Ben DicksonBitcoin is on another.docx

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itcoin is on another rollercoaster ride.
Over the past few months, the
cryptocurrency’s value spiked from
$3,000 to over $13,000; at this writing, it stands
near $10,000.
Such circumstances encourage people to buy
bitcoins in the hope of coming out ahead. But
Bitcoin’s rising price also draws malicious
hackers who see an opportunity to steal the funds
of unwary users who don’t know the basics of
Bitcoin security. If you’re new to Bitcoin, these
tips will help you protect your digital fortune.
PROTECT YOUR ONLINE WALLET
The easiest way to get started with Bitcoin and

other popular cryptocurrencies is to sign up with
an online wallet such as Coinbase or Binance.
Online wallets hide many of Bitcoin’s technical
challenges, such as handling private keys and
addresses, so they’re an attractive option for
people who are less tech-savvy or new to Bitcoin.
Signing up for most online wallets takes no more
than a few minutes, and accessing your account
requires only a browser, username, and
password.
Online wallets, however, are not the safest place
to store your cryptocurrencies. Anyone with your
How to Keep Your Bitcoin
Safe
Ben Dickson is a
software engineer
who writes about
disruptive tech
trends, including
artificial intelligence,
VR and AR, the IoT,
and blockchain. Ben
also runs the blog
Tech Talks.
COMMENTARY
email and password can access and steal your
coins, and bad actors can accomplish this with
something as simple as a phishing email. Also,
unlike with traditional payment systems,

recovering lost bitcoins is virtually impossible.
Here are a few best practices that can improve
your wallet’s security.
Enable two-factor authentication (2FA):
Most online wallets support some form of two-
factor or multi-factor authentication. Enabling
2FA links your account to a phone, mobile app, or
physical dongle. If a malicious hacker obtains
your username and password, they’ll still need to
have that extra factor to access your account.
Don’t use your phone number for 2FA:
Most sites support several forms of two-factor
authentication, but not all 2FA methods are
equally secure. If you rely on SMS passcodes to
secure your account, crafty hackers will be able to
hijack your phone number and intercept your
2FA passcode. If you’re associating a phone
number with your account, it would be best to use
a separate, secret SIM card.
Use a separate email for your Bitcoin
wallet: Most of us have a primary account for
our daily communications—but we use the same
email address for our Facebook, Twitter, and
PayPal accounts. We share it with friends, family
members, and coworkers. They might share it
with other people, and eventually, a malicious
hacker might obtain it. If your online wallet is
tied to this email, the hacker has one of two
@ bendee983
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important pieces of information needed to access your wallet.
Use a
separate email address for your online wallet—one you don’t
use for any
other purpose. This minimizes the chance of your account being
discovered by a cybercriminal.
USE AN OFFLINE WALLET
Every Bitcoin wallet has one or more “addresses” where it
stores its
cryptocurrency. Bitcoin addresses are long, unique strings of
alphanumeric characters, and each address has a pair of private
and
public encryption keys. When other users want to send bitcoins
to your
address, they use your public key. When you want to spend your
bitcoins, you use the private key to sign your transaction. The
private
address. Therefore, the key to securing bitcoins is to keep your
private
key in a safe place.

secure your private keys for you. That’s why it’s so easy to use
online
wallets. But it also makes online exchanges an attractive target
for
hackers. Although these companies do their best to protect user
accounts, they get breached pretty often.
you full control of your private keys and will protect you
against mass
Software wallets: Software wallets are applications you can
install on
your computer, portable memory drive, or mobile device. A
wallet app,
such as Electrum, stores private keys on your device and uses
them to
sign Bitcoin transactions whenever you want to make a
payment. If you
want complete security with a software wallet, you must install
it on a
computer that isn’t connected to the internet and transfer signed
transactions to an internet-connected computer. The process is
more
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Hardware wallets: Hardware wallets are physical devices that
generate and store cryptocurrency key pairs. They usually come
with an
associated app that you have to install on your computer or your
mobile device. When you want to send bitcoins to someone, you
have to
connect the hardware wallet to your computer or pair it with
your
phone via Bluetooth. Every transaction is signed on the
hardware wallet
with the approval of the user. Hardware wallets are very secure
because
the private keys never leave the device; Trezor and Ledger are
two
popular options.
Paper wallets: Paper wallets are Bitcoin key pairs printed as QR
codes
on paper. You can create paper wallets at one of several
websites,
including bitcoinpaperwallet.com. To receive money in your
paper
wallet, scan the public key with any Bitcoin wallet app and send
it to the
payer. To send bitcoins from your paper wallet, scan your
private key to
sign your transaction.
Paper wallets are “cold storage,” which means they’re good for
securely
storing bitcoins but not very handy for making day-to-day

payments.
Paper wallets are secure because they have no digital
component and
they can’t be stolen or hacked remotely. But you must destroy
the digital
copy of the wallet after you print it, to make sure no one else
can
replicate it.
If you leave your private keys in an unsecured place, the wrong
person
might chance upon them. Also, you might accidentally destroy
your
keys, which will also result in losing your funds without
recourse. For
instance, if you lose or destroy your hardware or paper wallet or
forget
your security PIN, your bitcoins will be lost forever.
make sure you keep your bitcoins safe.
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PC MAGAZINE DIGITAL EDITION I SUBSCRIBE I

