THIS POST IS CONTINUED FROM PART 2 , BELOW---
It’s in everyone’s interest to speed the time between transaction and payment. Blockchain will drive settlement time down to T-1 or even T-0
Blockchain can help eliminate the need for inter-bank netting agreements, as “promises to pay” can be replaced with actual payments.
T+1, T+2 and T+3, as well as other "T+" numbers, refers to the number of days it takes to settle a financial transaction. occurs the same business day the trade occurs (this is called "T+0")
Whenever you buy or sell a stock, bond, or mutual fund, there are two important dates of which you should always be aware: the transaction date and the settlement date.
The abbreviations T+1, T+2, and T+3 refer to the settlement dates of security transactions which occur on a transaction date plus one day, plus two days, and plus three days, respectively. 'T' is the transaction date.
Some years ago, the settlement date for stocks was T+5, or five business days after the transaction date. Today it's T+3 i.e. three business days after the transaction date.
Prior to the mass adoption of smart contracts, their legal status needs to be assessed in order to choose the appropriate smart contract model suitable for a particular jurisdiction.
To put it simply, code is not law, but smart contracts created on a platform enabling the execution of said contracts and dispute resolution may be one.
IN FUTURE LAWYERS MUST BE BLOCKCHAIN , SMART CONTRACT SAVVY
SUCH LAWYERS WILL BE HIGHLY PAID
SUCH LAWYERS CANNOT BE THE BOTTOM FUCKIN' DREGS OF THE SCHOOL CEREBRAL BARREL.
OUR IITs MUST NOW HAVE A ELITE COMPUTER SCIENCE DEPT FOR "SMART CONTRACT PROGRAMMERS " . THE INDIAN BRAIN IS BEST SUITED FOR THIS JOB.
OUR IITs MUST NOW HAVE A ELITE COMPUTER SCIENCE DEPT FOR "SMART CONTRACT PROGRAMMERS " . THE INDIAN BRAIN IS BEST SUITED FOR THIS JOB.
Before jumping off the deep end-- make sure there are NO sharkULUs! ( or is it sharkUDUs?) !
Blockchain Business Conference, was organised by Fintech Valley Vizag from 9th – 10th October 2017 in Vizag
Indeed the Blockchain revolution has just begun. . An important part of this process is an exchange of ideas between the bright minds. Since the concept of Blockchain came into light, everybody is trying to find its use in different industries.
Some countries are more inclined towards working to implement it in Banking, some in supply-chain and so on. We all can learn from each other’s approach.
In India we have a crying need to speed up the Judicial system ( run by bottom dregs of the school cerebral barrel ) and to map real estate .
We had commies and church grabbing all lands in India
Read all 8 parts below—
Blockchain is not exactly a silver bullet that will fix everything wrong with the internet. Nevertheless it is a powerful tool that will help cyber security experts in stemming the oncoming onslaught of cyber attacks. It will also be a tool which will help them leverage their systems to be prepared for any attack of this manner.
In blockchain, a digital key is needed for each user to execute exchanges or transactions, but generally speaking, if the key is lost, it becomes impossible to transfer monetary funds. One notable issue is that if a key is stolen, all of the funds in an account can be stolen
Hardware Security Module (HSM). are crypto-processors that securely generate, protect and store digital keys—cryptographic material that provide security and access to digitally-stored information.
HSM is a physical device that provides extra security for sensitive data. This type of device is used to provision cryptographic keys for critical functions such as encryption, decryption and authentication for the use of applications, identities and databases.
For example, businesses may use an HSM to secure trade secrets that have significant value by ensuring only authorized individuals can access the HSM to complete a cryptography key transaction.
A hardware security module (HSM) is a physical computing device that safeguards and manages digital keys for strong authentication and provides cryptoprocessing. These modules traditionally come in the form of a plug-in card or an external device that attaches directly to a computer or network server.
