1 | 22 Fraunhofer magazine T wo experts, one development, two points of view: “In the coming five to ten years at the latest, there won’t be a single business in the B2B sector that isn’t using blockchain technology.” There’s a touch of euphoria to this firm pronouncement by Prof. Michael Henke. By contrast, according to Prof. Wolfgang Prinz, “Far too many promises were made in the past; nowadays, when it comes to the practical implementation of blockchain, we tend to focus much more on the obvious, low-hanging fruit.” For example, block- chain could be used as a reliable means of verifying the origin of medicines or food and checking whether refrigeration was provided throughout transportation. Prof. Henke is director of the Fraun- hofer Institute for Material Flow and Logistics IML in Dortmund, while Prof. Prinz is deputy director of the Fraunhofer Institute for Applied Information Tech- nology FI T in Birlinghoven, North Rhine-Westphalia. Both institutes have been working closely together in this field for many years. Blockchain has had a turbulent past. The concept of a decentralized system for breaking down data into blocks, interlink- ing them and encrypting them cryp- tographically was first written about in the public domain in 2008 under the pseudonym of Satoshi Nakamoto. To date, it is unclear if the name refers to a single person or a group of people. What is clear, however, is that the hype surrounding blockchain, bitcoin and smart contracts started there. Fraunhofer IML and FIT have been working on this topic since 2015. In 2017, the first Fraunhofer position paper dedicated to research questions and poten- tial applications of this technology was published. T I F r e f o h n u a r F , L M I r e f o h n u a r F , a p d / i n i r a b m a G o c i r e d e F : s o t o h P For Fraunhofer, the living lab for blockchain technology in Hürth near Cologne has become a core element of its blockchain strategy in North Rhine-West- phalia. The film studio, where Hans Meiser and Ilona Christen once hosted talk shows, is being converted into a blockchain envi- ronment. “The idea is that interested parties can come to us to learn about blockchain. We use various demos to Prinz. “The drivers of the tank vehicles receive digital certificates, which are verified on a mobile device, for example, by scanning a QR code. This provides tamper-proof evidence that the tank has not only been cleaned, but also that the cleaning has been checked.” Prof. Prinz’s team presents examples such as these in the living lab and uses demos to explain to interested parties how Prof. Michael Henke, Director of Fraunhofer IML Prof. Wolfgang Prinz, Deputy Director of Fraunhofer FIT explain the use and benefits of the tech- nology”, explains Prof. Prinz, who heads up the living lab. “It goes without saying that the visitor pass is also on a block- chain.” The project, which has received five million euros in funding from the state of North Rhine-Westphalia, is designed to drive structural transformation in the Rhineland mining region following the phasing out of coal — and has long since reached the application stage. The experts at the living lab help companies in the region to familiarize themselves with the technology, show them possible applica- tions and work with them to develop ideas for new digital services. Prototypes for initial use cases have already been imple- mented with a local logistics service provider specializing in the transport of chemicals. For safety reasons, the cleaning of the company’s tank vehicles must be carefully documented. Paper documen- tation seemed too unreliable to the man- aging director. “So we quickly arrived at a blockchain solution,” according to Prof. data is stored on a blockchain. In the future, each step of a process, along with all of the associated data and documents, can be securely and irreversibly recorded on the blockchain, making it ideal for numerous applications, such as tamper-proof certif- icates of origin, internal company docu- mentation or international trade. “Not everyone needs to understand exactly how blockchains work”, says Prof. Prinz. “Hardly anyone knows how the gears of a car work, and yet everybody uses them.” While manual transmission will become less important in the years ahead due to electromobility, Profs. Henke and Prinz are certain that the future belongs to blockchain, especially when it comes to transaction-based businesses. Prof. Henke cites the electronic waybill and customs documents as examples. “A dig- ital blockchain-based folder will replace paper documents, making customs trans- actions, for example, not only more secure and transparent, but also more sustainable due to the savings in paper.” 57