Blockchain, Distributed Ledger Technology, SAP

Blockchain and Distributed Ledger Technology

Gartner’s Hype Cycle and it’s on all major lists of technology trends to witness. So, what is blockchain exactly? How does it work? And how is SAP approaching blockchain for business?

Blockchain explained from an

Every business is based on transactions. But these transactions are often routed through third-party intermediaries like banks, lawyers, and brokers – which can make processing time-consuming and expensive. Blockchain technology has the potential to reduce the role of middlemen, dramatically speeding up multi-participant transactions and lowering costs, while ensuring all parties are protected. People, businesses, machines, and algorithms would be free to transact and communicate with one another in a frictionless way. This is the promise of blockchain.

But the blockchain revolution is not here fairly yet. There are barriers to adoption (like governance and organizational issues) and the technology is still being explored and validated. Albeit some industries have embarked experimenting with blockchain and distributed ledgers, mainstream adoption might still be a few years away. Nevertheless, the potential influence this technology can have on the business world is arousing – and immense.

    • What is blockchain technology?
    • How does blockchain

    What is blockchain technology?

    The simplest blockchain definition? A reliable record of who possesses what, and who transacts what. But there’s much more to it than that.

    Blockchain is based on distributed ledger technology, which records data (transactions, files, or information) across a peer-to-peer network. Every participant can see the data and verify (or reject) it using consensus algorithms. Approved data is entered into the ledger as a collection of “blocks”, stored in a chronological “chain”, and secured through cryptography.

    Albeit it was originally created as the underlying technology for trading the digital currency Bitcoin, blockchain’s potential reaches far beyond cryptocurrency. Blockchains can include land titles, loans, intellectual property, identities, votes – almost anything of value.

    How does blockchain work?

    Since transactions (blocks) are chronologically linked, they cannot be altered without violating the entire chain of transactions in a network. This chain is replicated and synchronized on every computer that uses the network (instead of being centrally stored) – which creates an immutable system of record, built-in transparency, and trust among participants.

    By establishing an added level of trust and security to traditional models, blockchain gives participants the chance to transact more directly with each other, reducing the need for some types of intermediaries, like banks. The result is streamlined, more semi-transparent payments and contracting processes.

    What is distributed ledger technology?

    A distributed ledger replicates and distributes data (transactions, files, or information) across numerous sites, countries, or institutions – without centralized administration or control.

    What are wise contracts?

    Blockchains are inherently digital, and therefore programmable – so participants can set up rules to automatically trigger deeds, events, and payments once conditions are met. This will pave the way for brainy contracts: self-executing agreements made by numerous parties.

    For example, clever contracts have the potential to use real-world information from GPS, RFID, or IoT devices to trigger supply chain workflows, events, or deeds – such as payments or asset transfers.

    Wise contracts are in early development stages and the technology (and best practices) are still being defined. Enterprise grade features around code, contract lifecycles, maintenance, and scalability have the potential to suggest cost effectiveness and efficiencies once available.

    Public, consortium, or private?

    Consortium blockchains and semi-private blockchains (aka “permissioned blockchains”) have the most promise for the majority of enterprises. Because the consensus process is carried out by trusted actors, maintaining a collective ledger is simpler and swifter – and businesses can maintain privacy.

    Anyone can read a public blockchain, send transactions to it, or participate in the consensus process. Every single transaction is public, and users can remain anonymous. Bitcoin is the original public blockchain. Ethereum is another prominent example.

    In a consortium blockchain, the consensus process is managed by a pre-selected group – a group of financial institutions, for example. The right to read the blockchain and submit transactions to it may be public or restricted to participants. An example of a consortium blockchain is the Hyperledger implementation.

    Semi-private blockchains are run by a single company that grants access to any user who sates pre-established criteria. There are no discriminatory barriers to access, and in some cases these blockchains can be fully open. Semi-private blockchains display promise for business to business (B2B) use cases as well as government applications.

