Blockchain is evolving every day, with hundreds of new projects and investments for potential investors. Of course, Bitcoin is to date the most famous of its uses and the reason it was created in the first instance. It was the need for greater online transparency and accountability that led to the introduction of the distributed ledger. But until now, these two ideals have rarely been used in tandem.
When conducting their annual audits, companies have needed to communicate with stakeholders and staff to get a snapshot of how the company is performing. But now, thanks to Blockchain technology, real-time reporting means carrying out audits don’t have to be painful.
A new project, called Auditchain is following in the footsteps of Bitcoin creator Satoshi Nakamoto and represents a culmination of everything that was exciting about the original Bitcoin project. The technology will be used as if an army of external auditors are validating every transaction the company makes. It will then be presented in the form of audit analytics. The accuracy of accounting and reporting compliance is checked and any investors looking to gain access to accurate information can purchase a subscription to financial statements, with more detailed analysis available for an additional cost.
This means investors and stakeholders would be able to understand exactly how the business is operating in real time. It would also mean the ability for committing fraud would be reduced to almost zero. Businesses would no longer be able to mislead potential investors. And, what’s more, this kind of technology could be used at a governmental level. We would all be able to know what is spent by departments, including how our tax money is being used. This could be a truly watershed moment for how our world works.
With every piece of financial information recorded and integrated with other facts about the company, the Blockchain would be providing valuable information about updated balance sheets, cash flow, income and more. And what about the benefit to the companies, you may ask? Well, all of this would be significantly cheaper than carrying out a traditional audit. Real-time accounting could make the whole process cost neutral.
This kind of de-centralised auditing feels like the kind of thing that Blockchain was created for. The world of business accounting is potentially going to change forever, and once it does, who knows what might be next. Imagine living in a world where the government’s accounts could be held up to scrutiny, where anyone could access what they are spending our money on, all in real time.
The distributed ledger is updated automatically every time it changes and it is protected from hacking and other cybersecurity threats. Is true unlocking of the potential of Blockchain? What started out as a platform to run cryptocurrencies could be about to change the way that business and governments go about tracking their money. Watch this space to find out more about Blockchain is changing the world around us every day.