4: Blockchain and Its Business Applications

This chapter will focus on the basic concepts of blockchain: the decentralized nature of the network, cryptographic security, and an immutable ledger. This section shall discuss, from the literature review, how blockchain can disruptively promote transparency, efficiency, and security in business processes. Particular attention will be given to main areas of blockchain applications: financial, supply chain, healthcare, and verification of digital identity. In finance, blockchain is pointed out as allowing secure, low-cost transactions and decentralized finance (DeFi) platforms, while in supply chain management, it increases traceability and accountability. Later, this chapter looks at combining blockchain and other new technologies, like the internet of things (IoT) and artificial intelligence (AI), to make business processes even better. It also closely examines problems in adopting blockchain, including unclear regulations, scalability issues, and high energy use in some blockchain networks. Ethical concerns with blockchain use – like its potential to allow anonymous and untraceable actions – are also closely reviewed.