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Device failure detection is one of most essential problems in Industrial Internet of Things (IIoT). However, in conventional IIoT device failure detection, client devices need to upload raw data to the central server for model training, which might lead to disclosure of sensitive business data. Therefore, in this article, to ensure client data privacy, we propose a blockchain-based federated learning approach for device failure detection in IIoT. First, we present a platform architecture of blockchain-based federated learning systems for failure detection in IIoT, which enables verifiable integrity of client data. In the architecture, each client periodically creates a Merkle tree in which each leaf node represents a client data record, and stores the tree root on a blockchain. Furthermore, to address the data heterogeneity issue in IIoT failure detection, we propose a novel centroid distance weighted federated averaging (CDW_FedAvg …