With the recent dramatic rise in the value of cryptocurrencies such asBitcoin, the concept of blockchain technology has come to the fore ofthe public imagination. A blockchain, in basic terms, is a continuouslyupdated, decentralised ledger, where each entry is encrypted, and tiedto previous entries by a timestamp and transaction information. Theprincipal security benefit is that no entry can be alteredretroactively, without also affecting every previous record.
Cryptocurrencies rely on this method to ensure that there are accurateand updated records of every transaction made, without the need for acentral bank or administrator. But less talked about are the many otheruses of blockchains, which could have a significant effect in a widerange of industries over the coming years.
Financial transactions
Transferring money between bank accounts, especially when there arelarge sums involved can be a slow and laborious process. If theaccounts are in different nations or held at separate institutions, itis even more drawn-out. Security checks are carried out to prevent fraudor money laundering, and accountants must be sure the amountstransferred are correct, and free of error or duplication.
Blockchain removes the need for most of these lengthy checks andbalances by providing an encrypted record that even the account holdersthemselves cannot alter. Significantly reducing the amount of time takenfor money to be transferred internationally.
Insurance
One of the most significant overheads in the insurance industry ischecking for fraudulent or inaccurate claims. Unscrupulous actors willoften try to make multiple claims for the same incident or requestcompensation for items that they were never in possession of in thefirst place. This malpractice drives up insurance premiums foreverybody.
By making retroactive alterations impossible, blockchain providesinsurance companies with a low-cost and efficient method of preventingfraud by keeping track of claimant inventory and contracts, bringingdown premiums for all consumers.
Supply chains
Managing the flow of products as they move through a supply chain frommanufacturing to consumption is vital for quality control and businessplanning. Elimination of bottlenecks, inefficiencies and safety concernsis impossible unless there is a clear picture of the entire process.
Blockchain potentially provides a clear, unalterable record of everyevent in a supply chain. Reducing malpractice and corner-cutting,through preventing modification of safety records at a later date, andcross-referencing every part of the process with earlier stages. Thistransparency allows for future workflow improvements to driveproductivity and efficiency.
Data Security
Encryption is a standard practice for anyone serious about keeping theirinformation safe from cyber-criminals. But aside from encoding yourdata, one integral feature of blockchain technology provides anadditional level of security.
The decentralised nature of blockchain makes it ideal for data securitypurposes. Distributing information between multiple computers means thathackers have a much harder time than if they were targeting just onemachine.
Using blockchain security in collaboration with other methods such asSSL certification and two-factor authentication is a wise choice in anIT world plagued with hacking attacks and ransomware that couldpotentially disrupt, or even destroy your business.
SwiftCase is a secure, cloud-based, business process management platformconfigured to your organisations specific needs, whatever your industry.
If you’re interested in a free, no-obligation demonstration,get in touch today.
Ready to automate your workflows?
SwiftCase helps operations teams streamline their processes with powerful workflow automation, case management, and AI-powered communication tools.