Three Decentralized Enterprise Use Cases that you can Foster Today!
Decentralization is approaching! But a lot of us are not sure what to make of it or are not convinced if it will fit in particular industrial applications. It is a valid concern, decentralization can’t work everywhere, or with every process, as experts have eventually discovered over repeated testing and research.
But, there are still many application fields where decentralization can bring more transparency within different parties or in the internal processes of organizations. In this article, let’s look at three such use cases that organizations can explore today and benefit from minimum expenditures and resource allocation.
Supply Chain Management (SCM)
There are multiple entities involved in a supply chain. Choose any product, the processes connecting the dots in a supply chain are getting more and more complex. Each entity in this chain often has a different software tool to manage its assets and liabilities. There’s a need for one universal cooperation layer for different players in a supply chain setting.
Using decentralization, companies can eliminate the friction caused by all the phone calls, meetings, and emails to resolve supply chain matters. Instead, a smart contract can cater to these all on its own. These contracts will take care of record-keeping, verifying orders, quality control matters, accounts, and partnerships.
Besides, the enterprise owners can decide which processes should be on-chain and which shouldn’t, depending on the scalability needs. Decentralized technologies, such as blockchain or direct acyclic graph-based (DAG) applications will also empower companies in managing and tracking digital assets like warranties, certifications, licenses, and copyrights.
Companies will have a treasure trove of audit trails at their fingertips. It will help in optimizing processes and minimizing expenditures on product enhancement as well as the restructuring of the supply chain.
On similar lines, I came across a blockchain-based bill of lading for the shipping industry, which is one part of the supply chain universe.
For the uninitiated, the bill of lading is proof that cargo is loaded and ready to be shipped. This is essential when multiple parties are involved in the import and export of goods (for instance). A blockchain-based decentralized bill is a much more confidence-inspiring than a tamper-prone electronic bill. In the latter, one has to trust the document received, whereas in the first one there’s no need for trusting anyone because of the trustless nature of the system.
CargoX is one such company that has an Ethereum-based working bill of lading and offers easy API integration with minimum investment. However, CargoX is currently only offering the service for the shipping industry. But, it does give us an insight into what can also work with other similar applications for trains, trucks, and freights where multiple stakeholders are involved.
Digital Twins for Machines and Processes
Another use case that you can try out today is a digital twin enabled by a Self Sovereign Identity. SSI is an enabler for the SCM infrastructure so to speak. An SSI will act as a unique identity to every entity involved in a supply chain or any other commodity. It will include the products, the machines that make them, the different manufacturing units that the products are produced in along with any process that takes place.
The life stories of these real-world entities can be stored in a digital twin, which can then be attached and identified with a unique SSI.
Giving a unique identity to all of these will help enterprises keep track of individuals’ processes and products throughout their lifecycles. The SSI will also facilitate peer to peer transactions, for instance, if a certain machine in the network needs a certain part it can directly locate the part via its SSI through smart contracts. Different players can exchange these parts without any paperwork, thanks to the smart contracts managing their processes.
There are plenty of decentralized, immutable, blockchain-based SSI providers that one can use to try out on their respective industry use cases. One such provider is esatus AG, a company helping enterprises secure data and providing relevant consulting.
It has a large customer base in the identity and access (I&A) domain. esatus is a very active member of the global SSI movement and has a functioning software suit named SeLF that is helping companies realize SSI based I&A management.
The SeLF suit integration will provide identity management for the employees of any company (small or large scale) with varying application needs. The SeLF suit promises easy application integration into existing legacy solutions.
I think it will be a good start, even if it is for the sake of trying things out, in the longer run, it can give your company and team the experience of using decentralized tech. At the same time, you’ll have the know-how of in what terms the system is better over the centralized one.
Decentralized Marketplaces
I like the idea of decentralized marketplaces simply for the fact that it lets me, without worrying about the consequences of engaging with a stranger, get in touch with a seller or a buyer. The smart contract keeps a track of all the commodities available on the network and automatically finds a match for it. Like a good friend once pointed out “It’s like a Tinder for machines.”
The owner or creator of the part does not have to worry about looking for a buyer for it, and the buyer doesn’t have to worry about wasting valuable time and effort searching the right part with the desired quality. This is also true for a decentralized solar power plant, one entity with excess electricity can easily channel it to the one that is short on it.
Smart contracts are aware of the inventory present with different network players. Besides, one can also figure out the quality of parts on the network via either user reviews or quality control through blockchain.
The Origami Network is a good place to start, as it can give you a basic idea to build over a decentralized marketplace. It provides you with a protocol to build upon, using the popular Ethereum Blockchain. The platform promises lower transaction fees, a trustworthy and robust customer feedback chain, more secure shipping tracking, and faster dispute resolution.
Now, even if you don’t wish to drive your business to decentralization just yet, exploring in this direction can be a good idea. This can help you gauge what works for your business use case and maybe experiment in that direction to make your business future-ready. Cheers!
Disclaimer: The examples in this article are purely for information purposes. This article is not an investment advice. Please make your independent research and study depending upon your individual case. The writer does not endorse any brands mentioned above, but has purely mentioned them for the reader’s information and to give them a clearer picture of the use cases.
