<!DOCTYPE article PUBLIC "-//NLM//DTD JATS (Z39.96) Journal Archiving and Interchange DTD v1.0 20120330//EN" "JATS-archivearticle1.dtd">
<article xmlns:xlink="http://www.w3.org/1999/xlink">
  <front>
    <journal-meta />
    <article-meta>
      <title-group>
        <article-title>Increasing the Utilization of Additive Manufacturing Resources through the Use of Blockchain Technology for a Production Network</article-title>
      </title-group>
      <contrib-group>
        <contrib contrib-type="author">
          <string-name>Wjatscheslav Baumung</string-name>
          <xref ref-type="aff" rid="aff0">0</xref>
          <xref ref-type="aff" rid="aff2">2</xref>
        </contrib>
        <contrib contrib-type="author">
          <string-name>Vladislav V. Fomin</string-name>
          <xref ref-type="aff" rid="aff1">1</xref>
          <xref ref-type="aff" rid="aff2">2</xref>
        </contrib>
        <aff id="aff0">
          <label>0</label>
          <institution>Reutlingen University</institution>
          ,
          <addr-line>Alteburgstraße 150, 72762 Reutlingen</addr-line>
          ,
          <country country="DE">Germany</country>
        </aff>
        <aff id="aff1">
          <label>1</label>
          <institution>Vilnius University</institution>
          ,
          <addr-line>Muitines g. 8, 44280 Kaunas</addr-line>
          ,
          <country country="LT">Lithuania</country>
        </aff>
        <aff id="aff2">
          <label>2</label>
          <institution>Vytautas Magnus University</institution>
          ,
          <addr-line>Donelaičio g. 58, 44248 Kaunas</addr-line>
          ,
          <country country="LT">Lithuania</country>
        </aff>
      </contrib-group>
      <pub-date>
        <year>2018</year>
      </pub-date>
      <fpage>135</fpage>
      <lpage>141</lpage>
      <abstract>
        <p>The blockchain technology enables a common data basis between the participants. Entries are logged and the authenticity of the participants is guaranteed. In the case of a relationship between customers and producers, this would lead to verifiable cooperation, which would be a major step as companies enter into service contracts based on the flow of many small transactions through communication. This paper proposes an architecture that enables the creation and processing of orders between the customer and producers via a blockchain-based production network. The handling of larger files which are traceable via the blockchain is also shown and the use of a public or permissioned blockchain for an application case is also considered.</p>
      </abstract>
      <kwd-group>
        <kwd>Production network</kwd>
        <kwd>Blockchain</kwd>
        <kwd>Smart contract</kwd>
        <kwd>Secure data exchange</kwd>
      </kwd-group>
    </article-meta>
  </front>
  <body>
    <sec id="sec-1">
      <title>-</title>
      <p>
        Companies face several challenges in acquiring innovative technologies such as
additive manufacturing technology (AM). In addition to high initial investments, the
development of know-how, the risk of unused capacity at low capacity utilization is also
a potential problem [
        <xref ref-type="bibr" rid="ref1">1</xref>
        ]. Especially high market prices of suppliers prevent access to
the integration of innovative production technologies into the own added value [
        <xref ref-type="bibr" rid="ref2">2</xref>
        ]. To
overcome this problem, the capacity utilization of production lines within a company
must be analyzed and optimized in the best possible way. For cross-company and
cross-industry use, product and order data must be mapped in an access-safe manner
in order to offer new potential benefits. Since outsourcing production orders usually
involves considerable organizational effort, companies are often forced to build up
more production capacity than is actually needed to meet the required delivery dates.
As a result, production facilities are often used inefficiently [
        <xref ref-type="bibr" rid="ref3">3</xref>
        ]. From these problems,
the following research questions can be derived:




      </p>
      <p>How can innovative production capacities be offered to a wide range of
users without intermediaries?
Is it possible to process orders between customers and manufacturers
using Smart Contracts?
Would a public or private blockchain be more suitable for a production
network?
