Whitepaper_Blockchain_ENGL

tsmms

Whitepaper

BLOCKCHAIN:

THE FUTURE

OF THE INDUSTRY

Secure processes. Intelligent contracts.

Transparent business relations.


CONTENTS

PREFACE 4

BLOCKCHAIN 6

Peer-to-peer 7

Consensus 8

Hash chains 10

Blockchain in industrial use 12

STRUCTURE OF THE FACILITY 16

ICS SECURITY FOR THE PRODUCTION FACILITY 18

Principles 19

Goals and measures 20

Organisation 20

Securing physical access 22

Secure design 22

Operation and maintenance 23

Implementation 24

CONCLUSION 24

AUTHORS 25

Imprint:

Whitepaper Publication June 2018

T-Systems Multimedia Solutions GmbH

Riesaer Strasse 5, 01129 Dresden

Authors:

Katja Tietze

Marian Neubert

Preface:

Dr Frank Schönefeld

Organisation:

Project management: Julia Kunert

Layout: Peter Brücker


PREFACE

Dear Readers,

Try starting a discussion about blockchains with your colleagues or

at a conference at some point. You will probably experience an extreme

spectrum of opinions, just like I did, and often see computer

scientists in particular shrug their shoulders.

This is because blockchain, to some extent, suffers from this range

of opinions. The enthusiasts are at the top of one side. Those who

think they can turn the world upside down with blockchain. They

want to tear down borders with it and take entirely new paths. For

the sceptics, however, it’s “only” a distributed database technology

with known consensus algorithms.

But what is this lasting bipolarity based on – with a topic that has

already been known about for several years?

The enthusiasts rejoice in the fact that third parties will be superfluous.

Brokers, mediators or stewards are no longer needed.

Even in complex technological scenarios, the “man in the middle”

becomes redundant. Sceptics, however, argue that these kinds of

ideas are still too often based on theoretical pipe dreams, which

are not only too undeveloped but also insecure at this time. So it

often becomes difficult to align the business or economic application

and technology – at least two disciplines.

However, for me this “aligning” is the key to resolving the polarity.

Blockchain will become another significant constant in digitisation

– I am certain of it. It’s also important to recognise not just its

economic opportunities but also the associated technological challenges.

In the best case, this will succeed through trial. I consider

it a good step when companies start a pilot blockchain project

under convincing conditions, when they look at the examples set

by others and when they try to transfer the theoretical world of the

blockchain to their specific business processes.

Of course, in your next discussion with colleagues, you can then

give a brief account of your experiences with the pilot project.

That is exactly the target group for which we created this Whitepaper

at T-Systems Multimedia Solutions. In this paper, we look

at technical foundations as well as real economical application

purposes. This happens primarily with our demonstrator, which is

guided by actual industry situations and will show you useful types

of applications. But we will also clearly define those determining

factors that must be regulated in the blockchain context in regards

to ICS security (Industrial Control Systems).

I hope you will find this paper useful and wish you much success

with your blockchain projects.

Dr Frank Schönefeld

4 5


BLOCKCHAIN

BLOCKCHAIN

Blockchain is reaching its productive phase in business – and this to an enormous extent.

According to media reports, authorities in Dubai want to handle all commercial transactions

via blockchain by 2020. This is how the Emirate would like to prevent logistical and

customs-related bureaucracy. In India, the industrial conglomerate Mahindra plans to

optimise the management of its supply chains, while Japan’s car manufacturer Toyota is

apparently planning something similar. Additionally, the pharmaceutical industry wants to

make its clinical tests fail-safe with blockchain and transmit patient data and gene analyses

to health authorities in this way without the risk of corruption. 1 Conclusion: According

to surveys by the World Economic Forum, 10 per cent of the global gross domestic product

will already be stored with blockchain technology by 2025. 2

If you look for the reasons behind the blockchain boom from a technological perspective,

these can be found especially in the blockchain design, whose dispersed approach offers

new opportunities for cooperation. And these technical possibilities are also the main

reason why the industry is so interested in this innovation – when certain security criteria

are adhered to (see chapter “ICS security for manufacturing systems”).

1 http://www.manager-magazin.de/magazin/artikel/next-internet-blockchain-macht-sich-in-der-industrie-breit-a-1154807.html

2 https://www.rolandberger.com/publications/publication_pdf/roland_berger_blockchain_final.pdf

PEER-TO-PEER

The basic benefit is that companies can store, process and transmit data between several

partners without a central distribution point (intermediary). This is based on a peer-to-peer

principle (P2P) where every node can be connected with any other. Benefits: There are no

nodes which know more than others.

But P2P also means highly redundant storage for error tolerance. The failure of one node

can’t affect the totality of the network in its functions (single point of failure) or result in

data no longer being accessible. Furthermore, these kinds of errors or malicious manipulations

in one location are not decisive and in some cases not even possible. One false

datum alone, for example, can’t falsify the entire system. This is exactly why the blockchain

is stored on every node.

For a corporate user, this structure offers several benefits at once:

••

No fees for intermediaries

••

No dependencies. For example, where an intermediary fails and thus

cripples the network or an intermediary prefers certain nodes

••

Companies arbitrarily connect to any other company in the blockchain,

regardless of its size or location

••

Transparency in respect to data status and performed activities

••

Creates gapless process documentation

••

Virtually eliminates susceptibility to manipulation

••

No trust is needed between partners

Structure of the blockchain – decentralised architecture

Traditional systems

with central data storage

Blockchain systems

with decentralised data storage

Traditional systems are centralised and required

third parties or intermediaries to securely exchange

information.

The distribution of information in blockchain systems

is inherently secure and transparent in the

network without requiring an intermediary.

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