Turning the Enterprise tide with Blockchain Technology
- May 21, 2021
- Posted by: Shalini R
- Category: Blockchain
Some of the world’s most powerful corporations have entered the blockchain game, with the majority of them looking past bitcoin at the ability of blockchain technology to help them develop operations, transform business strategies, and realise entirely new possibilities.
For example, Walmart recently filed a patent application for a blockchain-based system that would enable consumers to register their purchases in order to create a marketplace where they could easily resell them. This is in addition to a patent for a blockchain-based “smart box” distribution system that the retailer filed in March.
IBM has also been collaborating with Walmart on a blockchain-based food supply chain monitoring scheme, with active pilot projects in China and Central America tracking pork supplies and mangoes, respectively. This collaboration has developed into a group of major corporations, including Dole, Unilever, and Nestle, who are exploring the project’s possibilities further.
Microsoft is collaborating with JPMorgan Chase and other corporate behemoths on a competing Ethereum-based venture to compete with IBM’s scheme. Microsoft is also working on further blockchain ventures with Accenture and Bank of America.
That is just the tip of the iceberg in terms of large corporations’ involvement in blockchain. JD.com, a Chinese e-commerce giant, Maersk, Airbus, Daimler, BAE, and major financial institutions such as HSBC, ING, and the United States Bank are among those creating blockchain applications.
The Benefits of Blockchain Technology
Cryptocurrencies like Bitcoin are perhaps the most well-known applications of blockchain technology. However, the technical foundations open the door to a plethora of new possibilities. In political and work environments, blockchain may enhance consensus and democracy, as well as operational efficiencies, data authentication, and workflows that improve customer engagement and confidence.
One of the most important characteristics of the blockchain is its ability to establish credibility. A blockchain is a distributed database that is stored through a large network of computers that are continuously verifying knowledge with one another. Since every device on the blockchain network has a copy of the same data, it can’t be changed after it’s been sent.
This immutable and decentralised nature is intended to enable parties who might not trust one another or a third party to understand a single truth and agree on transactions.
Soft assets, such as data and software, account for 50 percent to 70 percent of the assets of many of the world’s top 300 firms. Aspects of these soft assets are frequently useful to others. They can securely exchange and monetise these elements in a trackable manner using blockchain and trustless environments backed by smart contract technology.
Blockchain technology is already proving to be beneficial to existing businesses in areas such as supply chain management, data security, and finance, to name a few. It may also be useful in cases where businesses need verifiable evidence of provenance, conduct, or statements, such as in court, audits, or compliance.
Both parties must be able to trust that the proof is complete, reliable, and unaltered in order to rely on it. This can be accomplished by recording transactions on the blockchain.
Digital records, such as data transactions, incidents, and documents, are documented in an immutable database when they are processed on the blockchain. Each piece of data or event is permanent, and it can be connected to other data in a chain to create a transparent and unchangeable record of a sequence of events, transactions, or other data.
Furthermore, the blockchain provides much greater protection than conventional databases. To falsify information or otherwise compromise data, a hacker will have to break into a majority of the machines on the network at the same time, which is virtually impossible.
Providing Proof of Provenance
Manufacturers battling counterfeiting or demonstrating the provenance of their goods are two examples of how blockchain may benefit businesses.
Manufacturers have traditionally kept data about their supply chain and the provenance of their products in their own databases, which is not very reliable or automatically trusted by all parties.
A producer may use the blockchain to record all of the different points in a product’s path across the supply chain, providing a permanent record of each product’s provenance. A business may claim that it did not produce a counterfeit item by using this form of record. For example, if a serial number was copied, the company might create a record of a product’s journey to show that the counterfeit product is a fake.
Realizing One’s Potential
Blockchain technology is still in its infancy, and obstacles must be addressed in order for it to reach its full potential.
However, the future holds many exciting opportunities for the adoption of innovative ideas in fields ranging from banking to offering verifiable evidence — and many more.