Crunch time IV: Blockchain for Finance
A series on digital transformation in Finance
Explore Blockchain for Finance, the latest installment in our Crunch time series, where we dive deep into business blockchains and how they’re transforming the work of finance organisations around the world. You can also examine other digital disruptors and their impacts in our original Crunch time report. Whatever your interest, one thing is clear: from cloud computing and robotics to analytics, cognitive technologies, and blockchain, a new class of digital disruptors is transforming how the work of Finance gets done.
Ten minutes into a discussion with a group of blockchain professionals, one CFO shook his head. “This is ridiculously ambiguous,” he complained. And it didn’t take long for others to agree. In response, we set out to demystify blockchain for CFOs, focusing on how finance organisations can apply blockchains to streamline processes, improve controls, and transform finance operations.
- Blockchain is a distributed ledger technology that enables digital assets to be transacted and traded in near real time. The record it keeps is permanent and irreversible.
- Blockchain has two main applications. One familiar use of blockchain technology involves trading and managing cryptocurrencies like Bitcoin. More on that later. The other main use of blockchain is for managing transactions related to trade and commerce, including finance processes like payables, receivables, and compliance. We think of these as business blockchains.
- CFOs should learn about both, but understanding business blockchains and their potential for finance operations should be your focus in the year ahead.
Blockchain for Finance is a practical guide for finance organisations that want to understand options for blockchain and make effective decisions about moving forward. It features more than a dozen Frequently Asked Questions finance teams can use to make sense of blockchain technology, as well as a high-level roadmap for adoption. It also includes a seven-point checklist for CFOs who are thinking about embarking on the blockchain journey.