Terms such as "blockchain" and "smart contracts" immediately conjure certain images – images of Bitcoin, Ethereum, cryptocurrency, or, more recently, Non-Fungible Tokens (NFT’s). But this is a disservice to these innovative pieces of digital technology. Blockchain tech goes beyond this, and it is proving to be revolutionary in the field of IT infrastructure leasing and asset management as it helps organisations to manage and maintain these assets with more efficiency and effectiveness than ever.
Read on to discover more about how blockchain applications and smart contracts are shaping the future of asset management and changing the landscape for the better.
One of the key advantages of the blockchain is its immutability – it cannot be changed, altered, or manipulated. This attribute makes the technology highly suitable for asset management, as it achieves a reliable reference point for any transactions related to the asset. The purchase of the asset, its upkeep and maintenance, any add-ons or upgrades, ongoing asset finance costs – all of these actions result in transactions that must be audited for tax and administrative purposes. The blockchain provides an auditable record, which is shared across nodes within the distributed ledger to ensure consensus.
Automating Compliance with Smart Contracts
Smart contracts are an interesting development in blockchain technology, and they can be applied directly to asset and IT infrastructure management. A smart contract is a digital tool that automatically executes a transaction once pre-defined conditions are met. For example, payment is delivered once ownership rights have been transferred, or finance costs are released once a scheduled date is reached. These smart contracts provide a secure and reliable means of managing assets on an ongoing basis, relieving some of the strain placed on admin teams.
Data Security and Integrity
All businesses and organisations – across all fields – handle sensitive data as part of their regular operations. Different industries have different regulations regarding this data, but all organisations must adopt a robust approach to protection, security, and privacy. High levels of security are inherent to blockchain technology, helping organisations meet evolving standards for data protection. At the same time, the immutability of the blockchain mentioned above means that data stores cannot be manipulated or altered.
Enhanced Collaboration and Efficiency
At first glance, the distributed ledger system utilised by blockchain technology appears to be less efficient than a single centralised database. However, rapid communication between nodes on the blockchain network eliminates this issue, helping organisations to achieve enhanced operational efficiency when they manage their assets. Remote teams can collaborate in real time on asset management tasks, ensuring all processes are carried out without delay. As blockchain technology grows more sophisticated, this operational efficiency will increase further.
Leasing IT Infrastructure with Grenke
As equipment leasing and finance models become increasingly viable, organisations of all kinds are turning to asset finance as a way to develop their IT infrastructure. Grenke represents the perfect choice for organisations seeking to get more from their IT infrastructure while adhering to a strict budget.
Talk to GRENKE today!
As one of the leading financial service providers in the Irish market, GRENKE’s slogan is ‘Fast, Forward, Finance’. GRENKE offers entrepreneurs fast and flexible financial solutions through a range of leasing services. We match the perfect financial solution to your unique business needs, from small businesses to large enterprises.
Over the last 40 years, GRENKE has provided leasing to numerous styles of businesses and organisations; sole traders, partnerships, public and private limited companies, associations and organisations, medical, health, and educational providers, public hospitals, semi-state institutions, Government bodies and so much more.
Our expertise and strong market position are no coincidence. If you are a business owner looking for financial solutions in Ireland or advice on fast and flexible financing, talk to a GRENKE Account Manager today.