HSMs, are dedicated cryptographic devices that are securely and compliantly perform all the cryptographic operations on a network, including key management.
They are logically partitioned on a network in a way that prevents risk to virtual attacks, and they adhere to government regulated physical security standards that deter physical theft. Before large enterprise organizations begin to adopt blockchain technology, they will first need HSMs and key management solutions that are flexible and scalable enough to be integrated into a blockchain environment
While blockchain technology itself has proved tamper-resistant, cryptographic keys are essential to secure access to a distributed network and ensure transactions are valid.
These keys can become vulnerable and stolen via network breaches, as seen in the attacks on cryptocurrency exchanges in recent years.
Underpinning each blockchain is robust cryptography used to protect the data from fraud perpetrated by hackers.
As with any crypto-based infrastructure, protecting keys is paramount to ensuring a blockchain system’s security.
A successful blockchain system needs highly reliable methods of interfacing with the strong key protection practices afforded by HSMs, and these HSMs must deliver the scaling and flexibility a decentralized blockchain model needs.
Blockchain and distributed ledger technology (DLT) applications combine the message and the asset in a single token. Once an asset is embedded into a blockchain or distributed ledger, possessing the associated cryptographic keys is the only way to retrieve or move the asset. In other words, the key becomes the asset. (By contrast, in a traditional IT model, a key protects the database, which in turn protects the data or the asset.)
When the key and the asset are one and the same, anyone who obtains the key can monetize and exploit the asset instantly. As we’ve seen in security breaches in public blockchain settings,-- the malicious transfer of ‘value’ can be instantaneous, irreversible, and significant.
These attacks exploited vulnerabilities at the application layer—the wallets holding the keys to the assets—rather than the underlying blockchain protocol. So far, blockchain technology itself has proved tamper-resistant.
The ability to edit a distributed database broadens the technology’s applicability.
It allows data within a block to be edited or removed under strict protocols in permissioned systems, leaving a scar as evidence of the edit.
While the redaction capability broadens blockchain’s applicability, it also makes the protection of the keys that must come together to “unlock” and relock the chain mission-critical.
HSMs can be clustered for greater performance and availability, allowing encryption functions to scale without sacrificing security.
By relieving servers from performing processor-intensive calculations, HSMs increase operational efficiency.
Moving the cryptographic functions from software to dedicated hardware devices reduces the risk of processor errors.
The keys stored in the architecture cannot be extracted and used except under a highly controlled protocol, making it possible to keep track of who has access to keys.
To mount a successful attack, attackers either need to have administrative privileges, access to data before it is encrypted, or physical access to the HSM(s).
Attackers would need to possess a quorum of cards and their associated pass phrases in order to access the Control and Infrastructure keys.
It is better to have a HSM Rather than a software solution.
All keys are stored securely inside an HSM device. Once keys are created and stored in an HSM architecture, they are essentially impossible for nauthorized users to extract.
We must ensure that the data belonging to companies and government entities is both secure and trusted in any environment – on-premise, in the cloud, in data centers or big data environments – without sacrificing business agility
Security of a blockchain depends upon the security of its cryptographic keys. Every transaction executed through a blockchain process requires a new set of one-time keys. HSM generates and secures these critical keys. We must run security-critical code protected within the HSM boundary.
Integrating with existing systems, cryptographic key material management, and providing the required network quality of service connecting blockchain members are the greatest cyber-security concerns . Any organization applying blockchain technology to an existing process almost certainly has existing systems that chaincode/smart contracts will have to interact with.
It is never prudent to underestimate the ability of a hacker. One hacker or a small group of hackers can shut down an entire system, lure the unwary into cyber traps, steal millions worth in data and even topple down governments by leaking classified information online.
Blockchains alternative approach to storing and sharing information provides a way out of this security mess.
Most cryptocurrencies are backed up by public blockchains, which are widely available and accessible to anyone on the P2P network who wishes to participate in “mining” on the blockchain. While the wide availability contributes to mass collaboration and trust, it can also lead to questions about cryptographic integrity.
