*6.3. Industrial Economy*

The key application scenarios of blockchain technology in the industrial economy include: intelligent Internet of things, intelligent industry, as shown in Figure 9.

As an emerging technology, IoT has gradually penetrated into every aspect of life. The security of blockchain technology makes IoT + blockchain be more and more attention. Using blockchain technology can solve the original problems of IoT such as no standardization, information security. Internet of things is an Internet-based and can make all the ordinary physical objects connected to the information carrier. After the development of wired and wireless networks, especially to the 5G era, it can realize the network interconnection of people and people, people and things, things and things. With the development of artificial intelligence, big data, cloud computing and other technologies to promote the development of the Internet of things, in the future, the Internet of things still need to pay attention to the standardization issue. About the Internet of things, there is no standardized construction policy, there is no unified communication protocol, communication interface, etc., there is the same protocol to make the device interconnection, and each company wants to implement their own communication protocol, in order to be the formation of industry development barriers, but now is still in the early stage of industry development. Additionally, the reliability issue. As the current IoT architecture is to aggregate all data into a central control system, all the data have the risk of being controlled and modified at will, and in the process of data transmission may go through multiple links, the authenticity and integrity of the data cannot be guaranteed, and then, security and privacy issues. In the field of IoT, the centralized service architecture stores and forwards all monitoring data and signals through a central server, and a large amount of user data information is stored

in the central server. Although IoT operators keep emphasizing that they can effectively protect user data and privacy, security breaches and privacy leaks still occur, making a large number of users unable to trust that their privacy is secure [105].

During the long-term development and evolution of IoT, the following 9 industry pain points have been encountered: device security, personal privacy, architectural rigidity, communication compatibility and multi-subject collaboration 5 major pain points. The improvements of blockchain technology for IoT are: cost reduction, privacy protection, identity identification, traceability, and cross-subject collaboration. The current development status is: leading IoT companies introduce blockchain technology in large numbers, for example, IBM launched blockchain services for Bluemix cloud platform back in 2016, Amazon chose to start cooperation with DCG, a digital currency company; from the perspective of traditional power companies, they mainly invest in different pilot projects by cooperating with startups, setting up subsidiaries, or even buying startups to create distributed energy systems and peer-to-peer energy trading platforms. Including Sweden's state-run power company VattenFall (Waterfall Power), which invested in a startup (PowerPeers) in Amsterdam, the Netherlands, and to build an energy-sharing platform that allows consumers to freely choose their power channels, and Germany's Rheinland (RWE), which partnered with startup Slock.it to launch 's BlockCharge EV charging project, these platforms have terminal payment systems that support the use of cryptocurrencies, which is also driving the development of cryptocurrencies in practical applications [106]. The main application scenarios: sensor data deposition and traceability; new sharing economy; energy trading; charging cars and charging piles, communication and intelligence for drones. In the following, the new 'sharing' economy is used as an example, as shown in Figure 10. The whole blockchain network is built based on the blockchain. Based on the smart contract system, the asset owner sets the rent, deposit and related rules to complete the binding of various 'locks' with the asset, and the end of user pays the corresponding rent and deposit to the asset owner through the APP to obtain the key and then obtain the right to use the asset. At the end of the use, return the item and get back the deposit, the payment system here will try to use cryptocurrency.

**Figure 10.** New sharing economy structure diagram.

Smart industry is mainly involved in the supply chain finance with the back ground of blockchain, using blockchain as a way of information transfer and data taking, which can effectively reduce the cost of trust and loan taking. reducing the cost of enterprise financing, focusing on solve the problems of financing difficulties and high capital costs of upstream and downstream SMEs [107]. The project supply chain information platform is optimized by combining blockchain technology in engineering projects, and integrated with project management function information integration and project information collection system to build an engineering project information integration management platform based on smart industry [108]. They are also involved in industrial equipment identity management, equipment access control, equipment registration management, and equipment operation status supervision, etc. The execution of blockchain smart contracts is used to obtain and verify equipment identity, and blockchain technology can guarantee the security of relevant data and ensure that the enterprises of the industrial chain can access credible and consistent equipment operation data. The distributed storage, tamper-evident and

encryption algorithms of blockchain technology can be used to realize data exchange among various entities of the industrial Internet, and the production and manufacturing data of each enterprise can be stored on the blockchain, while realizing the sharing of data of other enterprises.