How to establish a secure data exchange for larger data volumes for the
models to be produced between customer and manufacturer in connection
with the blockchain?</p>
      <p>In this article, we explain how blockchain technology can be used to build up the
joint use of production data for efficient utilization of the capacities in a production
network using the additive manufacturing facilities as an example. We propose an
architecture that connects manufacturing companies and customers without
middlemen while at the same time enables economic optimization of production capacities
via an open block-chain-based production network with secure product and order data
transfers. We also address the problem of handling large amounts of data between the
respective parties. For this purpose, a blockchain-based mechanism is presented in
which data is stored outside the blockchain, but can still be traced and stored in a
secure manner via the blockchain. For the proposed structure and mechanism, a
proof-of-concept prototype is presented in the Implementation section, the feasibility
and effectiveness of which will be demonstrated experimentally.
2</p>
    </sec>
    <sec id="sec-2">
      <title>The Key Terms and Definitions Used</title>
      <sec id="sec-2-1">
        <title>Additive Manufacturing</title>
        <p>
          Additive manufacturing (AM), also known as 3D printing and rapid
manufacturing, describes a group of manufacturing technologies that can produce complex
objects by automatically adding layered material until a three dimensional object is
printed. Compared to traditional manufacturing, AM offers the advantage of
producing parts directly and without special tools using a variety of materials such as plastic,
metal or ceramics. In recent years, AM has evolved from an application for the rapid
prototyping to a manufacturing technology for the production of quality parts for
small batch sizes or mass production. As technology matures, AM proves to be a
serious response to many common problems in the production process in companies
and a real contribution to the 4th industrial revolution [
          <xref ref-type="bibr" rid="ref4">4</xref>
          ]. The integration of AM into
existing production and supply networks promises great advantages for the design of
customer-specific objects and thus also in the production process.
        </p>
      </sec>
      <sec id="sec-2-2">
        <title>Blockchain</title>
        <p>
          The blockchain (BC) is a new technology that enables all members of a network to
process transactions in a decentralized, tamper-proof and transparent manner. To
track the aspect of decentralization, the BC stores a series of data sets (blocks) via an
individual concatenation (hash values) on its predecessor or successor data set [
          <xref ref-type="bibr" rid="ref5">5</xref>
          ].
These so-called "hash" sentences form the connection between the blocks, i.e. the
chain. This creates a decentralized database with a constantly growing list of
transaction data records. In many market domains, the blockchain is considered a key
technology for future developments [
          <xref ref-type="bibr" rid="ref6">6</xref>
          ]. In addition to the pure storage of transactions, as
e.g., featured in well-known bitcoin network, many other BC platforms such as
Ethereum offer the storage and execution of so-called smart contracts (SC). These SC
are computer programs that can map legal contracts and check their compliance. As a
result, manufacturing companies are offered new perspectives and applications, as
critical data such as design drawings or orders can be transmitted across company
boundaries. Blockchain technology is able to protect the entire production chain from
unauthorized access and thus increases the possibility of network cooperation [
          <xref ref-type="bibr" rid="ref7">7</xref>
          ].
Consequently, the security of product and order data can, in the near future, be
handled as the strategic resource with the highest priority within companies.
        </p>
        <sec id="sec-2-2-1">
          <title>Ethereum</title>
          <p>
            Ethereum is a public block chain with SC functionality in which anyone can
participate and contribute in mining for block verification [
            <xref ref-type="bibr" rid="ref8">8</xref>
            ]. For the validation, the
proofof-work (PoW) consensus mechanism is used, which includes a certain difficulty and
requires hardware performance that leads to high power consumption [
            <xref ref-type="bibr" rid="ref9">9</xref>
            ]. For the SC
functionality purpose, Ethereum, extends bitcoin's usual currency transactions by the
technology of the Ethereum Virtual Machine (EVM), which enables Turing complete
SC for new applications to represent business logic. The contracts are written in
Solidity, which are then compiled to EVM bytecodes. To save states, each SC has its
own memory. The memory represents a key value storage, with which several
elementary types can be combined to complex types such as map, array and composite
structures using Solidity [
            <xref ref-type="bibr" rid="ref10">10</xref>
            ]. In addition to normal currency transactions, EVM also
carries out SC Bytecodes as special transactions. The hardware resources used during
the execution of a contract are tracked by EVM and debited to the account of the
transaction sender. If the funds of the transaction sender are not sufficient for
execution, the changes are reversed by the EVM using the intermediate state changes. Since
Ethereum is an open source project, the network can also be adapted as a private
blockchain network to the respective needs of the application case.
          </p>
        </sec>
        <sec id="sec-2-2-2">
          <title>Hyperledger</title>
          <p>
            Hyperledger is an open source collaboration led by the Linux Foundation since
2015 and, unlike Ethereum, is a permissioned blockchain [
            <xref ref-type="bibr" rid="ref11">11</xref>
            ]. Like Ethereum,
Hyperledger offers the functionality of SC, which enables the use of business logic
and automation. Participants must be recognized, but not necessarily have full
confidence in each other. All parties have their own copy of the distributed ledger and only
see the transactions associated with their business [
            <xref ref-type="bibr" rid="ref12">12</xref>
            ]. To do tis, business partners set
up a common system with a common ledger, and thereby avoid the PoW consensus
mechanism [
            <xref ref-type="bibr" rid="ref12">12</xref>
            ]. Validation can only be performed by certain actuators. In addition,
Hyperledger offers authorization control, unlinkable participant identity data as well
as a fast and modular consensus protocol. Hyperledger therefore provides many
functions that enable an application at enterprise level.
          </p>
        </sec>
      </sec>
    </sec>
    <sec id="sec-3">
      <title>Architecture for a Blockchain-Based Production Network</title>
      <sec id="sec-3-1">
        <title>Proposed Architecture of a Blockchain-Based Production Network</title>
        <p>The model proposes an architecture for building a block-chain-based production
network for order processing using AM. The aim is to create a structure that enables
mutual interaction between manufacturer and customer. The data required for this is
stored in SC in a tamper-proof and transparent manner. This data contains the address
data, order data on the customer side and the address data or capacity descriptions on
the producer side. A software takes over the combination of supply and demand to
save the data for the order as a new SC. On the customer side, a suitable production
capacity can be determined and on the producer side, customer orders can be found in
order to increase the utilization of a production capacity. On the following we present
a model which provides a detailed explanation of the customer's and manufacturer's
point of view.
3.2</p>
      </sec>
      <sec id="sec-3-2">
        <title>Production Order Creation Based on the Customer's Demand and</title>
      </sec>
      <sec id="sec-3-3">
        <title>Producer’s Unused Production Capacity</title>
        <p>On the customer side, the process starts based on the demand for a model to be
produced. In the following, the model to be produced is referred to as a production object
only. The production object is described below as a single piece, but can also be
regarded as a production order with a multiple number of different models or objects.
To report the demand of a manufacturing activity to the production network, the
relevant production data must first be extracted from the production object as well as the
manufacturing data on the customer side. For these data, a distinction must be
differentiated between public and private data. The public data provides the information
manufacturers need to decide whether to accept the order. Therefore, the public data
include the maximum dimensions and the volume of the production object. The
private data represent the digital model of the production object itself and are only stored
after the producer is known and only provided to him. On the producer side, the
process starts on the unused or unallocated production capacity. This requires the data of
the production resource to be extracted first. In addition to the machine
characteristics, the available material and the period of use, the data can also provide only a
specific area within the manufacturing facility's area for the production network. This can
be the case if an internal production order at the manufacturer does not use the full
production capacity of a manufacturing facility. This data processing can also be
carried out using an extended production planning and control system (PPC) for this
application. The data processed by the customer and producer is then transferred and
stored in a SC production order on the blockchain. A SC production order is created
as soon as it is reported either by the customer or manufacturer. The process described
in the model, which is shown in Fig. 1, only takes place when at least one customer
and one manufacturer are present in the production order. If a production resource is
not fully used by a single customer, other customers can also access the production
resource. The SC production order is terminated when the production resource is fully
used, the usable period of the production order ends or the producer ends the order.
