As businesses grow, the volume of data that needs to be managed also grows. This growth becomes a challenge for companies as they try to keep track of all their data and ensure its accuracy and safety. To solve this problem, many companies are turning to blockchain technology.
But what is it, and why is it so important to data governance? The experts at Profisee, the leading provider of master data management solutions, explain what blockchain is and how it can improve your data management strategy.
What is Blockchain?
Blockchain is a digital ledger that allows businesses to track their data in a secure and tamper-proof way. Once data is entered into the blockchain, it cannot be changed or deleted. This is why blockchain is often described as being immutable.
What is Blockchain Used For?
Blockchain was initially designed for use with cryptocurrencies, such as Bitcoin, to provide a secure way to track transactions. However, the potential applications of blockchain far exceed cryptocurrency. Profisee believes blockchain can revolutionize nearly any industry that relies on secure record-keeping, from banking and finance to healthcare and supply chain management.
One application of blockchain particularly relevant to businesses is blockchain master data management (BDM).
What is Blockchain Master Data Management?
Imagine all the data your business produces and stores, from customer records to financial documents to inventory information. Now imagine that this data is spread across different departments, databases, and countries. Trying to keep track of all this data can be daunting, and it’s only getting more difficult as businesses expand.
This is where blockchain master data management comes in. BDM is a system that uses blockchain technology to manage all the data your business relies on centrally. BDM can streamline business processes and improve collaboration between different departments by storing all this data on a secure, decentralized platform.
BDMs, such as Profisee’s Maestro, are already being used by some of the world’s largest companies, including Microsoft and IBM. And as the technology continues to develop, even more businesses will likely begin adopting BDM soon.
The Benefits of Blockchain Master Data Management
In a traditional MDM system, a central authority is responsible for managing and storing all of an organization’s critical data. However, in a blockchain MDM system, this responsibility is distributed among all participants in the network. This decentralized approach has several advantages, including improved security, increased transparency, and reduced costs.
With BDM, businesses can be assured that their data is safe from cyber-attacks and other security threats. Blockchain technology is incredibly secure, thanks to its use of cryptography and distributed ledger technology which is tamper-proof.
In a traditional MDM system, a central database is often the target of cyber-attacks. If this database is compromised, all of an organization’s data could be at risk. However, in a BDM system, there is no central database for hackers to target. Even if one node (i.e., one participant in the network) is compromised, the rest of the network remains unaffected.
Additionally, all data stored on a blockchain is encrypted, making it incredibly difficult for hackers to access or tamper with any of the data.
Better Tracking History and Transparency
Another advantage of BDM is that it allows businesses to track the history of their data. With a traditional MDM system, it can be challenging to determine where data came from and how it has been changed over time. However, with BDM, businesses can view the complete history of their data, making it easier to identify errors and track changes.
The expert staff at Profisee advises that BDM can also improve organizational transparency. With a centralized MDM system, only a few individuals can access the data. However, with BDM, all participants in the network can view the data, making it more transparent.
Finally, BDM can help businesses reduce their costs. With a centralized MDM system, companies must invest in expensive hardware and software to store and manage their data. However, with BDM, businesses can keep their data on a decentralized network, which is much less expensive.
In addition, BDM can help businesses save time and money by automating manual processes. For example, with BDM, companies can automatically update their customer records when a customer makes a purchase. This eliminates the need for manual data entry, saving businesses time and money.
Blockchain master data management is a new and innovative way to store and manage data. BDM has several advantages over traditional MDM systems, including improved security, increased transparency, and reduced costs.
BDM is already being used by some of the world’s largest companies, and it is quickly becoming the preferred choice for managing data. If you are looking for a more secure, transparent, and cost-effective way to manage your data, BDM may be the right solution for you.