This document discusses blockchain technology and its applications for certification. It provides an overview of blockchain, noting that it allows for distributed, encrypted data storage and transaction verification across a network. However, public blockchains have limitations around scalability, storage capacity, and costs that make them impractical for storing full certification documents. The document recommends instead storing a cryptographic hash of certification data on the blockchain and using a permissioned blockchain to address performance and cost issues.

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. 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. Some of the Customers We Work With
BIOFACH Congress 2019 | February 14, 2019 | Nuremberg, Germany | www.intact-systems.com

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. Intact Summit 2018 | September 24–25, 2018 | Coeur d’Alene, ID, USA | www.intact-systems.com

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. 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. 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. 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. BIOFACH Congress 2019 | February 14, 2019 | Nuremberg, Germany | www.intact-systems.com
Gartner: The CIO’s Guide to Blockchain, 2018-07-13

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. Different Blockchain Systems
Intact Summit 2018 | September 24–25, 2018 | Coeur d’Alene, ID, USA | www.intact-systems.com

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. Public Provision of Certificates and Linked Data
Intact Summit 2018 | September 24–25, 2018 | Coeur d’Alene, ID, USA | www.intact-systems.com

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. 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. 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. 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. 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. BIOFACH Congress 2019 | February 14, 2019 | Nuremberg, Germany | www.intact-systems.com
Booth 1-653

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