The promise of blockchain
Blockchain is essentially a ledger comprised of time-ordered and time-stamped blocks of encrypted data. Each block represents a record of a transaction between two or more parties, and all nodes on a blockchain (participants in the system) have real-time access to the shared data. As new blocks are added to the ledger over time, embedded encryption makes it extremely difficult or impossible to alter prior records.
Another promising concept that blockchain has given birth to are the so called ‘smart contracts’: self-executing, coded agreements between multiple parties that self-enforce by automatically verifying and executing contractual clauses once predetermined conditions are triggered by events conveyed via trusted data feeds (oracles). Smart contracts have the potential to considerably reduce back office costs in many industries. However, the relative immaturity of the smart contract technology and the fact that the such contract code may contain unforeseen errors, as evidenced by some high profile real life events, creates ambiguity around the enforceability of smart contracts in the traditional legal and court systems.
Benefits of blockchain, which have caused many to predict its imminent widespread adoption and subsequent transformation of many processes across industries, include:
- Increased accuracy and reduced human error
- Improved efficiency (through elimination of lengthy and costly reconciliation) and reduced infrastructure costs
- Increased transparency and auditability
- Reduced opportunity for fraud
- Increased resilience to outages and attacks
- Increased security through use of cryptography
How DataArt can help your blockchain initiative
DataArt can help firms move forward in their exploration of blockchain/distributed ledger technology (DLT) by providing a full suite of consulting services, including technology research, prototyping, development and operationalization. We actively partner with the leading players and consortia in the blockchain world and maintain expertise in the various flavors and permutations of DLT, including Hyperledger, Ethereum, Chain.com, and others.
Most importantly, DataArt has actual experience building production blockchain systems for our clients. Our experience includes, among other projects: securities issuance and transaction settlement; securities depository and proxy voting; and government public assistance benefits management system.
Our team of seasoned technologists and blockchain experts can help you quickly move from initial research and feasibility studies to proofs-of-concept to working prototypes, all the way to production systems. We can also help to advance your access to blockchain expertise by organizing hackathons and similar programs aimed at rapid experimentation with the available blockchain technologies and tools. Reach out to us to discuss the application of blockchain to these and other use cases:
- Trade settlements in capital markets
- Trade finance
- Syndicated loans
- Regulatory compliance
- International payments
- Identity management
- Supply chain management
- Record management
- Shareholder voting