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BlockDAG in Medium-Sized Businesses: How the Next Blockchain Generation Strengthens Your Connected Processes

  • Writer: Oliver Groht
    Oliver Groht
  • 2 days ago
  • 9 min read

Why now is the right time to look at BlockDAG

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Blockchain has been a talking point for years – but for many medium-sized companies it still feels far removed from day-to-day business. A lot of pilot projects never leave the lab because classic blockchains hit practical limits: they are slow, hard to scale, and difficult to embed into existing systems.

This is exactly where newer approaches like BlockDAG come in. They promise higher speed, better scalability and more flexibility – and therefore tangible benefits for companies that work with many partners, systems and data streams.

This article is not about low-level technology. It focuses on your perspective as a business leader:

  • What is BlockDAG – in straightforward terms?

  • How does it differ from a classic blockchain?

  • Which business benefits can it create for medium-sized companies?

  • And what does this mean in practice for interfaces, data flows and processes?

From chain to network: How BlockDAG differs from classic blockchain

Classic blockchains work – put simply – like a digital cashbook. Transactions are grouped into blocks, and these blocks form a linear chain that all participants maintain together. This is transparent and tamper‑resistant, but also sluggish: always one block after the other.

BlockDAG (Block Directed Acyclic Graph) breaks this rigid chain logic. Instead of a single blockchain, you get a network of blocks that are created in parallel and reference each other logically. As a result, far more transactions can be processed at the same time.

From a management point of view, three differences matter most:

  • Speed: More parallel processing instead of a bottleneck in a single chain.

  • Scalability: The network can grow without performance collapsing immediately.

  • Flexibility: Different use cases and permission models can be mapped more precisely.

That makes the technology more relevant for real business processes where many systems and partners exchange data at the same time – for example in supply chains, service networks or data-driven after‑sales.

Why classic blockchains often reach their limits in the mid-market

Many medium-sized businesses have so far watched blockchain rather than using it actively. There are understandable reasons for this:

  • Limited transaction throughput: For high-frequency processes (e.g. logistics, IoT data, automated billing) performance is often not sufficient.

  • High latency: It can take seconds or even minutes until a transaction is finally confirmed – too slow for many operational workflows.

  • Complex integration: Connecting blockchain to existing ERP, CRM and line-of-business systems is effort-intensive and often feels like a foreign body in the IT landscape.

  • Unclear business case: The added value compared to well-structured databases is not obvious at first glance.

BlockDAG addresses many of these issues by making the technical foundation more powerful. More importantly, it opens up new options for structuring processes that run across company boundaries.

For mid-sized organisations in the DACH region, this is particularly relevant wherever you already rely on digital processes but still struggle with media breaks, manual reconciliations and unclear responsibilities.

BlockDAG from a leadership perspective: Three key value areas

1. Transparent, tamper‑resistant process chains across company boundaries

Whether supply chain, service chain or project chain – almost every value creation process today involves several companies. Data is still exchanged via email, Excel and PDF, supplemented by a patchwork of point‑to‑point interfaces.

With a BlockDAG‑based approach you can create a shared, immutable data basis for all parties. Every relevant action (e.g. goods receipt, quality release, service visit, acceptance) is recorded as a transaction in the network.

This gives you:

  • Less coordination effort: Everyone sees the same, up‑to‑date status.

  • Fewer disputes: A verifiable history of who confirmed what and when.

  • Better auditability: For compliance, certifications and customer requirements.

BlockDAG is especially helpful where many parties act in parallel. Multiple sites, suppliers and service providers can submit transactions at the same time without bringing the system to a halt. This is a clear advantage over classic blockchains, which quickly reach their limits in such scenarios.

2. More efficient automation of approvals and billing

In many organisations, approval and billing processes are the bottleneck. Invoices get stuck in approval loops, credit notes take time, service work is billed late.

BlockDAG‑based networks can serve as a "trusted automation layer" here:

  • Approvals: When defined conditions are met (e.g. delivery status, quality metrics, digital signatures), an approval is triggered automatically.

  • Billing: Quantities, time spent or service levels are derived directly from the shared data and invoiced accordingly.

  • Traceability: Every automated decision can be reviewed afterwards.

Thanks to the higher level of parallelism in a BlockDAG, many of these processes can run simultaneously – important if you manage high volumes or work with many partners.

