Today trust can be cryptographically secured and distributed among all the parties involved in a transaction. There is no longer any place for human error.
In the past we used real ledgers, in which a transaction would be described in extensive detail. Now we have blockchain – a digital ledger that records transactions.
Decentralised chain of certification
Blockchain is unchangeable and there is practically no way of interfering with it. Cryptographically secured documents and virtual agreements result in something that is truly binding. Blockchain entries can be modified only if there is total consensus among all the parties involved.
With this secure and traceable workflow record, we can simplify processes, increase transparency and deconstruct silos.
What are the key advantages of adopting the blockchain technology? The cfo.com website offers the following description:
- Real-time tracking: Blockchain allows for up-to-the-minute stat checks. It can uncover the journey of e.g. food or other perishable goods.
- Automation: Digitally secure transaction data can become part of blockchain agreements, forming smart contracts. These are contracts which are executed without human supervision. Once the agreed-upon terms and conditions are met, the rest can happen automatically, which reduces uncertainty.
- Process standardisation: With blockchain, multiparty transaction are possible. Supply chain interactions can be standardised and therefore also efficient, compliant, and synchronised.
- Trust promotion: Thanks to blockchain, data can be easily distributed without the fear of manipulation. That provides a new level of global trust and credibility.
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