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How Blockchain Technology Can Transform Project Management

Every year, the profit of blockchain technology is growing at a tremendous speed. It is due to the increased interest in cryptocurrencies and the fact that it has begun to be widely used in many other industries. Blockchain project management can completely transform this industry and create more favorable conditions for cooperation between the customer and the contractor.

What is blockchain technology?

Although the blockchain was initially developed for cryptocurrencies, people who have appreciated all its benefits tend to use it in many other industries. Project management is no exception.

So what exactly is blockchain technology? It is a special kind of database that can work in a decentralized manner, and all the information here is unchanged. Thus, any data is as truthful as possible. It increases the level of trust between partners.

In addition, blockchain technology represents an almost perfect security system. Hackers need to try hard to break the code; very few people succeed. It is because it is difficult to find information if it is stored decentralized. You must first identify which node is stored.

The blockchain can be used not only for storing information but also for conducting transactions, using cryptocurrencies and fiat ones. It will allow you to make financial transfers without intermediaries and commissions, incredibly convenient for international transactions.

What blockchain tools will be helpful for project management

Blockchain project management integration has many advantages. Let's take a closer look at them.

Cloud storage

Many companies are faced with processing and storing a large amount of information. Even if the project was handed over long ago, its data might still be needed: if the client finds some errors or order appears that is as similar to the previous one as possible. Storing such data requires a lot of power; in this case, cloud storage comes to the rescue.

Blockchain can minimize human error and also protect the data of attackers.

Today there are several types of blockchain; some make information completely public, while others allow it to be completely hidden from view. The hybrid type of blockchain will be most suitable for project management since the owners of the information will decide for themself which one will be made publicly available to increase trust with partners and which will be available only to the team.

Cloud storage will allow you to access all the team; you no longer need to send all the data that the customer has provided to different departments. You need to upload it to the cloud, and it will be available to almost all office workers. Such a proposal can speed up communication between departments.

Private and public keys

Private and public keys are some of the main elements of the blockchain. The first is often used as an electronic signature and starts the work of the prescribed algorithms. Public keys are publicly available, and anyone who wants to use them will get data.

With the system's help, the company owners will be able to delegate some of their duties to subordinates. You can give access to private keys to specialists you trust; they will decide which system will work. All other team members and partners will be able to receive public keys. It will help you find the most beneficial terms of project management.

Another advantage of the platform is that all data is updated in real-time. It allows you to receive the most truthful and up-to-date information on the work of most of the company's departments.

The technology will allow maximum control over all departments' work and improve reporting, which means that the work efficiency of each employee will increase. Practice shows that companies that use this technology have 70% better efficiency.

Improving customer contact

Most clients want to know how projects are progressing to be sure they will be ready on time. Blockchain management will increase customer confidence. The company can publish which processes have already been completed and which are planned for the near future.

For example, you want to develop a digital work of art (NFT), and you agreed with the development company that you will split the entire cost of the project into several parts. So, with this technology you will be sure that the work on the order is being actively carried out, so you will not doubt the conscientiousness of the contractor.

Smart contracts

A smart contract is a unique software that allows you to control all agreements. The specialist prescribes all the conditions that must be met, and computer technology monitors their implementation. If at least one of the conditions is not met, the transaction is canceled. It is now one of the most potent defenses against intruders.

Such smart contracts can be signed for each client. It is incredibly convenient if hourly wages are used. The system will control how much time the specialist spent on the development of the project, provide reports, and, based on the results obtained, will send an invoice to the client. So, the clients will be sure that they are not overpaying.

At the same time, the company will know that the client will pay for the project. Practice shows that even a legal contract is not a guarantee of payment. Sometimes the parties have to sort things out in court, which takes time, effort, and money. A smart contract can ultimately minimize such processes because your company's money will be automatically transferred as soon as the project is handed over from the client's account.

So, smart contracts can perform the following functions:

  • Registration and approval of project status reports;
  • Checking the control points of the project;
  • Automatic payments to subcontractors based on conditions;
  • Internal reward systems.

Smart contracts work without human intervention, so you can be sure that errors due to this factor are excluded, you can reduce the time for performing many operations. It is often a handy feature. But, it also has certain disadvantages. In many ways, they are because the processes on this platform are irreversible; as a result, some clients do not want to use them. Suddenly, the development of the work will not satisfy them, and the money will be written off automatically. To prevent this from happening, you need to think over the smart contract very well and make sure it works correctly.

Project Management Information System (PMIS)

PMIS is a unique blockchain-based system. Staff do not need to understand how technology works for working with it. Usually, it is in applications or other software, making it possible to get things up and running as quickly and efficiently as possible.

No more organizing management meetings or gathering specialist meetings. You can upload all the information into a particular application and attach as many specialists as necessary here. Each of them will give an idea for the implementation of the project.

Advantages and disadvantages of blockchain for project management

It doesn't matter what kind of orders you offer to your clients, and blockchain projects have several advantages and disadvantages. Let's start with the benefits:

  • Increasing trust between the client and the contractor;
  • Automates part of the work;
  • Completely changes the approach to business development;
  • Improving the efficiency of different departments of the company;
  • Give the ability to make transactions using cryptocurrencies;
  • Give the ability to use smart contracts;
  • Improved data security.

All of the above advantages will help simplify the entire company's work as much as possible and bring it to a fundamentally new level. However, this technology also has several disadvantages:

  • The software is difficult to understand;
  • The slightest mistake in the code can nullify all the advantages of the system;
  • Blockchain is difficult to install and requires large capacities, and such equipment is quite expensive;
  • It takes a lot of time to set up equipment and train personnel.

So, suppose you find good professionals who can develop unique software for your needs that will work well and invest heavily in purchasing new equipment and staff training. In that case, you can expect that the blockchain will bring a lot of usefulness to your company.

Conclusion

Blockchain is now widely used in various industries, and project management is no exception. Today, with its help, you can optimize your work processes and achieve great success in establishing work with clients. It becomes much easier to build a successful business in a big city.