Bitcoin is a peer-to-peer , digital , decentralized , crypto currency. It is highly innovative which works on the concept of distributed consensus by proof of work concept invented by pseudonymous inventor Satoshi Nakamoto . It is not constrained by any nation's borders and can be used anywhere in globe unlike traditional fiat currencies. It also does not have any central backing institution and is backed by cryptography and math. Bitcoins are issued by "Bitcoin Miners" who try to solve very complex mathematical problem and the miner who solves it first get the bitcoins as a reward. These rewards are given in predefined manner.It halves after every 5 years and they are issued at every 10 minutes (more or less). At the time of their introduction , the reward was 50 bitcoins per block. Currently(year 2014) it is 25 bitcoins per block. A block can be considered as a page in giant public ledger called blockchain. This ledger is stored on every miner's system. Whenever new transactions are generated , miner's system collect those transactions , put them in a block and then find a hash value with some predefined amount of zeroes. A miner who solves the problem first gets to keep the reward. This process continues for every 10 minutes( more or less) each time with newly generated transactions and unconfirmed transactions.
Bitcoins will play very important role in future. Since they are deflationary in nature , the price of bitcoins are supposed to increase over the period of time. In the past the prices of bitcoins have increased dramatically. In 2009 their price was in pennies but in Nov 2013 , the price of one bitcoin reached 1000$ !!!! . Bitcoins are designed to function as gold . As golds are mined by hardwork of human beings , bitcoins are mined by hardwork of computing chips . Both bitcoins and gold are scares hence their value increase over time. But bitcoins also have some interesting properties which gold does not have. Bitcoins can be transferred anywhere in the world instantaneously, they are highly divisible and so are suitable to work as a currency. The currency is only a first app that is built on bitcoin protocol. There are other applications that can be built on top of that. In short, anything that couldn't be decentralized earlier can now be decentralized because of bitcoins.
So when the use of bitcoin goes mainstream , they will be used by large organizations and hence their integration in ERP systems is inevitable. There are various ways by which bitcoins can be integrated in ERPs such as integration of bitcoin wallet , smart contracts built on top of bitcoin protocol , integrating bitcoins in various functional modules etc. Right now I have been working on an idea of integrating bitcoin wallet in SAP systems. A bitcoin wallet is where the bitcoins are stored and can be spent from. Bitcoin wallet has two types of keys associated with it. One is private key and another is public key. Public key can be used to receive the bitcoins while private keys are used to spend bitcoins. So the bitcoin wallet integrated in sap system should have the following characteristics -:
1)The wallet should be highly secured : The underlying bitcoin protocol is very safe. Theoretically the 51% attack can be done on the protocol but it is not practical as the network power of protocol is already higher than 100 supercomputers in the world. But bitcoins can be stolen from bitcoin wallet if wallet itself is faulty. So the wallet integrated with SAP system should be very secured.
2)Wallet should be handy : Whenever new transactions are done , a wallet should use different public key each times which provides privacy over network . Also there should be a functionallity to give label to each public key so that transactions can be differentiated.
3)Robustness: The wallet implementation should be robust enough so that it can easily be integrated in different SAP business modules. A separate module for bitcoins can be made in SAP which can provide its o/p to various other parts of SAP system.
Bitcoin uses ECDSA algorithm to process transactions. The approach that can be used here is to implement that algorithm in SAP which can subsequently help to implement wallet systems. Kindly provide your suggestions and feedback on purandare83@gmail.com
Bitcoins will play very important role in future. Since they are deflationary in nature , the price of bitcoins are supposed to increase over the period of time. In the past the prices of bitcoins have increased dramatically. In 2009 their price was in pennies but in Nov 2013 , the price of one bitcoin reached 1000$ !!!! . Bitcoins are designed to function as gold . As golds are mined by hardwork of human beings , bitcoins are mined by hardwork of computing chips . Both bitcoins and gold are scares hence their value increase over time. But bitcoins also have some interesting properties which gold does not have. Bitcoins can be transferred anywhere in the world instantaneously, they are highly divisible and so are suitable to work as a currency. The currency is only a first app that is built on bitcoin protocol. There are other applications that can be built on top of that. In short, anything that couldn't be decentralized earlier can now be decentralized because of bitcoins.
So when the use of bitcoin goes mainstream , they will be used by large organizations and hence their integration in ERP systems is inevitable. There are various ways by which bitcoins can be integrated in ERPs such as integration of bitcoin wallet , smart contracts built on top of bitcoin protocol , integrating bitcoins in various functional modules etc. Right now I have been working on an idea of integrating bitcoin wallet in SAP systems. A bitcoin wallet is where the bitcoins are stored and can be spent from. Bitcoin wallet has two types of keys associated with it. One is private key and another is public key. Public key can be used to receive the bitcoins while private keys are used to spend bitcoins. So the bitcoin wallet integrated in sap system should have the following characteristics -:
1)The wallet should be highly secured : The underlying bitcoin protocol is very safe. Theoretically the 51% attack can be done on the protocol but it is not practical as the network power of protocol is already higher than 100 supercomputers in the world. But bitcoins can be stolen from bitcoin wallet if wallet itself is faulty. So the wallet integrated with SAP system should be very secured.
2)Wallet should be handy : Whenever new transactions are done , a wallet should use different public key each times which provides privacy over network . Also there should be a functionallity to give label to each public key so that transactions can be differentiated.
3)Robustness: The wallet implementation should be robust enough so that it can easily be integrated in different SAP business modules. A separate module for bitcoins can be made in SAP which can provide its o/p to various other parts of SAP system.
Bitcoin uses ECDSA algorithm to process transactions. The approach that can be used here is to implement that algorithm in SAP which can subsequently help to implement wallet systems. Kindly provide your suggestions and feedback on purandare83@gmail.com