Many nodes on public blockchains store and generate keys from software-based programs servers and standard hard drives. This is a much less than desirable method of key storage that leaves encryption keys vulnerable to both physical and virtual theft. Encrypted data is only as secure as the keys used for the encryption. Once keys are compromised, so is the data.
There is a document encryption technology, which allows only relevant parties who hold multiple distributed keys to securely access the information recorded in the blockchain.. With document encryption technology, it is also possible to create a workflow where documents are acknowledged by collective decision making or between specified organizations, or where they can be restored when keys are lost.
There exists technology that can restrict transactions based on pre-established policies, such as restricting users to specific stores when executing transactions such as sending money. The technology provides a new framework that ties policies to keys used in activities such as capital transfers.
The technology ensures that initiated transactions which violate policy requirements are prohibited from getting added to the blockchain as a result of verification failures at multiple computers participating in the blockchain. This makes it possible to limit damage even if a key were to be stolen
Storing documents in blockchain can guarantee that the original state of the document will be preserved, but because the content is public to blockchain users, this method is not appropriate to store documents which contain confidential information.
By applying a secret sharing-based key management system to document encryption, where different portions of a key are held by multiple users ( Mr. A and Mr. B), and once a specified number of pieces have been gathered, a key can be generated.
There exists blockchain document encryption technology which can control who can read the contract documents, where the confidential portions of the contracts will not be visible to ordinary users (Mr. C), and enabling document anonymity control. It can only be read when the parties involved, who hold portions of the key, work together.
With transaction restriction technology, it is now possible to prevent the misuse or abuse of keys based on preset policies for secure blockchain operations. In addition, blockchain-based document encryption technology through secret sharing-based key management makes it possible to collaborate to find solutions to lost keys, or to create a workflow that requires acknowledgement from multiple managers when making collective decisions involving large transaction amounts
1. Protecting identities: Public Key Infrastructure (PKI) is a form of public key cryptography that secures emails, messaging apps, websites and other forms of communication. But PKI relies on third-party Certificate Authorities (CA) to issue, revoke and store key pieces of information. Information that can be duplicated by hackers who can spoof identities that can get them through an encrypted system.
2. Protecting data integrity: Blockchain replaces secrets with transparency, distributing evidence across many blockchain nodes making it practically impossible to manipulate data without being caught.
3. Protecting critical infrastructure: The massive ransomware attack of May 2017 is a painful reminder of easy it has become for hackers to hold an entire infrastructure hostage. A blockchain approach to storing DNS entries could, improve security by removing the single target that hackers can attack to compromise the entire system.
A transparent, distributed DNS where domain records are under their owners control will also make it virtually impossible for any single entity, including governments, to manipulate entries at their whim.
If the central banks involved in the Bangladesh bank heist had been using blockchain, the money might still have been stolen but it would be easier to trace and, therefore, recover.
The money stolen from the Bangladesh central bank went to banks. Even if commercial banks as well as central banks used a blockchain-based system, tracing payments would come to an abrupt end once the money was converted to physical cash.
Banknotes and coins are completely anonymous. The trail goes dry at the bank teller’s counter, and that is why hidden cams must be placed there
In the Bangladesh heist, SWIFT messages were used to authorize money transfers. Would the fraudulent messages have been easier to spot if SWIFT had been using blockchain?
The Bangladesh authorities argue that hackers gained access to the system without the knowledge or involvement of bank staff. But SWIFT has strict security protocols, including use of a physical key, long passwords and biometric access control.
International investigators believe it is more likely that the SWIFT messages were sent or authorized by someone inside the central bank.
But the SWIFT messages were not “obviously fraudulent.” They were correctly authenticated. The problem is not the SWIFT system itself, but the access to it.
