Blockchain: Responsible for Increasing Transparency
You have probably heard of Blockchain. It is the computer technology that is used for cryptocurrency trading, but this is only one of it’s many uses. In fact, they have partnered with Hyperledger, and several other high profile industry leaders (IBM, Intel, and SAP Ariba) to develop a way that Blockchain can be used by both business, industry and by the non-profit sectors.
Using Blockchain technology and its partners, the result is: increased security, improved transparency, expanded access to a greater number of people and expanded economic efficiency.
This technology is more secure because there is no one point of access for hackers to target. Transactions on the blockchain can be tracked and monitored for any unauthorized changes, so it reduces the ability of hackers to hack into the network. Blockchain technology uniquely identifies each transaction with a token, creating a historical chain of events. Blockchains can be private (where access to transactions is restricted) or public (where transactions can be viewed by anyone). To date, no Blockchain technology has ever been hacked.
Transparency is improved when using Blockchain, because through this technology, products and services can be tracked from the supply chain to the finished product that is being delivered to customers. It allows businesses to improve their supply and delivery chains and aids them in discovering any theft that may be occurring within the blockchain participants. In other words, it improves participant companies’ ability to follow the money. This superpower, along with Hyperledger’s accounting capabilities, creates an environment of transparency of all products, services, and financials.
Through this technology, any number of users can be added, but the full power of the Blockchain remains in the hands of the person who owns the specific Blockchain. This means that it is ideal technology for partnering industries, healthcare sectors, non-profits, etc. In fact, with the COVID19 crisis, it has been used for collaboration of scientists and medical doctors all over the world, because the technology takes in information, verifies it, and comes up with accurate information in real-time.
One of the challenges facing the non-profit sector has been that donors now want to know what the impact of their money will be before they invest by donating to a non-profit. Through Blockchain technology, non-profits can not only follow their own distribution of funds, but also the donor can follow the distribution of any funding that they provide to the non-profit. In the past, sometimes as much as 30% of donations could go to costs involved in distribution of a donation. With the improved economical efficiency of Blockchain technology, there will no longer be an excuse for such high distribution costs, as product can be purchased through the Blockchain network at the source of donee’s location and this should result in fewer transportation costs, improved distribution chains and better support of the local economy in the areas that the donees live.
So, you see this technology, is the way of the future, and the economy and financial institutions as we know them shall evolve because of Blockchain technology. For information on how to invest in the Blockchain contact one of our specialists at https://www.keprofessionalaccounting.com/ .