Blockchain – Mobilising Business

Anil Vishnu Vaidya

Author: Anil Vishnu Vaidya

Date: Fri, 2018-08-17 15:40

Blockchain as technology was popularised by Bitcoin, a robust, real publicly accessed ledger. Many organizations realized that they had to try this new tech, with many experiments and models, ultimately evolving a new ‘avatar’ of blockchain. Rarely do we come across commercial implementation of blockchain in its original form. What has evolved is more of a distributed ledger, a cousin of public blockchain, into a permissioned private ledger. The original central feature of decentralization also yielding to a more centralized system.

In the new form it’s more like a permissioned, centralized ledger, sparsely distributed. Most organizations are attempting this form of blockchain for multi-party transactions, maintaining immutable records or cross-border transactions banking on the immutability and transparency features. In the entire process the consensus mechanism has made way to the authorised parties authenticating transactions.

Building on such technology entirely new business models can be brought into the commercial world. A third party operated so called ‘blockchain’ with above features can turn out to be a great business model. As an instance an entrepreneur or intrapreneur developing a ledger for healthcare sector to be accessed by patients, hospitals, medical practitioners and the insurance company will be a great success. Here the entrepreneur has no motivation to upload or access data, he/she turns out to be an operator offering these services in the cloud. The patients allow doctors and hospitals to upload their records to the ledger, if they allow the insurance companies can access this data as well.

As a business model the operator can charge multiple parties:

  1. Patient who is interested in maintaining his/her records for a long period of time
  2. Hospitals which are required to maintain patient records
  3. Private medical practitioners who are expected to maintain patient records
  4. Insurance companies who can offer differential insurance policies based on personal health records.

Consider building trust throughout the supply chain of perishable goods. Coupled with IOT the appropriate blockchain technology can offer trustworthy information to every participant of this chain. The conditions at every stage can be monitored and controlled by responsible logistic organization while the consumers and others can tracked the conditions and movement of goods as they move from one point to next.

There are multiple possibilities – One only needs to look deeper!

 

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Comments

It is indeed very heartening to be an audience to maybe one of the most ingenious inventions of all time. Disruptions in technology are very common. I believe blockchain is the most disruptive technology in recent times which has the potential to change the traditional structure of data or value transaction for all times to come. The potential has been well recognised by all economies around the globe. Regulatory changes to legalise crypto currencies have already been introduced by most of the North American and South American countries. Our PM, Mr. Narendra Modi has also in his Budget speech of 2018, hinted of the intention to introduce blockchain in India. I got an opportunity to visit SAP TechEd last year which is an annual technology event for learning, networking and education on SAP platform. SAP had showcased two implementable business models based on blockchain. The first model was based on supply chain management which primarily provided an end to end solution on import consignment tracking through a private blockchain. The partners or nodes in the chain included the indenter, shipment company, insurance company, export/import house, government authorities and finally the financial institutions including banks. The solution weeded out the need for any paper work and ensured transparent flow of information which can be trusted upon. More importantly, all the partners of the chain were simultaneously updated throughout the cycle time. The second business model proposed a solution to home/space leasing business spread across multiple locations. The solution ensured that the lessee can access the leasehold property only for the period of lease, which was agreed upon in the first place based on smart contracts. The payment was dealt with through crypto currencies. There is huge potential in the blockchain space and India has taken already taken its first steps. Recently, Telengana Government has launched Blockchain district in partnership with Tech Mahindra. All the IT companies have also come up with blockchain solutions for different business scenarios. However, what remains to be seen is: a. How soon a regulatory framework will be established to give a legal status to blockchain transactions. b. RBI’s stance on crypto currencies, without which any financial transaction in blockchain space is not possible. With regards, Devajit Jaradhara, Roll No. 18, Group -1, PGEMP66

Hi Anil, I agree with your statement that blockchain technology is popularized in the world because of Bitcoin Cryptocurrency. Blockchain is decentralized, encrypted and is secure. It is connected with the internet so can be accessed at any point of time within the network. Blockchain technology can help business as below: - Making payment: - There are plenty of crypto currencies available which are developed on blockchain technology. Any of this crypto currency can be used for making payment to supplier, customer, partner, employees. This technology is especially useful for making payment for the person involved in global market place. The transaction is fast, secure and fees are also low. Security: - Blockchain technology is decentralized and encrypted technology which make date more secure from hackers. This can also be used to protect the intellectual properties. Cloud integration: - I agree with your statement of data can be uploaded in cloud. This will be very helpful for business to restore the data in case of any property damage. Also, it will eliminate the need of any physical storage in the campus to store. Real time tracking: - This feature will improve the performance of the supply chain management as all the transactions made can be tracked real time. Being a new technology the biggest challenge is awareness and not sufficient understanding of how it functions. There are not too many people who can explain the concept. Indian government is working on a solution to identify how legislation & regulatory data can be protected. Strong blockchain community is working to improve the features of the technology and hopefully we will soon see this technology being adopted across businesses which will improve the productivity of the business and taking it to new heights.

