What is Blockchain and ERP – Can there be a collaborative platform?
Blockchain has become an eminent topic amongst the technology geeks around the world. In fact, it has become a mainstream discussion surrounded by many speculations. Nevertheless, the main question that everyone has been asking is: What is Blockchain?
The blockchain is essentially a distributed ledger, completely open to everyone. It allows digital information to be recorded but not copied. The security of Blockchain is achieved by it being distributed; instead of using a central entity to manage the chain, Blockchains use the P2P network where anyone can join the network. Each transaction or digital record in Blockchain is called a ‘Block’ where each block belongs to a specific participant. The new block can only be added by consensus of all the participants. Bitcoin has been the first to make use of Blockchain. However, Blockchain is now trying to capture interests in other segments as well.
In theory, Blockchain and ERP systems have a lot in common. They both have a single version of information which is shared among many users. Due to this apparent similarity, there have been speculations that the Blockchain concept has to make its way into the ERP System in the coming future.
Blockchain could be viewed as a supportive application that can enable sharing of information between diverse parties more seamlessly by providing a secure channel. The above-mentioned integration can allow organizations to obtain existing data from enterprise systems and be regulating the shareability of such data. The entities partaking in a Blockchain can give selective access to their information. The record of each and every transaction contained in a Blockchain is verifiable, which is an added advantage.
The impression that Blockchain might replace an ERP System is an unfounded fear. The focus would be on the unique synergies and the benefits it could reap for the business world. Most leading ERP software companies have already started working towards this objective.
To know more about Blockchain, refer to the following YouTube videos:
• What is BLOCKCHAIN? The best explanation of blockchain technology