The blockchain principle is an extensive database. In brief, such a database typically starts with an originating block, to which new data blocks are always chronologically appended after being carefully verified and positively confirmed. After, it thus maps a history of data records (e.g. financial transactions).
Blockchain in action
Automobile companies give the impression that leasing a vehicle is relatively simple. However, in practice, it is incredibly complicated. Undeniably, a significant problem in today’s vehicle leasing networks is that the supporting systems often need more compartmentalized. However, the physical supply chain is usually well-integrated. Each selected participant in the network manages a separate database. Such data synchronization can typically take days or weeks.
Further, managing a shared database on a blockchain network allows each participant to access, monitor, and analyze vehicle status. This quote is regardless of where the vehicle is in its lifecycle.
The advantages of a blockchain solution
- Transaction times for complex interactions with multiple parties are instantly reduced from several days to a few minutes. Hence, the established settlement of an economic transaction is faster as there is no specific need for proper verification by a central authority.
cost savings with blockchain solutions,
- A blockchain network reduces costs in several ways, requiring fewer checks. Moreover, the network is overseen by the participants known to the network.
- Hence, fewer intermediaries are required as participants can exchange assets directly.
- Multiple steps are prevented as all participants can obtain the shared database.
More security with blockchain solutions,
- The security features in a blockchain protect against tampering, possible fraud, and cybercrime. Moreover, one can develop a network for elected members in a permission network. Hence, in this place, the user must prove that the members are who they state they are and that the goods and assets traded represent the exact goods and assets listed.
- A shared database typically serves as a central source of accurate information. This setup allows for better monitoring and verifying transactions. This results in increased operational efficiency.
- The pure digitisation of assets optimises the transfer of ownership. Moreover, participants can satisfactorily complete transactions within a reasonable timeframe that aligns with business operations.
in fact, better data protection
- Furthermore, users can specify which transaction details other participants can view through IDs and permissions. Finally, one can extend permissions to specific users, such as auditors, who need access to more information on a transaction.