In any exchange, the need for transparency and accountability is of the utmost importance. Blockchain and so-called distributed ledger technology (DLT) have long held the potential to revolutionise the way businesses and organisations in general conduct exchanges – be it physical goods, intellectual property, or financial transactions – because of the technologies’ inherent transparency. However, there has long been a need for international standardization to create a reliable framework for any exchange.
For the past few years, professor Roman Beck from the IT University’s Business IT department and the European Blockchain Center has been instrumental in developing a governance standard for blockchain and DLT systems, and together with Danish Standard, an organisation specialized in facilitating standardization for the business community in Denmark, he can now present the fruit of their labour.
Just released, the first ever governance standard for blockchain and DLT, which has been accepted and published by the International Organization for Standardization, provides guidance for organizations, industries, and governments on how governance can be implemented and executed in distributed ledger systems and addresses how key governance characteristics such as decision rights, accountabilities, and incentives operate effectively and efficiently in DLT systems.
One key aspect of the governance standard is the concept of Smart Contracts. Many present-day DLT systems rely on a degree of centralized, often informal, decision-making. Smart contracts can allow for decentralized governance mechanisms. Ideally, in the future DLT systems will ensure accountability by technical implementation rather than institutional implementation through traditional contracts.
- Blockchain technology holds massive opportunities for businesses, especially in a highly digitalized country like Denmark. By spearheading the effort to create a governance standard for blockchain, which has been adopted internationally, we have ensured that the interests of Danish businesses are represented, says Roman Beck.
The standard may help generate a higher level of trust in the market and the technology supporting it. By operating in accordance with an international standard, businesses and governmental institutions are able to document to customers and users that they follow a set of best practices.
For his work promoting blockchain and distributed ledger technology and spearheading the effort to create an international governance standard, Roman Beck was recently the recipient of an Impact Award from the Association of Information Systems.
- The standard will ensure trust and accountability in blockchain applications especially with regard to security and privacy issues. It will also enable companies to document the fact that they follow a set of best practices in their work, says Astrid Bækby Knudsen who is a consultant with Danish Standard.
- It is an honour to have my work recognised for its impact outside of academia, says Roman Beck.
- Blockchain technology will transform networks and transactions across industries, and it is my hope that my research may be an eyeopener to more Danish businesses about the potential in incorporating blockchain in business practices.
If you are interested in the new standard, join us for a webinar on March 21st. Sign up and read more about the new standard here: www.ds.dk/blockchain