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EMERGENT are linked together and protected by cryptography, explained David Essex, TechTarget editor-at-large. The data block combined with the decentralized nature of DLTs, make it nearly mathemat- ically impossible to hack a blockchain to change data or disrupt transactions. “There’s no central authority for malicious actors to target, no one player who can take data private or change the rules without agreement, or whose failure can bring the whole network down,” Essex explained. DLTs distribute copies of the ledger to the nodes on a blockchain network, making each one responsible for recording new transactions and partici- pating in a consensus mechanism to agree on updates to the ledger, he continued. “The multiple copies provide data redundancy and transparency.” An upshot is a blockchain network’s ability to create “unchangeable records” that are permanent and tamperproof, in which the integrity of a data set can be verified and trusted. The “trust” that is created (i.e., no added or extra steps must be taken to verify information) is a key attribute to blockchain and how and where it will be best applied. “Being able to trust the accuracy of the data and believe that the system itself is essentially impermeable, and that in most cases privacy is assured, can reduce fraud, eliminate data leaks and, like trust, bring in more customers and partners,” explained Essex. “It can also cut data management costs, boost data accuracy and facilitate auditing.” Trust likewise makes it possible, or possibly less risky, to do business with unknown parties and confidently expand ecosystems of customers, partners and suppliers. Blockchain’s inherent characteristic also can reduce steps taken, remove middlemen and largely automate time- consuming and laborious processes, offering the potential to reduce costs and speed up commerce and networking. Along with the obvious opportunities this presents within cybersecurity, an early use case for blockchain database technology has been applying some grease to IoT deployments. Not only does blockchain allow multiple parties or devices to create and work off a single, distributed and trusted record, but it can validate the integrity of infor- mation coming off the various devices. Walmart Canada, for example, recent- ly developed a practical freight-invoicing application that combines blockchain with IoT to automate freight invoicing. The application uses “smart contracts,” according to reports, to pull live shipment information into invoices and send pre-approved payments once the terms of the shipping agreement are met. Martha Bennet, vice president and principal analyst at Forrester Research, pointed to the deployment as a “poster child” for how a blockchain application can save compa- nies time and money by minimizing data reconciliation processes and disputes. In and of themselves, “smart contracts,” which play a dual role as foundational components of blockchain infrastructure and software development and as an application of the technology, said Essex, are another early and important example of blockchain for business. In simplified terms, a smart contract represents the terms and conditions written in code that automatically transfer funds, execute agreements and transactions, grant access or enforce privacy protections once the contract’s predefined requirements are met. This can simplify and accelerate transactions between parties or devices by removing any intermediaries involved in the traditional business transaction without compromising authenticity and credibility. Similar to how it can help in IoT deployments, smart contracts and block- chain are being applied to supply chain management as part of the ongoing efforts to increase transparency and traceability. The technologies expand the number of suppliers and buyers that can be monitored or added to the chain and ensures the integrity of data passing through the chain, explained Essex. “Blockchain is already making it easier and more affordable to extend supply chain transparency to the small- est suppliers, such as coffee growers, tuna fishing operations and miners, while shoring up trust in information about product provenance as the goods move through the supply chain to consumers,” he continued. Meanwhile, blockchain’s decen- tralized, peer-to-peer architecture makes it possible to piece together the unused disk space of blockchain participants, creating blockchain storage, added Essex. As Forrester’s Bennett attested, we’re “still in the early stages” of business blockchain, but she now can cite examples where the distributed ledger technology is being used in real opera- tional environments, and with no fallback option. And according to a 2020 survey by Deloitte, 55 percent of senior execu- tives said that blockchain technology is a critical priority for their organizations. So, while the overhype surrounding blockchain is sure to continue, the practical realities of blockchain could be overtaking the headlines sooner than later. o 10 CHANNEL V ISION | July - August 2021 50,972 40,730 35,682 26,450 24,694 are involved duri g cloud rs Journey Approve funds BDM Make final decisions Approve purchases Implement /manage solutions 22% 38% 27% 20% 58% 33% 47% 37% 13% 13% M vs. BDM Attitude of Executives Towards Blockchain Technology Source: Deloitte, 2020 87% 86% 86% It can enhance integration with touchless business processes It will enable new business functionalities and revenue streams in our industry It is broadly scalable and will eventually achieve mainstream adoption