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A Guide to SAP and Blockchain - Everything You Need to Know

Nov 02, 2022  |  Bakhtain Afzal

Blockchain is now a useful technology that can be used with ERP systems. It has the potential to change the way many businesses work. Digital currency remains to be a hot topic for many years. But now, companies like SAP are using it as a secure and distributed database technology.SAP is in the process of becoming a cloud software services provider, so it makes sense for them to use the distributed ledger model. SAP solutions already come with Blockchain-as-a-Service, which is similar to Software-as-a-Service. Here, we will provide a guide to SAP and blockchain technology.

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What Is Blockchain

As most businesses move their business processes and infrastructure to the cloud and become more digital. Data protection and security become of the highest significance. Blocks of data are copied, sent to different places, and kept in sync across a network (either public or private). Because the distribution is synchronized, when one adds the data takes it away, or makes changes in particular money, the changes are made everywhere else on the network. Together with the verification process, this makes the database safe and almost impossible to hack.

The distributed ledger can hold any kind of information, so it works well with software that is hosted in the cloud. Cloud-based Blockchain as a Service network is more manageable and protected by its suppliers. So, users don't have to use up business resources but can still share information in real time in a secure way.

Blockchain is a good way to keep track of transactions in a secure network. As each block has its unique code and any changes to the chain change the signatures that go with it. This makes viewing the changes easier.

Advantages of Blockchain

It Creates a Standard of Trust

One of the best things about this idea for businesses is that it creates a standard of trust that everyone can agree on. Trust has always been an important part of societies and economies, so institutions and jobs change over time to make sure that people can trust each other. This can be a government, a currency, a bank, a lawyer, or an administrative body. All of these can confirm the value of a transaction.

Easier Financial Transactions

Many times, the middlemen network of middlemen slows down business and legal processes by making it harder to check the values of transactions. So, if you want to send money from one account in one currency to another account in a different currency, you need a bank or clearing house to check the exchange. Even automated transactions take time, and this delay can slow down business transactions. This means, there’s now a higher chance of a delay in the delivery of goods and this disrupts the entire supply chain management. Resultantly, it takes longer to sell the goods and get the payment. With a blockchain financial transaction, this process can take as little as 20 seconds because the verification process was already done when the data was put into the system.

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Easy Supply Chain Management

As we've seen, blockchain technology is a distributed, synchronized, and secure networked database. This means there are more uses for it, more than just money.

Because this method of working together can be used on a networked database, there can be a use of this in almost every part of business and government. Blockchain can help businesses and society in many ways. From tracking and tracing important supply chains like medical distribution networks to using smart contracts in business and legal processes.

Are ERP and Blockchain the Same

No, they're not the same. ERP's database management framework is optimized, while blockchain uses a scalable database that works in real-time and can verify purposes, stages, and applications. 

From a theoretical point of view, Blockchain and ERP have a lot in common. The base of ERP is on a system where only one change is possible to the data.