In practice, this can mean, for example, that hundreds of delivery confirmations, service acceptances or milestone approvals are processed in near real time, without overloading central systems or creating additional manual work.

3. Secure data spaces for collaboration and innovation

When you develop new digital business models with partners, key questions emerge quickly: Who owns which data, who may use it for what, and how do we ensure that no one can change it afterwards?

A BlockDAG network can act as a neutral, tamper‑resistant data space. Within it you can jointly manage usage data, sensor data or service information without handing over full control.

This enables:

  • A shared data basis with clear access rules.

  • Faster pilots, because the framework for trust and traceability is already in place.

  • Better scalability when a pilot evolves into a serial business with many customers and partners.

For example, manufacturers and operators can share operating data of machines in such a network, use it for optimisation and new service offerings, and still clearly define who may evaluate which data and for what purpose.

Practical example 1: BlockDAG in the supply chain of a machinery manufacturer

Imagine a medium-sized machinery manufacturer working with several suppliers and logistics providers. Today, orders are managed in the ERP system, delivery notes arrive by email, quality data sits in a separate application and complaints are handled in a ticketing tool. Discussions about delivery dates, quality status and responsibilities are common.

In a BlockDAG scenario all participating companies would join a shared distributed network:

  • The manufacturer records orders and planned delivery dates.

  • Suppliers confirm production start, completion and dispatch.

  • Logistics partners report status changes such as "arrived at hub" or "delivered".

  • Quality inspections and complaints are documented as separate transactions.

Data still flows into the internal systems (e.g. ERP and quality management), but the single source of truth for the process history lies in the shared BlockDAG network. Coordination effort decreases, and escalations can be resolved faster because the chronological sequence is visible to everyone.

Over time, additional partners can be integrated – for example customs agents, external warehouses or service providers. The network grows with your ecosystem, without having to redesign all interfaces each time.

Practical example 2: Service and maintenance network in plant engineering

Consider a plant engineering company that operates installed equipment worldwide, serviced by regional partners. Today, each partner documents its work in its own system; reports are sent as PDFs to the manufacturer and entered manually into the service or CRM system.

With a BlockDAG network, all service activities could be recorded directly in the distributed system:

  • Service partners log start, end and type of intervention.

  • Spare part usage is linked to serial numbers.

  • The plant operator confirms the work digitally.

The data is transferred automatically into the internal systems. Thanks to parallel processing in the BlockDAG, it does not matter that many service calls happen worldwide at the same time. At the same time, you build a complete history for each asset – valuable for warranty questions, optimisation and new service offerings.

In a next step, you can use this reliable data basis to develop new business models, such as performance-based contracts or availability guarantees, because the underlying service and operating data is transparent and tamper‑resistant for all parties.

Interfaces and data flows: Where BlockDAG sits in your IT landscape

For medium-sized businesses, it is crucial that new technologies fit into the existing system landscape. BlockDAG solutions will not replace your ERP or CRM. They add an additional layer for trust, integrity and traceability.

Typically, the setup looks like this:

  • Line-of-business systems (ERP, CRM, production, logistics, portals) remain the backbone of your operations.

  • BlockDAG network provides an overarching layer in which only selected, relevant transactions are stored (e.g. status changes, approvals, signatures).

  • Interfaces connect both worlds: events from the line-of-business systems are written to the BlockDAG network, confirmed information flows back.

It is important to clarify early on:

  • Which data is truly "network‑relevant" and must be tamper‑resistant?

  • Where is the boundary between internal detail data and shared core data?

  • How can existing interfaces (e.g. API, EDI) be used or extended to feed the BlockDAG network?

This keeps your IT landscape manageable and helps you avoid redundant structures. At the same time, you create a foundation on which further use cases can be implemented more quickly, because the basic integration pattern is already in place.

Typical challenges on the road to BlockDAG

1. Unclear objectives and overloaded pilots

Many blockchain and BlockDAG initiatives fail because they start too big. Technology platform, governance, business model and partner network are all defined at once.

A more effective route is a focused approach:

  • Start with one clearly defined process, e.g. delivery notifications, service acceptances or quality releases.

  • Define a small set of measurable goals (e.g. fewer clarification cases, faster approvals, reduced coordination effort).

  • Expand step by step once the benefits are proven.

This approach reduces risk, keeps investments manageable and helps you build internal know‑how in a targeted way.

