What proceses can Blockchain transform?
Companies all over the world are investigating use cases with Blockchain. It is the technology developed in 2009 to make bitcoin (the first cryptocurrency), and already then began to envision its application to the business world
Companies all over the world are investigating use cases with Blockchain. It is the technology developed in 2009 to make bitcoin (the first cryptocurrency), and already then began to envision its application to the business world. The appearance of Ethereum (the second cryptocurrency in value) in 2014 with Smart Contracts (command programs) elevated Blockchain to the category of a technological “Swiss army knife”. The rush for its application begun, what processes can it transform?
Blockchain shortens many processes to improve them, eliminates inefficiencies, removes bottlenecks, lightens the workload of intermediaries, secures information and data. Not only that, companies can develop their own cryptocurrency to lighten the relationship with their suppliers or customers.
In this universe of possibilities, Blockchain is especially useful in processes with many transactions, such as those related to client onboarding (integration) with companies. Companies relate to clients on issues as sensitive as those linked with hiring, and must verify the identity on each occasion.
A Blockchain platform with the digital identity of the clients avoids the current and tiresome repetitive identification systems, and prevents online fraud. Blockchain client onboarding can be integrated with a call center agency to solve problems, or with a marketing company to sell new solutions. Not only that. This technology is ideal for other kinds of onboarding, such as human resources.
Banks advance in speeding up their slow communications with Blockchain. The use of a register that distributes the same information in each of the nodes of a network gives immutability to the data because it can be easily audited. Financial institutions have seen in this advantage the opportunity to compensate payments without the need for a central operator, and have begun to use this technology to shorten the time required for international payments. It is only a first step.
Blockchain is particularly effective in simplifying paperwork processes, which have the need for certification, and the involvement of many agents. The most complex ones are those related to railway and port freight transport. Addalia and Eurogestión have formed an alliance to ease them with block technology.
In both the port and railway solutions, the certification issuers and transport companies are identified, and access the Blockchain nodes to have the Smart Contracts that validate the documents on the spot. The solution avoids the redundancy of document verification. It speeds up the bureaucracy of the transit of port goods, which has become a bottleneck due to the obligation of handing in the documents personally. In the case of railways, the solution will automate compliance with the abundant European regulations required of the companies and their drivers, among other things.
The Blockchain platform of a chain of suppliers will speed up the administrative process associated with payment, as the mere verification of the delivery of the goods will set in motion the cascade of administrative Smart Contracts that will finalize with the payment authorization. The same platform will serve to remove all defective parts at once, be it food or a part of a car, because it will increase the traceability to the goods.
The security of a Blockchain platform can support the communications of information collection sensors of Internet of things (IoT) and will boost its generalization.
Digital Identity is the Columbus’ egg of Blockchain, companies all over the world develop it. Identifying any type of asset in a chain of blocks through a unique code opens the door to Smart Properties. The holder of that code is the sole owner of the asset, he/she can sell it to another owner, or can tokenize it to sell it to many people in parts. You need several millions of euros to buy a large office building, but anyone can buy a small part of the building if its tokenized or on a Blockchain platform.
Another advantage of blockchain technology is the possibility of selling tokenized assets without the need for asset management. Even though attestors will be necessary to insert the good in a Blockchain system for the first time. In an intermediate system, blockchain technology can be used to buy homes remotely. Notaries and property registrars study what their role will be then.
The confidence granted by a Blockchain solution is enough to certify educational qualifications. Again, a dynamic guarantee of the veracity of exams, attendance and projects must be developed. In any case, a Blockchain of a study center will aim at the teacher responsable for correcting the exams and papers. Who will dare to falsify facts?
ICOs (initial coin offerings of a project) can improve the mechanism of collective micro-financing of projects, known as Crowdfunding. Authorities in many countries investigate their regulation.
The range of solutions offered by Blockchain begins to open up. Its great possibilities are still to be investigated. Plus, the sovereign digital identity of the people will make it possible to decide on the data transferred to each company or institution, and in each case. The next step would be a discussion among States to reach the unique and universal sovereign identity of the individual.