    Blockchain, Distributed Ledger Technology, SAP

    Blockchain and Distributed Ledger Technology

    Gartner’s Hype Cycle and it’s on all major lists of technology trends to witness. So, what is blockchain exactly? How does it work? And how is SAP approaching blockchain for business?

    Blockchain explained from an

    Every business is based on transactions. But these transactions are often routed through third-party intermediaries like banks, lawyers, and brokers – which can make processing time-consuming and expensive. Blockchain technology has the potential to reduce the role of middlemen, dramatically speeding up multi-participant transactions and lowering costs, while ensuring all parties are protected. People, businesses, machines, and algorithms would be free to transact and communicate with one another in a frictionless way. This is the promise of blockchain.

    But the blockchain revolution is not here fairly yet. There are barriers to adoption (like governance and organizational issues) and the technology is still being explored and validated. Albeit some industries have began experimenting with blockchain and distributed ledgers, mainstream adoption might still be a few years away. Nevertheless, the potential influence this technology can have on the business world is titillating – and immense.

      • What is blockchain technology?
      • How does blockchain

      What is blockchain technology?

      The simplest blockchain definition? A reliable record of who possesses what, and who transacts what. But there’s much more to it than that.

      Blockchain is based on distributed ledger technology, which records data (transactions, files, or information) across a peer-to-peer network. Every participant can see the data and verify (or reject) it using consensus algorithms. Approved data is entered into the ledger as a collection of “blocks”, stored in a chronological “chain”, and secured through cryptography.

      Albeit it was originally created as the underlying technology for trading the digital currency Bitcoin, blockchain’s potential reaches far beyond cryptocurrency. Blockchains can include land titles, loans, intellectual property, identities, votes – almost anything of value.

      How does blockchain work?

      Since transactions (blocks) are chronologically linked, they cannot be altered without violating the entire chain of transactions in a network. This chain is replicated and synchronized on every computer that uses the network (instead of being centrally stored) – which creates an immutable system of record, built-in transparency, and trust among participants.

      By establishing an added level of trust and security to traditional models, blockchain gives participants the chance to transact more directly with each other, reducing the need for some types of intermediaries, like banks. The result is streamlined, more translucent payments and contracting processes.

      What is distributed ledger technology?

      A distributed ledger replicates and distributes data (transactions, files, or information) across numerous sites, countries, or institutions – without centralized administration or control.

      What are clever contracts?

      Blockchains are inherently digital, and therefore programmable – so participants can set up rules to automatically trigger deeds, events, and payments once conditions are met. This will pave the way for brainy contracts: self-executing agreements made by numerous parties.

      For example, wise contracts have the potential to use real-world information from GPS, RFID, or IoT devices to trigger supply chain workflows, events, or deeds – such as payments or asset transfers.

      Brainy contracts are in early development stages and the technology (and best practices) are still being defined. Enterprise grade features around code, contract lifecycles, maintenance, and scalability have the potential to suggest cost effectiveness and efficiencies once available.

      Public, consortium, or private?

      Consortium blockchains and semi-private blockchains (aka “permissioned blockchains”) have the most promise for the majority of enterprises. Because the consensus process is carried out by trusted actors, maintaining a collective ledger is simpler and quicker – and businesses can maintain privacy.

      Anyone can read a public blockchain, send transactions to it, or participate in the consensus process. Every single transaction is public, and users can remain anonymous. Bitcoin is the original public blockchain. Ethereum is another prominent example.

      In a consortium blockchain, the consensus process is managed by a pre-selected group – a group of financial institutions, for example. The right to read the blockchain and submit transactions to it may be public or restricted to participants. An example of a consortium blockchain is the Hyperledger implementation.

      Semi-private blockchains are run by a single company that grants access to any user who sates pre-established criteria. There are no discriminatory barriers to access, and in some cases these blockchains can be fully open. Semi-private blockchains display promise for business to business (B2B) use cases as well as government applications.

