Investigation of blockchain applicability to internet of things within supply chains

Internet of Things (IoT) means that physical objects will be able to interact and communicate via embedded systems. This will lead to a distributed network of devices that can communicate with both humans and each other. One application area is in improving supply chain management. The goal in supply chains is to move a product or a service from the producer to the customer as efficient as possible. Implementation of IoT will have many benefits but it also raises security issues that can affect integrity, security and privacy for both individuals and companies. In 2009, Satoshi Nakamoto created bitcoin and more importantly, blockchain. Blockchain is a ledger of facts, data is not stored in only one network with a common processor, but it is distributed among all the clients on the network. This technology may be a solution to some problems that IoT are facing. This paper looks into up to date research of blockchain and IoT with the purpose to study blockchain as a potential solution to secure IoT data management within supply chains. Both blockchain and IoT are relatively new research areas with little existing research, which support our use of a qualitative inductive method. Semi-structured interviews, which will be further explained in the methodology section, have been conducted with people working within the fields of blockchain, IoT and supply chain. The result indicates that blockchain can be used to secure data management within any given supply chain that uses IoT technology, but blockchain should be seen as a tool, and not as a complete solution. Many of the security issues within IoT are related to the devices and blockchain will not be able to provide a solution to these problems. Blockchain can however be used for handling information, securing identities, traceability of goods, transactions being made without human interaction, automated storage management and time stamped actions to name some examples. There are still barriers to make these benefits work in reality but there is a lot of research currently on-going, trying to make it happen.