Blockchain has the potential to become one of the most powerful distributed ledger technologies ever invented, surpassing the practicality, immutability, and security of current enterprise databases. Blockchain implementation can help improve an unlimited number of use cases including finance, identity, supply chain management, and more.
Blockchain solutions developed by companies can alleviate many trust issues. Blockchain and smart contracts can improve efficiency and transparency in ways that traditional systems cannot. As AI and other code-breaking technologies proliferate, legacy systems become even more vulnerable and susceptible to attacks by bad actors.
Blockchain solutions have the potential to replace or complement Microsoft, Oracle, and SAP, but when will they be ready for prime time?
Built for the enterprise, but not completely
Blockchain has challenges that need to be resolved before it can move beyond its early stages of evolution.
Ethereum is designed to deploy smart contracts and has long been considered the blockchain most adaptable to the enterprise market, especially given its commitment to consensus, baseline protocols, and quorum. R3 has likewise been working on a distributed ledger technology (DLT) called Corda since 2015, and of course his Hyperledger with support from IBM and others within the Linux Foundation. Also Parity’s Polkadot and more.
None of these projects have yet made significant progress towards enterprise market adoption. Key issues that still need to be resolved include high or variable gas prices, decentralization without compromising scalability, unreliability of enterprise-specific data on public mainnets, governance, and enterprise-grade support. included. To be marketed as the next generation of distributed ledger technology developed to solve the problems of intensive data processing and storage, it must solve these problems to the satisfaction of enterprises.
Even assuming that Ethereum is enhanced to become this ultimate powerful decentralized world computer, enabling widespread adoption and revolutionizing various industries, various organizations will must be able to function between Otherwise, not only will we have to deal with all these existing issues, but we will also have to find a way for everyone’s preferred blockchains to be interoperable and “talk” to each other.
There is also the challenge of converting legacy system infrastructure to a distributed model with the advent of Web3. Enterprise architectures remain deeply rooted in past infrastructure and are notoriously slow to transform, such as airline reservation systems. When reserving a system tank, consider the financial loss to your bottom line.
One enterprise technology to rule them all
Long ago, in the primeval days of the Internet, businesses were making purchases online, long after individual consumers were doing exactly the same thing on Amazon, eBay, and the like. Walmart is a major powerhouse that entered the Internet very slowly, but even after acquiring numerous e-commerce businesses over the past decade, Amazon still only does a fraction of its business online.
So how do you get blockchain architecture to a level where it can be adopted at scale within your enterprise?
Blockchain must address scalability challenges without compromising decentralization. This means competing with traditional companies in the number of transactions per second. Blockchain is starting to get there, matching or even exceeding the thousands of financial transactions per second processed by the likes of Visa and MasterCard. One of the new technologies available today is called DAG (directed acyclic graph), which enables simultaneous parallel transactions per second, resulting in millions of transactions per second.
Now that speed parity has been achieved, it is important to prove to enterprises that scalability does not come at the expense of decentralization. In addition, Layer 1 architectures include options for consensus mechanisms that enable permissioned, permissionless, and hybrid services to enable consumers to access the public mainnet while protecting sensitive data. must be provided. You need enterprise-grade support and system integrators to develop products for their unique vertical markets. The benefits are not that different from the benefits provided by open source software and the way Red Hat leveraged Linux.
As Bill Gates once said, “We always overestimate the changes that will occur in the next two years and underestimate the changes that will occur in the next 10 years.” We’ve come a long way since zero, but ideally, the next decade will see blockchain realize its potential as a next-generation technology, helping businesses improve operations and service delivery, and increase profits and profits around the world. It will be an era of increased efficiency.greater trust