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Blockchain-based Data Integrity and Supply Chain Transparency

Sector: Secondary sector · Industry: Chemical industry · Organisation: BASF · Maturity level: Pilot

BASF utilizes blockchain technology in several separate use cases to improve data integrity and supply chain transparency. The company deploys a blockchain solution in cooperation with ARXUM for secure storage of research and development data and tests blockchain-based payment processes in the supply chain together with Evonik and Commerzbank. These projects have been in pilot phase since 2022 and are being prepared for scaling to additional areas.

Documentation status

Description

BASF cooperates with ARXUM — a blockchain startup founded in Kaiserslautern in 2019 — to ensure data integrity in regulated R&D laboratories. The project originated in February 2022 via the 5-HT X-Linker Lab of the Future. ARXUM uses an immutable blockchain backend combined with encrypted IPFS cloud storage (Data Integrity Protocol, DIP). Girish Srinivas from BASF: "The use of blockchain provides audit trails for the entities registered in our system."

BASF faces a typical challenge in regulated R&D laboratories: data integrity is often ensured by manual signatures on paper documents — a risky and inefficient procedure. In February 2022, BASF participated as a Corporate Speed Dater at the 5-HT X-Linker Lab of the Future and met the startup ARXUM from Kaiserslautern. From the one-on-one talks, a cooperation project emerged: BASF evaluated the ARXUM DIP solution and integrated it as a proof of concept into its internal digital product ICoRe for entity registration. Technically: the ARXUM DIP solution stores data integrity checksums on an immutable blockchain backend and in encrypted IPFS cloud storage. This enables: access to original data, secure database recovery, reduced audit effort, simplified integrity checks and external access for regulatory authorities. As a by-product of the collaboration, ARXUM developed a new product specifically for regulated laboratory applications.

Perspectives

B2B — organisations perspective

Chemical and pharmaceutical companies with regulated laboratory environments can fully digitally prove data integrity via ARXUM DIP — without manual paper documentation. Proof of data provenance is directly available to regulatory authorities.

B2C — consumers perspective

End customers benefit indirectly from improved quality assurance procedures and traceable production processes through increased data transparency in the supply chain.

Employees perspective

Laboratory staff in R&D are relieved from manual signature and revision documentation processes. Integrity checks run automatically; in case of deviations, original data is securely retrievable.

Benefits

General

B2B — organisations

Employees

Challenges

General

B2B — organisations

Employees

Technology foundation

BASF uses two different blockchain approaches: the Corda blockchain for supply chain payment processes and an ARXUM solution with encrypted IPFS cloud storage for research data. These technologies offer immutable data storage and transparent transaction histories, preventing tampering and improving traceability of business processes.

Implementation examples

BASF blockchain data integrity with ARXUM

BASF wanted to improve the integrity and traceability of research data while meeting compliance requirements in regulated environments. The company needed a solution for tamper-proof data storage with comprehensive historical documentation and event tracking functions.

BASF implemented a blockchain solution for the secure storage of research and development data in collaboration with the startup ARXUM.

The project was initiated in February 2022 by the 5-HT X-Linker Lab of the Future and carried out in two phases. The solution uses an immutable blockchain backend with encrypted IPFS cloud storage for secure documentation of R&D data. After successful completion, the solution will be prepared for scaling and presented to the KTC community within BASF.

The blockchain solution addresses the problem of data loss and insufficient version control in research projects. It provides audit trails for registered entities and enables secure storage of all data with complete historical traceability.

Tags

Data integrity, Supply chain, Payment processing, Research data, Transparency

Sources

  1. Erfolgreiches Spin-Off des X-Linkers: BASF und ARXUM kooperieren und sichern Datenintegrität durch Blockchain
  2. BASF und Evonik testen Blockchain im Zahlungsverkehr