Smart water chain: Immutable, distributed and decentralized water transaction ledgers

Abstract

Blockchain is a transactional data storage system where data can be stored reliably without the need for a central database or trusted authority. The data can be anything like financial transactions, supply chain processes or medical records. It is similar to a classical database but uses a decentralized ledger and allowing each participant in the network to have their own copy of the ledger and be able to see all transactions. Data stored in the distributed ledger can only be read or written, not deleted or updated unlike traditional central database. Reliable data is essential for the water industry for information about the current status of any water system, to build trust between stakeholders at all scales, and for effective forecasting and future scenarios by reducing uncertainty. The aim of this study is to examine the potential of using blockchain-based algorithms (smart contracts, chain codes, decentralised identifiers etc.) for the water industry on the edge of digital transformation, and to propose water-related data processing system architectures for different water quantity-quality based scenarios.