Contemplating On Using Blockchain Technology ? Answer these Questions

blockchain technology - cfamedia

Blockchain technology appears to be the favorite technology application of a good number of organisations.

With its simplicity, in ensuring the coordination of information and payment processes, without needing a central executor, but needing only an intermediary, not centrally located, the technology is, passing through phases of perception, either, on the negative, or, the positive side of the divide.

Blockchain is not the only technology that has gone through this phase. Previous technologies have had the same issue of going through the same cycle.

CFOs of organisations, usually, put forward ROI tests on their projects, but they need to take up a role in blockchain, as well.

Blockchain technology, no doubt, would have an intense impact, in the long run, on any organisation’s business.

Future projections indicate that. in the next 10 years, a significant number of new ventures would have adopted the blockchain technology.

As stated earlier, the differentiating factor that separates blockchain, from other technologies is its ability, to process payments, without any middle factor involved.

Many organisations, though avoid using the blockchain service because it requires an expensive central intermediary.

Intermediaries leverage the global reach, of financial transactions, in a network, to connect buyers and sellers.

Paul Brody, EY, has developed a series of test questions, to determine, if your organisation can make strategic use, of blockchain technology.

The questions it raised are as follows:

Does Your Transaction Involve Multiple Parties?

A very important question to answer because, the complexity in the coordination of the blockchain process, can be achieved with, basically, two parties involved.

Beyond this, the process gets complicated to share, without involving any other party, serving as an intermediary.

The more the transactions you make, the more multi-party, the system becomes.

Do The Parties Involved Have A Shared Business Logic?

Before the advent of blockchain technology, there exists a difficulty in executing a shared logic between parties.

For instance, manufacturers who bought off similar purchase agreements, require all to be present, to obtain any available discount, while not disclosing the amount they have expended.

With blockchain technology, this can be, easily, implemented with full privacy, for all the manufacturing participants, with the use of smart contracts.

Are You Managing A Finite Resource?

A blockchain is a great tool in managing finite resources, such as assets.

These assets represented in the form of digital tokens can only exist, at once, in a digital location.

The technology behind blockchain, prevents unauthorised users, from “copying and pasting” other users’ digital assets.

Inventory system, based on a blockchain, does require a reconciliation, between the tracked individual inventory items and the locations.

This system has made it possible, for companies, using the technology, to properly keep a track, on their digital assets.

Does Your Industry Ecosystem Benefit From Increased Transparency?

One of the many advantages of blockchain technology is its use in the industrial ecosystem.

Digitising a complete value chain offers a robust efficiency. as well as, providing the opportunity, to comprehend more on industry trends.

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