Blockchain Project Management
Background and Overview
While blockchains are most associated with Bitcoin, more companies are looking at the project management capabilities that this type of management offers. What’s interesting is that banks, such as the Russian-owned VEB bank, are looking into blockchain project management in how they run their financial services to their customers.
When Bitcoin was introduced in 2009, it was demonstrated that the cryptocurrency used a blockchain management system that allows for a decentralized system while still controlling the spread of information. However, traditional blockchain procedures as developed by Bitcoin for example will actually disrupt the flow of information that most companies have spent years building up.
What is Blockchain in Project Management?
A block chain consists of several points in which people involved in the project can communicate with others. All communication along with transactions are recorded for full transparency. In addition, budgetary matters can be better handled as all purchases or transfers are seen by the participants. For the project manager, it creates a system that allows for input, but also oversight that is more efficient compared to traditional project management systems.
How Blockchain Changes Project Management?
At first, it may seem like this system of management is quite similar to other means of running projects. The necessary people are assigned, the project is given pre-set goals, and all the external factors are handled in the same general manner. The various points of entry mean that the project management itself is not a top-down procedure, but rather one that pulls involvement from all parties with full transparency.
The difference is that all communication is flows through the input of the assigned staff and no one else. This means that with everything going through so few people and all communications are secured, the efficiency of the blockchain project management is increased. That may seem counter-intuitive at first, but the limitations imposed by this form of project management provide substantial benefits.
Benefits of Blockchain in Project Management
The first benefit derived from blockchain project management is security. Because of how information is spread through the system, the data transfer is safe because of the difficulty that outsiders have of breaking into the management process. This includes cloud storage systems that will be far more robust and secure than earlier versions.
1. Reduces Risks
Because the project manager is directly involved, it helps to reduce risk, correct mistakes, and keep projects focused.
Because those involved must transmit through the blockchain system, it limits the conversation to only matters that apply to the project itself.
3. Project Manager
By using blockchain technology, the project manager can keep things on track. They will have access to all information and can adjust accordingly when things change. The blockchain itself can handle all transactions to make them more efficient.
Effective blockchain project management offers a new way for businesses to get important projects done on time, with greater efficiency, and less cost compared to traditional management practices. However, it does take time to transform to a blockchain system which will have issues before it is fully in place. The online project management courses covered during the diploma in project management explain the blockchain project management in more details.
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