05 Jun Blockchain or EDI?
EDI and blockchain share some important characteristics:
- Both technologies can incorporate multiple trading partners. For example, one company can have many vendors and many customers depending on whether the transactions represent the revenue or the expenditure cycle.
- Both technologies enable the communication of transaction details.
- Companies can send and receive any type of documentation.
- Trading partners’ information systems don’t need to be compatible. EDI applications convert forms in various formats to a standard format before sending/receiving documents. Transaction hashes are sent/received; hence, the trading partner information systems don’t need to be compatible if using blockchain.
- Companies can limit and control access and portions of data that’s accessible to their trading partners.
- Both technologies enable an audit trail and maintain a detailed history of records centered on the entity.
- Adequate preventive controls need to be implemented and enforced. These include data-edit integrity controls, access controls, and general controls such as source document preparation, management policies, and user responsibilities.