You may have heard about cryptocurrency and digital currencies like bitcoin, but the blockchain technology is not so popular. However, we have to appreciate it because that is what has enabled the usage of bitcoin. Blockchain technology is a virtual public ledger that securely records all bitcoin transactions. Unlike the banks that will allow cash transactions, the blockchain provides for the free transfer of cryptocurrency through a decentralized system. The data is then held in an interlinked computer network, and it is run and owned by the users of the network. The benefits of this system are many, and that is why this system is believed to be relevant for generations to come. Enlisted below are some of the most vital benefits.
Supply Chain Management
The blockchain technology offers numerous benefits to supply chain management. It provides the merits of traceability and cost-effectiveness. This is because blockchain can be used to track how goods are moving, their origin, and their quantities among other vital aspects. Therefore, transparency is facilitated, and this makes some processes simple. Some of the procedures include the transfer of ownership, payments and product process assurance.
Recording transactions using the blockchain technology ensures that human errors are eliminated. It also protects the data because no one can tamper with it. Moreover, the records are verified every time they are passed from one blockchain node to the other. This, therefore, enhances the transparency and security of the data. The accuracy of the records will also leave a traceable audit trail. This, therefore, makes the accounting process efficient and the integrity of the financial records of an entity is ascertained.
The blockchain systems are open and reliable. It is therefore not surprising to hear that stock exchanges are in the talks and are considering it as the next big leap forward. In Australia, the stock exchange is switching to a blockchain powered system. This is to aid in their operations.
Once an irregularity is detected along the supply chain, the blockchain system can point out to the source of the inconsistency. It, therefore, makes it easier for business entities to conduct an investigation and execute the needed course of action. This is necessary for cases where businesses need to track the origination and batch information among other details for safety and quality assurance.