2. Acceptance among partners and internal stakeholders

A distributed network only creates value if relevant partners participate. At the same time, internal teams may be sceptical ("one more system", "extra work").

Success factors include:

  • Clear benefits for all parties (e.g. fewer queries, faster payments, less paperwork).

  • Simple connection options – from direct interfaces to lean web front ends.

  • Transparent governance: Who operates the network, who sets the rules, how are changes managed?

Involving key partners and internal stakeholders early, and testing concrete scenarios together in a pilot, usually helps more than long theoretical discussions about technology.

3. Security, compliance and data protection

Especially in the DACH region, data protection and compliance are central. With BlockDAG, these questions need to be addressed from the outset:

  • Which data may be written to a distributed network at all?

  • How are personal data minimised or pseudonymised?

  • Which roles and rights concepts ensure that only authorised users see specific information?

Modern BlockDAG approaches offer flexible options, for example private networks, fine‑grained access control and the combination with proven encryption mechanisms. For you as a decision-maker, it is important that these aspects are not treated as an afterthought, but are part of the design from day one.

Strategic recommendations for decision-makers in medium-sized companies

If you want to assess whether and how BlockDAG could be useful for your organisation, the following steps can help:

1. Identify relevant use cases - Processes with many stakeholders and media breaks. - High coordination effort, frequent clarification cases or strict proof requirements. - Need for tamper‑resistant histories across company boundaries.

2. Analyse current landscape and data flows - Which systems are already in place (ERP, CRM, specialist applications)? - Where do data silos, double data entry or manual exports/imports occur today? - Which interfaces can be reused or extended?

3. Set up a pilot with clear success criteria - One limited process, a small group of partners, clearly defined KPIs. - Involve IT, business units and – where needed – legal and compliance early. - Design the pilot with later scalability in mind, without overloading it.

4. Clarify governance and operating model - Who operates the network technically? - How are new participants onboarded? - How are updates, rule changes and conflicts handled?

5. Engage competent partners - External specialists can help refine use cases, evaluate technical options and set up pilots pragmatically. - Look for an approach that respects your existing IT landscape instead of planning on a greenfield basis.

If you follow these steps, you will quickly gain a realistic picture of where BlockDAG can create value in your organisation – and where classic integration or process optimisation is sufficient.

Conclusion: BlockDAG as a building block for connected business models

BlockDAG is not a miracle cure that solves all digitalisation challenges. But it is an evolution of the blockchain concept that addresses many of its weaknesses and therefore becomes far more relevant for medium-sized companies.

If you want to make cross‑company processes more transparent, reliable and automatable, BlockDAG is worth a closer look. The crucial point is not to start with the technology, but with clearly defined business problems – and then evaluate whether a BlockDAG‑based approach can deliver measurable value.

Those who gain experience early secure an advantage. You will better understand how to design data flows and interfaces in connected ecosystems – and you can build new business models on a robust, trusted data foundation.

In this sense, BlockDAG is less "the blockchain technology of the future" and more a concrete building block for the next steps of your digital transformation.

If you want to approach the topic in a structured way, it is advisable to:

  • select a first, clearly delimited use case,

  • bring the relevant partners to the table, and

  • run a manageable pilot project to gain reliable experience.

This way, you create the basis to deploy BlockDAG precisely where collaboration, trust and traceability are business‑critical – and to secure a competitive edge in increasingly connected markets.

The sooner you start exploring such targeted, practical applications, the better prepared your organisation will be for ecosystems in which data, processes and responsibilities no longer stop at company boundaries – but are orchestrated jointly and reliably across the entire value chain.

About Arkcanis Consulting

Arkcanis Consulting GmbH is the specialized advisory unit of the Arkcanis Group. We design scalable process and data architectures for airlines, AOCs, operators, and technology-driven organizations — with a clear focus on aviation engineering, Leon integrations, Atlassian architectures, ETL pipelines, and real-time dashboards.

As the founder of catworkx GmbH — one of the largest Atlassian partners in the DACH region — Oliver Groht brings more than 25 years of experience in Jira and Confluence architecture, process consulting, and enterprise-wide scaling. He combines this background with deep technical expertise in Leon GraphQL, data engineering, Grafana, and Flight Ops workflows.

The result: measurable, transparent, and resilient structures that enable operational excellence and strengthen strategic decision-making at the management and C-level.


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