Luis Mateos, blockchain expert at PA Consulting, explains the benefits of blockchain and challenges integrating the technology in Mexico.
Blockchain is a data storage technology that is turning heads among Mexican businesses. Many are seeking more information on how to incorporate blockchain systems, as well as learning from success stories in the market that reveal the benefits of this new concept.
Luis highlighted the benefits of blockchain in supply chains thanks to its distributed records of every transaction that takes place between every stakeholder. Unlike centralised banking, blockchain holds all analyses and accounts from all its clients, including both natural and legal persons.
Luis explained that everyone in the network can check on every transaction, which helps oversee supply and ensures transparency, since blockchain tracks down every transaction from raw materials to finished goods. “For instance, if there were a specific lot of defective screws, you’d be able to identify in which line of vehicles they were installed, easily replacing the pieces before the product hits the market.”
Regarding security, blockchain is also very efficient since third parties can't alter the information of data recorded for any transaction. This is helping build trust in the technology.
The challenges of integrating blockchain technology in Mexico have had to do with rule-setting, general agreement and data privacy.
Luis adds: “When dealing with total transparency, you have to make sure to leave room for privacy in every transaction by encrypting the account information of the client that is making a transaction. Also, it’s paramount having dedicated professionals in businesses who can provide ongoing maintenance for the software that supports the blockchain’s platform.”
A global movement towards increased data privacy is changing the way companies do business. Are you ready for the new era of data privacy?