The world has shrunk and businesses today are able to service clients across the globe, source inputs from vendors sitting in remote locations and even outsource the entire production process to a trusted partner in a different geographic location. This has created a need for simple, safe and secure means of communication and transactions such as blockchain technology.
Indium Software, a cutting edge technology solution provider, leverages permission-based blockchain frameworks such as Hyperledger to create safe and secure platforms.
A Growing Need
Blockchain is gaining a sure and strong footing across industry segments because of its high adaptability, transparency, and scalability while keeping sensitive data safe from prying eyes. It ensures performance, scalability and high levels of trust amongst participants who can access it only with the right digital keys.
According to a report by Marketsandmarkets, the global blockchain market is expected to grow at a compounded annual growth rate of 67.3 per cent between 2020 and 2025, from USD 3.0 billion in 2020 to USD 39.7 billion by 2025. The need for simplifying business processes and integrating supply chain management applications with blockchain technology are some key applications of blockchain, that are in demand.
Private blockchains garnered the largest market size in 2020 and is a shared database or ledger that is secured through limited user rights confined to the organization using private keys. While write permissions are kept centralized to a single organization, read permissions may be based on the organization’s usability.
The SME segment has been a fast adopter of blockchain technology as it allows streamlining of business processes at low infrastructure costs and high transparency.
Amongst industry categories, the banking and financial services segment holds the largest market share due to blockchain ensuring secure transactions for customers. Some of the other benefits include high compatibility with the financial services industry ecosystem, rising cryptocurrencies, Initial Coin Offerings (ICOs), rapid transactions, and reduced total cost of ownership.
Advantages of a Blockchain Platform
Some of the key advantages of businesses adapting the blockchain platform include:
- Assured protection of sensitive information due to the high level of privacy control for business-to-business contracts
- Easy access to contracts for all parties with permission
- A depository of assets to initiate trades and acquire information in near real-time
- Improved audit trail
- Ease of tracking the supply chain, be it raw materials, during production, at the time of storage or sale and afterward
Hyperledger blockchain has been used successfully in the pharma industry to develop a supply platform that can track drug movement through the supply chain, encrypting trading records. By establishing the authenticity of the transaction, it was able to lower the credit risk of pharmacies, reduced the payment period, thereby improving the creditworthiness of the small and medium suppliers who were finding getting credit and loans difficult earlier.
A blockchain-based platform for trade financing enabled reducing the time for deal processing from a couple of days to just two hours. Document digitization also affected savings on labor costs and reduce transaction and processing costs by providing all parties concerned with a view of the latest shipment data.
In the BFSI segment, it can speed up processing and transaction times in a secure environment.
This can be useful in the power sector to manage the electricity grid by identifying areas that lack electricity or are experiencing an outage and supplying power from other sources.
Real-time tracking of merchandise becomes easier for e-commerce and retail industries using the blockchain platform from the supplier to the shelf.
For logistics companies, it enables tracking shipment as well as simplifying the documentation process, making it transparent and reducing the processing time.
In the legal industry, it can prevent fudging of documents as every change made to it can be tracked and comes with a timestamp that cannot be modified or deleted.
Need for Awareness
There is really no limit to the industries where blockchain technology can be applied. What is needed is greater awareness about its potential and education about the benefits of opting for blockchain technology.
It can work with any existing systems, including the corporate ERP, AI/ML, IoT, etc., and makes very limited demands on technology infrastructure. It needs a web application to run, and except when an organization wants to set up a node, it doesn’t need any additions to the hardware.
Indium for Blockchain
The blockchain team has successfully developed a proof of concept for a logistics client and is currently working in the legal space. The team has cross-domain expertise along with technology capabilities, making it a true partner in blockchain development services.
If you would like to explore the possibility of leveraging blockchain technology to create a secure network, contact us: