Blockchain and its value proposition: Why should you care?

With more awareness floating across the industry, gradually businesses across the globe are actively considering to deploy blockchain into their regular operations. Our previous article explained the challenges that most enterprises face in adopting blockchain technology. In this post, we shall throw light on blockchain’s value proposition to enterprises and how its wide-scale adoption can effectively optimize the way organizations run.

Today, most operations and transaction processing, (both inter-organizational and intra-organizational) occur through a centralized architecture, which has posed a myriad of inconveniences including single points of failure, lack of reliability, speed and transparency, dependency on third-party services etc. The blockchain technology with its underlying concept of being a decentralized ledger capable of deploying multiple applications on its protocol has lot more to offer than enterprises can envision at the moment.

Let’s delve deeper to understand why should you consider blockchain’s value proposition to enterprises.

• Blockchain being a decentralized network, increases speed of information exchange and maintains availability of resources at all point in time across multiple levels in an organization. This is in contrast to information storage at a centralized junction posing both availability and security threats.
• Blockchain’s programmable logic enables organizations to seamlessly integrate new applications with the existing ones, thus allowing optimum utilization of available capabilities. Achieving this in the present generic approach would be a humongous and time-consuming task, which would also destabilize the entire process of operation.
• A number of important backend processes within an enterprise like supply chain management, inventory management etc. are usually outsourced in existing business architectural models. Applying blockchain to carry these out would highly escalate efficiency gains by evading third-party dependencies and would also demonetize the entire process while maintaining utmost transparency in data management.
• Smart contracts are a set of codes which can be executed within a blockchain architecture. These contracts, if programmed by applying relevant conditions, can enable self-execution of business agreements, financial and data transactions, thereby reducing administrative costs and mitigating the requirement of hefty paperwork and human errors. Smart contracts have the potential to process trustable and secure business transactions.
• If limited participation in organizational operations is required, the implementation of a private blockchain helps to enable restricted access to resources, thus imparting a certain degree of controllable authority within the organization, while utilizing the other advantages of blockchain technology.
• Other compelling benefits of deploying blockchain technology are immutability capabilities in data management, complete control over digital identity and personal data through cryptographic methods. Moreover, end users of your products/services shall also benefit out of this and process trustable transactions, as none of the data are stored in a centralized database vulnerable to hacks.

With regular developments in the blockchain space and increasing awareness regarding the technology, enterprises irrespective of their scale should start considering this solution. Creating a blockchain network right from the scratch and making a paradigm shift from the existing system might be tricky. Nikoin’s Blockchain as a Service Platform has a plug and play architecture, where an enterprise can build their own blockchain network and deploy applications.

Thanks for reading.