I agree and echo your sentiments around the block chain technology which being the next Industrial revolution in the technological front. With the Government showing interest in its 2018 budget, it is the most talked about technologies in the recent times. Block chain technology has the potential to impact all the sectors in industry and transform the way the transactions are recorded. As an accounting and auditing professional, I believe it will in turn have a huge impact on accounting and auditing these transactions. There are advantages of this technology over the existing method of record keeping. The transactions would be recorded real time using a chain of transaction nodes. Transparency and trust would be established. To give a perspective, all the current banking transactions are stored on a central server where it is susceptible to frauds and cyber-attacks. With the block chain technology the transactions are stored on distributed ledgers and the same is accessible to authorized people. Since the transactions are not on a single server, the risk of fraud or cyber-attacks is reduced considerably. But wide adoption of this technology is only possible if it is governed by a set laws through a regulatory framework. I am excited to be part of this digital revolution era and look forward to witness all the different possibilities this technology brings in, not only to the data / transactions but also to the profession that I belong, especially areas of financial reporting, internal controls, taxation frameworks, etc.

I agree and echo your sentiments around the blockchain technology being the next Industrial revolution in the technological front. With the Government showing interest in its 2018 budget, it is the most talked about technologies in the recent times. Blockchain technology has the potential to impact all the sectors in industry and transform the way the transactions are recorded. As an accounting and auditing professional, I believe it will in turn have a huge impact on accounting and auditing these transactions. There are advantages of this technology over the existing method of record keeping. The transactions would be recorded real time using a chain of transaction nodes. Transparency and trust would be established. To give a perspective, all the current banking transactions are stored on a central server where it is susceptible to frauds and cyber-attacks. With the blockchain technology the transactions are stored on distributed ledgers and the same is accessible to authorized people. Since the transactions are not on a single server, the risk of fraud or cyber-attacks is reduced considerably. But wide adoption of this technology is only possible if it is governed by a set laws through a regulatory framework. I am excited to be part of this digital revolution era and look forward to witness all the different possibilities this technology brings in, not only to the data / transactions but also to the profession that I belong, especially areas of financial reporting, internal controls, taxation frameworks, etc.

I agree and echo your sentiments around the blockchain technology being the next Industrial revolution in the technological front. With the Government showing interest in its 2018 budget, it is the most talked about technologies in the recent times. Blockchain technology has the potential to impact all the sectors in industry and transform the way the transactions are recorded. As an accounting and auditing professional, I believe it will in turn have a huge impact on accounting and auditing these transactions. There are advantages of this technology over the existing method of record keeping. The transactions would be recorded real time using a chain of transaction nodes. Transparency and trust would be established. To give a perspective, all the current banking transactions are stored on a central server where it is susceptible to frauds and cyber-attacks. With the blockchain technology the transactions are stored on distributed ledgers and the same is accessible to authorized people. Since the transactions are not on a single server, the risk of fraud or cyber-attacks is reduced considerably. But wide adoption of this technology is only possible if it is governed by a set laws through a regulatory framework. I am excited to be part of this digital revolution era and look forward to witness all the different possibilities this technology brings in, not only to the data / transactions but also to the profession that I belong, especially areas of financial reporting, internal controls, taxation frameworks, etc.

I agree and echo your sentiments around the block chain technology being the next Industrial revolution in the technological front. With the Government showing interest in its 2018 budget, it is the most talked about technologies in the recent times. Block chain technology has the potential to impact all the sectors in industry and transform the way the transactions are recorded. As an accounting and auditing professional, I believe it will in turn have a huge impact on accounting and auditing these transactions. There are advantages of this technology over the existing method of record keeping. The transactions would be recorded real time using a chain of transaction nodes. Transparency and trust would be established. To give a perspective, all the current banking transactions are stored on a central server where it is susceptible to frauds and cyber-attacks. With the block chain technology the transactions are stored on distributed ledgers and the same is accessible to authorized people. Since the transactions are not on a single server, the risk of fraud or cyber-attacks is reduced considerably. But wide adoption of this technology is only possible if it is governed by a set laws through a regulatory framework. I am excited to be part of this digital revolution era and look forward to witness all the different possibilities this technology brings in, not only to the data / transactions but also to the profession that I belong, especially areas of financial reporting, internal controls, taxation frameworks, etc. Arti

I agree and echo your sentiments around the block chain technology being the next Industrial revolution in the technological front. With the Government showing interest in its 2018 budget, it is the most talked about technologies in the recent times. Block chain technology has the potential to impact all the sectors in industry and transform the way the transactions are recorded. As an accounting and auditing professional, I believe it will in turn have a huge impact on accounting and auditing these transactions. There are advantages of this technology over the existing method of record keeping. The transactions would be recorded real time using a chain of transaction nodes. Transparency and trust would be established. To give a perspective, all the current banking transactions are stored on a central server where it is susceptible to frauds and cyber-attacks. With the block chain technology the transactions are stored on distributed ledgers and the same is accessible to authorized people. Since the transactions are not on a single server, the risk of fraud or cyber-attacks is reduced considerably. But wide adoption of this technology is only possible if it is governed by a set laws through a regulatory framework. I am excited to be part of this digital revolution era and look forward to witness all the different possibilities this technology brings in, not only to the data / transactions but also to the profession that I belong, especially areas of financial reporting, internal controls, taxation frameworks, etc.

Sir, it's an absolute privilege to learn from you. I have been following blockchain very enthusiastically and believe that blockchain could be the next big thing. In fact, I believe that blockchain can do to the world what internet did in the 1990s. People confuse blockchain with bitcoin, particularly in India and I think if we were to go grow as a community we need to be more responsive to such disruptive technologies. Ethereum with its smart contracts and Hyperledger with its modular structure can potentially disrupt every sector in the world. I am from Thermal Power sector and often wonder if we can apply smart contracts and hyper ledger fabric in nuclear power plants, we can save the world from another Fukushima. I am very excited about your session on blockchain in the class. Prashant Bhadouria PGPM-2019, Roll No- 116

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