Bangladesh bank heist, the problem was not that the payments processing service was insecure, but that access security was compromised.
SWIFT announced findings from the investigation on 13 May 2016. It was found that attackers first exploited vulnerabilities in the bank's funds transfer initiation environments.
This may not have been too challenging as the Bangladesh Bank were using "cheap security devices," and "their firewalls were not functioning at full capacity as they didn't have proper licences"
The attackers obtained valid operator credentials that have the authority to create, approve, and submit SWIFT messages from customers' back-offices or from their local interfaces to the SWIFT network.
Since this bypasses the primary risk controls that Bangladesh Bank had in place, the attackers then submitted fraudulent messages by impersonating the operators from whom they stole the credentials.
Finally, the attackers tampered with statements and confirmations that the bank used as a secondary control, to hide their criminal activities.
The Society for Worldwide Interbank Financial Telecommunication (SWIFT) provides a network that enables financial institutions worldwide to send and receive information about financial transactions in a secure, standardized and reliable environment..
The majority of international interbank messages use the SWIFT network. As of 2015, SWIFT linked more than 11,000 financial institutions in more than 200 countries and territories, who were exchanging an average of over 15 million messages per day..
SWIFT transports financial messages in a highly secure way but does not hold accounts for its members and does not perform any form of clearing or settlement.
SWIFT does not facilitate funds transfer: rather, it sends payment orders, which must be settled by correspondent accounts that the institutions have with each other.
Each financial institution, to exchange banking transactions, must have a banking relationship by either being a bank or affiliating itself with one (or more) so as to enjoy those particular business features.
The $81 million theft from the Bangladesh central bank via its account at the New York Federal Reserve Bank was traced to hacker penetration of SWIFT's Alliance Access software
SWIFT has dubbed its blockchain projects successful, according to a report published a couple of day ago regarding its proof-of-concept with the technology. Specifically, the test dealt with funds in Nostro accounts, and sought to determine whether moving that money over to a distributed ledger could allow those funds the freedom to be used in other investments.
The long-simmering rivalry between Swift and Ripple is nearing the boiling point. Ripple has openly criticized Swift several times.
Ripple is a peer-to-peer protocol for cross-border payments, with no central hub. SWIFT gpi is with a hyperledger protocol (a closed private blockchain), while Ripple with an interledger protocol (peer-to-peer with no central hub).
The blockchain-savvy newcomer Ripple offers a so-called Interledger Protocol for connecting payment networks and distributed ledgers that financial institutions can use to send and settle international payments among one another.
Potentially, this would allow them to bypass the traditional correspondent banking model in which a payment makes several hops across a network of banks that have direct relationships. It’s essentially an alternative to Swift, the incumbent and guardian of the correspondent banking model.
Swift has also said it will support blockchain technology for certain use cases. On Tuesday, it announced a blockchain proof-of-concept for nostro reconciliation, where banks hold foreign currency in accounts at other banks to facilitate foreign exchange and trade transactions.
Banks still have to conduct anti-money-laundering, know-your-customer, and Office of Foreign Asset Control checks on the Ripple platform SWIFT now claims that they have successfully tested transacting in real time use blockchain technology with 33 banks
SWIFT is slow, expensive and old-fashioned. Transactions via the SWIFT network certainly cannot happen in real-time. An international transaction may take days to settle and the fees are more than 10 percent of the total transaction costs. .
The recent surge in cyberattacks in Bangladesh, Vietnam and Ecuador have highlighted the vulnerabilities in cross-border transaction banking, and particularly in the SWIFT network
Ripple is looking to "capitalise" on the recent cyberattacks on the SWIFT network by introducing a multi-sign feature on its consensus ledger. This allows account holders to require signatures by more than one stakeholder to authorise their transactions.
With multi-sign, the user can require signatures from other users, devices, or institutions, making the life hard for malicious actors. Ripple is also planning to offer a similar multi-sign capability over its Interledger Protocol (ILP). The new features found in distributed fintech solutions, such as multi-signing, are not available in traditional systems like SWIFT.
