The launch of Bitcoin, the first application of blockchain in 2009, transformed blockchain from a theoretical application to a practical application, proving that this digital distributed ledger technology is indeed effective. Since then, many enterprise organizations have been testing how blockchain can work for them.

Well-known companies, government organizations and non-profit entities are now experimenting with blockchain to improve existing processes and enable new business models.

The value of blockchain stems from its ability to share data between entities in a fast, secure manner — without any entity being responsible for securing the data or facilitating transactions.

"It's a transaction ledger with unique characteristics that help solve problems in our systems and processes," explained Ayman Omar, an associate professor in the Department of Information Technology and Analytics at American University and a fellow at the Kogod Center for Cybersecurity Governance.

In Maoqiu’s view, blockchain and its properties can, in fact, help businesses in multiple ways—whether they use a public blockchain network or opt for private or permissioned blockchain-based applications.

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1. trust

Blockchain creates trust between disparate entities where trust does not exist or is unverified. As a result, these entities are willing to engage in commercial transactions that involve trading or data sharing that they might not otherwise do, or require an intermediary to do so.

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2. Decentralized structure

Daniel Field, head of blockchain at the American University of Science and Technology Daniel Field, head of blockchain at UST, a global provider of digital technology and services, explained that blockchain really proves its value when there is no central actor to facilitate trust.

So, in addition to enabling trust where participants lack trust because they don’t know each other, blockchain enables data sharing in an enterprise ecosystem where no single entity is solely responsible.

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3. Improved security and privacy

The security of blockchain-enabled systems is another major advantage of this emerging technology. The enhanced security offered by blockchain stems from the way the technology actually works. Blockchain creates an immutable record of transactions through end-to-end encryption, which keeps fraud and unauthorized activity at bay.

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4. Reduce costs

Blockchain can also reduce costs for companies, increase the efficiency of processing transactions, reduce manual tasks such as summarizing and revising data, and streamline reporting and auditing processes.

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5. speed

By eliminating intermediaries and replacing remaining manual processes in transactions, blockchain can process transactions faster than traditional methods. In some cases, blockchains can process transactions in seconds or less. However, times may vary.

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6. Visibility and traceability

Walmart's use of blockchain isn't just about speed; it's also about the ability to trace the provenance of these mangoes and other products. This allows retailers like Walmart to better manage inventory, respond to issues or queries and confirm the history of their merchandise.

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7. Immutability

Immutability simply means that a transaction cannot be changed or deleted once recorded on the blockchain. On the blockchain, all transactions are time- and date-stamped, so there is a permanent record. Therefore, blockchain can be used to track information over time, enabling safe and reliable auditing of information.

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8. Personal control of data

Blockchain could enable unprecedented personal control over one's own digital data, experts say. "In a world where data is a very valuable commodity, this technology essentially protects the data that belongs to you while allowing you to control it," said Michela Menting, research director at ABI Research.

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9. Innovation

Leaders across multiple industries are exploring and implementing blockchain-based systems to solve difficult problems and improve long-standing cumbersome practices. Field cites the use of blockchain to verify job applicant resume information as an example of such innovation. Research consistently shows that a high percentage of people falsify their resumes, leaving hiring managers with the time-consuming task of manually verifying information.

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"Not a short-term technology"

Executives need to think carefully about where they make their blockchain investments, experts say.

They emphasized that blockchain's real value lies in its use in areas where traditional databases don't work and where there is no central control or trust.

“If there’s a high level of trust, there’s no problem with blockchain to solve. But the more you lack visibility or potential for corruption, that’s where you have bigger use cases. That’s where blockchain becomes the solution,” Omar said.

Blockchain-based applications could also be paired with artificial intelligence, machine learning or some other decision-making layer, he said.

However, experts still believe blockchain will bring about disruption and business transformation—even if that revolution doesn’t happen any time soon.

It’s important to understand that there’s a lot of hype around blockchain, and while it’s revolutionary in theory, it’s not going to change society today,” Mentin said. “Maybe 10 to 20 years from now, But this is not a short-term technology. "