Four Enterprise Use Cases for Blockchain Technology

Author: Oracle Corporation ERP Development Senior Director David Haimes

So far, you may have heard at least one description of blockchain, often linked to money; blockchain has attracted attention for its "distributed ledger" technology, which underpins buying or selling cryptocurrency and other assets in private markets.

But blockchain technology has broader applications than cryptocurrency. In the future, blockchain may become part of many everyday B2B transactions, including those supported by enterprise applications.

There are many use cases discussed, hard to understand, but I prefer to see how technology brings value to enterprises. Below are four ways blockchain works in enterprise applications to provide more flexible, secure, and streamlined business processes, even enabling new business models.

1. Enabling distributed, autonomous markets

Blockchain allows asset owners to track and exchange valuable items, such as high‑quality invoices, in a secure, transparent, private, and self‑regulating "transaction chain". This adds speed and flexibility to cash and asset management. For example, using verified invoices in ERP applications, enterprises can sell invoices on an autonomous invoice‑factoring market to quickly raise cash or accelerate cash flow.

Other asset autonomous markets could multiply. Basically, blockchain‑based transactions eliminate the need for third‑party oversight because the software itself is a controlled and open framework visible to all participants. Thus organizations can view their assets multidimensionally; instead of just facing value, they have the opportunity to value.

2. Reducing friction in commercial transactions

Managing spend is a challenge for most organizations. Data from Ardent Partners CPO Rise 2016 show that less than half (45%) of spend complies with contract requirements, only 39% of addressable spend actually originates, and only 63% of spend is linked to purchase orders.

Alternatively, enterprises can create an autonomous blockchain network for suppliers and partners. This can enable automated smart contracts, instant payments, and IoT‑activated shipments. Without human interaction, errors and missing information are reduced, and transactions happen faster because buyer and seller are directly connected.

3. Managing and protecting decentralized private records through encryption

A fundamental feature of blockchain is that each individual data record or element is encrypted. Traditionally, industries rely on third parties using firewalls and access restrictions to protect shared‑information databases, but frequent high‑profile data breaches make this approach less ideal.

If each data element is protected and encrypted with the keys of blockchain members, network criminals would need to obtain every member’s key to access all blockchain data. While not 100% secure, this greatly reduces the risk of large‑scale exposure of private records.

A logical application is employee or student records; employers, educational institutions, and certification bodies can add new credentials, grades, or job positions. Imagine giving employees a key to access all their records as part of a secure HR blockchain, allowing safe sharing of transcripts or employment opportunities without unreliable, easily forged faxed copies.

4. Tracking product and material provenance

Blockchain can help ensure product quality and safety by facilitating traceability and location of products and materials in use. For example, an automotive manufacturer could create a quality‑centric blockchain that includes parts suppliers, component manufacturers, quality‑control providers, and public regulators (e.g., NHTSA). Recalling defective parts would progress faster, which is crucial given the thousands of deaths each year caused by faulty automotive parts.

Blockchain is likely in your future.

These are just four of many potential ways we see customers using blockchain. We recently announced Oracle Blockchain Cloud Service at the Oracle Global Summit and encourage customers to think strategically about the technology. Take time to learn blockchain and consider pilot projects.