Blockchain technology offers the ability to securely share information and execute transactions between multiple entities in a decentralized way. Blockchain enables businesses to collaborate and scale in a trusted, transparent way. Here are 4 reasons to care about blockchain and the value it can bring to an organization.
1. Immutability/traceability in data management within your organization - Blockchain and distributed ledger technology facilitates transactions in a traceable and immutable way. For example, blockchain combined with Active Directory offers a way to cryptographically track changes to user permissions in an immutable ledger, ultimately changing the internal audit paradigm. This technology enables an organization to ensure the right users have access to the right information. It less about the data being distributed or sharing across a consortium of entities, but instead about the ability for data to be immutable and traceable internal to your organization.
2. The transparency is controllable - While there is a time and place for making data available to customers and the public, often data is a key asset that needs to be protected and never exposed. The level of transparency provided can be determined by the blockchain platform that is used and the configuration – offering different controls on network access as well as read, write and user permissions. Depending on the use case, the platform can offer the right level of visibility to internal individuals, within company consortiums, or with the public.
3. Problem-solving across industry is possible - Blockchain data controls create incredible potential for joint problem solving across an industry, and perhaps even across competitors. If there is a problem to unite around, blockchain technology enables disintermediation and facilitates problem solving without risk of any one organization gaining more from the transaction or engagement. Business leaders are now able to share the right data, at the right time to solve consortia/industry problems without making themselves vulnerable or giving competition the upper hand.
4. Streamlining manual, paper-intensive processes - Organizations often struggle with excessive paperwork and time wasted passing around hard copies to ensure proper signatures once all criteria for an agreement are met. From a business application perspective, perhaps even more important than what the blockchain platform enables, is the business logic that can be built on top the platform that automatically triggers a certain transaction (i.e. moving documentation to the next step) if certain criteria are met/fulfilled.
Marissa Iannarone is an associate with Forum Solutions where she helps clients execute their most critical initiatives. She is the founder of Lean Into Blockchain and a Blockchain Hyperledger Community Member where she advances cross-industry blockchain technologies around the world.
Forum Solutions is a management consulting company that works with Seattle’s business and nonprofit leaders to build and implement effective strategies for transformative growth and sustainable results. Forum offers clients the right skills for every job: strategic expertise, lean execution and agile resourcing – improving businesses at any level – from the executive suite to the individual contributor.