Its time to stop referring to Blockchain technology as a digital ledger..

In recent years Blockchain has emerged as a technology that is developing into a solution to provide the Procurement function with break through benefits. In adopting the technology Procurement professionals do not need to know the inner working of Blockchain technology they simply need to understand the transformational benefits it can bring to their function.

A recent publication suggested that Blockchain being referred to as a digital ledger simply does not do it justice. Describing it as a form of digital trust best provides an insight into its capability. In providing the enhanced capability to create trust in what is often described as a trustless environment business simply becomes easier. With trust processes become more streamlined and transparency is enhanced.

As the diagram above shows the application can be applied across multiple functions which ultimately improve efficiency, reduce operational cost, enhanced security and transparency. Not only does Blockchain provide added value to the functions above but it also provides the opportunity to reduce cost through the application of automation. Smart contracting sits on top of a Blockchain network and allows rules to be built that will execute when certain condition based data is met.

Blockchain represents a step forward that organisations should not ignore because it opens the door to further improvements from streamlining paper-based processes to enhancing cooperation and in the case of consumer products it build brand equity by allowing enhanced consumer product interaction. It is one that should no longer be ignored.