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WCO News Magazine, Issue 2/2023, No. 101

BORDER (Blockchain-based organization of relevant data in extra trade with legal security) is a blockchain-based web application. The use of blockchain technology enables the digital handling of customs-relevant documents, data and processes, including the documentation of status and data changes – trustworthy and tamper-proof for all parties involved.

Roman Koller and Lorenz Kiebler explain to us in a compact digital appointment how the open source software system works, how it can be put into use and how it is changing customs processing.

Feburary 21, 2023 | 10 a.m.

Via Microsoft Teams

By answering just 17 questions in a single-choice format, you help the blockchain community further shape the path to the blockchain era. Based on a scientific study, key challenges have already been identified and these now need to be validated by practice. The answers to the questions are anonymous and do not allow any conclusions to be drawn about the person. Whether beginners, advanced users or experts – blockchain-interested people of all experience levels from companies and research are asked here.

The survey provides the basis for identifying the main challenges when it comes to using Blockchain technology. On this basis, suitable solutions can then be found and made available to the community free of charge.

Click here for the survey

Blockchain superhero LedgerMan comes to the aid of Willy the customs official. He optimizes the complex paper-based processes and avoids Mr. Smuggle forging papers. With the enormous volumes of goods being handled in container ports every day, digital support is simply needed. Mr. Smuggle doesn’t stand a chance and Willy is less stressed.

Comic isn’t a reality? Of course, blockchain technology cannot be introduced ad hoc at Europe’s largest container port, and processes are not magically digitized – but our comic book story is not that far removed from reality. The Customs & Blockchain Working Group meets four times a year on the road to end-to-end digital customs processing based on blockchain technology. Step by step, the vision is being implemented together. Last but not least, the open source offerings of Blockchain Europe also support this process.

Working Group Customs & Blockchain

5th Meeting
July 27, 2022 | 9 a.m.

Those interested in joining the Working Group can find more information and sign up for the Working Group distribution list here. In addition, there is a WGCB group on LinkedIn where you are welcome to become a member for a no-obligation exchange.

Your contact person for further inquiries is Tobias Jornitz

Registration for the Working Group Meeting on July 27, 2022

Registration is no longer possible.

Following the big picture of our research location, the platform economy is the central enabler of flexible supply chain planning. Through platforms, the different actors within a supply chain come together and rely on blockchain-based certification, payment and transaction negotiation. Blockchain Europe Advisory Board member Prof. Dr. Fritz Henglein from the University of Copenhagen will reveal exactly how this can look in his presentations “Total Accounting for the Circular Economy” and “Smart Financial Instruments and Capital Market Platforms”.

In addition to insights into the platform economy, central analysis methods and the topic of sustainability in global networks, the live case study will again be offered. The already published open source components of Blockchain Europe and the Silicon Economy will play a central role. In cooperation with the Open Logistics Foundation, the participants of the Summer School will ask themselves what other open source components will be needed in the future to organize supply chains flexibly and sustainably via platforms.

Registration for the Summer School is now open. If you don’t want to miss a week full of concentrated logistics knowledge, the direct transfer of science into practice and the opportunity to build a comprehensive PhD network, you should register quickly. Due to Corona, only 20 places are available this year.

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When it comes to Blockchain, his motto is: Let´s get started, even if we think we are only 90 percent ready. He gives us an insight into the prospects of Blockchain.

What drives you in your day-to-day work with the blockchain technology?

Bringing Blockchain and DLT faster into real life business processes and industrial applications. Pushing use cases and proof of concepts into MVPs and scalable solutions with a clear business impact. Contributing to these goals, in Germany and Europe, using the time window we have for this and not leaving the field completely to others, is what drives me every day – together with my colleagues at Fraunhofer and partners from politics, business, and science,

What challenges and opportunities do you see in digitalization and blockchain?

We are currently experiencing first-hand the negative impacts of dependencies in global supply chains.  At the same time, we are dealing with increasing pressure to make our Supply Chains more sustainable. If we want to reduce dependencies and become more sustainable, we need technology leadership to go digital.

In Europe we have not been successful and fast enough with digital business models in the B2C sector. Large platform providers from other regions are dominating the market and setting the standards. In the B2B sector however, Europe – and especially Germany – still has many opportunities. With our strong machinery, automotive, pharmaceutical, chemical and logistics industries and with the innovative SME sector we are still in a position to achieve digital leadership. But we must take advantage of our window of opportunity before it closes. We must act now.

We should therefore aim for technology leadership in Germany and Europe in the field of blockchain – what does it take to achieve this?

Blockchain and DLT still have to deliver on the `proof of concept’ in many areas. Deployable minimal viable products are still the exception. The time to exploit these opportunities is now. And I am not saying that Blockchain will be the solution to every problem. But we need to overcome the `chicken-and-egg´ situation we are in. For that we cannot wait until all questions regarding legal security and economic viability have been clarified, until all security risks have been investigated and, until all standards have been established. The last 10 percent to perfection will cost us 90 percent of the effort and valuable time. Time, we don’t have if we want technology leadership. If we want to create and apply future digital business models ourselves instead of limiting ourselves to the role of supplier and consumer.

Seems like we need to act now?

