Blockchain is considered a major technological breakthrough and adoption of blockchain ledger technology can be a strategic business enabler.
Blockchain technology can help address data management issues around communication, verification, security and privacy. The technology is also lauded for its potential to reduce costs and to unlock economic value.
Numerous applications for blockchain exist that span beyond cryptocurrency. To leverage the benefits of blockchain, a strategic approach is needed across all aspects of technological adoption, deployment, maintenance and security.
The primary focus here is security. While blockchain is widely perceived as highly secure, blockchain continues to require a comprehensive approach to risk management. In 2016, a blockchain-based design flaw enabled a hacker to disappear with $67 million.
This highlights the fact that cryptographic protocols retain limitations. In addition, security is as much about people, policies, and processes as it is about the technology. If you have billions of dollars’ worth of proprietary data or assets stored on blockchain, it pays to be careful when it comes to security.
The business case for blockchain
Blockchain can deliver immense value for businesses, as it can address a variety of pain points and it can also lead to cost reductions, faster transactions, and innovation.
Blockchain is actively transforming enterprises around the globe. For example, blockchain ecosystems have shown strongly positive outcomes within the financial services, food distribution, government, and retail sectors, among others.
Safeguarding the food supply chain. Blockchain-based platforms are empowering food growers, processors, distributors and retailers to make food safer; saving resources, reducing waste, and keeping human hearts and minds healthy. Via blockchain-based technologies the food supply chain is reinventing processes and best practices to create a more sustainable future.
Shipping Improvements. Remember the international shipping delays of 2020 and 2021? The world runs on a tightly timed set of logistics, a must-function set of networks, automatic scheduling systems, critical business relationships and closely followed international agreements. The slightest deviation in any of these areas can lead to significant shipping disruptions. Blockchain-based platforms have enabled shipping groups, ports, customs services and others to optimize shipping services and to reduce the likelihood of disruptions.
Reducing Banking Inefficiencies. Within the banking sector, institutions are using blockchain-based platforms to facilitate faster and lower-cost transactions among small-and-medium-sized enterprises. Nonetheless, blockchain isn’t considered a short-term technology and business leaders are encouraged to take the time to carefully consider whether or not it genuinely adds value to the business.
For organizations that expect to adopt blockchain or that have already adopted the technology, preemptively addressing blockchain security helps protect people, processes, the technology itself and integrated assets in order to ensure sustained business development. Risks associated with blockchain solutions can be grouped into three different categories…
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