Blockchain is a chain of blocks. It is a technology, not a currency like Bitcoin. Bitcoin has leveraged Blockchain technology.
The Blockchain is a decentralized, distributed and incorruptible digital/electronic ledger. In the same way the internet facilitates direct exchange of information, Blockchain facilitates direct exchange of value between parties, without the need for a trusted intermediary. Near real-time and unalterable records replicated among all participants. This architecture can be harnessed to facilitate P2P Payments, Manage record, Track physical objects and transfer value via smart contracts.
Blockchain databases are immutable (record cannot be modified after they are created).
Types of Blockchain ledger:
1. Permissioned:
- Members in business network are invited to join network. Examples: manufacturer and its suppliers, cargo shipper and its broker network, etc.
- More secure and better governance – parties are known in advance
- Better suited for the enterprise
2. Permission-less
- Anyone on Internet may join and have access to the ledger information Examples: Bitcoin, Ethereum etc.,
- Less secure and poorer governance – parties not known in advance
3. Private:
- Private owner, who only controls the blockchain network
- Trust is very high
Oracle Offers a Permissioned Enterprise Blockchain Platform and it is based on Hyperledger Fabric Permissioned Blockchain protocol. The platform is called Oracle Blockchain Cloud Service (OBCS)
Benefits of Blockchain Technology:
- Reduce costs
- Improve efficiency
- Fraud controls
- Disruptive potential
- Transparency and security
- No need to rely on a third-party authority
Blockchain platform vendors are Ethereum, hyperledge and Microsoft Azure etc.,
Extending Oracle ERP Applications Using Blockchain:
- Integrating Blockchain technology into ERP applications creates a highly secure collaboration platform within which trusted system of record (or auditing mechanism) can be freely shared with trusted parties.
- Both Blockchain and Oracle ERP Applications have APIs which allow for easy integration.
Automating AP Payments, enforcing vendor agreements and shipping document exchange etc., are some of the use cases for Blockchain.