After the provision of the production resource has been terminated, the customer must
first encrypt the digital model of the production object using the manufacturer's public
key, from the SC production order, and then store it in a cloud storage accessible to
the manufacturer. The path to the encrypted production object is then stored in the SC
production order for documentation purposes and to allow the manufacturer to access
the object. The producer then saves the object locally and decrypts it using his private
key. Based on the production data in the SC production order and the object, the
manufacturer has all relevant data to schedule, execute and complete the production order.
The SC production order is completed when the customer receives his production
object and records it in the SC.</p>
      </sec>
    </sec>
    <sec id="sec-4">
      <title>Implementation of the Use Case of a Production Order in a Blockchain-Based Production Network</title>
      <p>
        The presented architecture was validated on a public and permissioned blockchain.
For this purpose, a web portal was developed that serves on the one hand for
communication with the blockchain networks and on the other hand for extracting the
required production data. With the portal, the roles of the customer and producer can be
represented simultaneously. In this way, the stored data in the blockchain as well as in
the cloud storage could be visualized. It also acts as the part of the automated data
extraction from the 3D models required to schedule the necessary production resource
capacities. For the public blockchain the Ethereum platform was used and for the
permissioned blockchain the Hyperledger Fabric. For the experiments on the
Ethereum platform, the platform was used as a private blockchain. The SC
development was written for Ethereum using the language Solidity [
        <xref ref-type="bibr" rid="ref10">10</xref>
        ] and for Hyperledger
the chaincode, which is the synonym in Hyperledger for an SC, the language Go was
used. For the model upload of the production object for the customer, the node-stl
[
        <xref ref-type="bibr" rid="ref13">13</xref>
        ] package was used for automated data extraction of the maximum object
dimensions and volume. These data are required to determine the required building space on
the producer side. These were then stored as SC together with further information for
production. The standardized Open PGP was used to encrypt the digital model of the
production model [
        <xref ref-type="bibr" rid="ref14">14</xref>
        ]. For cloud storage, a dedicated file storage server was used as
central storage and IPFS [
        <xref ref-type="bibr" rid="ref15">15</xref>
        ] in the case of decentralized storage, which corresponds
to the idea of the blockchain.
5
      </p>
    </sec>
    <sec id="sec-5">
      <title>Results</title>
      <p>The implementation has demonstrated that order provisioning and processing can be
handled via the public and permissioned blockchain. With the architecture presented
on the public blockchain, customers can offer their production needs to an open
community of producers without the need for an intermediary in the form of a
platform. Advantageous in this context is that the middleman loses data sovereignty,
which allows new business contacts to be established between customers and
producers. However, the resulting costs of Smart Contracts, which would represent a
restriction on the basis of a public blockchain, must be taken into account. The use of
Ethereum in this implementation, at this point, only represents an exemplary use of a
public blockchain. Therefore, the proposed architecture could also be applied to any
other public blockchain that provides the functionality of SC. In addition, the
functionality of the architecture was tested on a permissioned blockchain. In case of using
Hyperledger, this offers the advantage that no transaction fees are charged and the
information that is made available to which participants in the blockchain can be
controlled. As a result, all production orders can be processed without incurring
followup costs on the one hand, while on the other hand creating confidence, as all parties
share a common database for the orders. Furthermore, the implementations showed
that there should be no doubt whether the public or private blockchain should be
chosen. On the contrary, both types of the blockchain should have a justification for
existence and should exist parallel to each other. Furthermore, the implementation has
shown that both the public and the private blockchain have a right to exist when
considering a single application case and should exist parallel to each other. In this way
the public blockchain is able to establish new connections between customers and
producers and to work with existing business relations the permissioned blockchain
can be used to avoid further costs, while taking advantage of a mutual database. We
also showed that the problem of storing large files in connection with the blockchain
can be solved using cloud storage and encryption.
6</p>
    </sec>
    <sec id="sec-6">
      <title>Conclusions</title>
      <p>An architecture was presented that enables order processing between customer and
producer with document exchange via a public and private blockchain. The
implementation was used to examine how data can be stored in a tamper-proof and
transparent manner. It was shown how production resources in a production network based
on the blockchain companies can be distributed. The paper showed how production
resources in a production network based on the blockchain can be distributed.
Overand under capacities, as described in the introductory part, could be managed for the
producers and individual production facilities with their specific characteristics and
capacities could be realized flexibly and as an integrative open production network.