OCTOBER 2019
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O c t o b e r 2 0 1 9 J O U R N A L O F I N T E R N E T L A
W
3
Legal Protection
For Bitcoin Users
In E-Commerce
Transactions
By Elli Ruslina
I . I N T R O D U C T I O N
Globalization of the flow of technology is so
rapidly developing in the life of society, nation, and
state. The economic life of the presence of technol-
ogy has brought about a major change in transactions
[1], so that conventional transactions have begun to
be abandoned and switched to electronic transactions
or e-commerce. E-commerce is a form or model of

contemporary trade that deserves to be called the pio-
neer of trade development in the 21st century (Robby
Ikhwan Sandi dan Fadhilah Ramadhini, 2018). The
issue of globalization, the century of high-technology
information and developments that change lives [2],
especially in economics has an uncontrolled impact
as a consequence of high technology applications,
because it offers efficiency, effectiveness and conve-
nience and other benefits that cannot be obtained in
conventional trade-based practices on conventional-
traditional practices and devices. This tool is used
in transactions or electronic commerce/e-commerce
through.
Electronic Data Interchange (EDI), telex, fax,
Electronic Fund Transfer (EFT), and internet. One
of the transactions or electronic trading [3], that is
of concern to the world community today is trad-
ing via the internet with the emergence of new
payment methods that no longer use paper or paper-
less. Ranging from banking, internet banking, Pay
Pal, to venturing into virtual currencies like Bitcoin.
Bitcoin is referred to as cryptocurrency, which is a
form of payment instrument that uses cryptography
or a special security algorithm to control the man-
agement and manufacture of Bitcoin. [4], such as
the United States, Germany, Japan, New Zealand,
Finland, South Korea, China, Hong Kong, Denmark,
Russia, Taiwan, as well as in Asia such as Singapore,
Bangladesh, Thailand and including Indonesia using
Bitcoin as a payment instrument. This is even more
interesting because it offers a new concept of payment
without relying on the trust of each bank or decen-
tralization [5].

The more rapid use of Bitcoin as a means of pay-
ment, raises concerns for users in making transac-
tions, because there is no regulation about bitcoin.
Therefore for those who use bitcoin, legal uncertainty
arises as a result of weak protection for users, because
these transaction activities only involve progammer,
bitcoin users with computer network media, without
any interference from the government or the central
bank. Reaffirmed by the prohibition to use bitcoin,
including Indonesia. The urgency of writing this paper
is intended to provide an understanding and descrip-
tion of whether the absence of rules about Bitcoin
can function the existence of private law, public law,
and state administration law as protection for bitcoin
users. How is the role of the state in overcoming the
problems that arise as a result of the transaction of
using bitcoin as a means of payment, related to the
obligation to citizens, because it can pose a threat to
the country’s economy.
I I . R E V I E W L I T E R AT U R E
Some literature analyzing the results of research
on Bitcoin serves as a source of literature and theory
in the writing of this paper.
A . DEFINITION OF BITCOIN
Satoshi Nakamoto in a paper written in November
2008, entitled “Bitcoin: A Peer-to-Peer Electronic
Cash System”. The system and the way Bitcoin works
is a peer-to-peer online electronic payment [6]. With
Dr. Elli Ruslina. International Economic Law, Law Faculty,
Pasundan University, Bandung, Indonesia. E-mail:
[email protected]

unpas.ac.id
mailto:[email protected]
mailto:[email protected]
J O U R N A L O F I N T E R N E T L A W O c t o b e r 2 0
1 9
4
the peer-to-peer system, Bitcoin allows one to trans-
fer directly without third party intermediaries or any
financial institution. The online payment referred to,
will be able to minimize all possible errors and secu-
rity risks, including also minimizing the occurrence
of double transactions. For that, it can bridge this, it
can only be done with a peer-to-peer system that is
equipped with a digital signature, a transaction time
recorder that has been changed with a hash, so that
it cannot be changed, and many other cryptography
used in it.
Bitcoin is two things at once. First, it is a digital
currency, meaning that the unit of account it employs
has no physical counterpart with legal tender sta-
tus [7]. Second, Bitcoin is what Friedrich A. Hayek
describe as a “privat currency”: a currency provided
by private enterprise aimd at combatting government
monopolies on the supply of money. [4].
Financial actors, such as central banks or gov-
ernment institutions, are not involved with Bitcoin
transactions [7]. Consequently, there is little legal
regulation or supervision of Bitcoin usage. The inter-
action between Bitcoin from its supply to the means

by which it is generated are controlled solely by its
users. Hayek argued that traditional government-
backed currencies a prone to number of weaknesses,
particullary susceptibility to inflation and polital cor-
ruption. [4]. Privat currencies, Hayek suggested, are
more stable than traditional currencies because they
do not share these weaknesses.
B . THE LEGAL RELATIONSHIP OF BITCOIN
USERS IN E-COMMERCE
As stated in the sense of bitcoin, that transac-
tions are carried out by peer-to-peer, which is decen-
tralized. Bitcoin consists of three parts, namely block
chain, mining network, and wallet. Block chain is a
list of every bitcoin transaction that is carried out,
this Block chain records all transactions carried out
and is a proof of each transaction. This block chain
has no managers, both individuals and organizations,
but this block chain holder is every computer that
mines Bitcoin. People who mine Bitcoin (miners) are
people who maintain old transactions and ensure new
transactions are recorded. Wallet (wallet) is a part of
Bitcoin that is often seen by users. Actually the wal-
let/wallet doesn’t store Bitcoin but only stores the
private key which allows the owner to add transac-
tions to the block chain in an address in the form of
a public key. Bitcoin is only stored as a transaction
record in the block chain. Bitcoin security comes
mostly from hashing, its function is to link one block
to another block in the block chain. Each block stores
the previous hash block, and the block hash value
is now (which also needs to be changed in the next
block, etc.) everyone can check that no transaction
has ever changed the hash value because if it is done

then the hash value will be affected and not l linked.
Legal actions carried out fall into the realm of private
law, the legal relationship that occurs is only binding
on the parties involved in Bitcoin transactions.
C . BITCOIN REGULATION AND LEGAL
PROTECTION
Legal protection is a subjective right that must be
possessed by legal subjects. E-commerce activities that
use Bitcoin as a payment tool have involved parties,
including the bitcoin users. In order for his actions to
be protected there should be a legal instrument. But in
reality there are no specific arrangements. Some coun-
tries are trying to anticipate Bitcoin users, including:
The Japanese Financial Services Agency (FSA)
analyzes technology and develops clear and fair legis-
lation to regulate virtual currency exchange. Bitcoin
exchange is a good way for the adoption of bitcoin
and the future of virtual currencies. The regulatory
agenda is a good thing in building trust in Bitcoin,
so the world can understand and accept Bitcoin and
other digital currencies. This FSA regulation success-
fully revealed of 669 Suspicious Financial Transaction
Reports (STRs), the result was crypto represented
only 0.16% of money laundering activity and Japan
planned to bring to the G 20 meeting to call for joint
regulatory efforts to combat cryptocurrency use, but
G 20 refused motion for global regulation because
the cryptocurrency is still less than 1% of the world
economy.
Europe, France and the German Finance Minister
have agreed to start general oppression in the digital
currency market, as the cryptocurrency ban is unavoid-

