BERLIN, Nov. 13 (Xinhua) -- German companies can benefit significantly from the use of "Blockchain" encryption technology, a study published on Tuesday by the German Information Technology Association (Bitkom) finds.
Speaking at the presentation of the study in Berlin, Bitkom President Achim Berg noted that most companies were still oblivious to the technology and urged the government to help develop concrete Blockchain applications, such as decentralized transaction systems, to increase awareness of its possibilities. "If we set the right course now, Germany can play a leading role in the development of Blockchain solutions", Berg said.
Towards that end, the Bitkom president proposed creating joint research projects which united industry representatives with academic institutions. "Nine out of ten companies in this country have not even begun to ponder the use of Blockchain technologies", he complained. The finding was based on a representative telephone survey of 1,004 companies.
A Blockchain is an expanding list of digital records, referred to as "blocks", which are cryptographically linked to each other. The technology was invented by Satoshi Nakamoto in 2008 as a decentralized form of data storage needed enable public transactions in the cryptocurrency "bitcoin".
For Berg, the main reason for the apparent hesitancy to embrace Blockchain was a lack of experts on its use, as well as the absence of legal protections and regulatory standards. The best-known example of a Blockchain-driven technology is still bitcoin which has been subject to dramatic swings in its value and is eyed with suspicion by most national monetary authorities due to its popularity amongst organized crime syndicates.
Berg urged federal-, regional- and municipal governments in Germany on Tuesday to lead the way by creating pilot projects for the use of Blockchain in areas of public administration such as public registries. In order for the projects to be transformed into marketable applications, legislators would then have to re-assess the current regulatory framework where necessary.
"A token must have the same function as a digital mechanism as a paper document", Berg said.
