Form 1: Proposal for a new field oftechnical activity
Circulation date:2016-04-14
Closing date for voting:2016-07-14

Reference number(to be given by Central Secretariat)

Proposer :ISO/TS/P

Standards Australia

258

A proposal for a new field of technical activity shall be submitted to the Central Secretariat, which willassign it a reference number and process the proposal in accordance with the ISO/IEC Directives(part 1, subclause 1.5). The proposer may be a member body of ISO, a technical committee,
subcommittee or project committee, the Technical Management Board or a General Assemblycommittee, the Secretary-General, a body responsible for managing a certification system operating
under the auspices of ISO, or another international organization with national body member ship.
Guidelines for proposing and justifying a new field of technical activity are given in the ISO/IEC
Directives (part 1, Annex C).
The proposal (to be completed by the proposer)
Title of the proposed new committee (The title shall indicate clearly yet concisely the new
field of technical activity which the proposal is intended to cover.)
Blockchain and electronic distributed ledger technologies

Scope statement of the proposed new committee (The scope shall precisely define thelimits of the field of activity. Scopes shall not repeat general aims and principles governing
the work of the organization but shall indicate the specific area concerned.)Standardisation of blockchains and distributed ledger technologies to support interoperability anddata interchange among users, applications and systems.

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Proposed initial programme of work (The proposed programme of work shall correspond toand clearly reflect the aims of the standardization activities and shall, therefore, show the
relationship between the subject proposed. Each item on the programme of work shall bedefined by both the subject aspect(s) to be standardized (for products, for example, theitems would be the types of products, characteristics, other requirements, data to besupplied, test methods, etc.). Supplementary justification may be combined with particular
items in the programme of work. The proposed programme of work shall also suggest
priorities and target dates.
The Technology of Blockchains
Blockchain and electronic distributed ledger technologies are an emerging peer-to-peer data base
tool for managing and recording transactions. The technology behind blockchains is open source.
This new disruptive technology offers the prospect for sharing financial, legal, physical or electronic
information more readily across multiple sites (nationally and internationall y) and from government
to business or business to business.
Blockchain has the potential to support efficient and secure transactions and reduce process
management issues across a range of economic sectors including:
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government
consumer products and services
healthminerals and precious stones
financial services
real estatebusiness

Public vs Private Blockchains
There is a big difference in what technologies you need, depending on whether you allow anyone towrite to your blockchain, or known, vetted participants. As an example, Bitcoin allows anyone towrite to its ledger.
Public blockchains - Ledgers can be ‘public’ in two senses:
1. Anyone, without permission granted by another authority, can write data
2. Anyone, without permission granted by another authority, can read data
Private blockchains - Conversely, a ‘private’ blockchain network is where the participants are known
and trusted: for example, an industry group, or a group of companies owned by an umbrella
company. Many of the mechanisms are not needed with the use of smart contracts.
The Governance of Blockchains
There is an opportunity to define and standardise the approach to govern and interact with multiple
blockchains and create the mechanism to add assurance and governance controls, si milar to thoseused in existing financial transactions, to each transaction across all blockchains.
The proposed work will focus on technical solutions including protocols and interoperability. The
work will exclude legal obligations and regulatory matters addressed by government jurisdictions.
There are currently a number of different blockchain protocols in use. The technical committee willconsider key protocol differentiating elements including permission models (private and public),
smart contracts (contracts whose terms are recorded in computer language rather than legal
language), application programming interfaces and other elements.
The proposed work is to:

define this standard
create the mechanism to be a gateway to multiple blockchainscreate the governance framework
have interoperability and compatibility with existing financial standards

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provide legal and regulatory compliance to each transaction across blockchains
work towards a regulatory framework that provides a mix of legal and t echnical rules

The following diagram explains the scope of the proposed suite of Standards to allow interoperability
and governance across blockchains.
Scope of the Standard

Remitt Multigateway
ID-toBlockchain
Mapping
Blockchain
Gateway

Bank

SWIFT

Financial
Networks

Remitt API

eKYC/AML

Payments
Platform

Remitt Private Blockchain/DB
EngineRippleStellar

Bitcoin

Ethereum

Other

International
Payments
Framework
(IPF)

GW

GW

GW

GW

GW

FIX
FPL
NACHA
etc

Banking

Existing Standards
Leveraging existing work, a proposed approach can be similar to the SWIFT ISO 20022 Standard
which defines the fields and controls within messages and transactions between entities thus
allowing interoperability.
<CdtTrfTxInf><IntrBkSttlmAmt Ccy=‘USD’>12500</IntrBkSttlmAmt> <IntrBkSttlmDt>2009-1029</IntrBkSttlmDt><Dbtr><Nm>ACME NV.</Nm><PstlAdr><StrtNm>Amstel</StrtNm><BldgNb>344</BldgNb><TwnNm>Amsterdam</TwnNm><Ctry>NL</Ctry></PstlAdr></Dbtr><DbtrAcct><Id><Othr><Id>8754219990</Id></Othr></Id></DbtrAcct><DbtrAgt><FinInstnId><BIC>EXABNL2U</BIC></FinInstnId></DbtrAgt></CdtTrfTxInf>

