Blockchain: A Game-Changer in Accounts Receivable?


This e-book is an actionable summary of how A/R teams in B2B companies could leverage blockchain to transform their business processes

Contents

Chapter 01

What is Blockchain? Technology overview, Capabilities and Blockchain applications in other industries

Chapter 02

Why is Blockchain Important for Accounts Receivable?

Chapter 03

How to Apply Blockchain in Your A/R System
Chapter 01

What is Blockchain? Technology overview, Capabilities and Blockchain applications in other industries


Blockchain technology overview

As evident from the name, blockchain is a chain of blocks, where each block consists of transaction data and is connected to its previous block. Blockchain as a technology operates on two fundamental concepts:

Distributed ledgeroverview

It is a shared, distributed ledger that facilitates the process of recording transactions and tracking cash flow in a business network. Through this ledger, an immutable record of all transactions is present on the blockchain for all participants to access.

Smart contracts
It is a set of computer instruction (code) that all the participants must agree. This code acts as a trigger which on successful validation of data, is converted into a block and written into the blockchain.

Capabilities

  • Democratized information : The shared ledger acts as a single source of truth.
  • High integrity : Recorded transactions cannot be edited.
  • Real-time : Transaction settlement is reduced from hours to minutes

Blockchain applications in other industries

  • Supply chain management
    One of the characteristics of blockchain is provenance. Provenance allows participants to track the origin of an asset and transfer of ownership over time. In supply chain management the provenance of each component such as manufacturer, production date, batch stored on the blockchain allowing faster drill-down and corrective action for a faulty system.
  • Insurance
    When an insurable event (such as an accident) occurs, the insurance policy is automatically triggered by a smart contract stored on the blockchain, the insurance claim gets processed, and the customer gets paid without any hassle.

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