Block party: blockchains 'could be game-changers for manufacturers'

Smarter supply chains, efficient Internet of Things systems, control of intellectual property; blockchains could be a “game-changer” for manufacturers, a new whitepaper claims.

The database systems, first used as a basis for digital currency Bitcoin in 2009, digitally store data and record transactions between business partners in tamper-proof “blocks”.

Digital communications agency Technical Associates Group (Tag) claims the systems are now causing “huge excitement” in the manufacturing sector as possible uses come to light. The decentralised databases are designed to be secure and allow collaboration between different groups.

Blockchains could lead to smarter supply chains, the Tag whitepaper says, letting firms track the progress of materials and payments as goods travel around the world. The systems could also play a “vital” role in the IoT by allowing more effective monitoring of factories, the report says. Other possible uses include delivering a better way of controlling intellectual property, making sure investors receive the financial awards they deserve.

The systems hold “true transformational potential in the manufacturing sector,” says Tag industry analyst and whitepaper author Lee Hibbert. “The technology could be really powerful in cases where multiple parties share data and these actions need to be recorded.” 

Companies like Airbus, Daimler, General Electric and Siemens are “showing a real interest in the technology,” Hibbert told Professional Engineering. “Anywhere where groups of organisations work and transact together and need a transparent ultra-secure database of what they’ve done, that is really where the excitement is coming from.”