[ad_1]
Blockchain offers a full range of benefits for both the public and private sectors, with less time available to make decisions, improve data accuracy, disintermediation in business processes and personnel management .
5 minutes of reading
Opinions expressed by Entrepreneurs contributed.
You are reading Entrepreneur Middle East, an international Entrepreneur Media franchise.
The new Internet technologies that are part of the next generation web show promise a lot to renew the way the world works in different ways. One of these technologies is the blockchain, which is built on a system of distributed books, with the goal of increasing transparency through decentralization.
But what is blockchain and how can it be implemented in your organization?
A blockchain is an incorruptible log of data transactions that keeps records in chronological order. It is based on DLP (distributed ledger technology) which decentralizes data storage on a computer network. The data inserted in the blockchain are connected to blocks of previous and future data through a cryptographically secure algorithm, in the sense that once the data have been entered and validated, they can no longer be modified. This is of great use when applied to things like finance, but blockchain can be implemented for a whole range of uses, particularly when there are several contracting parties taking part in a certain process.
Transparency
Having the data stored on a shared network means that all the contracting parties have access to the same data. The current organization of many processes has led to data siloing, where each part of a particular transaction keeps its data separate from others. In larger organizations or governments, the data is often separated from the departmental point of view, that is, within separate and sometimes different sets of data on the same thing within an & # 39; organization. In a blockchain network, all data is stored inside a system, which means that transactions can be verified at any time. This in itself involves a further responsibility, while the immutable nature of the transaction log means that the records can not be arbitrarily changed.
Process transparency is important when the parties can not or do not necessarily trust each other. The blockchain offers a "trustless" environment in which contractors do not have to trust one another, but trust in an open system. This in itself reduces audit and legal costs, while data contained in one system indicates that everyone is on the same page and does not have to keep their databases separate.
Provenance
In light of the fact that the recorded data can not be modified retroactively, to verify when a specific event has occurred and recorded on the blockchain, we can easily refer to the register and see the requested data. These could be data about the time of an event, where it happened, etc. This means that the entire life cycle of a product can be traced from its very origin.
Within the company, the provenance allows you to be sure not only of the product or the raw materials come from, but it is also a useful feature to see how and which individuals have undertaken certain actions through a product of the service life cycle, bringing greater responsibility. In addition, this feature offers benefits to consumers who are able to access reliable data on the products they consume.
Automation
We live in a world where more and more processes are automated for free time. An additional feature of many blockchains are smart contracts: self-executed pre-negotiated agreements that come into effect when events occur. Smart contracts also follow the principle of disintermediation as they are self-applied. The events that determine the execution of an intelligent contract are recorded in the blockchain, as well as the consequences of the execution of the contract.
The application of smart contracts based on blockchain in business processes involves the automation of many actions, thus increasing efficiency. Smart contracts can automate any data transaction that can impact the real world, ie trigger an insurance payment following a natural disaster.
Here are some examples of the use of the blockchain:
- Finance registration transactions financial reporting, transaction facilitation
- Supply chain management which offers a unique and transparent database on a computer network [19659020] Digital ID use of cryptography to provide reliable digital identity tools
- Vote secure voting mechanisms that, when combined with smart contracts, lead to immediate action
- Databases and registries [19659019] integrity of information stored through transparency and origin
Many organizations can implement blockchain, but it is important to keep in mind that its end use comes from when there are several counterparts who need data consistency through consent and generally do not they trust each other. As such, blockchain becomes an independent source of data that unifies data sets and is accessible to everyone on the same level. This provides protection against data falsification, which in turn simplifies the planning and forecasting of further actions. In addition, the paperless nature of the blockchain provides greater accessibility, since data can be verified from anywhere with only the Internet connection, while process automation is facilitated by the application of the smart contract.Blockchain offers a wide range of benefits to both the public and private sectors, with less time available to make decisions, greater accuracy of data, disintermediation in business and personal processes. While adoption rates are still low due to high costs and a reluctance to revise legacy systems, we can expect the blockchain to integrate seamlessly into many aspects of business and society over the next few years.
Related: Built on Blockchain: Chapter One – In Trust We Trust
