According to Gartner, records management is ripe for blockchain app development for creating cost-efficiency and revenue acceleration capabilities. The technology can change and expand the capacities of various records management processes. It also has far-reaching consequences for cost-effectively protecting and authenticating intellectual property. The article does not provide a primer on blockchain technology. Instead, we address a few unique challenges with records management and how distributed ledger technology can help.
Records Management | The Obstacles
Confidentiality
According to the identity analytics firm 4iQ5, the number of data breaches rose by more than 400 percent in 2018, revealing nearly 15 billion pieces of information. A security breach costs an average of $17 million. Eighty-eight percent of the businesses polled claim they are losing control of their data.
Enterprise information must be safe while ensuring that parties to a transaction have complete privacy and confidentiality. Also, records should only be accessible to those who need to know. Centralized databases are vulnerable to expensive security breaches because they have a single point of failure.
Compliance with Data Regulations
Over the last ten years, there has been a major rise in global cross-industry regulations. Organizations will have to prove to auditors or the courts that there has been no intentional or incompetent corruption of digital data, workflows, and logs for government or sector regulatory enforcement or e-discovery.
Inefficiencies in Industry
Consolidating transactions through individual and private ledgers is time-consuming and error-prone. Today's distributed records management systems, which include multiple parties, suffer from slow processing, high costs, a high risk of errors, and often generate inaccurate and inconsistent results.
Also, Read | Advancing Identity Management with Blockchain Technology
Enter Blockchain Development
Blockchain has a range of distinct advantages. The first is anonymity. Parties who visit a blockchain can execute trustworthy transactions without exposing their identities, saving time. Another is the distributed structure of the blockchain. A blockchain can be created by two or more individuals without the need to register with a central authority. They can also build private blockchains with custom security definitions that restrict what chain participants can do. The rules are decided by the parties to the blockchain in all situations. It's important to bear in mind that blockchain isn't just for records. It works for every kind of digital asset, like photos, videos, and email backups. Blockchain is gaining traction in the intellectual property industry. Professional photographers, for example, may use it to control licensing rights to their work and even make royalty payments.
Also, Read | Blockchain in Intellectual Property
Blockchain Advantages for Records Management Solutions
Records management professionals should learn about blockchain because:
Cost-effective
The most noticeable advantage is cost savings. Processes can be made more effective and less costly because blockchain transactions do not need intermediaries. There's no need for auditors or legal experts to check the accuracy of results, so those costs are removed from the equation.
Efficiency
With less staff on the job, you can get things done quicker. Transactions that would normally take days to complete due to numerous sign-offs can now be completed in seconds.
Security
The fewer people involved in a transaction, the lower the chance of anything going wrong. Handoff points are a big weakness, which blockchain essentially removes.
Competitive advantage
Companies in the intellectual property space, such as law firms and stock photo companies, may use blockchain to deliver new services that support both consumers and content creators, giving them a competitive edge.
Also, Read | An Investor's Guide to Blockchain App Development for Business
Exploring the Potential of Blockchain in Document/Records Management
Tracking
The use of blockchain as a foundation allows you to securely monitor the use and ownership of records. It ensures that your files are still immutable and that all intermediaries are removed. It uses a time-stamped block method to implement a clear double-entry system with a straightforward document history.
Trust
With distributed ledger technology, you can secure and decentralize your data storage. Furthermore, it uses tokenization to ensure a stable client registration process and uses built-in proof of origin techniques to prevent fraud. You can secure data at all levels with blockchain, thanks to multi-tier role-based and coded access. You may also use encryption and hashing to keep your data safe from hackers. All of this occurs while staying GDPR compliant at all times.
Acceleration
Document preparation, issuance, and retrieval are all automated using blockchain and smart contracts. As a result, it makes network management and regulation simpler for your business. You will then put the time-consuming reconciliation or agreement mechanisms out of your mind. With a special consensus algorithm, blockchain accelerates transaction validation. It conserves valuable capital by avoiding transaction fees.
Also, Read | EHR (Electronic Health Records) Management with Blockchain
Applications of Blockchain in Records Management across Industries
Management of Legal Documents
Blockchain allows for the logging and hashing of legal documents, automatic taxation, improved security of digital identification and biometric data, and support for global ID and certification.
Document Management in Accounting, Finance, and Insurance
With built-in regulatory enforcement and irrevocable and encrypted transactions, businesses can allow multi-step authentication, peer-to-peer lending, and digital banking support.
Logistics Record Management
Businesses can use blockchain to monitor provenance and chain of custody records, as well as automate payment processing, support for stakeholder databases, and credibility score logging.
Also, Read | Blockchain Development for Advanced Logistics Solutions
Engineering and Construction Documents
Manufacturing firms may create an immutable record of the construction phase, monitor all building inputs and assets, and store warranties and maintenance checkpoints in a safe environment.
Document Control for Energy and Infrastructure
Energy companies can monitor the chain of custody for grid materials, provide secure file exchange for peer-to-peer energy trading, and keep resource exploration data safe from fraud.
Document Management in the Healthcare Industry
Healthcare stakeholders should ensure that EHR access is secured, that healthcare insurance is collected and stored effectively, that the supply chain for prescription drugs and supplies is under-regulated, and that clinical research data is encrypted.
Document Control for E-commerce and Retail
Product warranty digitization, P2P marketplace support, chain-of-custody control, and CRM record management are all options available to retailers and distributors.
Document Control in Telecommunications
Telecommunications behemoths may create SLA document flow automation, digital identity for KYC document authentication, call detail records management, royalty, and digital asset or payment management, and royalty and digital asset or payment management.
Also, Read | Blockchain in the Telecom Industry
File Management in the Real Estate Industry
Contract execution without intermediaries, liquid asset support, encryption of marketplace and ownership data, and immutable cadastre and property transaction information can all help real estate management become more effective.
When it comes to document management, we prioritize protection. We're proud to say that our approach is built on a solid foundation of success and durability. Request a demonstration to see for yourself!