcoming enterprise information mechanisms.
“I believe blockchain-backed industry 4.0 is integration of blockchain with Industry 4.0. Blockchain has potential to enhance efficiency, security, and trust in key components of Industry 4.0,” Rajagopal Menon, vice-president, WazirX, a cryptocurrency exchange, told FE Blockchain.
Research around Industry 4.0 suggests that blockchain’s influence on it can disrupt traditional business models. According to Taylor & Francis Online, a journal content platform, blockchain’s utilisation in Industry 4.0 can ensure resilience, autonomy, security, stability, along with methods to timestamp sensor data. World Economic Forum (WEF), an international organisation, forecasted that 10% of global gross domestic product (GDP) will be kept on blockchain by 2027.
Market study has shown that blockchain-backed Industry 4.0 can diversify investment prospects through cryptocurrencies and other tokens. Insights from International Journal for Research in Applied Science and Engineering Technology (IJRASET), an international journal, mentioned that blockchain and Industry 4.0’s correlation can manage economic affairs, along with sorting out foreign currency issues. In terms of global real estate industry, blockchain can affirm digital buying and selling for both commercial and residential properties. A paper called “Affordances in blockchain-based financial recommendations concerned with life events and personalities,” by Szabó, Ternai, and Fodor, upheld how blockchain can contribute towards Industry 4.0 through supporting mechanisms of an artificial intelligence (AI)-based financial recommendation structure.
“Blockchain-backed Industry 4.0 can introduce an approach to data management, eliminating need for intermediaries and enabling interactions ensuring data security and privacy. Blockchain-backed Industry 4.0 can bring investment opportunities, disruptions, increased efficiency, and transparency,” Alankar Saxena, co-founder and CTO, Mudrex, a crypto-investing platform, highlighted.
According to MarketsandMarkets, a market research firm, global Industry 4.0 market volume should clock $165.5 billion by 2026, at a 20.6% compound annual growth rate (CAGR) for 2022-26. Reportedly, companies such as Arxum, Licens3D, Ubirch, among others, have already begun to work on blockchain applications for Industry 4.0. Despite blockchain being considered to be nascent, future predictions signify that blockchain-backed concepts such as decentralised finance (DeFi) and asset tokenisation will be key in Industry 4.0’s growth.
“I think the future of blockchain-backed Industry 4.0 is brimming with promise and potential. As blockchain matures, we can anticipate its adoption across industries. As it becomes mainstream, we expect to see more enterprises offering ‘Blockchain-As-A-Service’ (BaaS),” Satyamohan Yanambaka, CEO, Writer Information, a management company, concluded.
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