With technology evolving so rapidly and many new asset types entering IT environments everywhere, the focus on Asset ID tools, technology, and best practices has never been greater. One such technology is blockchain: the decentralized digital ledger technology that operates on a peer-to-peer network to ensure privacy and secure data. Each block contains a cryptographic hash of the previous block, so all blocks are linked together in a secure manner. Also, each node (or participant) in the network holds a copy of the entire ledger, which they access with a unique cryptographic key to prevent unauthorized access or manipulation of transactions once recorded on the blockchain.

This offers many benefits that can facilitate many of the tasks and functions or areas of focus for the IT Asset Manager. First, blockchain provides a tamper-proof and indefinite record of all transactions related to all IT assets in the environment. Once an asset’s data is recorded, it can’t be changed or deleted without the consensus of each node on the network. This gives us a complete asset history or even a backup with which to compare discovery, invoice, or repository data. You can’t manage what you don’t know you have! The immutable record keeping blockchain provides ensures you always have full and accurate visibility since all transactions are secure and all stakeholders have access to the information about asset status and history.

The chronologically structured record-keeping also simplifies the audit process by enabling the tracking of acquisitions, upgrades, renewals, and access to assets over time. Blockchain can be used to verify the authenticity of hardware assets and software licenses and that asset use complies with laws, regulations, and contractual terms and conditions in real time. And speaking of contracts, some blockchain networks support smart contracts, which self-execute with terms of the agreement written directly into code allowing for automated transactions and processes like provisioning, or license management based on predefined conditions. Of course, where applicable, the automation of repeated tasks and functions reduces manual intervention and errors, typically reducing IT spending over time.

Since each transaction is securely encrypted, the chances of unauthorized access or to or manipulation of IT asset data is greatly reduced, which is critical for organizations of every size and industry, especially in IT environments where sensitive data and assets are managed. Blockchain gives us full visibility over every step of the lifecycle of each IT asset in the environment, from before the cradle to after the grave. This comprehensive transparency facilitates asset optimization and resource allocation, refresh and upgrade planning, compliance due diligence, cost optimization, and many other tasks that prove the value of IT Asset Management to our executives and stakeholders every day.

In addition to these more traditional benefits, blockchain can be combined with Internet of Things (IoT) and Artificial Intelligence (AI) to enable automatic tracking and monitoring of hardware assets. Sensors can record asset usage data directly on the blockchain, providing real-time asset data that AI can then further break down and analyze to detail location and status of assets. For more on how these technologies can work together to enhance your ITAM Program, stay tuned for my next blog!