The above example is an excerpt from ISO 20022 Financial services -- Universal financial industry
message scheme series of standards.
To achieve these objectives, as a priority the work program would support the development ofspecific standards to address key areas such as:

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Terminology – Developing a common language and terminology to define the interoperabilityof blockchain
Process and Methods – Developing the mechanisms and messaging standards around interblockchain communication including routing.
Trust and Interoperability - Developing standards that incorporate messaging protocols andmethods to route, trust and connect to different blockchains. Establishing a standard API(Application Programming Interface) and set of routines and tools for building blockchain
software and applications
Privacy and Security: Developing standards to ensure that the confidentiality, integrity andavailability of users and entities are maintained. Embed compliance to money launderingand Know Your Customer (KYC) requirements.
Authentication – Mechanisms to map blockchain transactions to individual users and entities
in a secure manner. Store credentials on the blockchain or align/federate to a sidechain (offblockchain)

Indication(s) of the preferred type or types of deliverable(s) to be produced under the
proposal (This may be combined with the "Proposed initial programme of work" if moreconvenient.)
The proposed initial programme of work would see a range of deliverables developed which would
include a series of ISO/IEC JTC 1 Standards and technical specifications to assist in thedevelopment, deployment, use and growth of this key enabling technology platform. It is proposedthat this work be undertaken by a new ISO/TC.

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A listing of relevant existing documents at the international, regional and national levels.
(Any known relevant document (such as standards and regulations) shall be li sted,regardless of their source and should be accompanied by an indication of theirsignificance.)
Does Blockchain Technology Need a Global Standard to Thrive?
http://www.afponline.org/pub/res/news/Does_Blockchain _Technology_Need_a_Global_Standard_to_Thrive_.html?utm_content=bufferee298&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer accessed on 05/04/2016. This topic opened the Money 20/20 Europe
conference in Copenhagen, Denmark with a panel discussion on the difficulty governments arehaving coming up with regulations for the digital ledger technology and the need for aninternational standard.
Distributed Ledger Technology: beyond Blockchain. A report by the UK Government Chief Adviser,
Government Office for Science, London, 2016 – This is a new report from the UK Government
Office for Science that has recommended a broad government effort to explore and test Blockchain
and distributed ledger technology.
ISO/IEC 29115:2013 Information technology -- Security techniques -- Entity authentication
assurance framework – this key international standard provides a framework for managing entity
authentication assurance in a given context.
ISO/IEC 9594-8: Information Technology - Open Systems Interconnection - The Directory: Publickey and Attribute Certificate Frameworks – this standard defines a standard certificate format for
public key certificates and certification validation.
ISO 20022 Financial services -- Universal financial industry message scheme (Parts 1-8)
ISO 27000 Information technology -- Security techniques (series of standards developed by
ISO/IEC JTC 1/SC 27 IT Security techniques)ISO 7372:2005, Trade data interchange — Trade data elements directory[This the joint ISO and UN/CEFACT publication]
ISO 9735 series, Electronic data interchange for administration, commerce and transport(EDIFACT) —Application level syntax rules
ISO 17369:2013, Statistical data and metadata exchange (SDMX)
ISO 10303 series, Industrial automation systems and integration — Product data representationand exchange
ISO 29002 series, Industrial automation systems and integration — Exchange of characteristic
data
Swan Melanie, Blockchain: Blueprint for a New Economy, O’Reilly Media Inc, 2015, see
https://ahkyee.files.wordpress.com/2015/09/swan-2015-blockchain-blueprint-for-a-neweconomy.pdf - this book outlines the growing importance of the role of blockchain as a public
ledger with the potential a decentralised record for the registration, inventory, transfer of assets(both tangible and intangible). The author argues that blockchain could become the fifth gamechanging technology after mainframes, PCs, the internet and mobile/social networking.

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Scott Brett, How Can Cryptocurrency and Blockchain Technology Play a Role in Building Socialand Solidarity Finance?, Working Paper 2016-1, United Nations Research Institute for Social
Development (UNRISD), Geneva, Switzerland, February 2016.

