Asset Management Using Blockchain's Distributed Ledger
Blockchain has the potential to revolutionise the way that assets are transferred within and between business networks. Blockchain’s distributed ledger means that the movement of assets between parties is fully transparent. Not only this, but the ledger also means that all of the transactions relating to that asset are auditable and verified.
Blockchain can allow such parties to share information without compromising confidentiality. This, compared to the current norm of ‘siloed’ data, where each company has individual stores of data, has a big impact on the ability for transacting parties to trust an asset’s transaction history. The shared ledger allows all of the records relating to the asset to be exchanged between transacting parties across the blockchain network. Such a system would protect parties from being deceived by information imbalances which persist in current networks where there is a lack of trust.
Asset management on a blockchain network helps to solve the problems of dispute resolution and improve the time it takes to solve discrepancies in data. The consensus-based nature of the technology means that updates cannot occur to asset records without agreement from all relevant parties. It also means that they can happen in a more timely manner. As the video above shows, each stage from asset manufacture and serialization through to installation can be tracked, with relevant proof stored in the blockchain record.
Previously manual tasks around the storage and exchange of data between parties can be left up to the trusted, transparent nature of blockchain. If you need data relating to an asset that you use, you can look up records using a single point of entry accessible to all those who are permissioned. Smart contracts will further enhance the ease of transfer of assets by prescribing conditions which must occur for transactions to take place, and making the communication of such conditions being reached irrefutable. The ability for parties to commit fraud will be severely limited.
Blockchain’s shared ledger sets the foundation for transparent, auditable, trusted business processes in the future. Having wide-reaching potential across many industries, it is clear that asset management will benefit greatly from blockchain technology. Being able to quickly and definitively share information between a range of parties will provide companies with the potential to streamline the way that they treat their data.