Post by Admin on Jan 20, 2018 22:57:26 GMT
Blockchain Technology Explained – Is the one stop to learn everything about Blockchain Technology & how cryptocurrencies work. Blockchain Technology is the future of currencies &the core of all cryptocoins. Have Blockchain Technology Explained in full.
Blockchain Technology receives a lot of attention, but what is it exactly?
Blockchain Technology Explained - How can it be used in Supply Chain Finance? What can you win for Corporate?
And what is the impact on costs? Orchard Finance Consultants is convinced that Blockchain technology has a significant effect on Supply Chains, whether it is commodity trading, the production of cars or publishing books.
In the current way of doing business, each party buys goods in the Supply Chain, adds value and sells these goods to the next party in the Supply Chain. This requires financing from the inventory and the need for third parties to finance a transaction or at least process. In contrast to this traditional way of doing business, parties can work smarter and, as a result, significantly reduce costs. Blockchain Technology Explained
- Payments in a Supply Chain can be initiated by a certain predefined action, which can occur at a random chosen moment. In this article we first explain the Blockchain and then we go into how it works impact on the financing of Supply Chains.
Blockchain explained
Blockchain technology makes it possible for two parties to execute a transaction on one safe and trusted way, without the intervention of a central authority or third party acting as a mediator. In other words, technology is available that allows you to immediately trade with any counterparty anywhere in the world, in a safe, fast and cost-efficient manner.
In practice it works like this: both parties who want to do a transaction have access to one online account. The buyer can use his account to show that he has enough means for the goods to pay and can also indicate under which condition he wants to buy the goods. Blockchain Technology Explained - The seller can through his account see that the buyer has the means, and the conditions to which he must comply.
Once these conditions are met, the payment will be automatic and unconditional. At that time, the money from the buyer's account will be debited and added to the seller credited.
His method of conditional action (the seller meets conditions, the buyer pays) becomes also called Smart Contracts. Certain conditions can be automatically fulfilled, for example, the location of goods can be determined via GPS. If the goods are on the place of destination, this condition is automatically met. Other conditions, such as quality of goods, will still have to be assessed by a person. If so, one such condition can be accepted manually via the account.
Blockchain Technology is already being used on a large scale, is the best known application of this the Bitcoin. This is a so-called cryptocurrency, a digital currency that is used as one alternative money system, in addition to the 'ordinary' currency, such as EUR or USD.
The attractiveness of Bitcoin is that there are extremely low processing costs, because no intermediary is needed to handle the transaction to process. Bitcoin has a proven track record, but there are also other areas where the Blockchain Technology can be useful for: it can be used for example to provide notarial services to offer. In addition, 11 major international banks have recently announced that they are one trading system, based on Blockchain technology, will test.
Blockchain applied to Supply Chain Finance
Okay, so now we know what Blockchain is, how can this be applied to Supply Chain Finance?
Blockchain Technology Explained - It is important to understand that Supply Chains are complex in nature; different parties are there concerned; from supplier of raw products, producer, and distributor and all the way to one consumer. In general, the parties in a Supply Chain are located in various countries.
Every party in the chain ensures the financing of its own working capital and the inventory. Supply Chain Finance is a collective name for a wide range of financial instruments, which are used for the financing of the various parties in a Supply Chain. In practice, it is the most used instrument Letter of Credit (LCs). Blockchain Technology Explained - This is a laborious process, expensive (costs vary about 2-4% on annual basis), error-prone and a financial intermediary (banks) is always required to complete the transaction process. The great advantage of the LC is that the payment is safe and guaranteed (by the banks).
Blockchain Technology Explained: BlockChain Technology Explained
Below you can see how an LC works when a buyer (Applicant) and seller (Beneficiary) act.
Blockchain Technology Explained: blockchaintechnologyexplained.yolasite.com/
Blockchain Technology receives a lot of attention, but what is it exactly?
Blockchain Technology Explained - How can it be used in Supply Chain Finance? What can you win for Corporate?
And what is the impact on costs? Orchard Finance Consultants is convinced that Blockchain technology has a significant effect on Supply Chains, whether it is commodity trading, the production of cars or publishing books.
In the current way of doing business, each party buys goods in the Supply Chain, adds value and sells these goods to the next party in the Supply Chain. This requires financing from the inventory and the need for third parties to finance a transaction or at least process. In contrast to this traditional way of doing business, parties can work smarter and, as a result, significantly reduce costs. Blockchain Technology Explained
- Payments in a Supply Chain can be initiated by a certain predefined action, which can occur at a random chosen moment. In this article we first explain the Blockchain and then we go into how it works impact on the financing of Supply Chains.
Blockchain explained
Blockchain technology makes it possible for two parties to execute a transaction on one safe and trusted way, without the intervention of a central authority or third party acting as a mediator. In other words, technology is available that allows you to immediately trade with any counterparty anywhere in the world, in a safe, fast and cost-efficient manner.
In practice it works like this: both parties who want to do a transaction have access to one online account. The buyer can use his account to show that he has enough means for the goods to pay and can also indicate under which condition he wants to buy the goods. Blockchain Technology Explained - The seller can through his account see that the buyer has the means, and the conditions to which he must comply.
Once these conditions are met, the payment will be automatic and unconditional. At that time, the money from the buyer's account will be debited and added to the seller credited.
His method of conditional action (the seller meets conditions, the buyer pays) becomes also called Smart Contracts. Certain conditions can be automatically fulfilled, for example, the location of goods can be determined via GPS. If the goods are on the place of destination, this condition is automatically met. Other conditions, such as quality of goods, will still have to be assessed by a person. If so, one such condition can be accepted manually via the account.
Blockchain Technology is already being used on a large scale, is the best known application of this the Bitcoin. This is a so-called cryptocurrency, a digital currency that is used as one alternative money system, in addition to the 'ordinary' currency, such as EUR or USD.
The attractiveness of Bitcoin is that there are extremely low processing costs, because no intermediary is needed to handle the transaction to process. Bitcoin has a proven track record, but there are also other areas where the Blockchain Technology can be useful for: it can be used for example to provide notarial services to offer. In addition, 11 major international banks have recently announced that they are one trading system, based on Blockchain technology, will test.
Blockchain applied to Supply Chain Finance
Okay, so now we know what Blockchain is, how can this be applied to Supply Chain Finance?
Blockchain Technology Explained - It is important to understand that Supply Chains are complex in nature; different parties are there concerned; from supplier of raw products, producer, and distributor and all the way to one consumer. In general, the parties in a Supply Chain are located in various countries.
Every party in the chain ensures the financing of its own working capital and the inventory. Supply Chain Finance is a collective name for a wide range of financial instruments, which are used for the financing of the various parties in a Supply Chain. In practice, it is the most used instrument Letter of Credit (LCs). Blockchain Technology Explained - This is a laborious process, expensive (costs vary about 2-4% on annual basis), error-prone and a financial intermediary (banks) is always required to complete the transaction process. The great advantage of the LC is that the payment is safe and guaranteed (by the banks).
Blockchain Technology Explained: BlockChain Technology Explained
Below you can see how an LC works when a buyer (Applicant) and seller (Beneficiary) act.
Blockchain Technology Explained: blockchaintechnologyexplained.yolasite.com/