A statement from the proposer as to how the proposed work may relate to or impact on
existing work, especially existing ISO and IEC deliverables. (The proposer should explain how
the work differs from apparently similar work, or explain how duplication and conflict will beminimized. If seemingly similar or related work is already in the scope of other committees ofthe organization or in other organizations, the proposed scope shall distinguish between the
proposed work and the other work. The proposer shall indicate whether his or her proposal
could be dealt with by widening the scope of an existing committee or by establishing a newcommittee.)
ISO leadership in developing standards for blockchain as a new field of technical activity will
significantly benefit other ISO and ISO/IEC JTC 1 works streams. Most notably, standards forblockchain may reference existing standards relating to risk, securit y, data management andinterchange as well as IT governance. This may include referencing o f standards developed bycommittees including:
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ISO/IEC JTC 1/SC 22 Programming languages, their environments and system softwareinterfaces
ISO/IEC JTC 1/SC 27 IT Security techniques
ISO/IEC JTC 1/SC 32 Data management and interchange
ISO/IEC JTC 1/SC 34 Document description and processing languages
ISO/IEC JTC 1/SC 35 User interfaces
ISO/IEC JTC 1/SC 38 Cloud Computing and Distributed Platforms
ISO/IEC JTC 1/SC 40 IT Service Management and IT Governance
ISO/TC 68 Financial services
ISO/TC 251 Asset management
ISO/ TC 279 Innovation management
ISO TC 262 Risk management
ISO TC 292 Security techniques
ISO TC 154 Processes, data elements and documents in commerce, industry andadministration
ISO TC 184/SC 4 Automation systems and integration — Industrial data

The proposed suite of blockchain standards may also support the development and revision ofstandards to include technical advances by informing existing technical committees:

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ISO/TC 215 Health Informatics
ISO/ TC 46 Information and documentation
ISO/TC 68 Financial services
ISO/TC 251 Asset management
ISO/TC 259 Project committee: Outsourcing
ISO/ TC 279 Innovation management
ISO/PC 295 Audit data collection
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A listing of relevant countries where the subject of the proposal is important to theirnational commercial interests.
Australia
CanadaChina
Estonia
European Union, particularly, France, Germany and the United Kingdom
Finland
India
IsraelJapan
Korea
RussiaSingapore
SwedenSwitzerland
United Arab Emirates
United States

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A listing of relevant external international organizations or internal parties (other ISO and/or
IEC committees) to be engaged as liaisons in the development of the deliverable(s). (Inorder to avoid conflict with, or duplication of efforts of, other bodies, it is important toindicate all points of possible conflict or overlap. The result of any communication withother interested bodies shall also be included.)
The new TC or SC will actively seek opportunities on an on-going basis to collaborate, co-ordinate
and liaise with all the relevant ISO and ISO/IEC JTC 1 entities below.
ISO/IEC JTC 1/SC 22 Programming languages, their environments and system software interfaces
ISO/IEC JTC 1/SC 27 IT Security techniques
ISO/IEC JTC 1/SC 32 Data management and interchange
ISO/IEC JTC 1/SC 38 Cloud Computing and Distributed Platfor ms
ISO/IEC JTC 1/SC 40 IT Service Management and IT Governance
ISO TC 154 Processes, data elements and documents in commerc e, industry and administration
ISO TC 184/SC 4 Automation systems and integration — Industrial data
As blockchain technology is an emerging and cross-sectorial technology, there may be othertechnical committees that seek to liaise with the newly proposed blockchain committee.
With ISO taking a lead on this new standardization activity there will be a significant opportunity
for ISO to work with a large range of external organizations and bodies with a current or futureinterest in blockchain, including:United Nations Conference on Trade and Development (UNCTAD)
United Nations Information and Communication Technologies Task ForceWorld Economic ForumR3 Consortium
Association of National Numbering Agencies
Bank for International Settlements
Coalition of Automated Legal Applications
Digital Assets Transfer Authority (W3C)
Electronic Frontier Foundation
Global Legal Entity Identifier Foundation
Internet Governance Forum
MasterCard International
Society for Worldwide Interbank Financial Telecommunication
UN/ECE CEFACT
Visa International
W3C: Cryptoledgers Community group & Web Payments Working Group

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A simple and concise statement identifying and describing relevant affected stakeholder
categories (including small and medium sized enterprises) and how they will each benefit
from or be impacted by the proposed deliverable(s).
The purpose of the blockchain is to provide a trusted immutable record across a distributed
cryptographic ledger network that stores a copy and validates each transaction on each node.

The blockchain has been created to allow verification and immutable validation between peers, without
the need of middlemen or 3rd parties. In practice, this means once data has been written to a
blockchain no one, not even a system administrator, can change it.

The verified data can have pre-conditions and logic attached to it to allow it to be executed. These arecalled Smart Contracts. As an example, in the delivery of a parcel can use blockchain technology.
When you purchase an item online, three parties can form a Smart Contract.

The Buyer, Seller and the courier. The item can be purchased as normal and purchase ca n be placed
into a smart contract which can mandate the release of money only when the buyer has received theitem from the courier and it is in satisfactory condition. When the buyer is satisfied of the conditionand delivery, then the money is released to the seller and the courier is paid for the delivery
automatically, without the need for human intervention in this process. This example can be used forthe transfer of titles, digital and physical assets and financial products.

