Current Industrial Internet of Things (IIoT) systems have drawbacks such as centralization andvarious overheads. According to recent research, Blockchain-based decentralized IoT systemscomplement each other to create a robust and intelligent system. However, its commercializationis hampered by the need for significant computational resources and storage space for large-scaleblockchain networks. Due to limited scalability, and storage, smart contract-based approachesare only feasible for small-scale IIoT scenarios. This research aims to increase the scalabilityof IIoT solutions while ensuring privacy. We recommend a blockchain-based architecture thatutilizes sharding and the Interplanetary File System (IPFS) to efficiently store, process, andretrieve data. Sustainable Design choices and optimization are considered to make it suitablefor large-scale implementations. It is concluded through a proof-of-concept implementationthat the underlying blockchain consensus mechanism is the primary factor limiting the IIoTscalability. The system was developed to function in a public environment while preserving userprivacy and ensuring data accessibility through the integration of IPFS. The implementationand testing were conducted on a Harmony test network connected to a laboratory-scale IIoTtestbed. The proposal evaluated our proposed architecture with widely employed blockchainconsensus mechanisms. With a block latency of just 2.13 seconds, the architecture outperformsexisting systems and can process up to 4000 transactions. We demonstrate the effectivenessand efficiency of our solution for extensive IIoT deployments through in-depth evaluations andperformance comparisons.