How Blockchain Technology Is Revolutionizing EDI Processes

Table of Contents

Table of Contents

The electronic data interchange technique, or EDI, has been in use for many years and is essential to the world economy. That being said, it has been sluggish, expensive, and helpless against cybercrime so far.
Many companies have therefore been looking for more effective ways to change the EDI interface. That is where blockchain technology comes in. Blockchains are dispersed digital records that empower clients to store and move data safely, without the requirement for an outsider mediator. This technology is useful in businesses like money, operations, and medical services. What’s more, presently, it’s set to transform EDI processes as well.


Blockchain Market Size


The market for blockchain technology is predicted to grow from USD 1.2 billion in 2018 to USD 23.3 billion by 2023, according to MarketsandMarkets research. This exhibits the capability of this technology to transform EDI processes and make a safer, more productive, and financially savvy digital climate for organizations all over the planet.


To understand the effect of blockchain on EDI processes, it’s important to take a glance at how the conventional system functions. Currently, EDI is a slow and laborious process that necessitates the use of multiple third-party invaders and manual data entry. The data should be changed over into a configuration that is viable with every association’s IT systems, which can add unexpected setbacks and expenses. This makes it tedious and expensive for organizations to execute EDI. So, blockchain technology can transform EDI processes by making a productive, secure, and financially savvy advanced climate for organizations.


Transform Your Business Processes With Our Blockchain Solutions and Explore Endless Possibilities

Get in Touch


What Is Blockchain Technology?


Blockchain is a progressive digital record system that takes into consideration the protected stockpiling and movement of data. It was initially intended to work with Bitcoin exchanges, yet its potential applications have since become a lot more extensive. 


Blockchain technology works by making a digital “chain” of data, connecting blocks in a permanent and conveyed network. Each time another exchange is added to the chain, it is confirmed using complex cryptography and agreement calculations. Blockchain services are not quite the same as customary data sets in that they are decentralized, meaning there is no single, unified server or data set where data is put away. All things considered, the data is conveyed across various PCs or “hubs” in a shared organization. 


This makes it very hard to hack and alter the data. Moreover, blockchain technology is unchanging, implying that whenever data is added to the chain it can never be changed or erased. This guarantees data respectability and security.


Applications of Blockchain


Notwithstanding its security benefits, blockchain technology likewise offers many applications. It may very well be utilized to work with exchanges, store records, track resources, oversee advanced characters and that’s only the tip of the iceberg. It is turning out to be progressively well-known in businesses going from money and banking to medical services, coordinated operations, and then some.


The capability of blockchain technology is huge, and its suggestions for the advanced commercial center are extensive. For EDI solution providers in the USA, the utilization of blockchain technology can increment productivity and lessen costs. It can accelerate exchanges by dispensing with mediators and decreasing desk work. 

Furthermore, it can assist with decreasing misrepresentation and mistakes by making a permanent record that is hard to alter. This makes it especially valuable for ventures that depend intensely on confirming data like medical care and money.


Table of Differences Between Blockchain and EDI


Decentralized system Centralized system.
Immutability Highly vulnerable to fraud and errors.
Real-time transactions with low fees Time-consuming and costly
Secure data transfer between parties Requires third-party intermediaries to verify data
Transactions verified through cryptography and consensus algorithms Manual data entry is required for each transaction
Unalterable records of transactions Records are vulnerable to manipulation
Data is distributed across multiple nodes Data is stored in a central location
Ideal for industries that rely on verifying data(e.g. finance, healthcare) Not suitable for verifying data due to manual process
Efficient and cost-effective system Highly inefficient and costly system
Data stored securely and confidentially Data is not always secure and confidential


About data trade and digital exchanges, EDI (electronic data exchange) has been the essential technology utilized by organizations for quite a long time. Be that as it may, lately blockchain has arisen as a likely option in contrast to EDI for handling digital exchanges. 

With its decentralized nature, upgraded security, and more noteworthy straightforwardness potential, blockchain could be the response to a large number of the difficulties presented by customary EDI systems. 


The differences between EDI and blockchain are compared here in detail:




EDI is a unified system, meaning there is one primary server or data set where all the data is put away. Blockchain, then again, is a decentralized system that doesn’t depend on a solitary focal power. All things considered, the data is conveyed across various PCs or “hubs” in a shared organization.



