Blockchain-Based IoT-Enabled System for Secure and Efficient Logistics Management in the Era of IR 4.0

Abstract

As the global logistics business expands as a result of the industrial 4.0 revolution, logistics operations continue to evolve as new technologies such as IoT, cloud, and big data are deployed. These IoT devices improve the logistics function by boosting real-time product tracking, improved data collection, smart storage of logistics data, etc. Some of these new technologies present an avenue for cyberattacks on these logistics systems due to their centralized database structure. Logistics operations entail the exchange of private consumer information (name, address, phone number, and bank account information) as well as product information amongst logistics stakeholders (manufacturers, suppliers, transporters, and customers). And the engagement of so many logistics stakeholders creates privacy and security issues for the private information because customer information, as well as product details, are transferred and shared across different logistical stakeholders during the logistics process. It faces unwanted access, which could lead to fraud or the creation of counterfeit products by a bad actor in the system. All of these challenges are significant because logistics data integrity is important for customer satisfaction. The deployment of Blockchain innovation will address these challenges with the application of its special feature such as immutability, efficient cryptography, and distributed decentralized storage system. In this paper, we highlighted the technology that enables smart logistics and reviewed smart logistics, Blockchain, and IoT in logistics; we present the significance of integrating Blockchain and IoT in logistics. We proposed a Blockchain-based IoT-enabled system framework for secure and efficient logistics management where logistics data can be captured with the use of IoT sensors, and we also designed and describe the sequence diagram for secured communication between the logistics stakeholder through a smart contract. In conclusion, Blockchain can provide security to logistics data and enhance operational efficiency with its key features.