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Articles From Lumsden McCormick

Blockchain To Transform Business

 

“Blockchain” is quickly becoming the biggest disruptive technology to impact businesses in recent memory.  This technology will significantly alter the business landscape as a method to secure information. No matter what your industry, now’s a good time to start learning about this technology.

Secure Structure

Blockchain is sometimes also called “distributed ledger technology.” It was first introduced in 2009 as a method to identify and exchange digital cryptocurrencies such as bitcoin. Blockchain is a list of records, otherwise known as blocks, which are linked and secured.  The records are both locked as well as tagged with a cryptographic hash.  The unique tag is virtually impossible to delete.

Typically, a blockchain is managed on a secure peer-to-peer network with protocols for validating blocks at the time added to the chain.  This is known as gateway authentication. Once data is recorded, no one can change it without altering all other blocks — which requires approval by other network participants. Blockchain proponents argue that this process essentially authenticates all information entered.

Various Uses

There are also many industries that could employ blockchain technology to conduct quicker and more secure transactions or simply track data more efficiently.

Blockchain could impact mergers and acquisitions. This technology could transform how due diligence documentation is shared and approved, which could increase efficiencies for the stakeholders as well as the financial and legal advisors.

Blockchain could impact the manufacturing industry.  This technology could provide safeguards against errors, fraud or tampering both during production as well as through delivery of the good or service. This functionality could bolster trust among supply chain partners as well as with customers.

Blockchain could impact the healthcare industry. This technology could be used to better secure electronic health information, improve billing and claims processing, and enhance the integrity of the prescription drug supply chain. All of this could positively impact the healthcare insurance market for every employer.

Ahead of the Curve

Most business owners don’t need to scramble to incorporate blockchain-related technology right this minute, but you might want to get ahead of the curve by learning more about it, including ways that this technology could affect business processes and operations. We’d be pleased to work with you as this technology continues to evolve.

 

© 2018

Blockchain To Transform Business

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Jennifer rejoined Lumsden McCormick in 2016 after spending over ten years in management positions with Ernst & Young LLP and Moog Inc. She is responsible for the Research and Development Credit practice in addition to providing services to commercial clients in the technology and biosciences, real estate, and manufacturing industries. Her extensive capabilities span a variety of service offerings, including technical accounting matters, financial statement assurance, employee benefit plans, policies and procedures, internal controls, Sarbanes Oxley compliance, risk assessment, operations management, internal audits, and information technology assurance. 

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