Blockchain Beyond Cryptocurrency - Enterprise Applications in 2019

While blockchain technology first gained prominence as the foundation for cryptocurrencies like Bitcoin, its potential extends far beyond digital currencies. As we progress through 2019, organizations across industries are implementing blockchain solutions to address real business challenges related to trust, transparency, and efficiency. This comprehensive guide explores how blockchain is being applied in enterprise contexts and the practical value it's delivering.

The Evolution of Enterprise Blockchain

The blockchain landscape has matured significantly:

• From Speculation to Implementation: Moving beyond proofs-of-concept to production systems
• Enterprise-Grade Solutions: Development of platforms designed for business requirements
• Consortium Approaches: Organizations collaborating on shared blockchain networks
• Regulatory Clarity: Emerging frameworks for blockchain governance and compliance
• Focus on Business Value: Emphasis on practical applications with measurable returns

This evolution is enabling the practical applications we'll explore below.

High-Value Enterprise Applications

1. Supply Chain Transformation

Using blockchain to enhance visibility and trust:

End-to-End Traceability

• Product Provenance: Verifying the origin and journey of goods
• Counterfeit Prevention: Ensuring authenticity through immutable records
• Ethical Sourcing Verification: Documenting compliance with standards
• Quality Assurance: Tracking handling conditions throughout the supply chain
• Recall Efficiency: Precisely identifying affected products when issues arise

Implementation Example: Walmart has implemented IBM's Food Trust blockchain to track produce from farm to store, reducing the time to trace mangoes from 7 days to 2.2 seconds and enabling precise, targeted recalls.

Supply Chain Efficiency

• Documentation Streamlining: Reducing paperwork through shared digital records
• Customs Facilitation: Accelerating border clearance with verified information
• Payment Automation: Triggering transactions when conditions are met
• Inventory Visibility: Creating a single source of truth for stock levels
• Partner Onboarding: Simplifying integration of new supply chain participants

Implementation Example: Maersk and IBM's TradeLens platform digitizes shipping documentation on blockchain, reducing administrative costs by up to 20% in a sector where paperwork can represent 20% of transportation costs.

2. Financial Services Innovation

Reimagining financial processes through distributed ledgers:

Trade Finance Transformation

• Letter of Credit Automation: Streamlining traditionally paper-heavy processes
• Multi-Party Verification: Creating shared visibility across trading partners
• Fraud Reduction: Preventing duplicate financing through transparent records
• Settlement Time Reduction: Accelerating transaction completion
• Financing Access: Enabling smaller participants to access trade financing

Implementation Example: The Hong Kong Monetary Authority's eTradeConnect platform has reduced trade finance processing time from days to hours while improving security and reducing fraud risk.

Cross-Border Payments

• Settlement Time Reduction: Enabling near-real-time international transfers
• Cost Reduction: Eliminating intermediaries and associated fees
• Transparency Enhancement: Providing visibility into payment status
• Compliance Automation: Building regulatory requirements into the process
• Liquidity Optimization: Reducing trapped capital in correspondent banking

Implementation Example: Ripple's blockchain-based payment network has enabled financial institutions to reduce cross-border payment costs by up to 60% while settling transactions in seconds rather than days.

3. Identity Management

Creating secure, user-controlled digital identities:

Self-Sovereign Identity

• User Control: Enabling individuals to own and manage their identity data
• Selective Disclosure: Sharing only necessary information for each interaction
• Credential Verification: Confirming qualifications without revealing underlying data
• Cross-Domain Identity: Using the same identity across multiple services
• Privacy Enhancement: Reducing unnecessary data collection and storage

Implementation Example: The Sovrin Foundation has created a global public utility for self-sovereign identity, allowing individuals to control their digital identities while enabling organizations to verify claims without centralized databases.

Enterprise Identity Solutions

• Customer Onboarding: Streamlining verification while meeting regulatory requirements
• Partner Access Management: Simplifying secure access for business ecosystems
• Consent Management: Documenting permission for data usage
• Credential Verification: Confirming qualifications and certifications
• Audit Trail Creation: Maintaining immutable records of identity interactions

Implementation Example: SecureKey's Verified.Me service in Canada allows consumers to verify their identity across financial institutions and service providers, reducing onboarding time and fraud while enhancing privacy.

