In the last couple of years, enterprises and smaller businesses alike have signaled the emergence of a new trend that diverges from established dogmas. Corporate giants including IBM, JP Morgan Chase, Ernst & Young have concluded after extensive research that decentralized forms of organization are no longer a variable which must be studied, but a goal, an ideal structure that can add considerable value not only to the financial and business realm but across every sphere of activity. A relatively new player in the tech field, blockchain, demonstrates that it can help businesses transition from a centralized model to a decentralized one. This technology has already started to gain considerable momentum in industries such as supply chain, healthcare, retail, financial services, telecommunications, transportation, logistics, energy and identity management.
Studies show that propelling business with blockchain can give companies a significant competitive advantage. Business operations involve multiple actors and several adjacent parties which perform different functions such as clearing mechanisms. However, anybody involved in this intriguing field can confirm that setting up secure B2B collaborations most often involves application integration, and if the need arises, manual reconciliation which translates to increased costs and time. In the not so distant past, it was burdensome and not very cost-effective to ensure the authenticity of items exchanged or to track the execution of transactions, due to the involvement of third-party entities like banks, logistic brokers, trading partners, EDI vendors and so on. As the number of parties involved in a transaction increases, the number of friction points also grows, which may manifest themselves as costly delays and numerous data-related security risks. Certainly, these bottlenecks can prove to be overwhelming, but by propelling business with blockchain, companies can establish trustworthy B2B relationships while benefiting from a tamper-proof medium for executing transactions and data storage. Due to its inherent characteristics, a blockchain back-end can demonstrate its value by overcoming integration challenges, ensure trust and streamline collaborations between every party involved through a shared digital distributed ledger.