Blockchain Technology for Document Management Across Industries

July 11, 2021 by Patricia Bennett

For a long time, blockchain technology has mainly been known for its use in cryptocurrency transactions. However, the technology can be used to provide a myriad of solutions to businesses across all industries. This includes managing documents and records, which are among the significant pain points in all industries.

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Now, businesses can enjoy the benefits of blockchain doc management software and systems that offer security, transparency, and the complete digitization of paperwork cycles. In addition, the technology is cost-effective and eliminates the need for third-party document managers. Look at the challenges businesses face in document management and how blockchain technology can solve them.

Problems Facing Document Management in Businesses

Person signing document

Document management, or rather mismanagement, has a significant implication on the running of a business. All industries are faced with the challenge of improving the quality of care in document management to improve efficiency, transparency and save costs.

But what is document management? It’s the process of organizing documents for easy yet transparent and secure receiving, tracking, retrieving, sharing, management, and storage of documents. Here are the problems most businesses face in creating effective document management.

Confidentiality

Statistics show an alarming lack of cybersecurity readiness in many businesses and only 5% of company folders being adequately protected. Too few companies provide their employees with device security and training to avoid being the weak link in there. Security breaches are expensive and small businesses that suffer cyber attacks close after six months of an attack. Centralized document management systems are quite vulnerable to data breaches because the data is in a single point.

Compliance With Data Regulations

Gavel

In recent years, global information regulations have been put in place across all industries. A business is required to prove to courts, auditors, and other authorities that the digital data, logs, workflow have not been intentionally corrupted for use in regulatory or government enforcement purposes.

Industry Inefficiencies

The amount of work that goes into consolidating transactions is too much, and other data is error-prone, labor-intensive, and time-consuming. The other management systems that involve third parties have high-security risks, expensive, and slow processing.

Benefits of a Blockchain Document Management System

Blockchain comes with numerous advantages, the first being the elimination of third parties. The technology allows anonymity, is fast, improves data security, and eliminates fraud with strict proof of origin features. Developers also custom make the systems for specific business needs and hierarchical security restrictions.

It’s Cost-Effective

American dollar bills

By removing third-party managers, redundant processes such as occurrence verification, and manual labor, the technology presents a cheaper solution for users.

It’s Efficient

The process doesn’t require a team as every person can access information from their work point, whether working at a station or remotely. This makes things move faster with document processes that would take days to update, allowing access in real-time.

Enhanced Information Security

Lock and chain on laptop

With lesser people involved to complete a document cycle, the security of information is improved. Intentional and unintentional human errors are a significant source of data breaches that blockchain effectively eliminates.

Competitive Edge

Blockchain technology provides industry-specific custom solutions for businesses. Lawfirms can use legal document management systems to enhance biometric data and digital identity protection and hashing and logging of legislation records. Every other industry can also benefit, including finance, supply chain, governments, healthcare, real estate, etc.

Document Tracking

It makes it possible for businesses to monitor the source and ownership of information. It makes it easy to follow the chain a document follows fast and easy. It eliminates double entry errors and provides a transparent document history.

Trust

The technology uses a decentralized system through Distributed Ledger Technology (DLT) to store data more securely. Data is protected through multi-tier coded access through all access levels. The information is also encrypted, making it hackproof.

Acceleration

The entire document cycle is digitized, including its preparation, issuance, storage, retrieval through the smart contract mechanism.

This speeds up the process and eliminates time-consuming processing routines and responses from third-party managers.  

Conclusion

Document management is at the core of each institution and industry, whether it’s a startup, global enterprise, public or private office. The world is fast leaving the paper processes and adopting more secure, accessible, and efficient document management systems through blockchain. The technology also ensures seamless and fast workflows by eliminating time-consuming people processes.

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