8 Ways MSPs Can Use Blockchain to Improve Managed Services


Are you an MSP looking for ways to improve your managed services? Blockchain technology offers an array of possibilities for streamlining and boosting the efficiency of managed services. 

This blog post will explore 8 ways MSPs can use blockchain to improve their managed services. But first, what is an MSP? An MSP, or managed service provider, is a company that provides services such as IT support, maintenance, and security to other businesses. Now, let's explore 8 ways MSPs can use blockchain to improve managed services.

Enhancing Security

Managed service providers (MSPs) can use blockchain technology to enhance security for their clients. By using blockchain, MSPs can store cryptographic hashes of system states that are immutable and unchangeable. 

This allows MSPs to keep a record of any changes made to the system, including unauthorized changes, allowing them to detect and respond to security threats faster and more effectively.

Blockchain technology can also be used to create digital signatures that are difficult to forge or modify. This prevents hackers from accessing sensitive data as they cannot use stolen credentials to log into the system. Additionally, blockchain-based authentication systems can detect malicious activities such as phishing attempts and data tampering.

Using blockchain technology can help MSPs to create a secure, tamper-proof network that is resilient against cyber-attacks. Storing transaction records in a distributed ledger, it ensures that only authorized users can access the system while all other unauthorized activities are blocked. 

This helps ensure the privacy and integrity of sensitive data and provides greater peace of mind for MSPs and their clients.

Streamlining Authentication

Streamlining authentication refers to the process of simplifying the authentication procedure, allowing users to log in quickly and securely. MSPs can leverage blockchain technology to streamline authentication by replacing traditional username and password-based authentication with distributed ledger technology. 

This work relies on a unique, time-dependent signature he calls a digital signature. Once the user has been authenticated, the system will check the digital signature to see if their identity has been confirmed.

A customer who needs to access their business network, for example, can use a digital signature instead of a username and password to log in. With this, you can enjoy a seamless, secure login process that is faster and more effective than what is done through a traditional process.

The benefits of streamlining authentication include increased security, faster login times, and reduced risk of user credential theft. By implementing blockchain technology, MSPs can ensure that only authorized users can access their business networks, providing an added layer of protection for customer data.

Reducing Costs

MSPs are in the business of helping their clients save money. Blockchain technology can be used to reduce costs associated with managed services in multiple ways. For instance, distributed ledger technology can reduce the costs associated with data storage, eliminating the need for multiple expensive servers to store and process data. 

Additionally, the cost of transactions can be greatly reduced due to the immutability and trustless nature of blockchain technology, meaning that fewer intermediaries are needed to facilitate exchanges.

Blockchain technology also enables organizations to automate many of their operations, reducing manual labour costs. Smart contracts, for example, can be used to automate certain processes such as payment processing and data transfers. This not only reduces costs but also improves efficiency.

To sum up, by taking advantage of the cost-saving benefits of blockchain technology, MSPs can help their clients reduce costs while maintaining their competitive edge. 

Improving Efficiency

One of the most important objectives for any managed service provider (MSP) is to help their clients increase efficiency. In today’s digitally-driven world, it is essential for businesses to find ways to optimize their processes and save time and money.

Blockchain technology can be a powerful tool for MSPs to improve the efficiency of their services. By leveraging distributed ledgers and automated systems, MSPs can help reduce manual processing and paperwork, as well as streamline authentication and data entry. Smart contracts can also be used to automate and monitor tasks such as payments and invoices.

One way to use blockchain to improve efficiency is to utilize digital identity management. This can allow users to access services more quickly and securely, eliminating the need for repeated logins and passwords. Additionally, blockchain can be used to securely store data, helping reduce the amount of time required to process transactions and ensuring that all information is accurate.

MSPs can also leverage blockchain to create trustless ecosystems that enable clients to access and share data in a secure manner easily. This can help them improve their workflow and reduce the time spent on manual processes.

Finally, MSPs can use blockchain technology to create new business models, enabling them to provide more efficient services. By automating processes and improving data integrity, MSPs can provide their clients with faster, more reliable services.

