Blockchain or distributed ledger technology (DLT) is also a suitable instrument for this, and in many cases it is only Industry 4.0, improved logistics solutions or new business models that make it practical. As a combination of proven technologies and encryption mechanisms, it is largely tamper-proof. Without a traditional central memory, all recorded data is stored in several locations simultaneously. Their history can therefore be checked at any time. The best-known blockchain that triggered this technology hype is that of the cryptocurrency Bitcoin.

The table summarizes important advantages of the decentralized database, which is available licence-free as open source.

Distributed ledger technology DLT
A distributed ledger (general ledger, register, transaction ledger, stock ledger) manages and monitors various transactions in the decentralized database. All information stored on it can be permanently saved with a digital signature (cryptographic code). They form the basis of the blockchain. As a huge database, this data protocol is not stored on one server or at one company, but is distributed across many computers. There is no one who owns this journal. No authority, company or person is the authorized owner of this ledger. All participants have the same access rights and options.

DLT represents serious competition for edge and cloud computing, the antithesis of the central server, so to speak.

Function
The decentralized database of blockchains - launched in August 2011 as a form of DLT - is operated jointly by the participants of a network without central data storage and administration functionality (image). All their current and past transactions are documented in "chained" blocks. Additional transactions are added as new blocks. Before they are entered in the desired position, all computers in the network must confirm the connection to the new block. The blockchain thus corresponds to the central register of a huge accounting system that stores the data decentrally and redundantly on all blocks in the chain.

The network participants jointly manage this decentralized database without a controlling intermediary and initiate transactions. As senders and receivers, they can monitor all operations at any time, with both triggers and content remaining anonymous. A fraudster would have to exchange all data on all blocks of the chain, which seems impossible, especially for networks with ≥ 50 participants.

Information, data type can be very different, such as a financial/transaction, a contract, shares, purchase contracts, production data. A block always stores the history of each transaction in the form of a checksum of the previous block. In addition, the block always has the checksum of the entire chain.

Federal Blockchain Association
The German Blockchain Association was founded in Berlin in 2017 to promote blockchain and DLT, the interests of all companies involved (developers and users) and the associated social progress resulting from a digital economy.

Because "almost all transactions consist of changes in databases, and these changes have two fixed points - the database itself and the person initiating them - the following applies to a future-oriented policy, according to the Federal Association: firstly, the interfaces to databases must be securely digital, and secondly, digital identities must be sufficiently legally secure".

In order to develop Germany into a global player in this area, the association is developing problems, solutions and political recommendations for action. Initial results for future viability were presented in a position paper (https://bundesblock.de), which also helps newcomers. Considerations on education, energy, the healthcare system, financial supervision, legal issues (tax law, IT law, intellectual property), digital identities, data protection, research through to applications (Industry 4.0, real estate industry, etc.), standardization and certification, ethical issues and governance are summarized in a ready-to-use format.

Applications
A wide variety of applications that require transparency and traceability, even anonymity, are conceivable with great savings potential, as the following examples show:

• Administration (contracts, tax law, finance, stock trading, orders),
• supply and production chains,
• insurance,
• "intelligent" energy supply,
• voting systems

The best-known application is the virtual digital cryptocurrency Bitcoin (BTC), which was created in 2008. Other forms of DLT now exist (Dogecoin, Litecoin, Monero, Ethereum, Agrello, etc.).

Outlook
Blockchain makes information a public good. "Blockchains will be the driving force behind the next evolutionary step of the internet, the so-called decentralized network or the internet of contracts and transactions. Blockchain technology makes it possible to establish trust between unknown participants through special protocols based on cryptographic one-way functions," summarizes the Federal Association in the aforementioned position paper. The new generation of embedded server processors contributes to this goal(http://www.amd.com).

In order to be fully usable, its legal framework must be adapted for all necessary areas, including ethical aspects and supervision. Joachim Krause

Virtual currency Cryptographic, encrypted cash substitute for the purchase of goods and services on the Internet. It is created using a computerized process. Transactions and balances are managed decentrally(www.bafin.de)

Advantages of blockchain technology

Integrity of the data (impossibility of data modification),
Security (data security, replacement firewall and secure connections through cryptography)
Reliability (no central point of failure, high reliability)
Speed and storage (close to real time)
Application flexibility, autonomy of participants (trust-creating renunciation of mediation, central register)
Analysis and transparency (unchangeable and traceable system, visualization of partners)