When you hear the word „blockchain“ what is the first thought that crosses your mind? Did you think of „bitcoin“ or „cryptocurrency“?
Many people think how blockchain technology is just ‘digital currencies’. But this kind of technology provides a wide range of application possibilities. Blockchain technology is said to be the main technology in the future which is going to be used in many parts of business processes.
Here are some examples this technology offers you may not know:
1.Transparency self-reconciling “chain” of transactions
Assets owners can track and trade valuable things with blockchain technology in a very secure, transparent and private chain of transactions. If a customer uses verified invoices from enterprise resource planning (ERP) applications, organizations could raise a certain amount of money quickly and make cash flow faster by selling invoices on a transparent and autonomous marketplace.
2. Enable smart contracts
Most companies and organizations see spending as the biggest challenge in their management. Ardent Partners CPO Rising 2016 statistics showed:
- Less than half (45%) of spending is contracting compliant
- 39% of addressable spend is sourced
- 63% of spending is linked to a purchase order
Organizations can create self-governed blockchain network for suppliers and enable smart contracts and Internet of Things (IoT)-activated shipments. If human interaction is removed from the process, transactions happen faster because buyers and sellers are directly connected to each other, so errors and issues are reduced to a minimum.
3. Prevention from the exposure of large numbers of private records
Each individual data record or element is encrypted in the blockchain technology circles. Encrypted and secured data with a blockchain member’s key makes all data 100 percent secure which stops exposure of large numbers of private information to be revealed and the public. Human resources (HR) also participate in secure blockchain implementation. For example, if you give an employee a key for access to all his/her employee records, they will be able to share their college transcripts with other employees or educational institutions securely and not rely on faxing copies that are not easy to forge.
4. Easy tracking
Blockchain provides easier tracking and locating the products and materials but also guarantee products quality and safety. For example, companies that source products abroad will be able to track cargo shipments on a blockchain system. The IBM-Maersk started testing this technology for the cargo supply business in June 2016 and that became the key for that company development.
People have to take some time to understand the benefits that blockchain technology brings to business and social life. Innovation in this technology can reduce friction in the economy and create new kinds of services and ways of doing business.