Ripple’s GPSG may be the foundation of a completely modern payments network. It could become a serious future alternative for the present SWIFT network, being the only blockchain bankers’ network on a global scale with defined rules and governance ..
SWIFT, being member of the Hyperledger Project just like Ripple, is now also looking to this technology and its possible applications. SWIFT should completely replace its existing (though very old fashioned) system by a permissioned blockchain system. That would take a very long time and costs a lot of money.
Swift is the backbone of the banking industry worldwide. Built in the 1970s to replace telex machines with electronic transfers, Swift is a co-operatively funded network by the global banking system to let them send funds with confidence .
Banks trade something like $5 trillion a day in currencies alone, and most of that is handled by message exchanges to and from the Swift network. Swift right now doesn't have the capability to connect to various smart contracts on various chains.
Fraudulent wire transfers aren’t always the work of hackers.
The nature of today’s payment processing services can make it difficult to follow the movements of money. U.S.4 In some countries, secrecy rules prevent banks from revealing financial information about their customers to foreign regulators.
Lenders have struggled for years with outdated and disparate technology. Last year, identity theft and fraud cost consumers 17 billion USD. The threat of online fraud has spurred many credit card companies and financial institutions to alert consumers when potentially fraudulent transactions are made. However, that hasn’t stopped criminals from stealing identifying information and using it without permission.
Enter blockchain, promising “secure, tamper-proof digital records.” A blockchain is a complete and immutable record of asset transfers. When blockchain underpins a payments processing service, it’s possible to trace the entire sequence of wire transfers..
Again, Blockchain is a shared ledger that is decentralized and resistant to tampering. It allows verified contributors to store, view and share digital information in a security-rich environment, which helps to foster trust, accountability and transparency in business relationships. With blockchain, information can be shared in real time, and the ledger can only be updated when all parties agree.
This can reduce time, costs and opportunities to commit fraud
If identifying information is placed on a permissioned blockchain framework, authorized parties will have access to one version of the truth, and only known participants can verify transactions and ensure records are valid.
It’s very difficult to manipulate the blockchain, which is an immutable record that can only be updated and validated through consensus among network participants. And if a product is digitized on blockchain, it can easily be traced back to its origin because the information is on shared, distributed ledger.
If the central banks involved in the Bangladesh bank heist had been using blockchain, the money might still have been stolen but it would be easier to trace and, therefore, recover. Because blockchain documents all changes and is hard to tamper with, financial firms and regulators see it as a potential way to make transactions more transparent, auditable and secure.
SWIFT shares technical information about cyber attacks and other details on how hackers target banks on a private portal open to its members.
Banks and headhunters are trawling worldwide universities for talent and luring tech start-up executives with 50 percent pay rises and salaries of up to 200,000 USD.
While blockchain networks are built on the notion of decentralized control, the infrastructure can leave back doors open to vulnerabilities that allow tampering and unauthorized access. That is why it is so important for enterprises to use a blockchain designed for business, on the right infrastructure and with the right services.
Have you ever been the victim of identity theft? It is an ugly experience. Calling up credit card companies to change all your cards and dispute charges. Resetting passwords to all of your applications. Always worrying whether someone may call up your cell phone provider with your leaked information to commit a SIM porting hack, meaning they would have access to all of your text messages.
Our user names, passwords, and personal information are being stored on centralized corporate servers, many of which remain ripe for the picking, despite the attention on this class of problems over the last several years. Once your personally identifying information genie is loose, it's extraordinarily difficult to put it back in the bottle.
A key feature of blockchain is that it decentralizes system management and authorization to a network of computers. Those computers together verify transactions based on certain prespecified rules (controls) that have been embedded in the system.
To avoid a single point of failure, the transaction verification process is controlled by all the computers, rather than managed centrally. The computers jointly supervise system operation and prevent the information in the ledger from being tampered with.
