After spending nearly a decade overshadowed by the world-famous cryptocurrency it supports, blockchain is quickly becoming the next significant digital disruption. This wave of innovation is expected to bring trust, efficiency, and security in ways no one ever thought possible before – from how we design mobile devices and apps to how we store, process, and share their data.
But turning this vision into a reality will, without a doubt, require a fully integrated environment with the right resources and expertise available on demand. Businesses adopting this open, shared ledger platform need IT maintenance and support; digital twins; and widely accessible, high-performing platforms. And similar to the enablement of the systems and tools used to interact with blockchain and its side chains, enterprise cloud platforms can deliver that foundation.
From Bitcoin to business innovation: A cloud-driven transition for blockchain
Blockchain technology brought into business systems introduces nuances of strategic, regulatory, and supplier risk as well as new consideration for current business processes. Without evaluating participating internal and external organizations and partners and their underlying practices and platform first, businesses could inadvertently impose limitations on their services or products now and in the future.
As part of the digital core, blockchain should be integrated seamlessly with backend legacy systems such as ERP, analytics, collaboration tools, and Internet of Things platforms. All network participants should collectively determine the right protocol to operate the defined use case and address the requirements of network participants. Although this step protects past transactions from corruption, noncompliant participants can make the blockchain susceptible to malicious actors hacking into the private key and taking over assets to siphon value from the network.
Drawing inspiration from the cloud models, businesses can design a secure database landscape to capture and process data efficiently and quickly and run their operations over the blockchain. For example, the cloud can provide the API needed to create structured data directly in the blockchain, instead of programming the information into the software at a low level.
With the help of the cloud, the blockchain network is flexible and secure, while costs related to IT support and application development are dramatically lower. Plus, application developers gain the control they need to categorize data as public or private and apply encryption to private data, even if it resides in a public blockchain.
A peer-to-peer, borderless network of trust, efficiency, and security
Combining blockchain and the cloud provides a simple, cost-effective way for companies and their suppliers and partners to engage in a peer-to-peer, borderless commerce network that enables greater trust, efficiency, and security. Intelligent devices could bid, procure, and exchange assets automatically. Self-driving vehicles can generate new route options. And even the resiliency and integrity of customer and business data are improved.
But above all else, this convergence can turn innovative ideas into business models that could profoundly reshape not only a brand, but also the competition, industry, and consumer marketplace.
Explore how SAP blockchain and distributed ledger technology can help your people, machines, and algorithms communicate in a frictionless way – where data sharing is fast, open, yet completely secure for all parties.