Decentralized trust machines shaping tomorrow’s business networks
Blockchains are not just distributed databases under the hood of cryptocurrencies. They show their full potential in supply chain scenarios where trust, security and authenticity are traditionally sourced from expensive and/or data mining intermediaries.
How do blockchains work?
Blockchains are decentralized process engines relying on the foundation of three main principles:
All records stored on a blockchain network cannot be altered once written. Cryptographic checksums created on top of the record are incorporated in the subsequently written record – creating a mathematically linked chain constantly controlled by the network. This generates trust in the state of data.
Next to records also small programs (so called Smart Contracts) can immutably be stored on the blockchain network. These programs are executed decentralized and can be used to ensure the integrity of the records written to the blockchain or for further business processes. This leads to trust in the processes.
Guaranteed authenticity of all participants:
Every network participant’s authenticity is based on digital signatures, which yields trust in identity.
Establishing trust in the state of data, processes and identity through a technical approach effectively abandons the need for trusted intermediaries.
New, digital business models
Higher efficiency thanks to blockchain
By realizing trust in the state of data with trust in the processes that are allowed to work on that data and with trust in involved identities, blockchain technology is an ideal cross-company process engine. Expensive business problems like data manipulation and delays due to manual approval processes can be solved by technology (blockchains) paired with a mindset shift towards consortial thinking and joint governances – even or especially between competing entites. This leads to reliable, efficient processes and reduces transaction costs. The automation capabilities of decentralized networks makes them particularly suitable for efficient orchestration of complex cross company workflows. By allowing all network partners to view all transactions in real time, blockchain ensures absolute transparency. Through a combination of efficiency, authenticity assurance and immutability of data, blockchain has potential for developing new trust-based digital business models.
Blockchains – revolutionizing the corporate world
Blockchains are currently tested in promising applications in almost all sizable companies. However, there is often a lack of in-house experts for the decentralized approach, which hampers widespread productive use. The comprehensive change process that accompanies the use of blockchain networks is also a major challenge. Working with decentralized technologies requires a radical rethink of company policies.
Blockchain has the potential to revolutionize the business world – not so much the technology per se, but rather the underlying concept: decentralized networks form the basis of new working models in the age of digitalization and Industry 4.0, in which machines work autonomously. Innovative companies that successfully manage this change process can scale and optimize their value chain with the help of blockchains.
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Blockchain – from hype to innovation
Beyond the crypto currency Bitcoin, blockchains offers solutions for the biggest current challenges: data security, authenticity and decentralization. A blacklist for stolen smartphones, sensor-controlled track and trace for temperature-sensitive products such as medicines and food, a marketplace for digital services from various providers – there are numerous possible applications along the entire value chain for making processes safer, more reliable and more efficient with the help of blockchain.
Blockchain Logistics Solutions
Logistics is a business that depends on several parties working together smoothly. Closer cooperation and greater shared data enable higher efficiency at lower costs, but also requires trust. By increasing security and transparency, Blockchain Logistics Solutions supports in building that trust.
Camelot ITLab is a pioneer in putting blockchains to use securely along the entire value chain. We link blockchain, IoT and AI. Together with our customers, we are shaping Value Chain 4.0 and pushing the digital transformation forward.