Blockchain - innovation driver for the future

By definition, the blockchain is an unchangeable, highly available and distributed database in which all data written to it is audit-proof and can be protected from unauthorised access by means of encryption. The elementary basic units are the transactions, whereby two parties exchange information with each other. The blockchain is like a ledger in which all transactions are entered. The continuous protocol precisely and chronologically documents every change to any data set and ensures that all participants in the network always have the same copy of the blockchain. After a certain period of time, the transactions are summarised into blocks and a checksum (digital fingerprint) is created. The blocks are then attached to the chain (blockchain) and distributed via a peer-to-peer network. Manipulations and changes would be recognised immediately and are therefore excluded.

Transparency and traceability are two essential characteristics of database technology; everyone in the network can check the data in real time at any time and therefore knows what is happening where and when. All members of the network verify the data, so to speak. The decentralised nature of the blockchain, i.e. the distribution in the network, is also advantageous in that if one or more nodes fail, all the others still have enough copies to compensate for the loss. With a centralised server structure, restoring the data usually involves some challenges and loss of time.

The trust generated by a blockchain between different, possibly unknown parties can also be implemented excellently in digital contracts, so-called smart contracts. This is probably the most promising blockchain application for the future and is currently the subject of controversial debate. Smart contracts are web-based computer protocols that map contracts and process them automatically. Computer algorithms determine which conditions lead to which decision (if-then).

It is conceivable, for example, that in future autonomous electric cars will have their own wallets (digital purses) and charge their own electricity at designated points, such as when waiting at traffic lights, and pay for it at the same time.

A similar procedure would be possible with trains and certain sections of track or ships and entry into harbours. Countless interactions and transactions between different logistics providers are currently necessary here. The use of a blockchain eliminates the need for a checking and managing intermediary, media disruptions are minimised through the use of a common database and time-consuming processes such as document management are accelerated and therefore handled more cost-effectively.

Furthermore, in the area of asset management, i.e. the monitoring and maintenance of tangible or intangible assets, blockchain can be used to easily realise cost savings in industry through complete, end-to-end documentation, e.g. through the use of various sensors. Counterfeit components can no longer enter the market and spread, and cost-intensive recalls due to defective components can be avoided. Trust now runs through the supply chain from start to finish because, for example, everyone is on an equal footing when it comes to meeting deadlines and end-to-end traceability - for example regarding location - is possible at all times. It is also possible to use a blockchain in the area of administration when organising documents. Here, the technology supports the transparent and tamper-proof storage of cross-company documents for everyone. This works in conjunction with Sharepoint, for example, whereby only authorised participants in the network have access.

Blockchain technology is still in its infancy, but nevertheless holds enormous potential for all areas of business and society, from the digitalisation of supply chain processes to digital identity in the healthcare sector. Companies should therefore start looking into the topic of blockchain today and consider whether it is sensible and appropriate to use it in their organisation.