FEATURE : BLOCKCHAIN

Blockchain is a record-keeping technology designed to make it impossible to hack the system or forge the data stored on it , thereby making it secure and immutable . It is a type of distributed ledger technology ( DLT ), a digital system for recording transactions and related data in multiple places at the same time . Industry experts share Blockchain insights for CIOs , examples and use cases , and how it differs substantially from conventional databases in how it stores and manages information . By Manda Banda .

Research firm IDC expects Blockchain spending in the Middle East and Africa ( MEA ) to reach US $ 307 million in 2021 , which represents a compound annual growth rate ( CAGR ) of 77.4 % for the 2016 to 2021 period . While various industries are evaluating the use of Blockchain , IDC research suggests the region ’ s public sector ( including government , education and healthcare ) will spend an estimated US $ 120.8 million in this space in 2021 , accounting for 39.2 % share .

Mohammed Mosam , Director of Product Marketing , Sage Africa , Middle East and Asia , said essentially , Blockchain works as a distributed global and public ledger without a central database that can be tampered with . Mosam said the Blockchain uses software stored on thousands of computers across a global network to facilitate and verify financial transactions or data transfers . “ Every time a transaction ( or block ) is added to the chain , everyone must verify it in that network . Once approved , the transaction is irreversible . No one can change or delete data on the chain ,” he said . Mosam pointed out that while the future is uncertain , distributed ledger technology ( DLT ) could emerge as a key technology across many business processes and early adopters could get a competitive edge . “ Some believe it has the potential to revolutionise how we send and receive money and data . It cuts out the middleman such as banks , clearing houses and payments gateways , which means there are no transaction fees ,” he said . “ There ’ s also a drastically reduced risk of fraud and corruption , and no processing time delays . What this means is that we can begin to really start digitising and automating financial transactions that today require manual control mechanisms , checks and balances .”

According to Mosam , Blockchain is particularly exciting for business-to-business ( B2B ) transactions because of the trust , speed and transparency it can bring to business processes . He added that Blockchain could alter how companies record transactions with each other , streamlining invoicing , payments and other B2B transactions . “ Using smart contracts embedded in Blockchains , companies could streamline many of the processes in a complex supply chain , such as the one you would find in the automotive industry . Blockchain could also be useful for faster , cheaper cross-border transactions and remittances ,” he said .

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