Economic advantages of Blockchain technology VS Relational database : An study focusing on economic advantages with Blockchain technology and relational databases

Abstract: Many IT-systems are when created not designed to be flexible and dynamic resulting in old and complex systems hard to maintain. Systems usually build their functionality and capability on the data contained in their databases. The database underlines such system, and when data do not correspond between different and synchronizing systems, it is a troublesome debugging process. This is because systems are complex and the software architecture is not always easy to understand. Due to increasing complexity in systems over time, making systems harder to debug and understand, there is a need for a system that decreases debugging costs. Furthermore, result in better transaction costs. This study proposes a system based on blockchain technology to accomplish this.   An ERP system based on blockchain with encrypted transactions was constructed to determine if the proposed system can contribute in better transaction costs. A case study at multiple IT-companies and comparison to an existing ERP system module validated the system. A successful simulation showed that multiple parts could read and append data to an immutable storage system for one truth of data. By all counts, and with proven results, the constructed blockchain solution based on encrypted transactions for an ERP system can reduce debugging costs.   It is also shown that a centralized database structure where external and internal systems can get one truth of data, decreases transaction costs. However, it is the decision makers in companies that need to be convinced for the constructed system to be implemented. A problem is also when modifications to the object type, then historical transactions cannot be changed in an immutable storage solution. Blockchain is still a new technology, and the knowledge of the technology and the evolution of the system determines if the proposed software architecture will result in better transaction costs.