Both EDI and blockchain technology offer secure data stockpiling and moving. Be that as it may, blockchain technology is substantially more secure because it utilizes cryptography and agreement calculations. Also, because it is an unchanging system, any progressions to the data should be made on all PCs in the organization all the while, making it essentially difficult to hack or mess with.




Both EDI and blockchain are straightforward systems, even though blockchain offers significantly more prominent potential for straightforwardness because of its conveyed nature. All exchanges are recorded on the blockchain, making it simpler to review and follow any data back to its source.




When it comes to processing digital transactions, EDI services generally perform better than blockchain technology. This is primarily because it does not need to be checked by a computer network before being added to the chain. However, the technology on which EDI is based still limits its speed. 


Due to its distributed ledger system, blockchain, on the other hand, can process transactions more quickly. This takes into consideration a substantially more continuous exchange of insight instead of EDI.




Concerning cost, blockchain technology is more savvy than EDI because of the absence of delegates or mediators. This lessens costs related to exchange handling charges or outsider check services, bringing about lower costs for organizations.




EDI is not versatile as it can deal with a specific number of exchanges before becoming overpowered. Blockchain technology, notwithstanding, is more versatile because of its disseminated nature and the capacity to handle data across numerous PCs or hubs. This makes it a lot more straightforward for organizations to increase their tasks without stressing over innovative restrictions.


The Interconnection of Blockchain and EDI


The interconnection of blockchain and EDI (Electronic Data Interchange) is changing how deals are directed today. Customarily, EDI is a cycle that permits organizations to trade business reports, for example, buy orders, solicitations, transporting sees, and other related records in an electronic configuration. 


It empowers organizations to rapidly and safely move data between systems without manual intercession. Emerging technologies in EDI, on the other hand, are costly, take time, and are prone to errors and fraud. This is where blockchain technology enters. Blockchain is a disseminated record system that records and checks data in a changeless manner. It makes a safe, carefully designed climate for organizations to trade data without the chance of control or interruption.  Also, blockchain technology offers continuous exchanges with low expenses as well as cryptographically checked data moves between parties.


As per the recent research, the worldwide EDI market development prediction is at a CAGR of 12.7% from 2019-2025. This development can be credited to the rising reception of blockchain technology in EDI processes and different regions, for example, production network executives and medical services. 


Significant of Blockchain Implementation in EDI


By utilizing blockchain technology, organizations will want to smooth out their EDI processes, decrease costs, and limit mistakes. Moreover, blockchain will give upgraded security and protection to organizations as it stores data in a dispersed way across various hubs, making it almost difficult to mess with. Blockchain is not only making transactions safer and more effective, but it is also helping businesses cut transaction costs. By using a decentralized system, organizations never again need to pay high expenses for outsider delegates to check their data. 


This kills the requirement for expensive manual cycles, bringing about cost reserve funds for organizations. Additionally, businesses can use blockchain technology to track and trace their products in real-time, enhancing supply chain transparency and accountability.


With everything taken into account, the interconnection of blockchain technology and EDI is reforming deals today. Blockchain technology offers

  • upgraded security,
  • further developed proficiency, and
  • cost reserve funds for organizations hoping to progress to a more effective arrangement of data move.

As the worldwide EDI market keeps on developing, it is normal that more organizations will take on blockchain technology as a necessary piece of their EDI processes.


Benefits of Using Blockchain in EDI


1) Increased Security: 


One of the main advantages of implementing blockchain in EDI processes is secure development. Blockchain technology offers a safe and changeless record that stores all exchange data safely. 

This implies that nobody can adjust or erase the records, making it challenging for programmers and other malevolent entertainers to get close enough to delicate data. Moreover, blockchain’s appropriated engineering additionally decreases the risk of any weak link.


2) Enhanced Productivity: 


By dispensing with the requirement for a manual data section, blockchain-based EDI cycles can altogether diminish authoritative expenses and smooth out tasks. Moreover, continuous exchanges with low expenses make it simpler for organizations to finish their responsibilities rapidly and productively.


