ERP development using blockchain technology

ERP (Enterprise Resource Planning) is software that is responsible for enterprise resource planning: manages accounting and procurement, supports supply chains, reporting, production, human resources, financial transactions, etc.

Continuous scientific and technological progress contributes to the development of many areas, so ERP systems must meet the dynamically growing needs of the business.

The integration of blockchain into enterprise resource planning solves a number of problems and automates business processes, so the AVADA MEDIA team uses the potential of the new technology to develop secure and reliable blockchain solutions.

Blockchain is a type of distributed ledger technology that is decentralized and ensures the reliable execution of smart contracts. All transactions are stored in an immutable blockchain. There are several types of networks depending on access to data:

The public blockchain was initially actively used in the field of cryptocurrencies, but over time it has found application in other industries. Its main feature is that any market participant can view transaction history and create smart contracts.

This type of blockchain is being implemented by companies that want to ensure a high level of trust between users.

The private blockchain restricts access to data stored on the blockchain. To join, the user must receive an invitation approved by the creator or moderator of the network, as well as by the rest of the participants. A number of basic functions, in particular base coordination, execution and verification of transactions, are available to a limited number of people.

Private blockchain is suitable for companies looking to maintain confidentiality in their work.

A public (or inclusive) blockchain allows users to create blocks on their own and does not impose restrictions on the identity of transaction processors, and an exclusive blockchain allows only a limited number of individuals with established identities to process data.

The introduction of blockchain technology in ERP allows you to efficiently extract data from corporate systems and strictly control their use. This is especially important for sharing, where information can be shared by partner companies.

ERP ensures the smooth operation of the enterprise and regularly processes large amounts of data. The integration of blockchain into the system helps companies to significantly improve the quality of work and rethink the approach to management processes.

The technology has several important advantages:

• Increases security

Blockchain will not replace ERP systems entirely, but will complement them, simplify the process of integration between parties and ensure reliability due to a high level of security.

How it works? The most important blockchain mechanism is the consensus algorithm. It participates in maintaining the integrity of the system, verifies that protocol rules are being followed, and ensures that all transactions occur in a trusted manner. In addition, thanks to the consensus algorithm, the network is almost impossible to hack.

• Improves transparency

Blockchain offers businesses a high level of transparency at all stages of delivery using distributed ledger technology.

Typically, supply chains are complex, segmented processes. In traditional ERP systems, this makes tracking items much more difficult. Blockchain allows companies to control processes in real time, and also completely eliminates the possibility of fraud or unauthorized access to data.

• Automates processes and payments using smart contracts

Smart contracts are computer algorithms that verify and enforce contractual terms in a blockchain environment without involving intermediaries

When they are concluded, the parties commit themselves through the blockchain network. The parties to the agreement do not have to worry about the accuracy of the fulfillment of the conditions, since if they are not satisfied, the contract will be canceled automatically. This mechanism facilitates safe and transparent transactions.

• Eliminates intermediaries

The technology makes it possible to do without intermediaries in business processes. This principle is implemented using consensus building protocols in a decentralized environment.

The blockchain does not have a single central authority, so all users are involved in verifying transactions. Participants interact with each other through a peer-to-peer network, without the participation of a third party, which automatically eliminates the need for payment gateways and large companies that would control the reliability of transactions.

• Creates sustainable supply chains

One unforeseen event can cause many supply chain disruptions. Since the blockchain uses smart contracts that are automatically triggered when predefined business conditions are met, this makes all operations transparent, allows you to quickly notice and react to the problem in the event of an exception.

In addition to ERP, the AVADA MEDIA team is engaged in the implementation of blockchain in CRM to expand the functionality of the system, optimize marketing, increase ROI and create trust with customers.

Blockchain is one of the most promising technologies that can become the basic infrastructure for many companies. Technicians suggest that integrating blockchain into ERP systems will help businesses optimize their investments and costs.

AVADA MEDIA develops reliable ERP systems fully adapted to business needs. We offer fully functional, stable and convenient business automation systems with a large number of integrations.