The advantages of distributed ledgers are obvious. "Blockchain is basically a computer that we all share," summarizes Professor Dr. Roman Beck, IT University of Copenhagen, at the Munich Circle Blockchain Conference. The advantages of blockchain lie in the fact that it offers full transparency over transactions and therefore represents a largely secure procedure for transactions that are linked together using cryptographic processes. "Markets could be completely redefined or re-engineered by the blockchain," says Beck. There are potential applications for blockchain technology in all areas of industry that are based on the transfer of processes. Large corporations such as IBM, Microsoft, Daimler and Deutsche Telekom have also discovered this potential for themselves and are researching and developing application scenarios for blockchain, in some cases with several hundred employees.

Blockchain standardization

Since spring 2017, the ISO TC 307 ISO/TC 307 'Blockchain and distributed ledger technologies' has also been working on the global standardization of blockchain. The ISO working group was initiated by Australia. "Germany and the USA were initially against standardization," explains Prof. Beck. Germany had not justified its rejection; the USA was of the opinion that standardization was not conducive to innovation. As with Industry 4.0, the USA likes to push for application-driven de facto standards.

The inaugural meeting took place in Sydney on April 3. The ISO Group is chaired by Australia. A total of 17 ISO members were represented at the inaugural meeting, including Germany. Despite its originally negative stance, Germany wants to play an active role in shaping standardization. Prof. Dr. Volker Skwarek from the Hamburg University of Applied Sciences was elected convenor of the Smart Contracts Study Group. The second plenary meeting of the ISO group took place in Japan in mid-November. "Initial results were presented there and many potential areas of application came to light, but many challenges surrounding the technology also became apparent," says Beck.

The question of whether standardization makes sense at this early stage of industrial blockchain developments was also controversially discussed. According to Beck, one reason for the early standardization efforts is to avoid uncontrolled growth that is no longer globally compatible. However, Beck estimates that it could take up to five years before an ISO standard is finally adopted. As a lecturer at the IT University of Copenhagen, he deals intensively with blockchain technology. "We need to put our students in a position to help shape the future of blockchain," Beck demands and has already implemented this in-house: he is the founder of the "Blockchain Summer School" at the University of Copenhagen, which teaches interested students from all over the world about blockchain during the semester break.

However, such initiatives are still the exception in Europe. "Russia has invested a lot to be at the forefront of blockchain technology, and Germany should do the same," says Beck, getting to the heart of his demand: "We need a European blockchain system."

Smart contracts in the form of software

Smart contracts are needed to make blockchain technology usable for such transactions. Smart contracts are not traditional contracts in text form and in the civil law sense, but a piece of software. This software is used to process transactions automatically, provided that all parties involved have fulfilled the previously agreed conditions. Preferably, the software itself can check whether the parties have fulfilled their obligations. The standardization of smart contracts is organized in the ISO via a separate study group under the leadership of Germany (see above).

Early adopters - use cases

While blockchain technology is still receiving little attention from the public sector in Germany, large industrial groups are busy researching use cases. According to Christoph Schäfers from Robert Bosch, Robert Bosch sees blockchain as a technology that takes IT to a new level. Robert Bosch is currently testing application scenarios in logistics, for example to track goods in transit, through to autonomous driving. "The blockchain principle brings transparency to the logistics chain. Everyone in the chain receives a copy of the history, ensuring that everyone involved has the relevant information."

Autonomous driving is also the keyword for Jonas von Mallotki from Daimler AG. The automotive group is active in numerous blockchain developments, and von Mallotki also attests to the blockchain's great potential. However, he does not go into detail about Daimler's blockchain developments - probably for reasons of confidentiality. Just this much: "Our vision is intuitive mobility in which software will play a major role. Mobility is changing. Software is becoming more and more crucial, and open source is winning out over proprietary - these are the paradigms we are dealing with." So is blockchain a panacea for the mobility sector? "We develop, manufacture and finance cars. But not every use case is suitable for blockchain," replies von Malottki.

There are also still a few problems for mobility manufacturers to solve: "For example, how can it be determined whether 'I' really am 'I' in the blockchain? These questions have not yet been solved," says von Malottki. It would be quite conceivable to use the blockchain, for example, to charge electric vehicles at filling stations. Electricity and blockchain are the keywords for Stefan Jessenberger from Siemens Energy Management. "We need energy systems that enable the autonomous operation of millions of assets," explains Jessenberger. He sees blockchain and the associated smart contract technology as key functions for transactive energy systems. "Blockchain can significantly reduce the cost of energy management, and ultimately consumers have more choice through automated trading processes," says Jessenberger. It could also reduce administrative costs and make forecasting energy consumption more precise and easier.

Blockchain does not solve all problems

In addition to the many subjunctives associated with blockchain technology, there is also initial practical experience: At the Munich Blockchain Conference, Michael Reuter, founder and COO of Datarella, described a project that his company implemented for the United Nations a year ago: the blockchain as a transaction platform for the distribution of relief supplies in a refugee camp in Jordan. "Until now, the distribution of aid in the camp was handled on site by issuing vouchers. With the blockchain, this procedure can now be automated, while at the same time giving the refugees more autonomy. "We wanted to test the system with 50 refugees, but the invitation to test the system was inadvertently sent to 5,000 refugees by text message." The system passed the acid test straight away, reports Reuter. "This is the first time in my career that software has worked perfectly during the test phase."

The use of blockchain technology not only has advantages in the camp, as Reuter explains: "The UN lives from donations from donor countries and has to account for how the donations are used. Several aid organizations can also participate in one program. But aid organizations don't trust each other. The blockchain now has the advantage that it is currently the only way to encourage institutions that do not trust each other to manage their accounts jointly." From this perspective, blockchain could find many more applications in industry, for example in the supply chain of electronic components to curb the sale of counterfeit or defective parts. "Of course, blockchain is not perfect, and we cannot assume that blockchain will solve all problems. But if you're looking for perfect systems, we'll have to wait another century or more," Beck concludes.