able, as stated by Marcon and Merkel, namely col-
lective dissatisfaction with Bitcoin, while other EU
governments continue to reject the boom. One key
is to control currencies and taxes. Cryptocurrency
O c t o b e r 2 0 1 9 J O U R N A L O F I N T E R N E T L A
W
5
interferes with a decentralized regime, is a real threat to
sovereignty, so that the response of governments that
will see more non-control than technological evolu-
tion is unavoidable. The European Union previously
proposed to impose a cryptocurrency market as a secu-
rity threat related to money laundering and terosris.
The French and German Finance Ministers will sub-
mit a joint proposal to regulate the bitcoin cryptocur-
rency at the next G20 summit. But the President of the
European Central Bank issued a statement about cryp-
tocurrency, that the ECB does not have the power to
ban or regulate Bitcoin. At the ECB we follow this evo-
lution, but this technology is not yet ripe for consider-
ation in ECB monetary policy or as a payment system.
Singapore’s Deputy Prime Minister and Chair of
the Singapore Monetary Authority (MAS), stressed
that MAS, Singapore’s financial regulator and the
Central Bank, would not distinguish between trans-
actions conducted in fiat and cryptocurrency in an
effort to enforce Singapore Anti-Money Laundering
(AML) law. Also added that all financial institutions
will be subject to the same rules. The MAS Chair also
stated that the Department of Commercial Affairs

would be empowered to investigate and try cases
relating to money laundering and terrorism financ-
ing. Furthermore, that regulation of virtual currency
transactions can pose challenges that are not related
to monitoring currency circulation.
While it does not recognize bitcoin as a payment
tool, China recognize that digital currency is inevi-
table and is in no hurry to regulate cryptocurrencies
according to the Central Bank Governor, People’s
Bank of China (PBoC).
Central Bank Officer
The use of Bitcoin in Indonesia in reality does not
have a clear legal status, even Bank Indonesia issued a
statement that the cryptocurrency is illegal as money
or a means of payment, with the consideration that
not issued by the monetary authority, does not meet
the characteristics of money. The legal consideration is
Law Number 7 of 2011 concerning Currency; in prin-
ciple payment in each transaction must use rupiah; PBI
No.17/3/PBI/2015, that all transactions in Indonesia
must use Rupiah; PBI No.18/40/PBI/2016, prohibition
of making payment transactions with virtual currency;
PBI No.19/12/PBI, that the implementation of Tek
Fin is prohibited from conducting SP activities with
virtual currency. Based on the results of a literature
review relating to transactions using Bitcoin, some
countries did not issue regulations on bitcoin.
I I I . M E T H O D
Literature survey method used in this paper, in
the form of books, journals and rules related to the

topics discussed. Furthermore, library data were ana-
lyzed descriptively and qualitatively.
I V. D I S C U S S I O N
A . THE FUNCTIONS OF PRIVATE LAW AND
PUBLIC LAW IN THE SETTING OF BITCOIN
AS A MEANS OF PAYMENT .
Based on an inventory of literature data,
both from book and journal literature, as well as
some regulations related to transactions, it was
found that the payment system was a form of the
Central Bank’s duty to maintain economic stability.
Singapore, several countries in Europe, China and
Indonesia as samples for analysis. These countries
determine their respective policies, including not
regulating transactions with virtual currencies. The
Central Bank of Indonesia regulates the payment
system including payment instruments, banking
procedures and also the interbank fund transfer sys-
tem used in the payment process. The Central Bank
has a role (bitcoin as a legal payment instrument in
online) [8].
Regulatory, the central bank does not regulate
transactions using virtual money, but the realization
of the practice of using virtual money in the form of
bitcoin is mostly done in economic life, resulting in
a legal vacuum (rechts vacuum). The existence of
private law, public law, and state administrative law
must be functioned according to their needs. The use
of Bitcoin in transactions that are decentralized, only
involves peer-to-peer, meaning that there is a legal
relationship between the parties concerned [1].

In reality based on inventory and observation
through literature in several countries that the existence
of bitcoin as a means of payment has not been specifi-
cally regulated. Though the regulation of bitcoin regu-
lation is a problem and is always debated by the digital
J O U R N A L O F I N T E R N E T L A W O c t o b e r 2 0
1 9
6
currency industry. This regulatory issue is important
because bitcoin transaction activities involve technol-
ogy. Technologically, Bitcoin has unique features, so it
has the potential to cause impacts and disruption to vari-
ous industries and institutions. As stated in the literature
review, Bitcoin transactions involve 3 items, miners, wal-
lets, and blockchain, all of these are digital devices.
Although there has been a will from government
agencies and the Central Bank and Regulators have
begun to publish opinions about Bitcoin that have
begun to be published regarding the risk of Bitcoin,
which is intended for users and financial stability.
Then this publication began to be responded by sev-
eral countries, such as the European Union, Singapore,
and China. The European Central Bank, however,
insists that digital currency schemes do not pose a sig-
nificant risk, because the volume is relatively lower
than the link with the real economy. There, however,
can be changes if the cryptocurrency scheme is more
widespread and more important. This legal vacuum
allows problems that arise to be resolved through the
domain of private law because it involves the parties;

public law may also be involved in this issue if it is
related to economic stability; State administrative
law is also important to consider in the framework of
control, although the use of Bitcoin does not involve
institutions formed by the state.
B . THE ROLE OF THE STATE IN
PROVIDING LEGAL PROTECTIONE
The use of Bitcoin as a payment instrument on a
regulatory basis has not been specifically regulated due
to various considerations of state policies, such as the
European Central Bank, the Bank insists that as long
as the use of Bitcoin does not cause economic stabil-
ity, consider regulation is not yet a requirement that
must be prioritized, even though digital industry play-
ers, that the rules of one element must be hastened
to death. Indonesia has different considerations, that
bitcoin as a virtual currency is not a means of financ-
ing, even the Central Bank of Indonesia prohibits the
use of bitcoin. But the reality seems to allow bitcoin
users to perform transactions.
Paying attention to the situation and conditions
of the use of bitcoin and the availability of regulations
to regulate bitcoin has not yet been realized, the closest
party is the Central Bank. The Central Bank has duties
and obligations, even supervision in order to maintain
economic stability in their respective countries.
V. C O N C L U S I O N
In order to fill the legal vacuum for electronic
transactions by using Bitcoin payment instruments,
the tools of private law and criminal law can be used

