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Blockchain Notes

Blockchain provides a shared, immutable digital ledger that can track assets and transactions across a business network. It delivers transparent, real-time information to all permissioned members. Key elements include a distributed ledger accessible by all participants and unchangeable transaction records. Transactions are recorded in "blocks" that form a secure chain, preventing alteration. Blockchain can integrate with ERP systems to more securely and efficiently track processes like supply chain movements. This provides benefits like greater transparency, tighter security, faster recalls, improved efficiency and sustainability.

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Madiha Javed
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34 views

Blockchain Notes

Blockchain provides a shared, immutable digital ledger that can track assets and transactions across a business network. It delivers transparent, real-time information to all permissioned members. Key elements include a distributed ledger accessible by all participants and unchangeable transaction records. Transactions are recorded in "blocks" that form a secure chain, preventing alteration. Blockchain can integrate with ERP systems to more securely and efficiently track processes like supply chain movements. This provides benefits like greater transparency, tighter security, faster recalls, improved efficiency and sustainability.

Uploaded by

Madiha Javed
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Blockchain is a shared, unchallengeable digital register that facilitates the process of recording

transactions and tracking assets in a business network. An asset can be tangible (a house, car,
cash, land) or intangible (intellectual property, patents, copyrights, branding). Virtually anything
of value can be tracked and traded on a blockchain network, reducing risk and cutting costs for
all involved.

Why Blockchain is Important

Business runs on information. The faster it’s received and the more accurate, the better.
Blockchain is ideal for delivering that information because it provides immediate, shared and
completely transparent information stored on an immutable ledger that can be accessed only by
permissioned network members. A blockchain network can track orders, payments, accounts,
production and much more. And because members share a single view of all the information
recorded, you can see all details of a transaction end to end, giving you greater confidence, as
well as new efficiencies and opportunities.

Key Elements of Blockchain

 Distributed ledger technology: All network participants have access to the distributed
ledger and its immutable record of transactions. With this shared ledger, transactions are
recorded only once, eliminating the duplication of effort that’s typical of traditional
business networks.
 Unchallengeable records: No participant can change or tamper with a transaction

How Blockchain Works

As each transaction occurs, it is recorded as a “block” of data. Those transactions show the
movement of an asset that can be tangible (a product) or intangible (intellectual). The data block
can record the information of your choice: who, what, when, where, how much and even the
condition — such as the temperature of a food shipment.

These blocks form a chain of data as an asset moves from place to place or ownership changes
hands. The blocks confirm the exact time and sequence of transactions, and the blocks link
securely together to prevent any block from being altered or a block being inserted between two
existing blocks.

Transactions are blocked together in an irreversible chain: Each additional block strengthens the
verification of the previous block and hence the entire blockchain.
Blockchain and ERP

ERP is a software system that integrates a company's core business processes. ERP is used to
streamline processes, while blockchain creates a secure record of transactions. Since ERP
systems are considered the "system of record" for so many organizations, blockchain seems like
a natural complement to ERP. In a supply chain, for example, ERP automates ordering and
shipping, while blockchain can track the movement of goods. Integrating the two could make the
process more secure and efficient.

ERP vendors have already added or are discussing adding blockchain to their offerings. SAP,
Oracle and Microsoft have all jumped on the blockchain bandwagon.

Blockchain has also been used for applications such as food safety, first with leaf-based products
for Walmart, according to Kevin Beasley, CIO at ERP software developer VAI. These types of
products were reported to have the most issues and problems. By integrating blockchain, and
with the help of good IoT data, Beasley noted, the root cause of a product recall could be
narrowed to a particular point along the supply chain.

"ERP normally just sees data within its four walls," Beasley explained. "Blockchain allows ERP
and other applications to see data as long as they have permission." Transportation managers, for
example, can see when shipments are picked up or plan for when they're ready.

Blockchain lends itself to predictive analytics as well, such as combining data with weather
conditions to anticipate trends

Benefits of Integrating Blockchain into ERP Systems

Greater transparency. ERP is the system of record for the transactional aspects of running a
business, such as purchase orders, inventory requests and the supply chain. Blockchain provides
traceability throughout the lifecycle of a product as well as transparency of financial transactions,
said Kevin Miller, CTO, Americas, at ERP software developer IFS.

Tighter security. The public key cryptography used by blockchain better encrypts supply chain
data. Once quantum computing and quantum-safe cypher keys become more available, Beasley
surmised, blockchain can create immutable records and data to protect against ransomware.

Faster recalls. Blockchain provides the entire history of a shipment, from a product's origination
to its destination along the supply chain. Product recall issues can be addressed more quickly.

Better efficiency. When shipments arrive at a warehouse, they can be scanned into the system
and automatically become part of the inventory without the need for manual intervention.
Improved sustainability. The transparency and traceability provided by blockchain can help
determine a product's carbon footprint and environmental offset across a range of industries,
Miller said.

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