INTEGRATING BLOCKCHAIN PRINCIPLES INTO ENTERPRISE SYSTEMS: POTENTIAL GAINS AND ASSOCIATED RISK

Abstract

The study focuses on adoption of blockchain in enterprise systems. It assesses the gains and challenges associated with this adoption. Adoption improves security by 85%. Operational efficiency improves by 75% as well. Fraud is greatly reduced across various sectors. Transaction processing speed is one of the hurdles. For example, Bitcoin can only process seven transactions in a second. Adoption cost is still very high. Compliance to regulations is quite problematic. For instance, GDPR does not accommodate blockchain technology's immutability feature. The research suggests a number of techniques to minimize blockchain related risks. Hybrid approaches incorporate standard databases within blockchain technology. Layer 2 solutions are effective for solving scalability problems. Financial loss is mitigated through smart contract auditing. Inter-public agency coordination increases compliance with regulations. Tactical foresight ensures that the transformative nature of blockchain is fully utilized.