3) Expanded Transparency: 


Companies can track and trace their goods in real-time thanks to blockchain technology, which increases supply chain transparency. This makes it more straightforward for organizations to recognize and resolve any issues that might emerge during the EDI cycle.


4) Reduced Transaction Costs: 


By using a decentralized system, organizations never again need to pay high expenses for outsider delegates to check their data. Businesses will see significant cost savings as a result of this elimination of costly manual procedures.


5) Improved Data Accuracy: 


Blockchain technology works on the exactness of data moves by utilizing advanced marks and cryptographic hashes to confirm every exchange. This ensures that all parties involved are in agreement regarding the data’s validity and makes it harder for fraudsters to manipulate the data.


6) Reduced Risk of Fraud: 


It is nearly impossible to alter blockchain technology because it stores data in a distributed manner across multiple nodes. This makes it considerably harder for fraudsters to exploit organizations and takes out the requirement for organizations to depend on outsider mediators for checking data exactness.


7) More prominent Versatility: 


Blockchain technology can increase rapidly and effectively, making it ideal for huge-scope EDI processes. This permits organizations to extend their tasks without stressing over expanding their EDI foundation.


8) Further developed Interoperability: 


Companies can easily connect with partners and customers in various business ecosystems using blockchain-based EDI systems. This makes it simpler for organizations to get data from various sources and keep up with predictable correspondence with all gatherings engaged with the exchange.


9) Reduced Compliance Costs: 


As blockchain-based EDI service providers become progressively famous, states are starting to take on them as a feature of their administrative structures. This decreases the consistency costs related to EDI cycles and works on the most common way of keeping a consistent system.


10) Improved Data Security: 


Blockchain technology offers an extra layer of security for organizations that need to safeguard delicate data. By using encryption and other safety efforts, organizations can guarantee that the main approved parties approach their data.


Are You Concerned About The Security of Your EDI Processes?

Consult With Our Experts


Challenges to Blockchain-Driven EDI


The utilization of blockchain technology in Electronic Data Exchange (EDI) processes offers numerous open doors for expanded productivity and security. Nonetheless, it is important tto meet few difficulties while executing blockchain-driven EDI.


1. Cost: 


The cost of implementing and maintaining blockchain technology in EDI transactions is one of the biggest obstacles. Blockchain is costly to set up and requires particular equipment and programming. Also, EDI cycles can be expensive because of the great exchange charges related to each trade.


  • Solution

Organizations ought to guarantee that they completely assess their ongoing EDI software and decide whether blockchain-based solutions are an ideal choice for their business. Thus, organizations will want to acquire a superior comprehension of the costs engaged with carrying out a blockchain-based EDI system and decide whether the venture is worth the effort.


2. Scalability: 


One more test of carrying out blockchain technology in EDI is versatility. Blockchain networks are restricted by their size and can handle a specific measure of exchanges each second. For businesses that need to process a lot of data quickly, this can be a problem.


  • Solution:


Organizations ought to consider utilizing blockchain-based solutions that are explicitly intended for EDI processes. These solutions are improved for adaptability and can without much of a stretch oblige huge volumes of data.


3. Interoperability: 


Blockchain technology is decentralized, implying that the data put away on a blockchain network isn’t open to different organizations or systems. This can make it challenging for organizations to associate with partners and clients in other business environments without expecting to assemble various blockchain networks.


  • Solution:


Organizations ought to consider utilizing blockchain-based EDI solutions that are planned in light of interoperability. These solutions can associate various organizations and systems, permitting organizations to get data from different sources without any problem.


4. Security: 


Even though blockchain technology is viewed as the most dependable type of data stockpiling, malevolent entertainers may as yet endeavor to get to an organization’s data. This prompts serious security issues.


  • Solution:


Organizations ought to guarantee that they take all vital security safeguards while executing a blockchain-based EDI arrangement. This incorporates scrambling data and involving multi-signature validation for exchanges. Moreover, organizations must likewise consider utilizing decentralized solutions that are set up using safety efforts.


5. Speed:


Notwithstanding its many advantages, blockchain technology can be slow compared with customary EDI solutions. This can be risky for organizations that require quick data handling and speedy turnarounds on exchanges.