4. Healthcare Applications

Improving data sharing while protecting privacy:

Patient Data Management

• Consent Tracking: Recording patient permission for data usage
• Secure Sharing: Enabling controlled access to medical information
• Research Facilitation: Supporting anonymized data sharing for studies
• Medication Adherence: Tracking prescription fulfillment and usage
• Claims Processing: Streamlining insurance verification and payment

Implementation Example: MedRec, developed at MIT, provides a decentralized approach to medical record management, giving patients control over their data while enabling appropriate sharing with providers.

Pharmaceutical Supply Chain

• Drug Provenance: Tracking medications from manufacturer to patient
• Counterfeit Prevention: Verifying authenticity of pharmaceutical products
• Cold Chain Verification: Ensuring proper temperature maintenance
• Expiration Management: Tracking product shelf life and usage dates
• Recall Coordination: Enabling precise identification of affected products

Implementation Example: MediLedger, a consortium including Pfizer, McKesson, and AmerisourceBergen, has implemented blockchain to track prescription medicines, meeting regulatory requirements while preventing counterfeit products from entering the supply chain.

5. Intellectual Property and Content Rights

Managing digital rights through immutable records:

Content Attribution

• Ownership Documentation: Creating verifiable records of creation and rights
• Usage Tracking: Monitoring how content is utilized across platforms
• Royalty Management: Automating payments based on actual usage
• Licensing Verification: Confirming proper permissions for content use
• Collaboration Documentation: Recording contributions to joint works

Implementation Example: Sony Music Japan has implemented a blockchain-based rights management system that tracks music composition and recording rights, streamlining royalty calculations and payments.

Patent and Trademark Management

• Prior Art Documentation: Creating timestamped records of innovations
• Licensing Automation: Streamlining permission and payment processes
• Usage Verification: Tracking implementation of patented technologies
• Collaborative Innovation: Managing shared intellectual property
• Infringement Detection: Identifying unauthorized usage

Implementation Example: IPwe has created a blockchain-based patent registry and marketplace that enhances transparency in patent ownership and licensing, reducing transaction costs in the intellectual property market.

Industry-Specific Blockchain Applications

1. Government and Public Sector

Enhancing transparency and efficiency in public services:

• Land Registry: Creating immutable records of property ownership
• Voting Systems: Ensuring secure, verifiable election processes
• Benefit Distribution: Tracking social service delivery and eligibility
• Tax Compliance: Automating collection and reducing fraud
• Regulatory Reporting: Streamlining compliance documentation

Implementation Example: Georgia's National Agency of Public Registry has registered more than 1.5 million land titles on a blockchain system, reducing fraud and corruption while cutting registration time from days to minutes.

2. Energy and Utilities

Transforming resource management and trading:

• Peer-to-Peer Energy Trading: Enabling direct transactions between producers and consumers
• Grid Management: Optimizing distribution through transparent data
• Renewable Certificates: Tracking green energy production and usage
• Asset Maintenance: Managing infrastructure through shared records
• Automated Billing: Streamlining payment for consumption

Implementation Example: Power Ledger has implemented blockchain-based peer-to-peer energy trading in several countries, allowing solar panel owners to sell excess electricity directly to neighbors.

3. Insurance

Reimagining policy management and claims processing:

• Parametric Insurance: Automating payouts based on predefined conditions
• Fraud Prevention: Creating verified histories to identify suspicious patterns
• Risk Assessment: Improving underwriting through shared, verified data
• Claims Automation: Streamlining processing through smart contracts
• Reinsurance Management: Simplifying complex multi-party arrangements

Implementation Example: AXA's Fizzy flight delay insurance used blockchain and smart contracts to automatically compensate passengers when flights were delayed, eliminating claims filing and processing.

4. Real Estate

Transforming property transactions and management:

• Title Management: Creating immutable ownership records
• Transaction Streamlining: Reducing settlement time and costs
• Fractional Ownership: Enabling partial investment in properties
• Rental Agreements: Automating leases through smart contracts
• Property History: Maintaining comprehensive records of changes and events

Implementation Example: Propy has facilitated legally binding real estate transactions on blockchain in several countries, reducing processing time from weeks to days while creating immutable ownership records.

