Apply Blockchain technology to promote digital transformation
A study conducted by BTL Group found that 87% of respondents said that Blockchain can transform the way companies operate and offer solutions related to privacy and database security. The survey of 279 technical experts also found that data privacy is the highest priority for people working in the IT sector, with 29% of them consider it as their top concern.
In addition, nearly two-thirds of the experts said that their businesses are trying or have applied Blockchain technology. Among those who have not yet worked with Blockchain technology, 47% said they would approach it in the next 2 years. The above figures show that the application of Blockchain technology is of primary concern when businesses want to pursue digital transformation.
Also according to the IDC organization’s announcement of predictions 2020, in digital transformation worldwide, 2 out of 10 predictions related to Blockchain and this technology will have a big impact in 2021. In the live webinar, IDC Group President – Robert Parker shared about enterprises who piloting Blockchain integration into the digital transformation process. Whereby, 42% of companies have at least one active Blockchain pilot project.
Why do leading consultion companies appreciate the application of Blockchain technology in the digital transformation process of enterprises? The answer lies within its standout features: transparency, immutability, and security. This is key to making it possible to make digital transformation more efficient than it is on existing storage platforms.
Blockchain – The exceptional factor of digital transformation
In digital transformation, the DBE (Digital Business Ecosystem) framework is the main structure of the digital transformation process. Blockchain design principles can be placed as horizontal layers within the DBE framework. This is the famous model given by Tapscott in his book, Blockchain Revolution. Based on this model, Blockchain technology experts have researched and evaluated the document together, the functions can be summarized into four vertical activities within the DBE framework:
1) Transaction data
2) Ledger and Smart Contract
3) Peer-to-peer Network storage
4) Managing block by minner expert
Blockchain design principles and functionalities are illustrated in image below.
Based on the model given by Blockchain experts, it can be seen that Blockchain technology creates completely new business models. There, this technology ensures data transparency, interconnection among the parties in the system based on decentralization, consensus mechanism and data security.
The advantages of digital transformation on Blockchain
Let’s go through the comparison table about the improvement when applying the Blockchain platform to digital transformation and other storage platforms.
|Other storage platforms||Blockchain|
|Transaction confirmation||The complex process involves a lot of evidence||Easily confirm transactions with peer-to-peer network, wallet address and transaction ID.|
|Execution of transaction / contract||Trust issues the parties in the transaction. Intermediaries need: lawyers, competent agencies||With smart contracts , participants eliminate concerns about transparency and safety in transactions / contracts.|
|Data storage||IInformation stored in the cloud to share easily but can be intervened.||Information is stored on blocks at many different nodes, eliminating the risk of interference|
|Customer security||The risk of impersonation may occur||Based on the transparency of this technology, Digital identity, Digital authorization, Digital signature applications can be fully trusted.|
|Finance||A variety of tools and human are needed to verify accuracy and transparency||Transactions can be accessed through Transaction IDs easily, quickly and transparently|
|Decentralization in the system||It is possible to decentralize, but power is concentrated at one point.||It is possible to decentralize and divide power with peer-to-peer networks|
The above outstanding advantages show that the application of Blockchain technology to digital transformation is a step that businesses need to consider when entering this digital 4.0 century. Many businesses have successfully applied Blockchain to digital transformation, such as the case study of tuna supplier Bumble Bee and Walmart, of which the food traceability process has shortened from 7 days to 2.2 seconds.
Learn more about Walmart’s Blockchain application and its benefits in digital transformation.