The Merits and Demerits of Blockchain Technology for ERP Systems 

The Merits and Demerits of Blockchain Technology for ERP Systems 

  • Blockchain technology is all set to replace traditional ERP systems. 
  • Integration of blockchain technology with ERP systems has its pros and cons. 

Before the introduction of blockchain technology, most industries used ERP systems in their business environment. But with the rise in technological advancement, the capability of ERP systems could soon be questioned. Therefore, the relevancy of ERP systems could be maintained only through integrating the emerging blockchain technology. Till now, the blockchain technology has only been used for cryptocurrencies. However, as blockchain matures and adapts, it will soon be one with ERP systems. By integrating blockchain technology with ERP, businesses could track their data safely. 

The Merits and Demerits of Blockchain Technology for ERP Systems 

Pros of Integrating Blockchain Technology into ERP

Here are some advantages that blockchain technology with ERP systems can integrate into your business: 

  • Improved Transparency

ERP systems in businesses track all transactions involved in operating a business. But ERP systems are only limited to tracking the transactions once they are completed. The blockchain technology can help you trace your product throughout the supply chain, thereby, improving its transparency. 

  • Enhanced Security

Although ERP systems had a good reputation for their security mechanism if compared to blockchain technology, they wouldn’t even come close. The data stored in your supply chain would be immutable using blockchain technology. Hence, no one from the outside can remove or add any data without your authorization. 

  • Greater Efficiency

Despite ERP systems comprising multiple benefits, they weren’t as productive regarding inventory analysis. Manual intervention was usually required, which consumed plenty of time and wasn’t always error-free. Thus, blockchain technology automates this process, using your inventory to scan and add products. It also makes it almost error-free. 

The Merits and Demerits of Blockchain Technology for ERP Systems 

Cons of Integrating Blockchain Technology into ERP

Every other technology you see nowadays has its pros and cons equally. Thus, in the case of blockchain technology, it isn’t different. Here are some of the cons blockchain technology integration with ERP systems might cause. 

  • Inability to Use Blockchain 

Not capitalizing on all the benefits blockchain technology brings to an ERP system might limit its functionality. Therefore, productively using blockchain technology might get a little hard for some businesses out there. 

  • Increasing User Base

Blockchain technology is still at its growing stage. Thus, if millions of users suddenly join its servers, it might cause heavy congestion. It could also result in the ERP system malfunctioning because more people are on their server than permitted. 

  • Lack of Regulatory Guidelines

Blockchain technology, for a long time, has been subjected to multiple regulatory conundrums. Still, there is not any regulatory framework that allows ERP systems to function under pressure. Until structured regulatory guidelines are written for blockchain technology, it might not bring the changes ERP systems were considering. 


Although many companies are contemplating whether blockchain technology can replace ERP systems. The truth is blockchain isn’t going to remove the ERP systems. Instead, they would integrate as one. On integration, multiple problems could be solved at a low-cost affair.