Hello there!

We’re delighted to welcome you back for the final part of our deep dive into SAP blockchain technology. In our previous  blog, where we discussed the fundamentals of blockchain, its importance, and its potential impact on your business. If you haven’t read Part One yet, you can find it here: What is Blockchain Technology and How Does It Work?

In this chapter, we’ll look at SAP’s position on blockchain and how it can help your organization move forward.

But, before we move forward, how about we make this experience even more exciting? Consider this: If you now use SAP as your ERP system, imagine the incredible impact that comes from integrating blockchain into your processes.

Can you imagine what possibilities it can open up for your business’s productivity?

Join us as we explore the connection between SAP and blockchain, answering your questions and revealing key insights to move your organization into the future. Let’s get started by learning about SAP’s view on the blockchain.

Overview of Blockchain in SAP

Main Components of SAP Blockchain technology

SAP’s blockchain services are all focused on maintaining essential business values such as data integrity and use cases. Here are some of the primary services provided by SAP:

Three things are typically used by SAP to describe blockchain technology:

Technology + Business Operations + The Latest Network-Based Business Models

These three components play an important role in developing a large and resilient blockchain system. The technology and business processes are solely focused on the company operations and needs. At the same time, network-based business models provide a unique component while establishing a network of members.

SAP Blockchain Technology

SAP Blockchain is a ready-to-use service. As a result, enterprises are not required to own the hardware or software used to host their blockchain. The main advantage is that companies/clients do not have to participate in the initial infrastructure configuration. It combines the application with tried-and-true SAP platform solutions, encouraging collaboration among many stakeholders.  This strategy enables companies to incorporate blockchain into their current applications.

SAP Leonardo

SAP Leonardo is the core tool package that contains all blockchain services. SAP technology combines cognitive technologies, business services, and industry expertise. Blockchain for SAP (system applications and products) operates as a service. It allows enterprises to create unique extensions for their existing, generally approved apps. SAP uses open standards to help its customers construct the most recent private blockchain systems in collaboration with the cooperative organization. 

The cooperative association here refers to consortium platforms, which are platforms created by a collection of organizations that have agreed on a common aim. SAP blockchain technology enables enterprises and other clients to use with total trust in the transparency of transactions and accounting executions in their operations.

Main Components of SAP Blockchain technology

The SAP service and application ecosystem is divided into two major components.

  • SAP Cloud Platform for Blockchain
  • SAP HANA Service for Blockchain

SAP Cloud Platform for Blockchain

More than 16,000 clients and partners across the world utilize the SAP Cloud Platform to build application extensions and seamlessly connect business infrastructure. SAP Cloud Platform supports three frameworks:

  • Hyperledger Fabric
  • Quorum
  • Multi Chain

The SAP Cloud Platform supports multiple and concurrent versions of these frameworks. The Quorum and Multi Chain frameworks are still under testing, are only offered for a free trial, and are not ready for use in production situations. For the time being, our primary focus is on guiding you through the Hyperledger working agenda in SAP blockchain.

Hyperledger Fabric

The Linux Foundation leads the Hyperledger Foundation. It was founded with the objective of developing open-source blockchain components for commercial customers. SAP Leonardo provides a front-end for the open-source Hyperledger, allowing enterprises to easily set up and manage blockchain databases. Through SAP, an organization can quickly adopt Hyperledger and connect it to any of its subscription SAP cloud services, such as SAP Cloud analytics, Cloud HR, or CRM. 

SAP Cloud Platform: Application

  • The first step in using SAP Cloud with Blockchain is to set up a SAP Cloud service account and subscribe to blockchain services.
  • The next step is to create and connect to a Hyperledger Fabric-supported database. This link is made possible by using the SAP cloud cockpit.
  • The subscriber/user must first launch a blockchain database in the cloud services cockpit, utilizing a new instance of the Hyperledger fabric.
  • The next step is to create a new channel for Hyperledger. Each SAP application that has to interface with the Hyperledger has its own channel created.
  • After setup, a SAP Cloud platform can access the Hyperledger in the same way that it would any other normal SAP data storage service. Hyperledger provides all of the benefits of a fully functional distributed enterprise.

