Blockchain technology in ‘3D’: Data, Skills, Cybersecurity

Three dimensions to analyze the opportunities of blockchain technology-based applications

Cybersecurity Dimension: Protecting New Production Models

Data travels through corporate networks and, increasingly, also in IoT devices.

These devices are being used more and more in both production environments and daily routines.
In the industrial production market, there is a growing presence of so-called “smart” products or network-connected products capable of autonomously managing various tasks.

In corporate settings, these devices essentially “drive” production processes and activities, much like they do in many social contexts, where they support numerous daily essential tasks. These devices can also engage in transactions with each other through the exchange of information.

In the ongoing technological evolution, we are witnessing a path, in some cases highly advanced, where IoT devices can identify each other and communicate autonomously, even without a central control system.

A new industrial business model is emerging, based on the interconnection of facilities and machinery through APIs. This model allows for real-time tracking and certification of individual machinery components to their respective owners. In this context, thanks in part to specific regional funding, some companies in the manufacturing sector are developing systems for remote assistance for facilities and machinery.

Research and development activities in this field have had a significant impact in various local Industry 4.0 production environments, where automated and interconnected industrial production models are being implemented.

I had the opportunity to verify this while participating in the “QUASAR PROJECT – QUANTITATIVE ANALYSIS FOR SERVICES AND ASSETS RELIABILITY,” co-financed by the POR CreO FESR Toscana 2014-2020. One of the objectives achieved, thanks to the contribution of experimentation in manufacturing sector companies, was the development of a Digital Handbook applicable to equipment, machinery, or even entire facilities.

By applying quantitative methods of diagnostic and predictive analysis based on data and models derived from industrial practice artifacts, it is possible to connect the representation of digital twins – virtual reproductions of physical, potential, and actual resources – of an asset with the workflow of operation and maintenance.

Digital twins are virtual representations of objects or systems – in the industrial context, these are referred to as assets – which, thanks to blockchain technology, can more effectively manage security risks related to the functionality and maintenance of various types of assets.

Among the many benefits of using blockchain-based digital twins is the ability to monitor the operation of facilities and machinery, perform preventive maintenance, and identify potential issues before they occur.

Moreover, because blockchain-based digital twins enable secure data sharing with other users, the virtual asset can be used collaboratively, leading to increased efficiency in functionality and a reduction in management and maintenance costs. To manage communications between objects, solutions are increasingly being implemented that involve the construction of a decentralized network, leveraging blockchain technology to enable multi-directional communication using sensors.

The trend is to develop systems that allow information processing to occur on the devices themselves, utilizing the principle of a distributed ledger rather than relying on a central control system. This not only speeds up interactions but also reduces the likelihood of hacking attempts and intrusion into corporate databases since data is distributed rather than centralized.

Currently, distributed ledgers are considered more robust than many legacy corporate systems, which is why cybersecurity strategies are increasingly focused on their implementation. The interconnection model of devices, assets, facilities, and “smart” objects leads directly to the cybersecurity node, necessitating the establishment of a system to protect and secure communications between these devices.

The development of investments, applications, and competencies in the field of cybersecurity will be increasingly focused on managing control over automation and interconnection systems and, most importantly, on preventing intrusion risks. One of the key elements of information resilience is prevention. Preventing and safeguarding data from external threats involves implementing security controls on the operation of objects and production systems, based on data encryption, secure system configuration, and access control.

This operational direction could have a significant impact on our economic and production fabric, which includes many companies in the field of plant engineering and industrial manufacturing.

In conclusion, I return to the three pillars mentioned initially.

Every company’s strength, continuity, and resilience rely on the value of the data it possesses.
This data is acquired or acquirable through the value of resources and competencies it can or could have, as well as its ability to safeguard this value.

Technological investments based on the principle of following this common thread place the company on a significantly strengthened strategic plane, capable of developing critical competitive advantages for operating and expanding corporate growth in the current and future context.

In this context, the growth trend in the development of these technologies, such as those based on blockchain, and the corresponding investments, even at the public resource level, does not seem to encounter any setbacks.