3 Reasons Why Blockchain Is The Future Of The Supply Chain

He was specifically concerned with digital regulation, justice and cybersecurity, and in the last three years before the interview, he worked specifically on the implications of blockchain and how the technology can be implemented in existing ecosystems. Thanks to his domain experience, he clearly explained how blockchain is an important technology to prevent cyberattacks on sensitive data and digital files. Consequently, companies will increasingly invest in distributed ledgers as a form of emergency budgeting to reduce cybersecurity risk and associated costs. Given the central role of data in today’s enterprises, severe attacks and data loss can pose a serious threat to the long-term sustainability of businesses. It is imperative that board members understand the underlying technology and the ways in which it can positively or negatively disrupt their organizations.

In addition to transparency, the ability to store financial assets on a secure encrypted blockchain network would drastically reduce the occurrence of fraudulent financial activities. Given its efficiency, the immediate transactional behavior that a blockchain system produces creates a variety of favorable opportunities. A crucial opportunity is the ability to transfer money directly internationally with little or no costs.

Especially now more than ever, due to the fact that 2018 had the highest turnout for midterm elections since 1914, according to the U.S. While security around voters’ ballots should presumably be at a record high, it appears to be the exact opposite. In fact, the solution created to include a touch screen and a voting machine to vote has only caused more Bitvavo explained problems, such as unverified voting and insufficient voting. This is where blockchain technology intervenes with its digital ledger that turns out to be immutable and incorruptible. The potential applications of smart contract technology are essentially unlimited and can extend to almost any business area in which contract law would normally apply.

Moreover, because ledgers are decentralized, not only multiple stakeholders, even multiple supply chains can be integrated with each other. This function of decentralization is another reason why blockchain is growing in the supply chain market. By implementing blockchain technology in the digital world, people can bring the “personal” back into personal identity to accurately manage their private information.

More specifically, blockchain can simplify paper-intensive processes that require a ledger. Heavy process practices, such as real estate issuances and transfers, contract execution, insurance or trade finance, can similarly expand blockchain technology to digitize and mechanize current processes. Executives even have the option to incorporate blockchain technology into their role on the company’s boards of directors. For example, some have identified blockchain as a technology that can be applied to proxy voting to reconcile and record votes, and to deliver results in an indisputable format.

IBM explained that each new record becomes a block with a unique and identifying hash. The third quadrant contains applications that are relatively unnewed because they are based on existing single-use and localized applications, but are high in coordination needs because they encompass broader and increasingly public applications. However, they face high barriers to adoption; not only do they need more coordination, but the processes they hope to replace can be extensive and deeply rooted in organizations and institutions.