Enhancing Data Integrity

Data integrity is highly valuable for businesses of all sizes and should be a priority when it comes to security and managed services. By utilizing MSPs, companies can enhance their data integrity with encryption, data backups, and monitoring features. With these tools, businesses can rest assured that their data remains safe from unauthorized access, corruption, and loss.

To improve data integrity, MSPs can provide technical assistance to businesses and help them develop a comprehensive security strategy. This includes implementing encryption algorithms, installing firewalls, performing regular backups, and continuously monitoring the system. By following these steps, businesses can keep their data safe and secure. 

The benefits of enhancing data integrity include reduced risk of data breaches, improved customer trust, better operational performance, and overall greater peace of mind. Furthermore, by having reliable backups in place, companies can mitigate the risk of data loss and costly downtime. 

8 Ways MSPs Can Use Blockchain to Improve Managed Services

Enabling New Business Models

Businesses of all sizes and in all industries are striving to stay competitive in the ever-changing digital landscape. One way they can do this is by introducing new business models that are enabled by technology, such as MSPs. With the help of MSPs, businesses can introduce services that they wouldn’t be able to offer otherwise. For example, a small business could offer a cloud-based subscription model for their services. 

The introduction of new business models provides numerous benefits, such as increased revenue and customer loyalty. By using MSPs to offer subscription models, businesses can generate recurring revenue and create a steady stream of income. Additionally, offering subscription models helps increase customer loyalty and trust in the brand, as customers have an easier time managing and paying for their services. 

To get started, businesses should first analyze their current offerings and identify which services could benefit from a subscription-based approach. Once this is done, they can develop strategies for pricing and marketing the new service. Finally, businesses should stay up to date with industry trends to ensure their offerings remain competitive.

Creating trustless ecosystems

Trustless ecosystems are decentralized networks that enable individuals to transact without relying on a trusted third party. They eliminate the need for trust between two parties, allowing them to quickly and securely exchange data without worrying about fraud. This technology is especially beneficial for MSPs, as it enables them to automate service delivery while also creating transparency and accountability.

To create trustless ecosystems, MSPs must first understand the principles of distributed ledger technology, such as blockchain. Once they have a good understanding of this technology, they can begin to implement it into their managed services. For example, they could use blockchain to securely store customer data or create smart contracts that automatically facilitate payments or service delivery.

To create these ecosystems, MSPs must understand the principles of distributed ledger technology and connect with other blockchain-enabled organizations. Doing so will help ensure their customers are accessing a secure and reliable platform for data exchange.

Implementing Smart Contracts

Smart contracts can be an excellent tool for MSPs to improve their managed services. Smart contracts are agreements between two or more parties that are secured using blockchain technology, allowing the parties to quickly and securely execute the contract without a middleman. These smart contracts can be used by MSPs to create legally binding agreements that are tamper-proof and unbreakable. They can also be used to automate the process of payments and delivery, streamlining the process for all involved.

To implement smart contracts, MSPs must first have a blockchain platform in place. Then, they should create and upload their smart contract code to the blockchain, making sure to verify and validate it before doing so. Once the contract is uploaded, it will exist on the blockchain and can be accessed by all participants.

Smart contracts can be a great asset for MSPs, as they can significantly reduce transaction costs and speed up the process of executing an agreement. They also increase trust between parties, as no one can alter or manipulate the contract without everyone’s consent. In addition, these smart contracts are extremely secure, meaning that no third party can ever access them or manipulate them in any way.


In this article, we discussed how MSPs could leverage the potential of blockchain technology to improve their managed services. We have looked at how blockchain can help enhance security, streamline authentication, reduce costs, improve efficiency, and create trustless ecosystems. 


Furthermore, we explored how smart contracts can be implemented to increase the efficiency of managed services further. By leveraging blockchain technology, MSPs can greatly improve their services and offer an enhanced experience to their customers.


Author Bio


Sophie Douglas is a digital marketing specialist and a journalist based in Columbus, state of Ohio.
Her characters are passionate, innovative, and ambitious. 

Before becoming a writer for DigitalStrategyOne, she was writing short stories, screenplays, and directing short films.

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