Implementation Approaches and Considerations

1. Blockchain Platform Selection

Choosing the right technology foundation:

• Public vs. Private: Determining appropriate levels of access and control
• Consensus Mechanisms: Selecting methods for transaction validation
• Smart Contract Capabilities: Assessing programming flexibility and security
• Scalability Considerations: Ensuring the solution can handle required volume
• Interoperability: Enabling communication with other systems and blockchains

Best Practice: Develop a structured evaluation framework that aligns platform characteristics with specific business requirements rather than selecting based on popularity or general capabilities.

2. Governance Models

Establishing rules for blockchain networks:

• Participant Onboarding: Defining how organizations join the network
• Consensus Participation: Determining who validates transactions
• Change Management: Creating processes for updating the system
• Dispute Resolution: Establishing mechanisms for addressing disagreements
• Regulatory Compliance: Ensuring adherence to relevant laws

Best Practice: Create a formal governance structure with clear roles, responsibilities, and decision-making processes before implementing production blockchain networks.

3. Integration Strategies

Connecting blockchain with existing systems:

• API Development: Creating interfaces between blockchain and other applications
• Legacy System Connectivity: Bridging traditional databases and distributed ledgers
• Data Synchronization: Maintaining consistency across platforms
• Event-Driven Architecture: Using triggers to coordinate across systems
• Middleware Solutions: Implementing connecting layers where needed

Best Practice: Develop a comprehensive integration architecture that addresses data flow, transformation requirements, and synchronization mechanisms between blockchain and existing systems.

4. Privacy and Security

Protecting sensitive information:

• Zero-Knowledge Proofs: Verifying information without revealing underlying data
• Private Channels: Creating restricted communication paths for sensitive transactions
• Encryption Strategies: Protecting data while maintaining functionality
• Key Management: Securing access credentials and recovery mechanisms
• Vulnerability Assessment: Identifying and addressing potential weaknesses

Best Practice: Conduct comprehensive security assessments that address both blockchain-specific risks and traditional security concerns in the overall solution architecture.

Overcoming Implementation Challenges

1. Organizational Alignment

Building internal support and capabilities:

• Challenge: Resistance to change and limited understanding of blockchain
• Solutions:
  • Develop clear business cases with measurable outcomes
  • Create education programs for key stakeholders
  • Start with high-value, manageable pilot projects
  • Establish centers of excellence to build expertise
  • Align blockchain initiatives with strategic objectives

Example: Walmart began its blockchain journey with a focused pilot tracking mangoes in North America, demonstrating clear value before expanding to additional products and regions.

2. Ecosystem Adoption

Encouraging participation across organizations:

• Challenge: Difficulty convincing partners to join blockchain networks
• Solutions:
  • Identify and address specific pain points for each participant
  • Create equitable governance structures
  • Develop clear value propositions for all stakeholders
  • Implement in phases to demonstrate early benefits
  • Provide technical support for onboarding

Example: The IBM Food Trust network started with Walmart as an anchor participant, then gradually expanded to include suppliers, other retailers, and eventually competitors once value was demonstrated.

3. Technical Complexity

Managing sophisticated technology:

• Challenge: Blockchain's inherent complexity and evolving nature
• Solutions:
  • Leverage managed blockchain services to reduce implementation burden
  • Partner with experienced blockchain development firms
  • Adopt enterprise-grade platforms with support and documentation
  • Implement comprehensive testing strategies
  • Develop internal technical expertise over time

Example: Maersk and IBM's TradeLens platform uses a managed blockchain service that handles the underlying infrastructure complexity, allowing participants to focus on business processes rather than technology management.

4. Regulatory Uncertainty

Navigating evolving legal frameworks:

• Challenge: Unclear or developing regulations for blockchain applications
• Solutions:
  • Engage with regulators early in the development process
  • Participate in industry standards organizations
  • Design for compliance with existing regulations
  • Implement flexible architectures that can adapt to changing requirements
  • Document compliance measures and risk assessments

Example: The R3 banking consortium has worked closely with financial regulators throughout the development of its Corda platform, ensuring that implementations can meet existing regulatory requirements while preparing for evolving standards.

Measuring Blockchain Success

Approaches to evaluating blockchain initiatives:

1. Efficiency Metrics

Assessing operational improvements:

• Process Time Reduction: Measuring decreased cycle times
• Cost Savings: Quantifying reduced expenses
• Error Reduction: Tracking decreased mistakes and exceptions
• Resource Optimization: Measuring improved utilization of assets
• Automation Benefits: Assessing impact of reduced manual intervention

Best Practice: Establish clear baseline measurements before implementation and track changes over time, isolating the impact of blockchain from other factors when possible.

