Blockchain and Digital Twins in Smart Industry 4.0: The Use Case of Supply Chain-A Review of Integration Techniques and Applications

Abstract

The Fourth Industrial Revolution has transformed industries and supply chains by integrating advanced operations, tools, and logistics services. Despite these advancements, challenges persist, particularly in ensuring data dependability, security, and operational efficiency. Digital twins (DTs), which replicate real-world components and processes, have emerged as essential tools for enhancing predictive analytics, simulation, and product lifecycle management in Industry 4.0. However, traditional DT development relies on centralized systems, which are vulnerable to data tampering and security breaches, especially in the management of transaction logs and historical data. To address these challenges, this review provides a comprehensive analysis of the current state of integrating blockchain with DTs. Using a qualitative research methodology, including desk research, case studies, and interviews with industry experts, we analyze various blockchain-based DT applications across industries and specifically in supply chain management. The findings reveal that blockchain-enhanced DTs can significantly improve data integrity, traceability, and security, thus boosting operational efficiency and quality control in supply chains. Additionally, this study identifies key integration techniques and the role of blockchain in automating processes through smart contracts. This review provides insights into the practical implications of blockchain-based DTs, highlighting their potential to enhance the reliability and scalability of Industry 4.0 operations.