  • Solution


To conquer this test, organizations ought to search for blockchain-based EDI solutions that are intended to give the most significant levels of speed and proficiency. Furthermore, organizations ought to consider utilizing off-chain solutions that can give quicker data handling and decreased idleness.


6. Privacy: 


As blockchain technology is permanent, all data put away on the blockchain is public and noticeable to everybody in the organization. This can be a worry for organizations that need to keep their data completely safe from unapproved access.


  • Solution:


Organizations ought to search for EDI solutions that work considering security. These solutions ought to use encryption technology to guarantee that main approved clients can get to the data put away on the blockchain. Also, organizations ought to consider utilizing authorization-based blockchains that limit who can see and collaborate with the data.


By understanding the difficulties and potential solutions related to carrying out blockchain in EDI processes, organizations will be strategically situated to receive the rewards of this progressive technology.


Use Cases of Blockchain in EDI


1) Walmart: 


Walmart, quite possibly one of the biggest retailers on the planet, has executed blockchain technology to further develop its Electronic data interchange (EDI) processes. The retail goliath is utilizing the technology to smooth out the store network, the executives and the following. As per a report by Deloitte, Walmart can follow 25 items across 10 providers in 2.5 seconds with its blockchain-based EDI system, contrasted with seven days with its past EDI system.


2) Maersk: 


Blockchain technology is being utilized by Maersk, the largest container shipping company in the world, to further automate its supply chain procedures. The organization has fostered a platform called TradeLens that permits clients to follow shipments continuously and gain experience in their inventory chains. As per Maersk, TradeLens has proactively been utilized by over 90 shipping and logistics companies and is supposed to save the business up to $38 billion every year.


3) JP Morgan: 


JP Morgan is utilizing blockchain technology to further develop its EDI processes. Quorum is a blockchain platform developed by the banking conglomerate for use in real-time financial transaction tracking by businesses. As per the reports by Reuters, it is presently being involved by more than 75 banks and organizations for its EDI processes.


4) Microsoft: 


Microsoft is utilizing blockchain technology to smooth out its B2B installment process. The organization has fostered an endeavor-grade platform called Azure Blockchain that organizations can use for robotizing their EDI processes. As per Microsoft, Azure Blockchain has previously been coordinated with more than 50 applications and is being utilized by a portion of the world’s biggest organizations.


5) IBM: 


IBM is utilizing blockchain technology to further develop its EDI processes. The tech monster has built a venture-grade platform called Hyperledger Fabric that organizations can use for robotizing their EDI exchanges. As per IBM, the utilization of Hyperledger Fabric is by associations from different ventures, including banking, medical services, and inventory network executives.


6) Amazon: 


Amazon is utilizing blockchain technology to smooth out its EDI interaction. The web-based business monster has fostered a platform called Amazon Oversaw Blockchain that organizations can use for mechanizing their EDI exchanges. 


7) UPS: 


UPS is utilizing blockchain technology to further develop its EDI processes. The operations organization and EDI experts have developed a platform called Blockchain Enabled Network (BEN) that organizations can use for following shipments progressively and acquiring experiences into their inventory chains. Over 200 businesses are currently using BEN, which UPS claims will save the industry up to $2 billion annually.


Future of EDI : 2024 & Beyond


As EDI technology keeps on developing, obviously the eventual future of EDI will be inconceivably not quite the same as the present. By 2024, blockchain technology will reform the business processes, making the ongoing system old.


By 2024, a greater part of organizations will have embraced blockchain-upheld EDI systems. Faster and more effective than current EDI methods, these new systems enable secure data exchange almost immediately between two parties.  Also, blockchain-supported EDI systems will give better data security and further develop perceivability into the whole store network process.


Role of AI in EDI


Besides, the utilization of artificial intelligence technology in EDI is supposed to increase sooner rather than later. Artificial intelligence can mechanize monotonous undertakings like data section and receipt creation, permitting organizations to set aside time and cash.


