Technically, Blockchain is not meant to tie in with an enterprise’s existing systems, but there are still ways and means to automate the flow of data from ERP systems to a distributed ledger technology. However, the first question is, should that be done? Is it even needed?
It’s now common knowledge that the Blockchain market is taking off in 2019 like it has never before. It’s expected to explode from $708 million in 2017 to $60 billion by 2024. Most companies are not willing to lose a competitive edge, and are willing to integrate Blockchain in their existing infrastructure, without thinking about its utility or its interoperability. That may not be a very healthy way to progress industry experts say.
So CIOs really need to take a step back and think. Is it even needed? Firstly, it may not be a good fit for their existing infrastructure and may create disruption in a negative way. Another challenge associated with implementing DLT will have less to do with the technology itself and more to do with building out a network of users who can agree on governance rules.
The real challenge is about getting enough people to share their data are agreeable to maintaining the necessary infrastructure. In any case, industry experts maintain that a large part of the labor involved in integrating Blockchain in one’s infrastructure goes into garnering business partner participation in the network requires setting accurate business agreements and governance rules in place. This makes it a very costly and time-consuming process, and in many cases, does not provide any more support than traditional, existing systems do, at a much lower cost. The only value Blockchain can claim over legacy infrastructure is its ability to validate accurately the origin of data and enabling the use of smart contracts.