CIOs seek block chain technology help

nnnRampage commentary: The application of block chain technology is far more than the digital currency. Today, executives in many industries are aware of this, have begun to pay attention to the technology and hope to promote the development of related applications. This paper promotes the role of block chains, pointing out that it can be applied in many areas. While there are many difficulties in implementing this technology now, it is useful for companies to be prepared to respond to change in the light of their potential for the future, to understand it and get relevant experience as early as possible.n
nnTranslated by: Inan
nCIOs are keenly aware of the complexity of managing digital transactions. As data, goods and money are transferred across the organization and supply chains, it is increasingly challenging to verify whether the transaction is real.n
nIn many cases, traditional auditing methods lack the visibility and security required by the organization. “This approach is highly labor intensive and often inefficient,” said A. Michael Smith, a partner at PricewaterhouseCoopers, a consulting firm.n
nThen we come to understand the next block chain. This is a distributed book system created by Bitcoin, relying on sophisticated encryption methods to ensure that the transaction is true and reliable. In addition, it is possible to improve the traceability and security of transactions by enabling many computers to share books and to allow participants to easily validate and audit blocks.n
nAs Arushi Srivastava, senior director of NTT Data Services, said:n
nn”The security of the block chain of books can provide far more than virtual currency transactions.”n
nnBlock chain in the business world is a rising star. According to market research firm Decision Databases, the market value of the global technology market will rise from $ 686.6 million in 2016 to $ 5.7 billion in 2023 and its compound growth rate (CAGR) of 42.3%.n
nIt is also important that the block chain is not just a tool for financial services and transactions. It will enter other areas such as health care, retail, manufacturing, gems, agriculture and government.n
nConsulting firm Ernst u0026 Young’s global innovation chain chain leader Paul Brody said:n
nn”Most companies are now creating private chains, but we are only in the first stage, and our private chains will exist in the public network with common infrastructure, all protected by encryption.”n
nThe block chain gets attentionn
nThe block chain technology is indifferent to the stupid behavior. It can save costs, improve security, and even promote innovation. In recent months, a large number of companies have adopted this technology.n
nFor example, in China, Alibaba is now working with the government to protect medical data through block chains. In the United States, Wal-Mart has recently formed a coalition with food giants such as Dole, Nestlé, Unilever and Taste, and other companies to track food and other items through the supply chain. The move will make it easier to track foodborne diseases and recall situations in complex supply chains involving farmers, brokers, distributors, processors, regulators, retailers and consumers.n
nIn fact, the block chain use case is almost infinite. While banks and financial institutions are early adopters, the technology is designed to manage prudent internal processes, but the technology can be used in almost all areas, from complex peer-to-peer trading systems to tracking the lack of documentation.n
nSmith said that the United Nations is considering this approach. Government entities may also use block chains to verify that public assistance funds are on the right track and that fraud will not occur. This method has been shaped in the UK.n
nAccording to Srivastava of NTT Data Services, many organizations have begun to try to use block chains and are conducting proof of concept validation. They may be interested in tracking physical goods through the supply chain, managing digital assets and transfers, protecting electronic records and data, establishing better contract management frameworks or improving compliance.n
nShe pointed out:n
nn”By focusing on these use cases, the technology will streamline business processes, ensure transparency by providing transparency, and improve efficiency by eliminating brokers and intermediaries.”n
nnHowever, it may be difficult to carry out the block chain plan. Smith said one of the biggest problems is that there is no standard now. “Almost every company has its own way to implement the chain of chains, and it will derive more ways.” This makes it more difficult to implement this technology across organizations, and for companies involved in large-scale block chain planning Bring some risk. This also makes regulation a challenge.n
nSrivastava adds that there are other hurdles, including the scalability of non-encrypted currency blocks, industry organizations have different goals, software vulnerabilities, investment costs, and finding the right technology and talent to put the block chain into use in a meaningful way Then
nUse block chains at workn
nIt is important to develop a block chain strategy. Srivastava believes that this technology will subvert the enterprise and the industry as a whole, and early adopters will gain a competitive advantage. She recommends trial systems such as Bitcoin and Bank of Thailand, and focuses on localized applications such as audit support and asset tracking books.n
nshe says:n
nn”Business-driven investment, which means to assess business use cases, consider whether the block chain is the right solution. Block chain is like any kind of new technology.People can show several use cases, but only a few can achieve investment Return, increase business value. “n
nnThis requires the development of internal talent and investment in block-chain education and training, thinking about how to develop and use it to gain the greatest advantage. This means looking for a partner or joining a trade union. Smith said that for many organizations, the need to focus on its legal, auditing, risk and compliance (LARC) issues when building block-chain tools or solutions.n
nHe explained:n
nn”People in these areas need to participate in the program as early as possible, and their input will determine the feasibility of the project they want to do, and it is important to understand the costs, risks and rewards before making a lot of money.”n
nnSmith added that there are two main ways to use a block chain: get permission and have no permission. Most of the projects currently underway in the chain area are the former and need to be registered. He said:n
nn”The projects in the ecosystem are subject to very strict control, supervision and definition.”n
nnThe latter includes true distributed books, such as Bitcoin, which have a wide range of services, with little or no restrictions on participation. In his view, the licensing chain is a wise choice for many organizations and situations.n
nSmith said:n
nn”Organizations can save billions of dollars by moving the system to the block chain and may not involve real distributed books or anyone outside of the organization. Now our goal is to gain some block chain experience, Place yourself in a strategic position so that it can respond appropriately when the technology is progressing in large scale. “n
nn”The block chain will be a major change technology, and it is moving from the hype stage to the actual corporate vision and discussion,” said Srivastava, an NTT data services company.n

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