We need to get started now, not tomorrow, not next quarter, and not next year. Even if we don’t know the exact outcome or the exact cost-benefit ratio yet. Even if risks remain, and we don’t know whether it will work or which parts ultimately will work.

Our EnterpriseLab partners Commerzbank, Rhenus, Telekom and others are already taking this path, investing into proof of concepts. Also, some of our medium-sized partners such as Piel (technical wholesale), EJOT (automotive & construction) and the Kronhardt brothers (tunnel construction) are developing and testing blockchain-based solutions with us. Further support will be coming with the open-source solutions we develop in `Blockchain Europe´ and in the ‘Silicon Economy´ Initiative – both anchored here at the Fraunhofer IML in Dortmund.

Blockchain Europe: You hold the title “Communication and Community Management” in the Blockchain Europe project, what challenges do you face in your job?

Britta Scherer: The topic of blockchain is difficult to understand. In addition, I always say that the community is divided into so-called “blockchain evangelists” and “blockchain agnostics”. Outside the community, there are many, at least in Germany, who have never heard of the technology. So the challenge is to present the technology and its possible applications in a simple, clear, and understandable way, and to appeal to both the newbies and the nerds.

Blockchain Europe: How can you master this challenge?

Britta Scherer: That’s a good question! Many roads lead to Rome. But what always helps is visual language and breaking down what is sometimes highly scientific content.

For example, I have launched the ” inner cinema” strategy. If we ask our parents, grandparents, neighbors or even friends or children, ultimately very few of them understand the latest technologies. This also applies to older “new” technologies, by the way. But if we take a look at artificial intelligence, it seems that everyone can relate to it. One thinks of various movies, human-like robots or smart houses. So you have an image directly in your head and therefore the technology is no longer so foreign to you, even though hardly anyone knows the scientific and technological connections. I would like to create that for blockchain technology as well.

LedgerMan is the beginning. The blockchain superhero in comic format takes us on his adventures and in the process we learn about the application of blockchain. These are not cinema films, but they give a simple introduction to the topic, are suitable for young and old, and for beginners and advanced users.

Blockchain Europe: Since the release of the animated films, do your parents understand what you do and what Blockchain is?

Britta Scherer: (Laughs). No, but they have a rough idea of what the technology can do and is needed for. My nephews are eagerly awaiting the next season, my colleagues have a lot ideas for new episodes, and our community is happy to accompany the superhero on new adventures. It’s not possible to implement inner cinema that quickly, but the start has been made.

Blockchain Europe: Why a comic?

Britta Scherer: Like many digitization or IT topics, blockchain is difficult to illustrate visually – compounded by the pandemic, for over two years I’ve been unable to take photos of real-life appointments or demonstrators. Boring decorative images with futuristic backgrounds and ones and zeros in the foreground or the chain symbol popular in the case of Blockchain are rarely eye-catchers. So we created our own visual language and graphic world. Apart from that, no other activity can really pick up all the different target groups the way a comic can. If you think in terms of categories – and I’m allowed to say this because I’m one myself – nerds love comics. That’s why the comic book was published authentically sealed in the Original Collector’s Edition – for collector’s value. And it’s not just kids who love animated movies. The reasons why The Simpsons or The Minions are so popular with adults, too, are the hidden jokes and hints – the reference to real events. In a comic, the world is also allowed to be black and white sometimes, and a bit of humor can be added.

Blockchain Europe: A comic and the accompanying animated films are a very work-intensive undertaking. Are there other ways to communicate the topic of blockchain?

Britta Scherer: The topic, just like all other scientific topics, lends itself to most classic measures. If we take a look at physics or mechanical engineering, the topics there are also not more difficult, easier or more specialized.

Basically, videos help. Here, several senses are addressed at once, the concrete object of work can be shown and the community can get to know the people behind it. Events are also a very important tool. People need to be able to exchange ideas, learn from the experiences of others and share their opinions.

Sometimes it also helps to go against common prejudices. For example, we launched our “Fake News” campaign. Various prejudices and myths about blockchain technology are circulating on the Internet in particular, and these have also manifested themselves in the minds of some people in a very persistent way. Therefore, we have cleared up some prejudices in short and factual texts.

Blockchain Europe: What else can the blockchain community expect in the next time?

Britta Scherer: Exciting events. Our blockchain practitioner, blended learning format, is starting its second round and our meet-up series continues in April. Our whitepaper series will be published. And, minor spoiler: The second season of LedgerMan launches on March 24. Last but not least, there is new content in our “Projects” section on the Blockchain Europe website. We will present more implementation projects from the community. In line with this, there will also be many videos on our YouTube channel again.

How much time is involved in the process itself and in the individual sub-steps? What are the most common problems and their effects? What measures would simplify your day-to-day work? Are regulations, laws and specifications known? These and other questions await you in our short survey. The results will be evaluated and shared with the community free of charge. In addition, Blockchain Europe will work on possible digitalization, simplification and support offers.

The data will be used in anonymized form, so that it is impossible to draw conclusions about the participating person or company. Participation is open until April 15, 2022.

Click here for the survey

With the Working Group Customs and Blockchain, Blockchain Europe wants to create a forum for customs experts to shape the future together in the spirit of open innovation.

What concrete benefits does the blockchain bring to customs authorities and what can these look like in concrete terms, e.g. in the form of a MVP? These and other questions will be discussed next time. we look forward to it.

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