March 26, 2020 2 Comments
How Blockchain Technology Can Transform Project Management
How well do you manage your projects? Yes! nowadays project management software has replaced all the traditional ways of managing the project. Entrepreneurs are looking to integrate advanced technologies like blockchain technology in project management to manage their projects with their confidential data.
You may wonder how blockchain technology can transform project management. Though blockchain technology came into prominence with the development of cryptocurrencies, it’s rigid features diverted its applications in different industry sectors. It has revolutionized project management in recent years.
Let us look into this article about how blockchain technology can transform project management.
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Before looking into the applications of blockchain technology in project management. Let us look into the properties of blockchain technology.
Properties Of Blockchain Technology
The growth of blockchain technology was off the charts. The estimated value of the blockchain market would go beyond 2.5 billion dollars by 2022. Not only in crypto coin trading, but researchers are also widening the applications of blockchain technology in many different industrial sectors.
Certain properties like transparent, affordable, decentralized, and secure with cryptography techniques made blockchain technology to trade the crypto coins safely in the records of blockchain. However, it is not confined to crypto trading.
Many entrepreneurs implemented blockchain technology in project management to accomplish their project activities like sharing information, sending reports, storing confidential data, maintaining backup data, task completion, etc.
One of the main properties of blockchain technology i.e. decentralized technology enables the blockchain to excel in all the domains. Since there is no intermediary authority, it is transparent in all its operations. This had made the platform to be more collaborative among the resources of the project.
Let us look about how it transformed in the area of project management
Decentralized Mechanism In Project management
As we have already discussed, decentralized technology will help to improve project collaboration. Since all the project related activities get recorded with blockchain, all the users will be able to view all the progress of the task. So it enhances transparency and project managers can easily monitor the work progress with blockchain in project management.
For example, if a task has to be assigned from one team to another, say, if the marketing team finishes their part and registers in blockchain as the task is completed, it will be assigned to the sales team and they will be accountable for the concerned task.
Data Protection With Blockchain
Data protection is very important in any project management. The data will be stored in an immutable record of the blockchain where data cannot be altered by any single, it will be verified by all the participants of the blockchain.
This helps mainly in managing the external stakeholders. For example, if the stakeholder delays in delivering any data, the same can be verified by all the team members participating in the project so that it can be identified that it is delayed from the stakeholder’s end.
Blockchain-Based Cloud Computing
Decentralized cloud computing is emerging and these types of cloud solutions decreases the human error or any data loss. Since it is decentralized it overcomes traditional cloud computing services. Here the data transferred is always documented and can be viewed by all the team members to monitor the work progress.
Smart Contract For Effective Project Management
A smart contract is a digital contract and it is executed automatically based on the predefined conditions recorded in the blockchain. There is no need for any third party or human intervention to execute this contract between any two parties.
The predefined conditions or terms are designed by smart contract programming language. Blockchain-based smart contracts will help to enhance the efficiency of all the processes involved in project management.Monitoring The Milestones Of The Project
Depending on certain performance metrics, you can measure the performance of the team members. This enables us to easily manage the bonuses or appraisals to be provided to the team resources.Finalizing The Status Reports
When certain objectives of the report are met, the smart contracts are executed to approve the status report automatically. This enables the auto submission of the project reports.Automatic payout system to vendors
When the task is completed based on certain terms and conditions, the payment is automatically released based on the smart contract. This helps to maintain a good relationship with the project vendors or subcontractors.
Private & Public Keys
The two important terms in blockchain technology are private and public keys. These keys play a vital role in blockchain-based project management software. It eliminates the intervention of a manager to handle the project.
When the user makes any transaction in the blockchain, the private key is used to produce the digital signature and the same is used to verify the blockchain transaction. The public key is generated by the mathematical representation of the private key. The public key is visible to all the users like the address of the transaction.
Learn about the Digital Identity Management with Blockchain Technology
When the manager makes a transaction like assigning roles and permissions to the team members, the private key will be assigned to them. The public key will be used as the address for the team members to look after the roles assigned by the managers.
Secure, Quick, & Affordable
Blockchain records the data 24/7 and the data access is very quick and simple to process. This is the major part of handling any project. No centralized authority for governing any transaction hence it eliminates the cost of third party intervention.
It is fully secured by using the private and public keys with full cryptography techniques like encryption and decryption.