as an alternative to solving problems.
The role of the state, especially the Central Bank,
is a special institution that has responsibility as one of
the obligations of the state in providing legal protec-
tion to its citizens.
R E F E R E N C E S
[1] R. Böhme, N. Christin, B. Edelman, and T.
Moore, “Bitcoin: Economics, Technology, and
Governance,” J. Econ. Perspect., vol. 29, no. 2,
pp. 213–238, 2015.
[2] M. Castells and P. Nations, “Information
Technology, Globalization and Social
Development f or Social Development,” Inf. Age,
vol. 9, no. 114, pp. 1477–1483, 1999.
[3] L. Kristoufek, “BitCoin meets Google Trends and
Wikipedia: Quantifying the relationship between
phenomena of the Internet era,” Sci. Rep., vol. 3,
pp. 1–7, 2013.
[4] M. Iwamura, Y. Kitamura, and T. Matsumoto, “Is
Bitcoin the Only Cryptocurrency in the Town?
Economics of Cryptocurrency And Friedrich A.
Hayek,” Ssrn, no. 602, 2014.
[5] M. M. Tampi, “Legal Protection for Bitcoin
Investors in Indonesia: To Move Beyond the
Current Exchange System,” Leg. Prot. Bitcoin
Investors Indones. To Move Beyond Curr. Exch.
Syst., vol. 47, no. 1, pp. 83–99, 2017.
[6] S. Nakamoto, “Bitcoin: A Peer-to-Peer Electronic

Cash System,” Www.Bitcoin.Org, p. 9, 2008.
[7] N. a Plassaras, “Regulating Digital Currencies:
Bringing Bitcoin within the Reach of the IMF,”
Chic. J. Int. Law, vol. 14, no. 1, pp. 377–407,
2013.
[8] S. H. TIARA DHANA DANELLA,
SIHABBUSDIN, “Bitcoin Sebagai Alat
Pembayaran Yang Legal Dalam Transaksi
Online,” Fak. Huk. Univ. Brawijaya, p. 17, 2015.
Copyright of Journal of Internet Law is the property of Aspen
Publishers Inc. and its content
may not be copied or emailed to multiple sites or posted to a
listserv without the copyright
holder's express written permission. However, users may print,
download, or email articles for
individual use.
Applying Blockchain in Industry 4.0 Applications
Nader Mohamed
Middleware Technologies Lab.
Pittsburgh, PA
USA

[email protected]
Jameela Al-Jaroodi
Department of Engineering
Robert Morris University
Moon Township, PA, USA
[email protected]
Abstract—by adopting the vision of Industry 4.0, many
industrial
sectors are eyeing the potential for advancing their systems to
achieve
higher productivity, cost-effectiveness, reliability, quality,
and
flexibility. One important sector that can greatly benefit from
adopting
Industry 4.0 principles and technologies is the manufacturing
industry.
This will help create the smart manufacturing era where
advanced
technologies and systems in Industry 4.0 will enhance the
different
processes within the manufacturing value chain and increase
efficiency
and profitability. However, Industry 4.0 requires effective
integration of
many technologies and systems and seamless operations

across all
components. This creates many challenges when creating
applications
for smart manufacturing including security, trust,
traceability,
reliability, and agreement automation within the manufacturing
value
chain. Several of these challenges can be addressed using
blockchain.
This paper discusses how blockchain can support smart
manufacturing applications in manufacturing. In addition, the
paper
proposes a middleware approach for utilizing blockchain
services and
capabilities to enable more secure, trustable, traceable,
reliable, and
autonomous smart manufacturing applications. This approach
will
offer many advantages to secure and establish good trust
among
involved parties in the manufacturing value chain. In addition,
this will
enable a verity of new applications to realize the promising
benefits of
Industry 4.0 for smart manufacturing.
Keywords- Industry 4.0, Smart Manufacturing,
Blockchain,
Middleware, Service-Oriented Middleware
I. INTRODUCTION
New technologies such as cloud computing, fog computing,
Internet of Things (IoT), Internet of Services (IoS), cyber-
physical systems (CPS), and data analytics opened the door for
many opportunities for new businesses and new business

models. At the same time, these technologies offer many
advantages to enhance automation, productivity, cost-
effectiveness, reliability, quality, and flexibility of different
business and industrial sectors. With these potential benefits,
the forth industrial revolution, Industry 4.0, started [1] aiming
to enhance different industrial sectors including manufacturing.
The main principle of smart manufacturing within the
context of Industry 4.0 is that by enabling connectivity among
various manufacturing units, facilities, machinery, suppliers
and retailers as well as other manufacturing supporting
industries, we form a valuable smart manufacturing network
through the entire manufacturing value chain [2]. This will help
automate, autonomize and optimize operations thus increasing
flexibility, increasing safety and productivity leading to reduce
costs and increased profitability. This smart manufacturing
network (see Fig. 1) changes the manufacturing business
models and enables the interactions throughout the value chain
and within its components. These benefits make manufacturers
more competitive and more flexible in producing new and
enhanced products. In addition, it facilitates the introduction of
customizable manufacturing facilities for more agile product
development and introduction to the market.
Although Industry 4.0 technologies can offer many
advantages for the manufacturing sector, there are some
challenges that need to be addressed to fully realize these
benefits. These challenges are mainly related to the
connectivity and information exchange among different
machines, units, locations and across the various firms and
entities involved in the manufacturing value chain. Some of
these challenges are security, trust, reliability, traceability, and
better integration of the value chain [3].