2. Trust and Transparency Metrics

Evaluating improvements in information quality:

• Data Accuracy: Measuring reduction in discrepancies
• Dispute Reduction: Tracking decreased conflicts between parties
• Audit Efficiency: Assessing time and cost of verification processes
• Compliance Improvement: Measuring adherence to regulatory requirements
• Stakeholder Confidence: Evaluating trust in shared information

Best Practice: Develop both quantitative and qualitative measures of trust enhancement, recognizing that some benefits may be difficult to quantify directly.

3. Business Impact Metrics

Measuring broader organizational benefits:

• Revenue Enhancement: Assessing contribution to top-line growth
• Customer Experience: Evaluating improvements in satisfaction and loyalty
• Market Expansion: Measuring access to new segments or regions
• Product Innovation: Tracking new offerings enabled by blockchain
• Ecosystem Growth: Assessing network participation and activity

Best Practice: Create a balanced scorecard that connects blockchain initiatives to strategic business objectives, demonstrating value beyond operational improvements.

The Future of Enterprise Blockchain: 2019 and Beyond

Emerging trends that will shape blockchain adoption:

1. Blockchain Interoperability

Connecting different blockchain networks:

• Cross-Chain Protocols: Standards for communication between blockchains
• Asset Portability: Moving tokens and data across networks
• Identity Federation: Using credentials across multiple blockchains
• Hybrid Networks: Combining public and private blockchain capabilities
• Interoperability Platforms: Solutions designed to bridge different systems

Strategic Implication: Organizations should consider interoperability requirements in their blockchain architecture to avoid creating new silos that limit future flexibility.

2. Tokenization of Assets

Representing physical and digital assets on blockchain:

• Real Estate Tokenization: Fractional ownership of property
• Financial Instrument Representation: Bonds, equities, and derivatives on blockchain
• Physical Asset Tokens: Representing commodities and tangible goods
• Intellectual Property Tokenization: Fractional rights to patents and creative works
• Utility Token Evolution: Access rights to services and platforms

Strategic Implication: Businesses should evaluate opportunities to increase liquidity and create new markets through asset tokenization, particularly for traditionally illiquid assets.

3. Convergence with Emerging Technologies

Combining blockchain with other innovations:

• AI and Blockchain Integration: Enhancing each technology's capabilities
• IoT and Blockchain Synergy: Securing device data and enabling autonomous transactions
• 5G Enabling Blockchain Scale: Supporting higher transaction volumes
• Quantum Computing Implications: Addressing both threats and opportunities
• AR/VR and Blockchain: Authenticating virtual experiences and assets

Strategic Implication: Organizations should develop integrated technology roadmaps that consider how blockchain complements and enhances other emerging technologies.

4. Regulatory Maturation

Evolution of legal frameworks:

• Industry-Specific Regulations: Tailored approaches for different sectors
• International Harmonization: Coordination across jurisdictions
• Compliance Automation: Technology solutions for regulatory adherence
• Legal Recognition: Formal acceptance of blockchain records and smart contracts
• Regulatory Sandboxes: Controlled environments for testing new applications

Strategic Implication: Businesses should actively engage with regulatory developments and design blockchain implementations with compliance flexibility to adapt to evolving requirements.

Conclusion: From Experimentation to Transformation

As we progress through 2019, enterprise blockchain is moving from experimental projects to transformative implementations. The most successful organizations will be those that:

1. Focus on specific business problems rather than implementing blockchain for its own sake
2. Build effective consortiums and ecosystems that deliver value to all participants
3. Integrate blockchain with existing systems to enhance rather than replace current capabilities
4. Address governance and regulatory considerations from the beginning
5. Measure and communicate business value beyond technical achievements

By approaching blockchain as a tool for business transformation rather than a technology project, organizations can realize the substantial benefits that distributed ledger technology can deliver. The future belongs to companies that can effectively leverage blockchain's unique capabilities to create new levels of trust, transparency, and efficiency in their operations and ecosystems.

Remember that blockchain implementation is not a destination but a journey of continuous evolution—one that requires ongoing adaptation, learning, and refinement as both the technology and business needs change.

This article was written by Nguyen Tuan Si, a blockchain strategy specialist with experience helping organizations develop and implement effective distributed ledger solutions across various industries.