When you hear the word blockchain, you probably think of cryptocurrency. What many people don’t realize is that blockchain is a technology that goes far beyond digital money. Simply put, blockchain is a virtual ledger that allows for the creation, encryption, validation, and distribution of data. This can be any kind of data, from medical records to business transactions.
How Blockchain Works
Blockchain can seem complicated, but how it works can be understood in fairly simple terms. Data is stored in digital blocks linked together like a chain. Hence the name. Each block serves as an immutable record of a transaction by storing the time and sequence of each transaction.
Each block builds on the previous block with encrypted codes that make it virtually impossible to tamper with the information being stored. If someone hacks into a blockchain, they would have to alter every block in the chain to hide the evidence. Figuring out the code for one block is difficult enough. Figuring them out for an entire blockchain is highly unlikely.
Blockchains are typically stored on a peer-to-peer network, so if one computer goes down, the data is still safe, and transactions can continue to be recorded. This is known as a distributed ledger because every member of the network has a copy of the ledger. Networks can be public or private, and the members of the network agree on the rules of the network.
Improvements in ERP with Blockchain Technology
Big corporations have been using blockchain for some time now to record such information as purchases, shipping, supply chain management, and even invoicing. It won’t be long before smaller businesses will also need to implement blockchain technology just to keep up.
ERP systems have already improved the efficiency of business and supply chain processes. They enable companies to maximize resource utilization, improve planning processes, optimize inventory levels, and more.
Companies could integrate blockchain into their ERP systems in order to have a faster, more efficient system. With blockchain technology, companies can integrate the data of all transactions within the ERP network, making it virtually impossible for their data to be manipulated. They can create an integrated platform for transaction management for use by anyone in the company who requires it.
Blockchain integrated ERP systems used for financial transactions will make transactions transparent and reliable. There will be fewer disputes over purchases, invoices, shipments, and returns because every transaction will be recorded.
ERP and Cryptocurrency
Cryptocurrency is digital money. All transactions made with a cryptocurrency are recorded on a blockchain. This type of currency isn’t controlled by any government, but it is also not slowed by the red tape of banking systems.
Companies that make transactions with cryptocurrency benefit from faster and lower-cost transactions. This is particularly useful when transactions are made internationally.
It could be beneficial to organizations to integrate cryptocurrency within ERP systems since it could speed up and reduce the cost of transactions. It might also be possible for companies to trade in crypto and keep their liquid fiat funds for other needs.
The Future and ASI
ASI has the ERP solution that will grow with your business. Together, we can watch the future unfold.
If you’re ready to set up your ERP system so you’re future-ready, contact ASI now and schedule your free consultation.