Enterprises have allied with the distributed ledger technology The underpinning distributed ledger technology has seen a lot of interest from enterprise across many industries, and it’s easy to see why – blockchain enables enterprises to scale and generate trusted data in a perimeter-less security infrastructure, creating a single version of data truth across all parties.
Essentially this means that businesses are able to contain the risk of data breaches by providing an unchallengeable record of all activities to the data, justifying an enterprises’ need to continue investing in cyber security, data recovery and backup solutions.
While this is Blockchain for enterprise explained in a nutshell, a lot of confusion exists around its applications and realistic potential. The following are common misconceptions and explanations around Blockchain for enterprise:
- Enterprise Blockchain Will Rapidly Change the Way Business Operate: Blockchain has the ability to make huge differences in the industry, particularly FinTech and Supply Chain Management (SCM), only it will take a little time. Experts believe that SCM has the maximum advantage to make out of the Blockchain technology. According to researches held on the matter, it is assumed that practicing Blockchain in SCM might take another 10 years and the full-fledged operation of the same will take anywhere between 5 and 25 years.
- Enterprise Blockchain Doesn’t Perform: A common criticism arising from the public is that crypto currency zblockchains are not fast enough, but as a matter of fact the former can operate in tens of transactions per second and transaction potential of validation ranges from a minute to few hours. However it is to be noted that computation in Blockchain is dependent on many factors like complexity of data type, smart contracts, payloads to process, algorithms and enterprises’ infrastructure and service levels.
- Blockchain Can Be Used In Any Industry: It is true that Blockchain can do the undoable in many industries like Finance, Automobile, Aviation, Shipping, Telecom etc. Blockchain can make sure of the integrity of the data managed in these industries and can keep digital trail of the transactions happening in the system. The main issue with the data integrity is that Blockchain cannot confirm on who is behind the digital identifier requiring offline verification and is beyond its capabilities.
- Privacy, Security & Scalability of Enterprise Blockchain: Blockchain comes under Permissioned Blockchain, Public Blockchain and finally the Decentralized in which anyone can participate. A Private Blockchain is only as secure as the permissions and security controls around the network. Hence there are certain scalability issues that the Blockchain technology possesses in each of its type.