Oct 12, 20215 min read

What is Blockchain Technology in the Digital Enterprise?

Updated: Mar 18, 2023

Blockchain technology is a decentralized, digital ledger that records transactions and is resistant to modification. It is often referred to as a "distributed ledger," as it is maintained by a network of computers rather than a single entity.

Each block in the chain contains a timestamp, a cryptographic hash of the previous block, and transaction data. This technology is becoming increasingly important in the digital enterprise as it offers numerous benefits, including improved security, efficiency, and transparency.

The security benefits of blockchain are particularly noteworthy. Since each block is linked to the previous one through cryptographic hashes, it is virtually impossible to alter any data without being detected. Furthermore, the decentralized nature of the technology means that it is not controlled by a single entity, making it more resistant to attacks or hacks. This makes it an ideal solution for financial institutions and other industries that deal with sensitive information.

In addition to security benefits, blockchain technology also offers improved efficiency. By providing a single, shared digital ledger, it eliminates the need for intermediaries and reduces the time and cost associated with transaction processing. This has the potential to revolutionize supply chain management, as it allows for greater transparency and traceability of goods and services. Overall, blockchain technology is set to transform the way businesses operate in the digital enterprise.

As a result, it is up to you to keep up with this rapidly changing technology to be prepared for the future. If you're new to Blockchain, this is the place to start learning the basics. You'll learn what Blockchain technology is, how it works, why it's important, and how you can utilize it to advance your career in this article.

What is Blockchain?

In simple terms, Blockchain technology is a network of peer-to-peer nodes that keeps transactional records, also known as blocks, of the public in various databases, also known as the "chain." This type of storage is commonly referred to as a 'digital ledger.'

Every transaction in this ledger is signed with the owner's digital signature, which verifies the transaction and protects it from tampering. As a result, the data in the digital ledger is extremely safe.

To put it another way, the digital ledger is similar to a Google spreadsheet that is shared across multiple computers in a network and stores transactional records based on actual purchases. The intriguing aspect is that everyone can view the data, but they cannot alter it.

Blockchain in the Digital Enterprise: What It Is and How It Can Be Used

Even though blockchain technology has been available for a long time, businesses are still figuring out how to make it work for their specific business and needs. The possible uses for blockchain will only extend and grow as things improve and advance. While these examples only scratch the surface of what is possible, smart contracts, sharing sensitive patient healthcare information, assuring transparent background checks, and, of course, financial services are all examples of how blockchain may be used in the digital enterprise.

Sharing Confidential Information

The security needs for data in the healthcare industry only continue to become more complex. EHRs have brought up the challenge of keeping this sensitive information private and protected. The growth of connected devices and the Internet of Medical Things (IoMT) make it even more important.

Because the decentralized ledger is cryptographically secure and the complete record is both comprehensive and up-to-date, blockchain technology helps to overcome this problem by providing a chronologically correct picture of health information for all service providers across all devices.

Dealing with insurance companies is another useful application of blockchain in the healthcare industry. When all stakeholders engaged in the payments and claims process, including the patient, the provider, and the payer, view the same information at the same time, the process becomes more frictionless and efficient for everyone.

Smart Contracts

Smart contracts are one of the most intriguing applications of blockchain for businesses. Traditional contracts, including financial services and transactions, insurance claims, employment contracts, mortgage agreements, and even protected copyrighted assets, can all be used on the blockchain in the same manner that physical contracts can.

Because smart contracts are written and deployed within blockchains, they naturally inherit the following benefits for businesses:

Smart contracts are immutable, which means they can never be changed and that no one can tamper with or alter them.
Because of its distributed nature, the contract's result must be verified by everyone in the network.
They eliminate the necessity for a third-party intermediary, allowing for direct and transparent transactions.
The blockchain stores all smart contract transactions in chronological order, providing a complete audit trail.
Smart contracts can save organizations a lot of money on infrastructure costs and even reduce them due to their efficiency and lack of intermediaries.

Financial Services

Without include financial services, a list of blockchain applications for businesses would be incomplete. While most payment systems are now managed by financial organizations such as banks, these services come with expenses and, in some cases, exorbitant fees, particularly for small and mid-sized firms.

While huge corporations often have a competitive advantage in the global market because they can readily absorb these fees and other safeguards, blockchain technology is helping to level the playing field. Small to no fees for transferring funds can make a major impact on businesses of all kinds, especially when dealing with overseas transactions.

Another aspect that businesses are understanding when it comes to implementing blockchain for financial services is the level of transparency and efficiency involved. There are no hidden stages or misunderstandings this time because all participants have total access to the process.

Eliminating Background Checks

Another interesting blockchain application for businesses is in the field of human resources. A large part of HR's job is to make sure that potential and new employees are who they say they are and that their information matches.

Rather than having the HR department contact each reference and previous employer to verify the candidate's employment history, blockchain could be used to verify critical but time-consuming information such as employment dates, title, job responsibilities, and other relevant credentials, freeing up thousands of hours per year for other important tasks.

To Sum It Up

Blockchains can be set up in a variety of ways, with different procedures for securing a consensus on transactions that are only visible to authorised users and hidden from the rest of the world. The most well-known example of how big Blockchain Technology has gotten is Bitcoin. Blockchain appears to be positioned to control the digital world of the near future, based on its success and rising adoption.

The benefits for organizations are impossible to refute, regardless of which of these applications are deployed within the digital enterprise. Smart contracts, sharing confidential data, background checks, and financial services are ideal places to start for firms wishing to implement blockchain within their organization. Whatever option you choose, one thing is certain: distributed ledgers such as blockchain are here to stay.

We will be having a public class for BC-101 Blockchain Fundamentals on 10th January 2022. The usual fee for this training is RM 2,000 but now we are having a promotion and is just RM 900 only. If you are interested please email us or contact us via our Live Chat.