How Blockchain Technology Can Benefit Enterprise Resource Planning

Blockchain is one of the most sought after technologies which has turned out to be a game changer in the FinTech industry. It happens to be the key technology behind Bitcoin that backs the entire cryptocurrency landscape. While Blockchain was initially introduced to be used in the FinTech industry, it has now gone out of bounds. Blockchain Technology has a great potential to revitalize every industry and can be used in every aspect of our day-to-day lives.

Leading industries and organizations are starting to realize the real benefits of integrating blockchain technology in their business verticals. That’s why we have seen some remarkable use cases of Blockchain technology such as Smart Contracts, Asset Management, Identity and Trust Management.

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Blockchain Evolution

When Satoshi Nakamoto first laid the groundwork of Bitcoin, nobody ever thought this would lead to something this bigger. The concept of blockchain was devised by Nakamoto in 2008 and it was first implemented with the launch of Bitcoin in 2009. Blockchain is a digital ledger capable of storing data in digital format in a series of blocks cryptographically linked together. During the first few years, Blockchain served solely for the purpose of storing transactional data and facilitating online transactions over the Peer-to-Peer networks.

The Blockchain enthusiasts later realized that the same ledger can be used to store any kind of information and even then, it can be as effective as it is in the financial domain. Soon enough, we saw a widespread adoption of Blockchain technology into various sectors like education, industrialization, healthcare, research and development.

Blockchain & ERP

You all must be familiar with the ERP systems and how they aim on streamlining the business processes by automating the operations of different business verticals. In many ways, Enterprise Resource Planning (ERP) is much similar to Blockchain.   

Following are some key aspects of ERP

• An ERP system centralizes your business data.

• It provides a single point of contact.

• Provides real-time data from different business areas.

• Reduces paper work.

• Prevents duplication of entries and stored info.

In this sense, if they are to be used with Blockchain, the ERP systems can offer following benefits.

• Creating a tamper-proof, unalterable record of stored data.

• Centralizing business processes and workflows across multiple departments.

• Data interoperability for banks and financial institutions.

• Top-notch protection against online threats.

As we all know, ERP allows you to effectively manage your business processes and workflow. For that, it uses a database management system which allows a company to manage all the back-office functions in real-time through a series of integrated applications. As a matter of fact, Blockchain also uses a real-time database that stores data in a series of blocks in chronological order. So it can easily integrate with ERP to attain all the aforementioned benefits.