SAP HANA Service for Blockchain

The SAP HANA blockchain is another important component of SAP Cloud Blockchain Services. Businesses can utilize this service to connect their blockchain systems to SAP’s HANA database platform. This service allows enterprises to merge blockchain data with master/transaction data from SAP HANA to provide a comprehensive analytical solution.

SAP HANA Service: Application

The two key parts compose the basic HANA service:

  • Blockchain Adapter 
  • Integration Service

Blockchain Adapter: 

This adapter is an SDI connection that connects SAP HANA to the cloud blockchain service. This connection allows data to be transferred/exchanged in both directions. Internally, the HANA database contains blockchain data in the form of virtual tables. The blockchain data is also duplicated in the HANA database using virtual tables. Alterations in blockchain data are continually identified and applied to the HANA tables.

Integration Services: 

The integration service is installed on the SAP cloud to aid with cloud connection setup. This integration service provides APIs for retrieving data from a blockchain node and rewriting data to a node. The HANA blockchain adapter also uses these APIs to manage data transfers between SAP HANA and the blockchain. 

Now, Lets see of the Future Outlook for SAP Blockchain

By 2024, IDC expects that global blockchain investments would have increased by 50% to $19 billion. Companies will be able to create, implement, and monitor secure procedures with minimal IT participation in the future. This will be achieved by merging blockchain technology with no-code business development tools. The SAP Innovation Center’s blockchain research team collaborates with SAP Security Research to study privacy-enhancing solutions for protecting shared data in a distributed ledger while also promoting insight evaluation.

The SAP Innovation Centre is also looking at the possible enterprise applications for public blockchain technology, such as embedded finance on the blockchain.


SAP has the potential to become a significant leader in the adoption of blockchain-based solutions to meet existing business challenges. The distributed blockchain database structure has several industrial uses, including the storage of a wide range of data in both public and private sectors, as well as the creation of company-wide private blockchain databases. The integration of blockchain into the ERP industry is altering how public and private enterprises attempt to boost efficiency.

So, why wait? As a partner, we KaarTech has over 20 years of expertise in delivering and integrating ERP software, including SAP’s Clean Core with AI, RPA, and Blockchain technologies for customers globally. We set ourselves apart as a leader who is used to making a difference in your business rather than just turning up.



What is SAP Blockchain and how does it work?

SAP blockchain is the integration of blockchain technology into SAP’s corporate software systems. Blockchain is a decentralized and distributed ledger technology that enables many parties to securely and transparently manage a shared database. SAP uses blockchain technology to improve data quality, traceability, and trust across several business processes, allowing for safe and efficient transactions and information sharing.

What are the benefits of implementing SAP blockchain?

SAP blockchain improves openness and data integrity, which fosters confidence in business interactions. It enhances supply chain management by providing real-time visibility and mitigating fraud risk. Additionally, by automating procedures, processes are streamlined, reducing paperwork and administrative hassles. The applications include safe cross-border payments, simpler regulatory compliance, and cooperation among ecosystem partners.

How does SAP blockchain work within an organization?

SAP blockchain deployment takes a staged approach, beginning with identifying use cases such as supply chain traceability. The process consists of identifying requirements, developing the network, connecting with existing systems, and rigorous testing. SAP facilitates this via solutions such as the SAP Cloud Platform Blockchain service, which simplifies the development and implementation of blockchain applications.

Which industries will benefit from SAP blockchain implementation?

SAP blockchain adoption provides extensive industrial benefits. Manufacturing and retail industries benefit from improved traceability and quality control due to their complex supplier chains. Financial services gain from increased payment transaction transparency, while healthcare improves patient data protection. Meanwhile, SAP blockchain adoption can help optimize operations and increase confidence in the logistics, energy, and public sectors.


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