Because of this feature, blockchain can effectively prevent one or several individuals in collusion from overriding controls, or illicitly changing or deleting official accounting records.
Moreover, as the embedded rules are automatically followed without much human intervention, it can enforce the operation of controls. By incorporating blockchain technology to their accounting information systems and cyber security strategy, companies could reduce cyber fraud risk by maintaining a clean, secure database and a strengthened control system.
Blockchain prevents accounting records or related electronic documents from being altered or deleted.
Because data recorded on the blockchain is difficult to alter and not under the control of a single party, use of the blockchain can aid in the preservation of records, evidence and institutional memory. For example, one can imagine a future in which lost policy disputes are unheard of.
Once an insurance policy is sold and is written to the blockchain, coverage could be verified in the future without relying on an insurance company to check its records. Insurance certificates also could become a thing of the past, along with litigation that arises out of the certificate issuance process.
Or imagine adding executable code to a blockchain-stored insurance policy that provides for automatic payment of claims when certain events take place.
Blockchain could be used to prevent and detect fraudulent transactions. Because blockchain keeps the record of an asset transfer, any type of misappropriation can be detected by tracing through the blockchain.
To combat financial reporting fraud, such as overstatement of revenues by means of channel stuffing or round-tripping, the transactional data in blockchain could provide valid evidence showing any potential irregularities involving revenue recognition
Mauritius had become the top source of FDI into India only due to ROUND TRIPPING.
Mauritius had been the source of more than 37% of all foreign direct investment inflows into India between 2000 and 2015.
ROUND TRIPPING is a phenomenon by which Indian individuals and companies avoid tax by sending funds abroad and then bringing them back on to home soil via Mauritius-based companies. Much of the investment into India via Mauritius over the last 15 years is believed to have been by CORRUPT Indian residents—all BIG FISH
Signed in 1983, the Double Taxation Avoidance treaty between the two countries made Mauritius, which taxes capital gains at near-zero rates, an attractive “post box address” for foreign investors to route investments into India Indians who evaded taxes set up shell companies in Mauritius, concealing identities and channeling cash or stock market investments through “round tripping” and “participatory notes”
The Securities and Exchange Board of India (Sebi) tightened the norms for participatory notes (P-notes) in order to check misuse of these instruments in round-tripping and money laundering.
A few months ago, India and Singapore signed a pact for amendment of the Double Taxation Avoidance Agreement (DTAA), in a bid to curb illegal hoarding of money and to prevent round-tripping of funds, misused for tax evasion. This was done for Mauritius and Cyprus earlier
Double Taxation Avoidance Agreement (DTAA) was a major reason for a large number of foreign portfolio investors (FPI) and foreign entities to route their investments in India through Mauritius. A DTAA applies in cases where a tax-payer resides in one country and earns income in another.
The DTAA, or Double Taxation Avoidance Agreement is a tax treaty signed between India and another country ( or any two/multiple countries) so that taxpayers can avoid paying double taxes on their income earned from the source country as well as the residence country.
Within a blockchain, transactions are chronologically recorded in a local, digital ledger.
The ledger doesn’t exist in just one place. Instead, copies exist with and are simultaneously updated with every fully participating entity in the ecosystem.
The most recent set of transactions is known as a block, and each block is hashed and linked with previous blocks. The distributed, interconnected nature of the blocks is what enables the data to form an immutable chain.
A block could represent transactions and data of many types — currency, digital rights, intellectual property, identity, or property titles, to name a few.
Blockchain technology is not only a safety measure, it’s a cost-saving, TIME saving and error-reducing opportunity.
Again, the blockchain database is not stored in one location, meaning that records are truly public and can be verified easily. With no centralised version of this information, a hacker can’t corrupt it.
