Blockchain in Enterprise Resource Planning (ERP) Software
Blockchain has become a buzzword in the past couple of years and it’s being tested in various industries. Businesses are taking note about the role blockchain technology can play in areas such as financial, supply chain management and production.
Let us first explore the concept of blockchain…
In a simple explanation, Blockchain is a secure, shared, distributed transaction ledger database that decentralizes data, eliminates the need for trusted third parties, and enables the anonymous exchange of digital assets such as bitcoin.
Microsoft has also shared an insight into industries of their customers on Azure that is also experimenting with Blockchain. Currently, Microsoft is offering blockchain ledgers as a service in Azure. Blockchain appears at the end of the list in the Azure Marketplace, beneath add-ons.
Integrating blockchain technology with ERP creates a highly secure collaborative platform and enables the anonymous exchange of digital assets such as bitcoin.
Let us take a look at how ERP and blockchain integration enhances existing features of an enterprise solution-
Eliminates intermediaries increasing efficiency and speed
Blockchains guarantee transparent and secure frameworks that enable to perform quickly and effectively. Besides handling financial transactions, itis utilized in a lot more applications that take advantage of opportunities for user-controlled networks and provide the ability of an auditable and traceable transactions ledger. This aide in building a level of trust between counterparties without a past history of working together.
Simplifies operations by reducing cost and time related to reconciliations and disputes
Blockchain enables a common ledger within all the participating entities which maintain a strategic distance from undesired errands/records during reconciliation. The digital signature helps in audit keeping an exact record of any change made in the Blockchain network.
Blockchain in Supply chain
Above is a detailed use case where you can leverage Blockchain for tracking a typical supply chain.
Also, learn more about integrating blockchain with ERP from our consultants’ @Dynamics Stream.