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Practical Applications of Blockchain Technology in the Certification Industry

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Georg Karner – Intact GmbH
BIOFACH Congress 2019, Nuremberg
February 14, 2019

Published in: Technology
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Practical Applications of Blockchain Technology in the Certification Industry

  1. 1. Integrity Management Solutions Practical Applications of Blockchain Technology in the Certification Industry Georg Karner Head of Marketing Intact GmbH BIOFACH Congress 2019 | February 14, 2019 | Nuremberg, Germany | www.intact-systems.com BLOCKC HAIN
  2. 2. Intact US Sales Partner Global: Organic Services (Germany) Intact Switzerland Intact Headquarters (Austria) Sales Partner Australasia: Integrity Compliance Solutions (Australia) Intact US, California Intact‘s Offices Around the Globe BIOFACH Congress 2019 | February 14, 2019 | Nuremberg, Germany | www.intact-systems.com
  3. 3. Some of the Customers We Work With BIOFACH Congress 2019 | February 14, 2019 | Nuremberg, Germany | www.intact-systems.com
  4. 4. What Is Blockchain Technology? • The technology behind Bitcoin and other cryptocurrencies • The holy grale that can solve any problem across all industries Intact Summit 2018 | September 24–25, 2018 | Coeur d’Alene, ID, USA | www.intact-systems.com
  5. 5. Intact Summit 2018 | September 24–25, 2018 | Coeur d’Alene, ID, USA | www.intact-systems.com
  6. 6. BIOFACH Congress 2019 | February 14, 2019 | Nuremberg, Germany | www.intact-systems.com Gartner: 2018-08 Plateau of productivity will be reached in 5 to 10 years. Gartner Hype Cycle for Blockchain Technology
  7. 7. Blockchain—A Definition A Blockchain is essentially an append-only database, where (encrypted) data is stored and replicated to multiple nodes in a distributed computer net- work, which is maintained by a consensus building algorithm. Intact Summit 2018 | September 24–25, 2018 | Coeur d’Alene, ID, USA | www.intact-systems.com
  8. 8. On a Blockchain, data is stored in so-called blocks, each containing: • The transaction data of all orders written to that block • A time stamp • A cryptographic hash of the previously created block. Thus, a chain of linked blocks is created, which cannot be modified separately. BIOFACH Congress 2019 | February 14, 2019 | Nuremberg, Germany | www.intact-systems.com
  9. 9. Technology ≠ Solution Blockchain technology is only a tool. It cannot solve problems – such as fraud – that are not caused by or closely related to technological issues. Data on a blockchain is only as trustworthy as the party entering it. BIOFACH Congress 2019 | February 14, 2019 | Nuremberg, Germany | www.intact-systems.com
  10. 10. BIOFACH Congress 2019 | February 14, 2019 | Nuremberg, Germany | www.intact-systems.com Gartner: The CIO’s Guide to Blockchain, 2018-07-13
  11. 11. BIOFACH Congress 2019 | February 14, 2019 | Nuremberg, Germany | www.intact-systems.com Gartner: Gartner Top 10 Strategic Technology Trends for 2019, 2018-10-15
  12. 12. Different Blockchain Systems Intact Summit 2018 | September 24–25, 2018 | Coeur d’Alene, ID, USA | www.intact-systems.com
  13. 13. Public Provision of Certificates and Linked Data Intact Summit 2018 | September 24–25, 2018 | Coeur d’Alene, ID, USA | www.intact-systems.com
  14. 14. Public Provision of Certificates and Linked Data Intact Summit 2018 | September 24–25, 2018 | Coeur d’Alene, ID, USA | www.intact-systems.com
  15. 15. Blockchain 1.0 • First Blockchain system (2009) • Designed for financial transactions • Low performance and complicated script language Intact Summit 2018 | September 24–25, 2018 | Coeur d’Alene, ID, USA | www.intact-systems.com
  16. 16. Blockchain 2.0 • Allows for to execution of so-called smart contracts • Decentralized world computer with the performance of a smartphone • Suitable for our scenario, at first glance Intact Summit 2018 | September 24–25, 2018 | Coeur d’Alene, ID, USA | www.intact-systems.com
  17. 17. Limitations of Blockchain Technology • Limited scalability • Limited storage capacity (block size) • Limited performance • High running cost • Public Blockchains involve transaction fees • Can get very expensive once the system reaches its capacity limit • Legal implications • In conflict with the EU‘s General Data Protection Regulation (GDPR) • Not suitable for storing personal data Intact Summit 2018 | September 24–25, 2018 | Coeur d’Alene, ID, USA | www.intact-systems.com
  18. 18. What Does This Mean in Practice? • Storing a typical certificate (387 KB file size) is very expensive • Scenario 1 (Sept 23, 2018): 719.82 USD • Scenario 2 (Jan 6, 2018): 23,723.10 USD • Not viable in terms of performance • Even when using Ethereum’s full capacity, only 192 certificates can be stored per day • Conclusion: too expensive and not practical Intact Summit 2018 | September 24–25, 2018 | Coeur d’Alene, ID, USA | www.intact-systems.com
  19. 19. The Practical Solution • … is to store only a cryptogra- phic hash (unique identifier) of the certification data on chain • … is to set up a public permis- sioned blockchain system to cope with performance and cost issues (independent from but linked to ethereum blockchain) Intact Summit 2018 | September 24–25, 2018 | Coeur d’Alene, ID, USA | www.intact-systems.com
  20. 20. BIOFACH Congress 2019 | February 14, 2019 | Nuremberg, Germany | www.intact-systems.com Booth 1-653
  21. 21. BIOFACH Congress 2019 | February 14, 2019 | Nuremberg, Germany | www.intact-systems.com Subscribe to Intact’s Newsletter ims.to/news Integrity Blog by Intact blog.intact-systems.com Georg Karner /in/georg-karner/ georg.karner@intact-systems.com

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