In the meantime, blockchain was introduced and initially
used to provide a platform to enable and support the use of
digital currency such as Bitcoin [4]. However, it was found that
blockchain is applicable and useful for many other applications
including manufacturing applications [5]. The main advantage
of blockchain is that it enables a group of entities to reach an
agreement on a certain activity and register that agreement
without the need for a regulatory authority. Their agreed upon
activities are registered, secured and shared among all parties
using blockchain. Blockchain incorporates techniques from
peer-to-peer networks and cryptography to support a distributed
shared ledger among a group of entities or users (organizations,
firms, individuals, robotics, autonomous cars, smart devices,
software agents, etc.) such that all involved agree on its
content,
Fig. 1. A smart manufacturing network utilizes technologies
like
manufacturing CPS, industrial IoT, cloud manufacturing, fog
manufacturing, manufacturing data analytics, and
communication.
Material Supplier
Cloud
Manufacturing
Factory
Factory
Logistics

Energy Supplier
Selling Agent
Consumer Agent
Storage Facility
Fog
Fog
Fog
Fog
Smart
Manufacturing
Network
Fog
978-1-7281-0554-3/19/$31.00©2019 IEEE
0852
all transactions are secure and cannot be altered after being
appended to the chain. Furthermore, the nature of block chain
allows for creating traceable irreversible audit trails,
measurable components, and access to detailed information
regarding transactions recorded in the chain, thus it permits for

detailed validations, tracking and measurements.
This paper discusses the benefits of using blockchain for
Industry 4.0 smart manufacturing and discusses how it can
address some important challenges of smart manufacturing.
The paper also purposes a middleware approach to utilize
blockchain for smart manufacturing applications based on a
service-oriented middleware specifically designed for smart
manufacturing called Man4Ware [6]. Using blockchain as part
of a middleware platform that integrates different aspects of
manufacturing with other value chain components can provide
many advantages to secure such applications and establish trust
among the involved parties in the value chain. In addition, this
approach enables many new applications capable to realize the
benefits of Industry 4.0 for the manufacturing sector.
The rest of the paper is organized as follows. Section II
provides background information about Industry 4.0 smart
manufacturing. Section III discusses information about
blockchain and how blockchain is beneficial for Industry 4.0
applications. Section IV purposes Man4Ware, the developed
middleware approach to apply blockchain to support smart
manufacturing applications. The benefits of this approach are
discussed in Section V, while Section VI concludes the paper.
II. INDUSTRY 4.0
Industry 4.0 or as it also sometimes called smart
manufacturing or Industrial IoT (IIoT) aims to facilitate better
performance, lower costs, and higher quality in various fields
of industry. In some context, it is also referred to as the creation
of the smart factory. To achieve Industry 4.0, various
components and systems such as CPS, IoT, the cloud and
cognitive computing must be integrated to collaborate towards
a common goal [7]. It is also considered the fourth generation
of the industrial revolution in terms of the evolution of

mechanization and automation of manufacturing. The concept
is promising; however, there are pressing issues that currently
impede its effective development such as integration and
flexibility [8]. To consider a factory or system as Industry 4.0
it must include interoperability, technical assistance,
information transparency, and decentralized decision making
[9]. Putting it all together, with Industry 4.0 we allow humans,
advanced manufacturing hardware, and sophisticated software,
to collaborate effectively to optimize operations and
autonomize manufacturing processes. As a result it is possible
to offer advanced capabilities to:
1. Automate more tasks using customizable and adaptive
devices and machines.
2. Incorporate new manufacturing processes, and
technologies.
3. Reduce human interaction with the machines via digital
sensing, controls and automated decisions.
4. Improve measurement and monitoring procedures using
precision devices.
5. Enhance response times for more accurate control of
processes.
6. Collect and store real-time data across all areas of the
manufacturing plant continuously.
7. Elevate analysis capabilities using the collected data and
advanced data analytics models.
8. Introduce intelligent algorithms using available data to
allow the system to make autonomous decisions.

9. Reduce the reliance on humans for monitoring and
decision making.
10. Provide better maintenance and repair operations based
on predictive analysis of operational data.
11. Create safer and more comfortable working
environments.
12. Enable the creation and utilization of new business
models in manufacturing.
13. Facilitate the integration of different technologies,
models, sectors, and organizations in the manufacturing
industry.
The success of Industry 4.0 is mainly based on the
revolutionary innovations in various technologies in hardware
and software. It is enabled by the collective advancements in
several ICT (Information and Communications Technology)
fields like:
1. Industrial Internet of Things (IoT), to enable connecting
different manufacturing machines and devices in a
network [10].
2. Internet of Service (IoS), to enable providing services for
manufacturing-related systems and organizations via the
Internet. These services can be used by their owners and
by other manufacturing systems that may need them [11].
3. Manufacturing Cyber-Physical Systems (CPS), to
facilitate useful interactions between the cyber world and
the physical manufacturing world such as machines and
robots, by providing continuous monitoring and control
services [12].

4. Cloud Manufacturing: to provide on demand scalable
computation, data storage, and advanced smart services
for different manufacturing-related applications [13].
5. Fog Manufacturing: to provide low latency support, real-
time control, location awareness, better mobility and
security support, and streaming support for
manufacturing applications [14].
6. Manufacturing Data Analytics, to offer intelligent
decisions based on gathered manufacturing data for
enhancing manufacturing processes [15].
The concept of Industry 4.0 is generally based on six design
principles. These principles offer a general framework to the
main requirements of Industry 4.0 and are discussed here with
specific references to smart manufacturing.
1. Interoperability: the ability of different manufacturing
CPS, machines, robots, and workers to connect and
communicate via a network such as IoT and IoS.
2. Service Oriented: the ability to present the functions of
the manufacturing processes as a set of services. These
services should be accessible over the IoS by other
0853
systems. These services can be provided both internally
within the same manufacturing unit and externally
beyond the manufacturing unit’s borders.

