In this day and age, it is quite evident that companies are drifting away from unrushed and unautomated methods and leaning towards automated and centralized alternatives. Automation of a process undeniably has its ups: faster speed, less bugs, cheaper costs, transparency, to mention just a few.
Albeit, automation has already done so much to improve the tech industry, there needs to be further changes made. To simplify, blockchain workflow automation will take blockchain transaction to yet another level by automating the currently unautomated methods of operation and blockchain technology will reach yet new heights.
What is blockchain technology?
Initially crafted for Bitcoin – a digital currency – blockchain technology is no more just used for currency exchange. It has significantly been used in a lot of different industries. The core idea behind blockchain is a distributed ledger shared across various devices.
Every block in the ledger represents a transaction and any person who is involved in the network can view all of the transactions made by any person at any time. The remaining members of the network should give the transaction an approval before it is actually jotted down in the database.
The advantages of blockchain technology
- Transactions are significantly safer:
Blockchain can not only be accessed through various computers by the people on the network, it is also unchangeable which means a single person can’t alter the data on a blockchain network. This makes blockchain pretty credible and secure.
- Great data accuracy:
All the data that is added to the blockchain network is immediately received by the members of the network. This is due to the fact that this highly efficient network system is self-auditing and within minutes it verifies all the data making it highly trustworthy.
- Highly transparent and accessible:
Since blockchain uses the consensus of the members on the network to verify the entries of the data, the whole process is quite transparent. In simpler words, the data isn’t being controlled by a central authority but by the people on the network themselves.
- Compliance is highly improved:
Since data in the blockchain once saved can’t be changed, it provides regulators a lot of ease to validate compliance by following the audit trail.
- Fraud is totally removed:
The blocks in the network are connected to each other and made safe through cryptography, which makes them almost completely secure from any fraudulent activities.
Business Process Management and the future of Blockchain
The idea of connecting BPM and blockchain technology is known as the Smart Contract. In simpler words, Smart Contract basically acts as an automated middleman that moderates the transaction between two parties.
A vending machine is a good example of a Smart Contract. In lieu of purchasing a can of soda from a shop, you just get it from the vending machine which acts as a middleman. It takes your amount, validates that you have given it the right amount, and then hands you over the drink.
Likewise, Smart Contracts are software arrangements that allow people to exchange land, currency or any other valuable item. Smart Contracts are quite easy to use as they are told what to do prior to making any exchanges. If the member A provides the money for the member B who is a supplier then the contract will automatically deliver member A the item.
Smart Contracts are very carefully knit to blockchain technology and the contracts made can be accepted or rejected based on the credibility of the member. Smart Contracts, in addition to aiding in business can also be applied in different activities such crowdfunding and voting.
How can BPM and Smart Contracts be combined to expedite Digital Transformation?
BPM software can work alongside Smart Contracts to make the most of its abilities. They can further be integrated into currently existing businesses. For instance, the preferred layout of the Smart Contracts can be shown on process maps.
BPM software can deliver emails to let members know that their contract is about to end and to remind them to create a new contract. A user can export data from the Smart Contracts and use them in various different processes.
What is the significance of blockchain for BPM?
By harnessing the power of blockchain and Smart Contracts we can eliminate the need for a middleman to initiate contracts, validate transactions, or conduct background checks.
BPM might as well be referred to as the most suited technology to enforce Smart Contracts. Since Smart Contracts are usually associated with complicated and big business processes, they can almost always be managed by BPM.
Since blockchain increases trust between the users on the network, the friction created by a middleman is reduced significantly. Blockchain Technology is just one of the many ways that automation is expected to evolve in the close future.