The blockchain technology that most people are familiar with involves trading and managing cryptocurrencies, such as Bitcoin.
These blockchains are open and allow anyone to confirm transactions; they are called public blockchains.
There is now a second type of blockchain set up by a single company or group of companies where participants are specified and known.
These "business blockchains" are also known as "permissioned" or "consortium" blockchains.
The key differences are:
| Business | Public | |
| Access | Permissioned read and/or write access | Open read/write access |
| Speed | Faster | Slower |
| Security | Proof of work, proof of stake | Proof of work, proof of stake |
| Identify | Known identities | Pseudonymous |
Public blockchains involve more participation, requiring more partners to be involved with consensus building and result in a more complex data and security landscape.
How are businesses using blockchain?
Organisations are increasingly collaborating in order to explore and scale Blockchain solutions, forming groups that are often referred to as consortia (find out more about the benefits of joining a consortia).
The application of business blockchains is generally focused on an end-to-end process, such as a transaction from order to settlement. While this isn't a finance specific use, often it will have knock on impacts and result in potential benefits for finance teams.
Unlike the other disruptive technologies the application of blockchain is emerging and there is ongoing work to test and prove its value. What is clear, however, is that for a business to be able to generate value from blockchain there are a number of fitness factors that should be satisfied relating to:
- the number of participants involved;
- the complexity of the business purpose;
- the need for long-term record keeping; and
- the need for real-time transfer of assets.
Find out more about blockchain
Learn more about blockchain by completing ICAEW and Deloitte's eLearning module. This resource includes more details on the technology and its potential impact on finance teams and businesses.
Finance in a Digital World
Make sure you're ready for the changes that digital technologies are bringing to finance functions and accountancy work. Complete eLearning, watch webinars and read bite-sized summaries on the opportunities and challenges brought by automation, artificial intelligence and big data.
Understand the impacts of blockchain
This eLearning module outlines how business is beginning to explore blockchain technologies and what that might mean for finance. It explores the benefits and challenges of implementing blockchains, and outlines how to get started in using the technology.
Get started
