What is blockchain and how can it impact your company?

Blockchain. It seems as though the technology is appearing across a wide range of industries. Streaming media, finance, defense, manufacturing, aerospace, shipping, accounting: the list goes on and on. But what exactly is blockchain and how will it impact your company in the upcoming years?

Here's a quick overview to help get you started.

In its most essential form, blockchain is a digital secure ledger system that is very resistant to tampering. It was originally used for financial transactions, but it has proven to be adaptable to a wide range of digital transactions. It works well to record the chain of payment from a streaming service through a music company or agent to the original artist. The military is using it to keep shipping records secure for military assets while providing real-time tracking for intelligence purposes.

It allows information to be distributed without the risk of it being copied. It provides validation of a transaction to help prevent fraud. Because blockchain is digitally native, it isn't tied to a single system and isn't as vulnerable to failure. For these reasons, it can't be corrupted or counterfeited without massive computing power and leaving signs that fraud has taken place. It does this by integrating a numerical value into the ledger entry, which is then linked to the entries around it.

With a wide range of applications available, many of your vendors or clients may be using blockchain in the future. How will your company interact with those systems? Part of these issues are already taking place through digitization, even without your awareness. The rise of cloud computing is pushing the use of decentralized networks, which is an essential part of blockchain technology. Internet of Things sensors can provide additional information on blockchain entries, such as the location or condition of assets in a business system.

By knowing the basics of what blockchain technology is and how it can be used to provide secure ledger entries, you can determine which parts of your business may benefit from it. Fortunately, you don't need to have a strong knowledge of IT or accounting to implement the digital ledger technology. If you'd like to learn more about updating your accounting processes, we're happy to help. Please feel free to contact AccountRely today to get started.