In the private sector, blockchain can support transaction and reduce process management issues
related to lengthy supply chains. The blockchain can in a wide range of economic sectors including:
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consumer products and services
health, minerals and precious stonesbankingreal estatetransport and automobiles
small and medium enterprise

The benefits of blockchain technology reduce the need for duplication and reconciliation between
parties, allowing for near realtime settlement without the need for a middle man.

Reduced market friction, making it easier for small and medium -sized enterprises (SMEs) to interact
with local and national authorities
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Promotion of innovation and economic growth possibilities for SMEs

Other applications of this can also apply to Government transacting with citizens including fortransactions relating to:
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Voting (local, state and national elections)Registration, transfer and management of land/property titles
Passports
Industry licenses
Vehicle licenses
OthersThe Australian Treasury notes that blockchain technology will have a positive impact on the Australian
tax and banking systems, and may require potential amendments to Commonwealth law including:Treating digital currency as money for taxation purposes
Including digital currencies in legislation related to anti-money laundering

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Furthermore, the Australian Government is currently consulting with a wide range of stakeholder
including Standards Australia regarding the potential impact of blockchain technology on theAustralian economy.
The UK’s Government Office for Science notes the following examples:
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Reduced cost of operations, including reducing fraud and error in payments
Greater transparency of transactions between government agencies and citizens
Greater financial inclusion of people currently on the fringes of the financial system
Reduced costs of protecting citizens’ data while creating the possibility to share data between
different entities, allowing for the creation of information marketplace s
Protection of critical infrastructure such as bridges, tunnels etc.

Collectively these very broad range of possible benefits are delivered through the application of
distributed ledgers in three different ways:

Within currency applications
To manage contracts and create new forms of contracts
To prompt new applications by third parties, and provide more efficient ways of structuring
and carrying out activities

Each of these opportunities and its application to the diff erent technical implementations can achieve
outcomes such as:
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Protecting critical infrastructure against cyber attacks
Reducing operational costs and tracking eligibility for welfare support, while offering greater
financial inclusion
Transparency and traceability of how aid money is spent
Creating opportunities for economic growth, bolstering SMEs and increasing employment
Reducing tax fraud.

An expression of commitment from the proposer to provide the committee secretariat if the
proposal succeeds.
Standards Australia is willing and committed to provide the international secretariat and Chair if
approved by TMB.

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Purpose and justification for the proposal. (The purpose and justification for the creation ofa new technical committee shall be made clear and the need for standardization in thisfieldshall be justified. Clause C.4.13.3 of Annex C of the ISO/IEC Directives, Part 1 contains amenu of suggestions or ideas for possible documentation to support and purpose andjustification of proposals. Proposers should consider these suggestions, but they are notlimited to them, nor are they required to comply strictly with them. What is most important isthat proposers develop and provide purpose and justification information tha t is most
relevant to their proposals and that makes a substantial business case for the market
relevance and the need for their proposals. Thorough, well-developed and robust purpose andjustification documentation will lead to more informed consideration of proposals andultimately their possible success in the ISO IEC system.)
Detailed below are the key justifications that provide a compelling narrative for the star t of this new
field of technical activity.
Justification 1: Establishing Blockchain standards will position ISO as a leading contributor todevelop global solutions to facilitate data movement and information flows thus enabling more
efficient and timely transactions.
Justification 2: There is no one blockchain standard or protocol curre ntly in use. International
standards will allow for interoperability and implementation and use of multiple blockchain related
protocols.
Justification 3: The development of blockchain and electronic ledger standards through ISO willassist this new emerging technology to be rolled out and deployed with greater clarity, certainty andmarket confidence.
Justification 4: The widespread adoption and use of international blockchain standards could
facilitate a new wave of innovation, productivity, employment and industry opportunities.
Justification 5: The possibility of contributing to making the provision of public and private services
more cost effective and efficient.
Justification 6: The growing burden of KYC compliance could be significantly reduced through thedevelopment of international blockchain standards which utilize shared database(s) for undertaking
business and transacting payments.
Justification 7: Blockchain has the potential to create significant ben efits for developing countries by
unlocking banking and other applications. For instance, realtime transfers of remittances can deliver
financial independence for individuals in developing economies. Similarly blockchain can document
land titles and owner registrations.
Justification 8: The development of international standards to support smart contracts has thepotential decrease contracting, compliance and enforcement provision costs.
Justification 9: The development of international blockchain standards will reduce transaction costs
for SMEs when dealing with governments and businesses.

Signature of the proposer

Click here to enter text.

Further information to assist with understanding the requirements for the items above can be foundin the Directives, Part 1, Annex C.

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