We also discussed that for the model of a production network public and private
blockchain should exist parallel to each other. We have shown that a public and
private blockchain both have a right to exist for the implementation of a production
network. In this context, we also explained the possible use cases, when which
blockchain type should be chosen. Further research should be done to consider the
presented architecture in relation to other participants in the production chain. It
would also make sense to consider the approach presented in connection with Internet
of Things (IoT) in order to further automate the process flow and reduce the effort for
the producer to participate.</p>
    </sec>
  </body>
  <back>
    <ref-list>
      <ref id="ref1">
        <mixed-citation>
          1.
          <string-name>
            <surname>Gibson</surname>
            <given-names>I</given-names>
          </string-name>
          ,
          <string-name>
            <surname>Rosen</surname>
            <given-names>D</given-names>
          </string-name>
          ,
          <string-name>
            <surname>Stucker</surname>
            <given-names>B</given-names>
          </string-name>
          (
          <year>2015</year>
          )
          <article-title>Additive manufacturing technologies: 3D printing, rapid prototyping and direct digital manufacturing</article-title>
          ,
          <source>Second Edition</source>
          . Springer, New York, Heidelberg, Dodrecht, London
        </mixed-citation>
      </ref>
      <ref id="ref2">
        <mixed-citation>
          2.
          <string-name>
            <surname>Klahn</surname>
            <given-names>C</given-names>
          </string-name>
          ,
          <string-name>
            <surname>Leutenecker</surname>
            <given-names>B</given-names>
          </string-name>
          ,
          <string-name>
            <surname>Meboldt</surname>
            <given-names>M</given-names>
          </string-name>
          (
          <year>2015</year>
          )
          <article-title>Design strategies for the process of additive manufacturing</article-title>
          .
          <source>Procedia CIRP</source>
          <volume>36</volume>
          :
          <fpage>230</fpage>
          -
          <lpage>235</lpage>
          . doi:
          <volume>10</volume>
          .1016/j.procir.
          <year>2015</year>
          .
          <volume>01</volume>
          .082
        </mixed-citation>
      </ref>
      <ref id="ref3">
        <mixed-citation>
          3.
          <string-name>
            <surname>Gebhardt</surname>
            <given-names>A</given-names>
          </string-name>
          ,
          <string-name>
            <surname>Hötter</surname>
            <given-names>J-S</given-names>
          </string-name>
          (
          <year>2016</year>
          )
          <article-title>Additive manufacturing: 3D printing for prototyping and manufacturing</article-title>
          .
          <source>Hanser Publications</source>
          , Munich, Hanser Publishers, Cincinnati
        </mixed-citation>
      </ref>
      <ref id="ref4">
        <mixed-citation>
          4.
          <string-name>
            <given-names>McKinsey</given-names>
            <surname>Digital</surname>
          </string-name>
          (
          <year>2015</year>
          )
          <article-title>Industry 4.0: How to navigate digitization of the manufacturing sector</article-title>
          , https://www.mckinsey.
          <article-title>com/business-functions/operations/our-insights/industryfour-point-o-how-to-navigae-the-digitization-of-the-manufacturing-sector</article-title>
        </mixed-citation>
      </ref>
      <ref id="ref5">
        <mixed-citation>
          5.
          <string-name>
            <surname>Risius</surname>
            <given-names>M</given-names>
          </string-name>
          ,
          <string-name>
            <surname>Spohrer</surname>
            <given-names>K</given-names>
          </string-name>
          (
          <year>2017</year>
          )
          <article-title>A blockchain research framework</article-title>
          .
          <source>Bus Inf Syst Eng</source>
          <volume>59</volume>
          (
          <issue>6</issue>
          ):
          <fpage>385</fpage>
          -
          <lpage>409</lpage>
          . doi:
          <volume>10</volume>
          .1007/s12599-017-0506-0
        </mixed-citation>
      </ref>
      <ref id="ref6">
        <mixed-citation>
          6.
