Opportunities and Challenges of DLT (Blockchain) in Mobility and Logistics Translation FRAUNHOFER INSTITUTE FOR APPLIED INFORMATION TECHNOLOGY FIT OPPORTUNITIES AND CHALLENGES OF DLT (BLOCKCHAIN) IN MOBILITY AND LOGISTICS Prof. Dr. Gilbert Fridgen Prof. Dr. Nikolas Guggenberger Prof. Dr. Thomas Hoeren Prof. Wolfgang Prinz (PhD) Prof. Dr. Nils Urbach Johannes Baur, Henning Brockmeyer, Wolfgang Gräther, Elisaweta Rabovskaja, Vincent Schlatt, André Schweizer, Johannes Sedlmeir, Lars Wederhake Also with the participation of: Matthias Babel, Martin Brennecke, Patrick Camus, Benedict Drasch, Tobias Guggenberger, Luis Lämmermann, Jannik Lockl, Sven Radszuwill, Alexander Rieger, Nicolas Ruhland, Marco Schmidt, Nico Thanner, Patrick Troglauer, Malte Weißert, Felix Würmseher Contents 1 Management Summary ............................................................................................................ 6 1.1 Purpose of This Report ..................................................................................................................... 6 1.2 General Analysis ............................................................................................................................... 7 1.2.1 Technical aspects ................................................................................................................................................ 7 1.2.2 Socioeconomic aspects ...................................................................................................................................... 8 1.2.2.1 Current situation ............................................................................................................................................. 8 1.2.2.2 Generic roles and application patterns .......................................................................................................... 9 1.2.2.3 Policy on promoting the spread of DLT ....................................................................................................... 10 1.2.2.4 DLT in the mobility sector ............................................................................................................................ 11 1.2.3 Legal considerations ......................................................................................................................................... 11 1.2.3.1 Civil law ......................................................................................................................................................... 11 1.2.3.2 Data protection law ...................................................................................................................................... 11 1.3 Case Studies .................................................................................................................................... 12 1.3.1 Shipping documents ............................................................................................................................................. 12 1.3.2 Charging of electric vehicles ............................................................................................................................. 13 1.3.3 Ridesharing ........................................................................................................................................................... 14 1.3.4 Platooning ........................................................................................................................................................ 15 1.4 Conclusions ..................................................................................................................................... 16 2 Introduction ........................................................................................................................... 18 2.1 Basic Concepts ................................................................................................................................ 18 2.2 Organization of the Study .............................................................................................................. 19 3 Technical Basics ..................................................................................................................... 21 3.1 Basic Concepts ................................................................................................................................ 22 3.1.1 Blockchain networks ............................................................................................................................................ 22 3.1.2 Transaction, distributed ledger, digital signature ............................................................................................ 23 3.1.3 How transactions flow through the blockchain ................................................................................................... 23 3.1.4 Hash values ....................................................................................................................................................... 23 3.1.5 Blocks ................................................................................................................................................................ 24 3.1.6 Consensus mechanisms .................................................................................................................................... 24 3.1.7 Attributes of a blockchain .................................................................................................................................... 25 3.2 Other Concepts ............................................................................................................................... 25 3.2.1 Smart contracts ................................................................................................................................................ 26 3.2.2 Other consensus mechanisms .......................................................................................................................... 27 3.2.3 Sharding ............................................................................................................................................................ 28 3.2.4 Integration of external data .............................................................................................................................. 28 3.2.5 Oracles .............................................................................................................................................................. 28 3.3 Blockchain and DLT Infrastructures ................................................................................................ 29 3.3.1 Classification schemes .......................................................................................................................................... 29 3.3.2 Bitcoin ............................................................................................................................................................... 30 3.3.3 Ethereum .............................................................................................................................................................. 31 3.3.4 Quorum ............................................................................................................................................................. 31 3.3.5 Hyperledger Fabric ........................................................................................................................................... 31 3.3.6 Corda ................................................................................................................................................................. 32 3.3.7 Sovrin .................................................................................................................................................................... 32 3.3.8 IOTA .................................................................................................................................................................. 33 3.3.9 Hedera Hashgraph ............................................................................................................................................ 34 1 3.3.10 Overview of DLT infrastructures ...................................................................................................................... 35 3.4 Governance of DLT Networks ........................................................................................................ 35 3.4.1 Blockchain networks ........................................................................................................................................ 35 3.4.2 Technological governance ............................................................................................................................... 36 3.4.3 Forks ................................................................................................................................................................. 36 3.5 Interoperability and Standardization ............................................................................................. 37 3.5.1 Blockchain-to-Blockchain Communication ..................................................................................................... 37 3.5.2 ISO standards ................................................................................................................................................... 39 3.5.3 Sidechains .......................................................................................................................................................