Parties entered into an agreement with an understanding that the detailed transaction records of a ledger were unaltered and binding. But still there was room for human error.
As with almost everything, technology is transforming what we know and how we function within our own knowledge base. The same can be applied to the old-school ledger. Now, thanks to blockchain technology, the business of trust can be cryptographically secured and distributed among all parties involved in a transaction, and human error can be eradicated.
What Exactly Is It?
Blockchain is a digital ledger that records transactions between parties and requires consensus among all parties.
Blockchain is immutable, or unchangeable. The cryptographically secure document, or virtual agreement, is a binding, accountability-laden accord that can only be modified with total consensus among all parties involved.
This decentralized chain of certification authenticates and maintains data indefinitely. The result is a secure and traceable workflow record. Ultimately, it can simplify processes, increase transparency and deconstruct silos that too often stand in the way of moving businesses forward.
Five Ways Blockchain Affects Supplier Management
There are several clear advantages to businesses that adopt the technology. Among them:
Tracks in real time. Blockchain can provide up-to-the-minute stat checks. One big issue for major manufacturers and food retailers, for example, is food provenance. In the most recent case in the United States, tainted romaine lettuce triggered a nationwide listeria outbreak. Blockchain can uncover the journey of the food or perishable item and trace it back to the produce farm where it originated and do so almost immediately.
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