DeutschBlockchain technology offers companies a variety of ways to optimize their business processes. It increases the security, transparency, and traceability of the data exchanged within a company. To prevent companies from having to program their own blockchain, there are Enterprise Blockchains. This is a blockchain implementation specifically tailored to the needs of a company or an association of several companies.
In contrast to public blockchains such as Ethereum, enterprise blockchains are typically a decentralized database that can only be accessed by a pre-determined, selected group of users. Such blockchains are also referred to as “private” or “permissioned”.
Opportunities for Companies
The use of enterprise blockchains offers companies many opportunities. By using blockchain technology, companies can automate their business processes. An example of this lies in supply chain management. Companies can use blockchain technology to optimize traceability and transparency in their supply chains. For example, smart contracts could be used to resolve supply bottlenecks or detect counterfeiting more quickly.
Furthermore, companies can use cryptographic algorithms to ensure that only authorized users are granted access to data. The decentralized architecture of the blockchain means that not just a single participant in the network has control. Transactions are validated by many different participants, which also contributes to increased security in the network.
Another opportunity for companies lies in cost savings. Smart contracts can eliminate intermediaries. This saves costs that would be incurred by managing transactions or contracts.
Current Challenges
In addition to many relevant opportunities, there are currently also some challenges that companies must face if they are aiming to implement an enterprise blockchain. For one thing, the use of enterprise blockchains requires a not inconsiderable investment in the technical infrastructure.
In addition, enterprise blockchains are currently often subject to rather unclear and rapidly changing regulations, which currently makes their use and implementation more difficult.
Another problem lies in the interoperability between different enterprise blockchains. Since each blockchain uses its own technology, the exchange of data between multiple enterprise blockchains can be a problem.
Possible Applications of Enterprise Blockchains
There are already many companies that use the technology of enterprise blockchains.
An important field of application is supply chain management. For example, IBM Food Trust uses enterprise blockchains to improve transparency and traceability in the food industry. Among the companies that already use IBM Food Trust are corporations such as Walmart, Nestlé, and Unilever.
In 2015, the project “Corda” was founded. Corda was brought to life by the R3 Consortium, which consists of banks such as J.P. Morgan, Goldman Sachs, Deutsche Bank, and Morgan Stanley, among others. Corda aims to make the advantages of blockchain technology usable for the financial industry. Corda is used to automate internal processes such as payment processing or asset management. This greatly increases security and efficiency.
Another example in which enterprise blockchains are already being used is the project “MediLedger” of the company Chronicled. This is a blockchain solution that enables companies to verify the authenticity of drugs in a supply chain. RFID labels are used to track and validate each batch of drugs. Leading companies in the healthcare industry such as Pfizer, Bayer, and Genentech support the project.
Outlook
The future of enterprise blockchains looks promising. More and more companies are becoming aware of the advantages and opportunities that blockchain technology can offer them and are already actively looking for ways to integrate it into their business processes. It is to be expected that the use of this technology will increase sharply in the coming years, especially in the areas of supply chain management, financial services, and healthcare.
