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We are at the start of a new enterprise resource planning (ERP) digital transformation with the introduction of blockchain technology, best known as a digital ledger (think distributed database) behind cryptocurrency. However, businesses are adopting blockchain as a trusted system through which to share records with partners. That’s where you’ll see blockchain enter the enterprise.

DARFChain: Open Source ERP – Blockchain Integration

Distributed Accounting, Resource and Financial system in blockChain (DARFChain) is an open source, Russian startup–tested synchronizing solution built using the components of the blockchain platform, WAVES, the ODOO ERP system, and the BigchainDB database. The project has made the source code for its solution available for testing on GitHub.

The project was able to prove that its technology could to track all major business components and transactions for an ERP-powered company real time in a trustable environment. Manufacturing and logistics companies that work with partners and customers across the world securely should be following this effort closely. Unfortunately, I couldn’t gauge the reach of this project while writing this post.

ERP Becomes a Collaboration Platform

If you treat blockchain as a trusted system, then you can envision the integration of blockchain and ERP opening formerly siloed ERP systems to external partners. Think of a world in which a manufacturer and its partners use the ERP solution as a central hub for collaboration and transaction monitoring to better respond to market changes and get an edge over their competitors. The fact that blockchain records are updated only by consensus of the participants and that when data are added or changed they can never be erased means that the ERP owner and partners get a true record (and audit trail) for every transaction that takes place within the system.

For example, say a mobile phone manufacturer is getting ready to kick off development of a new line of smartphones that requires goods and services from partners across the world. Integrating blockchain with its ERP solution gives the manufacturer a new security tool by which to verify every transaction such a manufacturing launch requires while securing the best interests of the manufacturer and its partners throughout the manufacturing cycle.

Blockchain and ERP Market Challenges

Blockchain itself still needs a lot of marketing to reach the right audiences. Then, DARFChain—and blockchain in general—need a major ERP vendor to take notice of their success and try to replicate it with a mid to enterprise customers or major government agencies. The major ERP vendor that gets there first with blockchain can lead the next-generation ERP market. Right now, IBM is making the right moves to become an early blockchain leader. It has even published a white paper entitled The Benefits of Blockchain to Supply Chain Networks that outlines IBM’s position on how blockchain fits into the future of the supply chain.

ERP and Blockchain: A Future Meant to Be

ERP and blockchain are made for each other when you think about it. I’ve covered a lot of the integration options for customer relationship management, ERP, and other cloud platforms here on Toolbox.com. ERP and blockchain have the potential to offer so much more than application programming interface integrations because of the added transactional security the technology provides cloud-based ERP solutions.

About the Author

Will Kelly is a technical writer and analyst focusing on enterprise mobility, Bring Your Own Device, and cloud computing. He has worked as a contract technical writer for clients in the cybersecurity, investment banking, Internet services, and broadband industries. Will’s other areas of technology interest include big data, collaboration, and enterprise social platforms. Will is a Studio B analyst.