Greater use of automation could improve the speed and quality of completing tasks such as auditing casework, and in the future could even help to address issues such as subjective bias in judicial decision-making. Since 1947, 80% of our judgements are wrong !
We had Rothschild’s JUSTICE IS BLIND system , which did not care for PERIMETER OF CONTEXT and NATURAL JUSTICE .
Like in the Aarushi Talwar case our judiciary does not have the cerebral wherewithal to glean CIRCUMSTANTIAL EVIDENCE . The pathetic judges rely on DIRECT EVIDENCE .
WHAT THE FUCK IS ALL THIS –READ THE POST BELOW— CHOOTIYAS !
After 20 years of TAAREQ PEH TAREEQ PAH TAREEEQ , which truthful witness will remember anything ?
Today almost all direct witnesses are bribed and produced out of thin air—to give false evidence in court.
Blockchain technologies presents a unique opportunity to increase accuracy and transparency through secure, auditable distributed recordS.
Data that uses blockchain have full transparency and traceable background, making it almost impossible to change data after network’s confirmation.
Middlemen (PARASITES ) fee that chopped big part of deal, now only need to pay network’s computational fee
An OUTIDE JOB hacker can't get at it because there is no single point of vulnerability; this is because the ledger exists on millions of computers and to break it open the hacker would have to breach it on each one of them. This is why the distributed ledger with lot of users is impenetrable.
If the bank account details,AADHAR unique identification number and registered mobile information of every Indian were put on blockchain, it would pave the way for a completely safe digital environment...
Banks to MUST conduct KYC ( Aadhar ) and other investigations to identify and approve all users beforehand. With that, every transaction can be traced to the last mile if necessary. What's more, a digital identity, once established on blockchain, cannot be changed unless the entire network approves it. Digital identity management is hence one of the primary use cases of DLT,
This blockchair system can reduce sale and auction of FAKE artwork .
In art auctions it is difficult to establish genuineness where shit is sold as gold and viceversa –all controlled by KOSHER big brother
Below: This is the HORRIBLE negative vibe emanating painting which sold for 4 million USD. It was bought by Tina Ambani in 2008 to show that this STARLET has “arrived”-- APUN BHI ELITE .
In art auctions it is difficult to establish genuineness where shit is sold as gold and viceversa –all controlled by KOSHER big brother
If a community of experts, who dont get impressed by the NAKED EMPEROR were to join up on blockchain to confirm the credentials of artwork, it would facilitate buying and selling.
What's more, those only interested in art as an investment could buy a "share" of a painting and sell it once it appreciated, on blockchain itself.
In a blockchain ledger, you have an up-to-date, immutable historical record, so auditing in the blockchain environment requires a very different mindset and approach.
The technology itself exists as a file that maintains a continuously growing list of ordered records called blocks. Each block contains a timestamp and a link to a previous block using a “fingerprint”. Blockchains are resistant to modification of data and cannot be altered retroactively.
Blockchain acts as an indispensable ledger — a central point of truth. Instead of companies keeping and reconciling records of the same transaction in their separate, privately managed databases, or ledgers, both sides of the transaction are recorded simultaneously in a shared ledger.
Because of this capability, as well as its ability to record transactions in real-time, blockchain is poised to up-end traditional methods of invoicing, documentation, contracts, and payment processing for businesses and industries both large and small.
In the future, virtually every function in the world of Financial Services will be displaced, disintermediated and decentralized. The internet gave us a powerful way to share and access information. Blockchain now gives us a powerful way to share and access value.
Accounting records are not alterable once committed under blockchain, even by the owners of the accounting system. Because every transaction is recorded and verified, the integrity of financial records is guaranteed.
While impressive, this technology has the potential to greatly REDUCE eliminate the need for auditing resources—potentially disrupting the accounting profession as a whole.
Blockchain’s rise doesn’t mean the end of the finance or audit team—till the system is TRIED AND TESTED
TO BE CONTINUED--
CAPT AJIT VADAKAYIL