By 2024, EDI software solutions will be utilized to mechanize large numbers of monotonous and tedious undertakings related to data trade. For example, simulated intelligence is useful to check for blunders in data and guarantee the exactness of the data.  This will fundamentally decrease how much difficult work is expected for data trade, making it significantly more proficient. Besides, blockchain technology is supposed to assist with lessening extortion by giving a solid platform for trading data between two gatherings. Companies will be able to use EDI systems backed by the blockchain by 2024 to guarantee the security and accuracy of their data.


Also read: Future Market Trends of EDI


Eventually, as EDI technology proceeds to develop and develop before very long, obviously its future holds a ton of commitment. EDI will become an even more useful tool for businesses looking to optimize their data exchange processes as it advances in speed, accuracy, and security.


Simplify Your EDI Processes By Connecting With A3Logics Experts


The blockchain technology upheaval is reshaping how business works, and EDI processes are the same. With the assistance of the specialists at A3Logics, organizations can now improve on their EDI processes by blockchain technology implementation.


Blockchain-based EDI solutions offer a solid, elite execution network for trading data between exchanging partners. This technique improves the trade cycle by wiping out any manual advances and guaranteeing the precision of data.

A3Logics furnishes organizations with the aptitude and backing expected to coordinate blockchain technology into their EDI foundation. With a far-reaching set-up of services, it assists organizations with setting up, designing, and dealing with their blockchain-based EDI solutions.  Furthermore, Top EDI companies like A3Logics give start-to-finish counseling services for any difficulties that might emerge during the cycle.


By utilizing blockchain development companies, organizations can improve their EDI cycles and make the most of the relative multitude of advantages blockchain technology brings to the table. Companies can rest assured that their EDI infrastructure is safe and dependable with the assistance of blockchain developers.


Revolutionize Your Data Exchange Process With Our Blockchain Technology Solutions

Let’s Develop Together




1) What is Blockchain?


Blockchain is a progressive dispersed record technology that permits digital data to be put away and shared safely. It gives an unchanging record of exchanges that is useful for different applications, for example, in EDI processes.


2) How does Blockchain help EDI processes?


By utilizing blockchain technology in EDI processes, associations can profit from quicker data trade, further develop security, and expand perceivability into the whole production network. Furthermore, the utilization of AI technology is to automate laborious processes.


How does A3Logics assist organizations with their EDI processes?


 A3Logics offers far-reaching types of assistance to assist organizations with incorporating blockchain technology into their EDI foundation. They offer start-to-finish counseling services and give the mastery and backing required for fruitful execution.


What are the greatest benefits of utilizing blockchain in EDI?


The greatest benefits of utilizing blockchain technology in EDI processes incorporate superior speed, precision, and security. Additionally, it eliminates any manual data exchange steps, allowing businesses to save time and money.


How secure is blockchain technology?


Blockchain technology is profoundly secure and decreases the gamble of extortion. It gives a safe platform for trading data between two gatherings, with every exchange being carefully endorsed to guarantee precision. Also, blockchain technology utilizes cryptography to encode data, making it essentially unthinkable for programmers to get to.


How long does it take to set up a blockchain-based EDI system?


Setting up a blockchain-based EDI system doesn’t take long. Contingent upon the intricacy of the system, it takes as little as a couple of days to finish. The blockchain development company specialists are accessible to give direction and backing in the meantime, assisting with guaranteeing that the system is appropriately designed and functional.


What type of data can be exchanged using blockchain?


The utilization of blockchain technology is with various data trades, including buy orders, solicitations, delivering sees, and other EDI records. Additionally, organizations can securely exchange sensitive data like banking data and customer data thanks to blockchain technology. By utilizing blockchain technology in EDI processes, organizations can profit from further developed security and exactness of exchanges.


What are the potential risks of using blockchain technology?


Using blockchain comes with some risks, just like using any new technology. A portion of these dangers incorporate data security concerns, the absence of versatility, and similarity issues. It’s essential to guarantee that your association is ready to address these expected dangers before carrying out a blockchain-based EDI system.


What type of support does A3Logics offer for blockchain-based EDI systems?


A3Logics gives start-to-finish counseling services to help organizations in their change to blockchain-based EDI systems. Their specialists give skill and direction throughout the whole interaction, guaranteeing that the system design is appropriate and functional. Furthermore, they offer continuous upkeep and observation of the system to guarantee that it is moving along as expected and safely.