# Blockchain-based Data Integrity and Supply Chain Transparency

> 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.

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

Canonical URL: https://www.sapientblock.com/en/use-cases/basf-chemische-prozesse-digital-abbilden

## Documentation status

- **Project status:** Pilot
- **Evidence:** Evidence medium
- **Editorial review:** Ufuk Avci, 15 April 2026

## 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.

## Benefits

- Improved business relationships through more transparent and faster payment processing with supply chain partners.
- Immutable storage of critical business data prevents manipulation and improves compliance.
- Transparent payment processing reduces transaction times and increases trust between business partners.
- Automated audit trails and documentation procedures reduce manual effort for compliance processes.
- Simplified data documentation in research projects through automated blockchain-based versioning.

## Challenges

- Coordination with business partners for joint use of blockchain-based platforms requires comprehensive alignment processes.
- High complexity in integrating various blockchain systems with existing ERP and production systems.
- Need for collaboration with external partners and startups to develop specialised blockchain solutions.
- Training effort for employees to use new blockchain-based data management systems.

## 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.

## Sources

- [Erfolgreiches Spin-Off des X-Linkers: BASF und ARXUM kooperieren und sichern Datenintegrität durch Blockchain](https://www.5-ht.com/success-stories/erfolgreiches-spin-off-des-x-linkers-basf-und-arxum-kooperieren-und-sichern-datenintegritat-durch-blockchain)
- [BASF und Evonik testen Blockchain im Zahlungsverkehr](https://www.dertreasurer.de/news/cash-management/basf-und-evonik-testen-blockchain-im-zahlungsverkehr-2-15632/)