3. Decentralization: the ability of different manufacturing
systems to make decisions on their own. This requires
avoiding the use of centralized controls. Although,
manufacturing systems can benefit from other facilities
and systems like cloud manufacturing and fog
manufacturing, they still need to be able to make their
own decisions locally to effectively continue their
operations.
4. Real-time Capability: the ability to immediately collect
and analyze manufacturing data such that the right actions
can be conducted timely. This enables accurate controls
of machines operations and timely adjustments. In
addition it facilitates the discovery of erroneous
observations including possible manufacturing machine
faults, wrong workers-machines interactions, and
declines in production quality and reliability.
5. Modularity: the flexibility of changing, expanding, and
enhancing individual modules to fit new requirements in
the existing manufacturing processes or to build new
processes.
6. Virtualization: the ability to monitor manufacturing
processes such that virtual copies (digital twins) can be
created for these processes. These virtual copies can be
utilized as simulation and measurement environments for
future enhancements of manufacturing processes.
Achieving these principles is the key to a successful
implementation and deployment of useful and highly beneficial
smart manufacturing applications. Thus, it is important to
consider the specifics of these principles in the design of these
applications and find suitable techniques and technologies that
can facilitate the seamless integration across all smart

manufacturing applications components.
III. BLOCKCHAIN FOR INDUSTRY 4.0
Blockchain is a growing distributed list of linked records,
named blocks, which are connected and secured using
encryption algorithms [16]. One of the strong advocates of
blockchain and its viability in the general business and
industrial domain is IBM, as they are investing heavily in the
field and working on various blockchain enhancements and
applications [17]. There are two keys to the effectiveness of this
list: one is the required consensus among participating entities
to add a block; and the links that are created from one block to
the next, thus making it difficult to change any block after it is
added to the list. Hence, we get the name “blockchain” as it
builds a virtual chain of data blocks. An entity in this context
represents any actors involved in a transaction to be validated
and recorded. It can be a person, a group of people, an
organization, or a compute component (robot, smart device,
sensor, control device, software agent, etc.). A transaction is the
record of the activity being performed. This list (or chain)
represents a protected online registry for stating some agreed
on and conducted transactions among different entities. The
recorded transactions are usually generated as a result of certain
activities such as financial, business, industrial, or system
activities. The blocks that store the transactions are usually
timestamped, encrypted and replicated on multiple sites, and
cannot be altered. For example, several floor shop supervisors
in a factory could negotiate and establish a specific procedure
for implementation in specific conditions (e.g. specific safety
or risk management procedures). In this case, the supervisors
are the entities and the procedure after being accepted by all
becomes the transaction. Upon agreement, the transaction gets
appended to the blockchain, which includes having it time
stamped, encrypted, and replicated in multiple locations. As a

result, it becomes available for all the supervisors, however
none of them can alter it.
Since entities can collaboratively produce and link new
blocks to the blockchain, it becomes easy to create detailed
ledgers of transactions and activities. In addition, since no one
can alter registered transactions, it is also possible to establish
trust and rely on the blockchain to validate and audit activities.
Moreover, this shared history offers high levels of traceability
of any and all recorded transactions and transparency that
allows everyone involved to view these transactions. Yet, it also
provides assurances that these records (or blocks) have not been
altered by anyone in the group who created it or anyone else,
for that matter. The logical links created between the
transactions are agreed upon by the group; yet, they are
irreversible, thus making it impossible to change. Furthermore,
using encryption to record all blocks further protects the data
and only allow authorized entities to access it.
An important feature introduced in blockchain is the
enabling of two or more entities to securely record an
agreement of certain actions over a public network such as the
Internet without including a third party like an authorization
entity or government office. The involved entities may or may
not know each other and may not trust each other. Yet, they can
still make the agreement, document it and have that transaction
record appended to the chain. Hence, the record of the
agreement after it is appended to the chain cannot be altered,
canceled, or denied by any of the entities involved. A process
called “mining” is used to guarantee the validity and
consistency of the conducted agreements appended to the chain.
This important feature was not available before introducing
blockchain. Therefore, blockchain is the main enabler of the
Internet of Transactions [18][19], which is needed to support
many smart manufacturing applications. This feature can
greatly reduce the time needed to complete and register a

business agreement between the manufacturers and their
suppliers. Smart contracts can be produced, agreed on and
appended to the blockchain. Thus they become binding without
having to go through a formal registration process. Another
example is negotiated contracts with subcontractors, who will
supply specific parts or prefabricated components. In the same
manner, exact specifications of these components, pricing and
delivery information can be negotiated and finalized by the
entities involved then appended to the blockchain.
There following are some of the various features and
capabilities that blockchain offers. Some of these are
fundamental to the applications smart manufacturing.
0854
A. Digital Identities
A government issued identification like a driver’s license or
passport is generally adequate to prove our identity when
conducting official activities like using airports to travel,
opening a bank account, or buying a car. Blockchain offers a
digital equivalent that can be used to identify not only people
but also different entities like organizations [20]. This feature
enables authenticating the identities of people and entities
involved in any industrial activities over a public network. In
addition, a digital identity can be expanded to include property,
possessions and objects. Therefore, machines, sensing and
actuating devices, software agents and any other entities
involved in the manufacturing process can be issues a digital
identity. These digital identities can be issued by a
governmental organization in a way like issuing driver’s
licenses, passports, company registrations, and property titles.

This feature had already been under consideration in many
countries and many are working on the methodologies and
logistics of creating, managing and protecting digital identities.
B. Distributed Security
One of the key success factors of blockchain is its ability to
protect the data and transactions recorded in the shared ledger
using a compartmentalized and distributed approach [21]. This
protection is not only done through simple encryptions that hide
and protect individual transactions. It also includes high levels
of replications and chained series of encryptions or digital
signatures that make it impossible to alter any record that has
already been appended to the chain. Every newly added
transaction, after being validated by the participating entities, is
linked with the chain of previous transactions, thus no one
record can be altered in any way. In addition, relying on the
verified digital identities and that each transaction is recorded
with a full agreement among all entities involved, it becomes
practically impossible for any of these entities to later deny
being involved or in agreement [22]. The approach used allows
for better protection of transactions, lower risks of exposure in
case of security breaches, and higher confidence levels in the
validity of the recorded transactions.
C. Smart Contracts
The recording, validation and security features of
blockchain in the addition to the digital identity support enable
what is known as smart contracts [23]. Smart contracts permit
the conducting of credible contracts over a public network
without a third party. A smart contract is trackable, secure and
unalterable. Blockchain-based smart contracts have the
prospective to advance many industrial sectors in different
ways. One of these advancements is by automating agreement
processes between companies and their partners and between