          <string-name>
            <surname>Petersen</surname>
            <given-names>M</given-names>
          </string-name>
          ,
          <string-name>
            <surname>Hackius</surname>
            <given-names>N</given-names>
          </string-name>
          ,
          <string-name>
            <surname>Kersten</surname>
            <given-names>W</given-names>
          </string-name>
          (
          <year>2016</year>
          )
          <article-title>Blockchains für produktion und logistik</article-title>
          .
          <source>ZWF</source>
          <volume>111</volume>
          (
          <issue>10</issue>
          ):
          <fpage>626</fpage>
          -
          <lpage>629</lpage>
          . doi:
          <volume>10</volume>
          .3139/104.111603
        </mixed-citation>
      </ref>
      <ref id="ref7">
        <mixed-citation>
          7. Burgwinkel D (ed) (
          <year>2016</year>
          )
          <article-title>Blockchain technology: Einführung für business- und IT manager</article-title>
          . De Gruyter Oldenbourg, Berlin, Boston
        </mixed-citation>
      </ref>
      <ref id="ref8">
        <mixed-citation>
          8.
          <string-name>
            <given-names>Ethereum</given-names>
            <surname>Fondation</surname>
          </string-name>
          (
          <year>2018</year>
          ), https://ethereum.org/,
          <source>last accessed</source>
          <year>2018</year>
          /04/30
        </mixed-citation>
      </ref>
      <ref id="ref9">
        <mixed-citation>
          9.
          <string-name>
            <surname>Bahga</surname>
            <given-names>A</given-names>
          </string-name>
          ,
          <string-name>
            <surname>Madisetti</surname>
            <given-names>V</given-names>
          </string-name>
          (
          <year>2017</year>
          )
          <article-title>Blockchain Applications: A Hands-On Approach</article-title>
          . VPT
        </mixed-citation>
      </ref>
      <ref id="ref10">
        <mixed-citation>
          10.
          <string-name>
            <surname>Ethereum</surname>
          </string-name>
          (
          <year>2016</year>
          ) Solidity, https://solidity.readthedocs.
          <source>io/en/v0.4</source>
          .23/, last accessed
          <year>2018</year>
          /04/30
        </mixed-citation>
      </ref>
      <ref id="ref11">
        <mixed-citation>
          11.
          <string-name>
            <surname>Hathi</surname>
            <given-names>R</given-names>
          </string-name>
          ,
          <string-name>
            <surname>Balani</surname>
            <given-names>N</given-names>
          </string-name>
          (
          <year>2017</year>
          )
          <article-title>Enterprise Blockchain: A Definitive Handbook</article-title>
          . Independently Published
        </mixed-citation>
      </ref>
      <ref id="ref12">
        <mixed-citation>
          12.
          <string-name>
            <surname>Hyperledger</surname>
          </string-name>
          (
          <year>2017</year>
          )
          <article-title>Hyperledger Fabric</article-title>
          , https://hyperledgerfabric.readthedocs.io/en/release-1.1/, last accessed
          <year>2018</year>
          /06/05
        </mixed-citation>
      </ref>
      <ref id="ref13">
        <mixed-citation>
          13.
          <string-name>
            <surname>Boyne</surname>
            <given-names>J</given-names>
          </string-name>
          ,
          <string-name>
            <surname>Vazhatharayil</surname>
            <given-names>A J</given-names>
          </string-name>
          (
          <year>2018</year>
          )
          <article-title>Island Games Studio, lexe11 Node-stl</article-title>
          , https://www.npmjs.com/package/node-stl,
          <source>last accessed</source>
          <year>2018</year>
          /04/30
        </mixed-citation>
      </ref>
      <ref id="ref14">
        <mixed-citation>
          14. OpenPGP, OpenPGP, https://www.openpgp.org/about/,
          <source>last accessed</source>
          <year>2018</year>
          /04/30
        </mixed-citation>
      </ref>
      <ref id="ref15">
        <mixed-citation>
          15.
          <string-name>
            <surname>Protocol</surname>
            <given-names>Labs</given-names>
          </string-name>
          , IPFS, https://ipfs.io/,
          <source>last accessed</source>
          <year>2018</year>
          /04/30
        </mixed-citation>
      </ref>
    </ref-list>
  </back>
</article>