      Blockchain, Distributed Ledger Technology, SAP

      Blockchain and Distributed Ledger Technology

      Gartner’s Hype Cycle and it’s on all major lists of technology trends to observe. So, what is blockchain exactly? How does it work? And how is SAP approaching blockchain for business?

      Blockchain explained from an

      Every business is based on transactions. But these transactions are often routed through third-party intermediaries like banks, lawyers, and brokers – which can make processing time-consuming and expensive. Blockchain technology has the potential to reduce the role of middlemen, dramatically speeding up multi-participant transactions and lowering costs, while ensuring all parties are protected. People, businesses, machines, and algorithms would be free to transact and communicate with one another in a frictionless way. This is the promise of blockchain.

      But the blockchain revolution is not here fairly yet. There are barriers to adoption (like governance and organizational issues) and the technology is still being explored and validated. Albeit some industries have embarked experimenting with blockchain and distributed ledgers, mainstream adoption might still be a few years away. Nevertheless, the potential influence this technology can have on the business world is arousing – and immense.

        • What is blockchain technology?
        • How does blockchain

        What is blockchain technology?

        The simplest blockchain definition? A reliable record of who wields what, and who transacts what. But there’s much more to it than that.

        Blockchain is based on distributed ledger technology, which records data (transactions, files, or information) across a peer-to-peer network. Every participant can see the data and verify (or reject) it using consensus algorithms. Approved data is entered into the ledger as a collection of “blocks”, stored in a chronological “chain”, and secured through cryptography.

        Albeit it was originally created as the underlying technology for trading the digital currency Bitcoin, blockchain’s potential reaches far beyond cryptocurrency. Blockchains can include land titles, loans, intellectual property, identities, votes – almost anything of value.

        How does blockchain work?

        Since transactions (blocks) are chronologically linked, they cannot be altered without cracking the entire chain of transactions in a network. This chain is replicated and synchronized on every computer that uses the network (instead of being centrally stored) – which creates an immutable system of record, built-in transparency, and trust among participants.

        By establishing an added level of trust and security to traditional models, blockchain gives participants the chance to transact more directly with each other, reducing the need for some types of intermediaries, like banks. The result is streamlined, more semi-transparent payments and contracting processes.

        What is distributed ledger technology?

        A distributed ledger replicates and distributes data (transactions, files, or information) across numerous sites, countries, or institutions – without centralized administration or control.

        What are brainy contracts?

        Blockchains are inherently digital, and therefore programmable – so participants can set up rules to automatically trigger deeds, events, and payments once conditions are met. This will pave the way for brainy contracts: self-executing agreements made by numerous parties.

        For example, brainy contracts have the potential to use real-world information from GPS, RFID, or IoT devices to trigger supply chain workflows, events, or deeds – such as payments or asset transfers.

        Brainy contracts are in early development stages and the technology (and best practices) are still being defined. Enterprise grade features around code, contract lifecycles, maintenance, and scalability have the potential to suggest cost effectiveness and efficiencies once available.

        Public, consortium, or private?

        Consortium blockchains and semi-private blockchains (aka “permissioned blockchains”) have the most promise for the majority of enterprises. Because the consensus process is carried out by trusted actors, maintaining a collective ledger is simpler and swifter – and businesses can maintain privacy.

        Anyone can read a public blockchain, send transactions to it, or participate in the consensus process. Every single transaction is public, and users can remain anonymous. Bitcoin is the original public blockchain. Ethereum is another prominent example.

        In a consortium blockchain, the consensus process is managed by a pre-selected group – a group of financial institutions, for example. The right to read the blockchain and submit transactions to it may be public or restricted to participants. An example of a consortium blockchain is the Hyperledger implementation.

        Semi-private blockchains are run by a single company that grants access to any user who sates pre-established criteria. There are no discriminatory barriers to access, and in some cases these blockchains can be totally open. Semi-private blockchains showcase promise for business to business (B2B) use cases as well as government applications.

        Related video:

        http://www.youtube.com/watch?v=_WzfWJLZZes

Leave a Reply