Home Tech What Are the Advantages of Blockchain for Online Document Management?

What Are the Advantages of Blockchain for Online Document Management?

Millions of documents are processed daily. Most of the documentation is processed digitally but some invoices, financial reports, contracts, delivery notes, etc. are still paper-based. It comes as no surprise at all that nowadays document flows are considered to be pain in the neck for almost all organizations globally. The existing models do not always enable us to identify duplicate information, which can result in an enormous disorganization that threatens the security of the company’s data and even does damage to the company’s productivity. What is more, employees can spend a big amount of time searching and distributing various documents, which may prevent them from accomplishing their main tasks.

All these issues related to document management have made companies start looking for a comprehensive and advanced solution that could help them bolster their workflows and automate different processes. As of today, document management programs comprise the recognition of documents (via OCR technologies) as well as their classification and processing (via artificial intelligence (AI) algorithms). Thanks to these and many other programs, it is possible to provide the integrity of information and data security.

What about blockchain for document management?

Blockchain, a panacea for all industries, can drastically change the way we perceive and deal with document management. Even though a number of people traditionally link blockchain to cryptocurrency only, bitcoin in particular, the technology today is widely regarded as a commercial alternative to any business environment where there is a need to smoothly transfer sensitive information in a secure as well as unalterable way.

Currently, many banks all over the world are utilizing blockchain to provide the smoothness and safety of economic transactions. And not only that: this leading-edge technology can be used to register and certify drivers’ medical examinations and even qualifications. The food and logistics industries make use of blockchain too so as to guarantee total traceability of products and accelerate the identification of any anomalies that can prove to be dangerous for human health.

Back to online blockchain document management, it is worth noting that blockchain is perfectly capable of verifying and validating all the documents that both enter and leave an organization. Blockchain also offers a special file system that allows you to check the location of a document, who and when created it, and you can even learn whether it was ever modified or not. In addition, each element possesses a unique ID, created by algorithms, that allows you to identify any file within the perimeter of action. This data is generally accessible to any authorized user, and this contributes to a complete transparency in the document management process.

Furthermore, blockchain helps avoid a widespread duplication issue and the use of different versions of one and the same file. Once a person has modified the file, blockchain immediately registers this update. As a result, you manage to avoid any inconveniences connected with the management of different files.

As well as this, blockchain offers its another super-advanced capability, called smart contracts. These are self-executing digital contracts that have a linear sequence of actions. The completion of each action enables the following one. When you resort to using smart contracts, you can easily manage without any intermediaries’ services, as the smart technology removes the necessity of attracting some other parties to the process.

Even though blockchain is a relatively new technology, it has already been successfully implemented in almost all industries. Once you make up your mind to start using blockchain in document management, you can be a hundred percent sure that the technology will provide you with a large number of benefits, including cost savings, efficiency, security, transparency, flexibility, and competitive advantage.

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