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Towards Secure And Fair IIoT-Enabled Supply Chain Management Via Blockchain-Based Smart Contracts

Amal Alahmadi, Xiaodong Lin
Published 2019 · Computer Science

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Integrating the Industrial Internet of Things (IIoT) into supply chain management enables flexible and efficient on-demand exchange of goods between merchants and suppliers. However, realizing a fair and transparent supply chain system remains a very challenging issue due to the lack of mutual trust among the suppliers and merchants. Furthermore, the current system often lacks the ability to transmit trade information to all participants in a timely manner, which is the most important element in supply chain management for the effective supply of goods between suppliers and the merchants. This paper presents a blockchain-based supply chain management system in the IIoT. The proposed system takes advantage of blockchain technology in terms of its transparency and tamper-proof nature to support fair goods exchange between merchants and suppliers. Additionally, the decentralization and pseudonymity property will play a significant role in preserving the privacy of participants in the blockchain. In particular, fairness in the IIoT is first defined. Then, a design for a smart contract for fair goods exchange is presented to prevent malicious behavior through imposing penalties. The proposed system was prototyped on Ethereum and experiments were conducted to demonstrate its feasibility.
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