companies and their customers in the Industry 4.0 context. This
will considerably reduce the administrative costs and create a
more efficient model to initiate, negotiate and finalize contracts
without the need to rely on third party registrations or heavy
documentation. Many areas of agreements across the smart
manufacturing value chain can be conducted using smart
contracts. Agreements with suppliers, transportation and
warehousing services providers, distributers and subcontractors
can be negotiated and recorded as smart contracts. These can be
done faster, at lower cost, yet still carry the authenticity and
credibility of regular contracts.
D. Micro-Controls
Another area where blockchain features can positively
impact smart manufacturing is the ability to facilitate micro-
metering, micro-measurements and dynamic adjustments at
fine grain details. The ability to securely record events and
activities without the need for third party confirmations and
external assurances, will increase the amount of recorded data
and activities and will allow organizations to build detailed
ledgers of their activities and processes. These can be easily
analyzed to provide measurements and quality controls at any
level of detail. In addition, it allows for accurate records that
can be easily used as audit trails and evaluation factors of a
manufacturer’s activities, market position, and financial
standing to name a few examples [24]. In smart manufacturing,
this will allow for continuous recording of processes and
activities performed within the smart manufacturing facility
and across the whole value chain. Data on safety incidents for
example can be collected continuously and with fine details in
blockchain. This will guarantee the authenticity of the data,
ensure its validity and create an unalterable record. This data
can then be mined to analyze incidents, implications, responses
and any other information recorded. The analysis will lead to

better understanding of these incidents, the identification of
trends and sources of problems and eventually using this
information to create better safety processes and improve
operations.
IV. MIDDLEWARE APPROACH FOR APPLYING
BLOCKCHAIN FOR INDUSTRY 4.0
In this section, we discuss our approach in integrating
blockchain in a middleware framework to provide solutions for
many Industry 4.0 challenges and to enable smooth
implementation and integration of Industry 4.0 systems. Smart
manufacturing applications usually involve distributed
resources and services available on different technologies such
as manufacturing CPS, cloud manufacturing, fog
manufacturing, and other hardware and software based
systems. These resources and services may belonging to one
large manufacturing firm or multiple related firms that are
linked together to support a desired value-chain. smart
manufacturing applications cannot operate effectively without
a suitable and flexible development and execution environment
supporting their operations, as well as good mechanisms
supporting the integration of all distributed resources and
services. Man4Ware [6] can be used as the supporting
development and execution framework and to provide the
integration mechanisms for these applications. Man4Ware is a
service-oriented middleware (SOM) [25] [26] designed to
develop, execute, and support distributed services for smart
manufacturing applications. It offers the essential services to
provision the development of the proposed model for smart
manufacturing. It can be used to integrate the different
technologies needed for complete smart manufacturing
solutions that include various components like industrial IoT,
manufacturing CPS, fog manufacturing, and cloud
manufacturing as shown in Fig. 2.

0855
Man4Ware views all resources in the smart manufacturing
environment including sensors, actuators, and IoT devices as
services that can be requested and deployed by other services
in smart manufacturing applications. For example, it can view
all manufacturing CPS resources in a smart factory as services
with standard interfaces that can be accessed uniformly by other
services and applications. Man4Ware also offers essential
services such as broker, invocation, location-based, and basic
security services. The broker services are responsible for other
IoT, fog computing, and cloud computing services
advertisement, discovery, and registration. There are two kinds
of broker services in Man4Ware: a global broker service
available on the cloud and local broker services offered on each
fog node or local compute nodes. The global broker is used to
cover the whole environment and the local brokers offer fast
brokering services for the local compute and fog nodes they
reside on. The invocation services provide support for local and
remote service calls. Moreover, the main functions of the
security services in Man4Ware are to integrate different
security mechanisms among all local compute and fog nodes,
IoT devices, and cloud systems and confirm that the essential
security measures are applied properly. Different kinds of smart
manufacturing applications can be developed utilizing the
services of Man4Ware along with the application specific
services needed.
Man4Ware is a service-oriented middleware, thus its
capabilities can be easily extended by adding more core
services and creating the capabilities to support additional
advanced applications services. Man4Ware is extended to cover

a key set of blockchain services that are becoming increasingly
useful for smart manufacturing applications, services that
provide blockchain functionality (see Fig. 3). These Man4Ware
services can be integrated to form new advanced services
within these applications. For example, if Man4Ware is to
integrate an application spanning multiple manufacturing firms
to exchange information and perform various shared
transactions, then Man4Ware services will enable exchanging
the data and collaborate to complete he required transactions
correctly and safely. These services can be linked with other
distributed ledger services to build verifiable and immutable
transaction logs. In addition, other integrated blockchain
services related to digital identities can be used to authenticate
these transactions. The distributed ledgers created and
maintained through Man4Ware services can be used as trusted
and traceable records and source for verifying the correctness
of these transactions. Now, smart manufacturing applications
can be built using the available services defined in Man4Ware.
These applications can engage their local broker to perform a
certain transaction with one or more entities integrated with the
application (these may be within the same organization or
external) that can provide the needed service. The local broker
service will identify and connect the required entities services.
Then, the application will use these services to work with the
entities on negotiating, validating and finalizing the desired
transaction. When the transaction is formalized and agreed
upon the blockchain services will append it to the ledger. The
blockchain service in Man4Ware will support the entire process
and encrypt and append the finalized transaction to the chain
and replicate and distribute it among the participating entities.
Man4Ware can also offer services to mine the blockchain to
find specific transactions and support analysis and micro-
control services on the chain’s content for authorized services
in the smart manufacturing applications.

