Why Blockchain Matters to Enterprises
Blockchain is a transformative technology, which has re-imagined business models based on trust, giving a sustainable competitive advantage and reducing time, costs & risks. In addition to the basic properties of Blockchain, there are a few properties - which makes it important & usable for businesses.
Privacy
Enterprise Blockchains use various kinds of techniques to ensure privacy as it is a critically important aspect to businesses. With Blockchain, businesses from the same or different industry may come together to execute a particular use-case on Blockchain, it is important that the competitors do not know each others’ business-sensitive information. For this reason, enterprise Blockchains use secure private channels, zero-knowledge proofs & many other techniques to achieve the same.
Higher Performance & Scalability
The ability to process transactions in huge volumes is important for businesses, for any real world scenarios. Many enterprises current performance requirements are much greater than what enterprise Blockchains can offer. This is restricting these businesses to move from pilot stages to real world scenarios. Businesses are finding work-arounds by designing architecture in such a way that this is handled. With time, and evolution in this space, this problem is being addressed.
Identity & Accountability
Since enterprise Blockchains are permissioned & private - the participating members are restricted & known. Each of these members are identified by digital signatures or cryptographic keys. This ensures accountability of the information recorded on Blockchain or the smart contracts which are executed. Therefore, the identity can always be proved, which is a problem for businesses in public Blockchains.
Incentive
Unlike public Blockchains, which incentivize members with tokens, enterprise Blockchains do not reward members with crypto-tokens or cryptocurrencies. The incentive is more business driven which is a realized benefit due to the implementation of Blockchain - like cost savings. Another emerging incentive, which may be used by enterprises is ‘asset tokenization’.
Governance
This aspect of an enterprise Blockchain removes the uncertainties & risks associated with bringing multiple stakeholders together. This encourages participation & unlocks new business models. A smart contract helps to achieve this, where the governance is ensured in a decentralized fashion so that there is a consensus on the business agreement & the way it will be executed. This can also achieved by the technical design & architecture of the solution.
The above factors provide an unmatched benefit to enterprises, to consider implementing Blockchain solutions, which are not public Blockchains & can deliver meaningful business returns.
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