(translated with ChatGPT with no further correction)
Blockchain is considered one of the most promising technologies for the future – including for the chemical and raw materials industry. In this interview, Ms. Rentschler-Gerloff explains what blockchain actually is, how it can be specifically used in production and the chemical sector, and what concrete advantages it offers.
Dear Ms. Rentschler-Gerloff, could you briefly explain what blockchain technology is for someone who has not yet dealt with the topic? And how do you see the future of this new technology?
Blockchain technology is a decentralized database structure that stores information in chronologically ordered, immutable blocks. Each block contains transaction data secured by cryptographic methods. The special feature of blockchain is that it operates without a central authority – it is managed by a network of computers that agree on new transactions. This ensures high transparency, security, and tamper resistance.
I see a very promising future for blockchain technology. Besides cryptocurrencies such as Bitcoin and stablecoins, it is gaining importance in many industries, including finance, logistics, healthcare, the chemical and raw materials sectors, and even in the public sector. As an example, the German Employment Agency and the Federal Office for Migration and Refugees already use blockchain technology today.
Smart contracts and the development of digital identities, in particular, are revolutionizing existing processes. Challenges such as regulatory alignment or energy consumption are continuously being addressed and improved to achieve broad societal and economic acceptance.
What can be done with this technology, especially for the manufacturing industry?
Blockchain technology offers many exciting applications for the chemical industry, particularly in the areas of transparency, traceability, and efficiency improvement.
Traceability of raw materials and products:
Blockchain enables complete documentation of supply chains. Chemical raw materials and finished products can be tracked across the entire value chain – from production through transport to the end customer. This helps prevent counterfeiting and maintain quality standards.
Sustainability and circular economy:
Blockchain can precisely track the CO₂ footprint of chemicals and make recycling processes more transparent. This helps comply with environmental regulations and promotes sustainable production and recycling.
The blockchain also enables secure reward systems for environmentally friendly actions and recycling. CO₂ certificates can be stored as tamper-proof tokens and traded efficiently. This eases access, attracts new investors, and expands the carbon trading market, reducing costs and making carbon trading more transparent. “Tokenization” converts physical or digital assets into blockchain-based tokens that are tradable, divisible, and programmable.
Efficient and secure documentation:
The chemical industry requires numerous certificates, safety data sheets, and regulatory documentation. Blockchain allows these to be digitally and securely stored, making paperwork obsolete and speeding up processes.
Smart contracts for automated processes:
Automated contracts can handle orders, payments, and deliveries securely and without manual intervention, reducing administrative costs and minimizing errors – especially in cross-border transactions.
Protection of intellectual property:
Formulas, patents, and research data can be stored in a tamper-proof manner, securing innovation processes and preventing unauthorized use.
Could you give us an example where this technology is already being used?
A practical example of blockchain use in the chemical industry is the automated and transparent handling of raw material deliveries, including traceability, billing, and just-in-time trading after delivery.
Use Case: Blockchain in raw materials logistics and billing
A chemical company regularly requires large quantities of raw materials such as solvents, plastics, or specialty chemicals. Here’s where blockchain comes into play:
Traceability of raw materials:
Each container is tagged with a digital identifier (e.g., RFID or QR code). During loading, the origin, quality, and quantity of the chemicals are recorded on a blockchain. All parties – from supplier to transport provider to chemical company – have real-time access to this data.
Tamper-proof documentation:
Information such as safety certificates, inspection protocols, or temperature conditions during transport is securely stored on the blockchain. This facilitates quality assurance and minimizes fraud or errors.
Automated billing via smart contracts:
Once the delivery arrives and is automatically recorded by IoT sensors, a smart contract triggers payment – but only if all defined parameters (e.g., correct quantity, quality, delivery time) are met. This accelerates invoicing processes and avoids billing errors.
Just-in-time trading after delivery:
If the company receives more raw material than needed, it can immediately offer the surplus via a blockchain-based trading platform. Other companies can purchase these materials in real time and process them directly. This prevents overstocking and optimizes inventory management.
Benefits for the chemical industry:
This technology enables chemical companies to make their supply chains more efficient, secure, and cost-effective – a real competitive advantage in an increasingly digitalized industry.
Another practical example from the chemical industry
Another practical example of blockchain use in the chemical industry is the Chemchain project, with Belgian chemical company Solvay participating. This EU-funded project aimed to transparently and securely track chemical information along the entire value chain. The project has since been taken over by 3E (https://www.3eco.com/) and integrated into their 3E Exchange Platform, a supply chain and sustainability platform. 3E specializes in compliance and sustainability solutions for the chemical, environmental, and product regulation sectors.
Use Case: Traceability of chemicals for a sustainable circular economy
As part of the Chemchain project, Solvay stores data about used chemicals on a blockchain-based platform. Manufacturers can upload specific information about chemical compositions and selectively share it with subsequent actors in the supply chain. This enables downstream producers, consumers, and waste managers to access relevant information without exposing confidential details about the entire production chain. For waste management companies, this transparency simplifies the proper disposal and recycling of products, fostering the development of a sustainable circular economy.
Benefits for the chemical industry:
This example shows how integrating blockchain technology into the chemical industry not only improves transparency and efficiency along the supply chain but also contributes significantly to promoting sustainable practices.
Is there anything else you would like to share with our readers?
Yes, blockchain technology offers enormous opportunities for the chemical industry, particularly in traceability, anti-counterfeiting, and sustainability. Companies that invest early in blockchain can make their supply chains more efficient, meet regulatory requirements more easily, and strengthen trust among customers and partners. However, it is important to plan implementation strategically, choose the right partners, and keep an eye on regulatory challenges. The future of the chemical industry is increasingly digital – and blockchain can play a key role in that transformation.
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