The rise of cryptocurrency and blockchain over the past decade has been nothing short of astounding. Bitcoin, the first cryptocurrency, was created in 2009, and since then, a whole new ecosystem of digital currencies has emerged, with thousands of different cryptocurrencies in circulation in the modern day.

While cryptocurrencies and blockchain have their fair share of sceptics, they have also attracted a large and growing community of supporters and investors who believe in their potential to transform whole industries. So how could facilities management benefit from blockchain technology?

Firstly, what is Cryptocurrency? Supposedly created by Satoshi Nakamoto, cryptocurrency is a digital currency that uses cryptography to process secure transactions whilst also controlling the creation of new units. Some of the most popular cryptocurrencies include Bitcoin, Ethereum, and Litecoin, but there are thousands of other cryptocurrencies in existence.

Unlike standard currency, Cryptocurrencies are decentralised, meaning they operate independently. Whereas something like the Great British Pound is issued by the Bank of England, cryptocurrency isn’t issued by one organisation. Cryptocurrencies are typically created through a process called mining, which involves solving complex mathematical problems using computer power. Some crypto mining farms are huge, taking up warehouses full of computers, constantly grinding to mine cryptocurrency.

At the heart of cryptocurrency is blockchain. A blockchain is a decentralised ledger that is used to record all transactions and store them across a network of computers. Blockchain technology is used to track of every transaction made using a cryptocurrency, with each block in the chain containing a record of all the previous blocks.

There are multiples ways in which facilities management could benefit from embracing blockchain technology. Blockchain could provide a more secure and transparent way or recording transactions. Through this improved transactional security, we could see improved accountability and increased efficiency with a streamlined process of verifying transactions.

Whilst on the topic of security, it could also aid in the handling of sensitive or confidential information, such as financial data. Blockchain could provide a more secure way to store and share sensitive information, which would help protect against data breaches and other security threats.

Blockchain technology could also help track the movement of assets through the supply chain. By providing facilities managers with real-time visibility into inventory levels, blockchain could help prevent loss or theft. Furthermore, blockchain could provide further opportunities for collaboration by providing a shared platform that all relevant parties could access and update as needed.

However, blockchain is still a relatively new technology that hasn’t been fully fledged out. There could be some potential risks and drawbacks to using blockchain in other industries.

While blockchain is designed to be secure, there is always the threat of cyber-attacks and hackers, as with any technology. This highlights the need for ongoing development and innovation to keep blockchain systems secure. Further to this, as blockchain systems increase in popularity and more people are using them, the volume of traffic being processed also increases, meaning it could become slower and less efficient.

Cryptocurrencies and blockchain are still largely unregulated in many countries, which creates uncertainty around how they would integrate and how they will be treated by others. While blockchain may have some hurdles to overcome, it holds the potential to transform a wide range of industries.

As with any new technology, it’s important to approach it with caution, but we are keen to see how it develops, which industries adopt it and the opportunities it presents.

Blockchain has huge potential and could really improve the industry. Through increased security, increased collaboration and supply-chain tracking, we could see improvements across the board. These streamlined and improved processes could save time and money for many businesses in facilities management.

Using a different technology, Okappy is also designed to aide collaboration both within and between companies. Our aim is to bring your team and external stakeholders closer together, saving you time and money where it matters most. You can also build your own network on Okappy, finding new contractors and clients to work with. Get in touch with the Okappy team today to hear our thoughts on blockchain, cryptocurrency or to discuss how our field service management platform can streamline your business processes.