Other smart manufacturing applications can use smart
contracts services to automate negotiation and agreement
processes needed by the applications. Thus, instead of building
detailed codes for such negotiation and agreement, the
blockchain services of Man4Ware can be used for this task. All
finalized contracts are also encrypted and appended to the
blockchain for secure and reliable storage and mining. In
addition, based on the features built into blockchain, all entities
involved will have to accept the smart contract before being
appended and will not be able to modify or deny it later.
Moreover, other blockchain based services can be added to
extend the functionality and offer the applications a wider set
of blockchain services through the same framework. Services
for auditing, micro-measurement, dynamic controls and
pricing, building trust models are examples that can be used by
smart manufacturing applications.
V. DISCUSSION
Integrating service-oriented middleware like Man4Ware
and blockchain capabilities in one platform can provide a
powerful environment for implementing and …
Research Paper – Information Governance
Literature Review (Health Care Privacy Policies)
Literature Review
Each week, view the video lectures under Learning Activities to
learn about the parts of the research paper. This week, you will
learn about the Literature Review.
Purpose
The purpose of this assignment is for you to prepare a first draft
of your literature review. You will receive feedback from your
instructor on your literature review that you can use to improve
it. You will eventually add your literature review to your

research paper outline to build your research paper.
Description
Summarize, compare, and contrast your annotated bibliography
into a 1-2 page literature reiew. Write your literature review as
a stand alone document in APA style.
Submit your assignment to Grammarly. Revise your assignment
based upon the results from Grammarly. Submit evidence that
you submitted and used the Grammarly results.
Deliverable
Literature review, Grammarly evidence, and Certification of
Authorship (sample attached) Certificate of Authorship.docx
You have two attempts. After submitting your first attempt,
view the SafeAssign results and modify your assignment if
needed. The second attempt is your final attempt and will be
graded.
Research Paper – Data Science and Big Data Analytics.
We have viewed how Blockchain has made a significant impact
on businesses and industries. Select one industry and highlight
the advancements Blockchain has had on that single industry.
Your paper should meet the following requirements:
• Be approximately 3-5 pages in length, not including the
required cover page and reference page.
• Follow APA guidelines. Your paper should include an
introduction, a body with fully developed content, and a
conclusion.
• Support your response with the readings from the course and
at least five peer-reviewed articles or scholarly journals to
support your positions, claims, and observations. The UC
Library is a great place to find resources.

• Be clear with well-written, concise, using excellent grammar
and style techniques. You are being graded in part on the
quality of your writing.
Reference:
Dickson, B. (2019). How to Keep Your Bitcoin Safe. PC
Magazine, 37. Retrieved from
http://search.ebscohost.com/login.aspx?direct=true&AuthType=
shib&db=f5h&AN=138901618&site=eds-live
Ruslina, E. (2019). Legal Protection for Bitcoin Users in E-
Commerce Transactions. Journal of Internet Law, 23(4), 3–6.
Retrieved from
shib&db=buh&AN=139556416&site=eds-live
N. Mohamed and J. Al-Jaroodi, "Applying Blockchain in
Industry 4.0 Applications," 2019 IEEE 9th Annual Computing
and Communication Workshop and Conference (CCWC), Las
Vegas, NV, USA, 2019, pp. 0852-0858. doi:
10.1109/CCWC.2019.8666558
URL:
http://ieeexplore.ieee.org/stamp/stamp.jsp?tp=&arnumber=8666
558&isnumber=8666184
Problem Set # 6 - Planning the Project
A project to put on a major international sporting competition
has the following major deliverables: Sports Venues, Athlete
Accommodation, Volunteer Organization, Security, Events, and
Publicity (which has already been broken down into pre-event
publicity and post-event publicity.)
Prepare a WBS for any single major deliverable on the list.
Remember the 100 percent rule, and number your objectives.
Discussion 3 - Data Science and Big Data Analytics.
Week 6 - Legal Protection for Bitcoin users in E-commerce and
Application of Blockchain in Industry and Businesses

While there are many benefits to the use of cryptocurrency,
there is also much skepticism from the general public. Much of
this concern centers around legal protection associated with
transactions. Search the Internet and outline what legal
protections exist for Bitcoin users in the US and other
countries.
Please make your initial post and two response posts
substantive. A substantive post will do at least TWO of the
following:
· Ask an interesting, thoughtful question pertaining to the topic
· Answer a question (in detail) posted by another student or the
instructor
· Provide extensive additional information on the topic
· Explain, define, or analyze the topic in detail
· Share an applicable personal experience
· Provide an outside source (for example, an article from the UC
Library) that applies to the topic, along with additional
information about the topic or the source (please cite properly
in APA)
· Make an argument concerning the topic.
At least one scholarly source should be used in the initial
discussion thread. Be sure to use information from your
readings and other sources from the UC Library. Use proper
citations and references in your post.
Reference:
Dickson, B. (2019). How to Keep Your Bitcoin Safe. PC
Magazine, 37. Retrieved from
shib&db=f5h&AN=138901618&site=eds-live
Ruslina, E. (2019). Legal Protection for Bitcoin Users in E-
Commerce Transactions. Journal of Internet Law, 23(4), 3–6.
Retrieved from
shib&db=buh&AN=139556416&site=eds-live
N. Mohamed and J. Al-Jaroodi, "Applying Blockchain in

Industry 4.0 Applications," 2019 IEEE 9th Annual Computing
and Communication Workshop and Conference (CCWC), Las
Vegas, NV, USA, 2019, pp. 0852-0858. doi:
10.1109/CCWC.2019.8666558
URL:
http://ieeexplore.ieee.org/stamp/stamp.jsp?tp=&arnumber=8666
558&isnumber=8666184
Discussion 2 – Information Governance
Chapter 6 - Information Governance Policy Development
After completing this week's Learning Activities, please provide
a substantive response (250 words & 1 reference) to the
following assessment question before Thursday at midnight.
We have established that data is a valuable asset to a business.
Describe ways to monetize data.
Reference:
Smallwood, R. F. (2014). Information Governance : Concepts,
Strategies, and Best Practices.
Wiley. ISBN: 9781118218303
SANS Security Policy Templates
https://www.sans.org/security-resources/policies
Discussion 1 – Planning the Project
Chapter 6: Culture and Project Management
Reflect on the assigned readings for Week 6 (Chapter: Culture
and Project Management) and then type a two page paper
regarding what you thought was the most important concept(s),
method(s), term(s), and/or any other thing that you felt was

worthy of your understanding.
Define and describe what you thought was worthy of your
understanding in half a page, and then explain why you felt it
was important, how you will use it, and/or how important it is
in project planning.
Reference Book:
Watt, A. (2019). Project Management, 2nd Edition. BCcampus
Open Education.
https://opentextbc.ca/projectmanagement/

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