Keeping records and exchanging correct information support the financial industry. However, the majority of current record keeping and reporting uses legacy Systems that are often built internally and in isolation prevent the seamless exchange of information with the outside world.
This creates several problems for regulators charged with overseeing business activities for compliance purposes, as well as for investors and other commercial stakeholders when accurate information is needed for trading, investing and analytical purposes.
This is especially the case when auditing companies that own or trade in large amounts of digital assets. Digital assets, such as cryptocurrencies, can be viewed as securities in some legal environments and are subject to the terms and conditions of securities law – breach of which can result in substantial fines for delinquent companies.
In addition, the problem is compounded by the often aggressive approach of regulators and Law enforcement agencies pick up digital assets. The problem is exacerbated in jurisdictions where accounting standards are inconsistent.
Audit chain developed the first NFT-based accounting, reporting and audit control suite to automate accounting, reporting and auditing processes. The Auditchain virtual machine automates and provides “proof of security” for controls over financial data and logic for accounting, financial reporting and audit processes.
His vision is to bridge the gap between legacy accounting systems and decentralized technologies, leading to the future of financial auditing. The suite of NFT services is known as Computational Professional Services.
What is AuditChain?
Audit chain is a decentralized Ethereum-based platform specially designed for continuous auditing and real-time financial reporting. Its ecosystem leverages a network of Certified Public Accountants (CPAs) and Chartered Accountants to enable ongoing validation of corporate systems and controls that affect financial reporting and its disclosure and reporting requirements.
Auditchain’s platform hosts an ERC-20 token called “AUDT”, which powers the platform’s ecosystem, as well as an ERC-20 contract specifically for digital testing between the developer of controls and / or the reporting entity and his or her “Cohort” of examiners was created.
The Project whitepaper refers to this as an External Validation Contract or (“EVC”). Also included is an ERC-721 Non-fungible Token (NFT) contract that provides ownership and “proof of security” for bespoke accounting, financial reporting and auditing controls that are required under the ISAE 3402 international engagement standard in the ” Blockchain Style ”will be checked by the auditor cohort.
The Auditchain team has also developed a staking plan to encourage the adoption of AUDT, which in turn increases the long-term sustainability of the platform’s ecosystem. Early adopters who sign up for the platform between V1 and the public launch will receive rewards in AUDT according to the plan.
Finally, the ecosystem contains a governance layer that enables standards to be set and technical changes to be proposed and decided by the community of actors of the protocol who own AUDT.
Based on the project whitepaper, the integrity of controls and data conforms to the standard used to validate transactions on any public blockchain such as the underlying Ethereum network.
Taken together, this core infrastructure incentivizes trustworthy execution in a decentralized protocol for accounting, auditing, financial reporting, and analysis.
Professional computer services
Audit chain is unique in the use of NFTs in financial accounting and reporting. Leveraging its indivisibility and immutability, Auditchain’s ecosystem enables developers to create NFTs that represent ownership of the financial controls and evidence of security once the control is validated.
If the control is used in accounting or reporting, the user pays with the ecosystem’s native token, AUDT. Then a portion of the AUDT paid is shared as a reward between the curator and the validator (s) of the NFT, encouraging the developers to create more controls and the auditors who review the controls to make sure the controls are in place work correctly.
Each NFT also has several sets of metadata that include the name and wallet address of its developer, the name and wallet address of each validator, and the cohort address of the group of validators who validated the control.
As a result, outside parties, including auditors, regulators, or even other interested parties such as investors, can rely on the controls and data to take appropriate action.
Professional accounting, financial reporting, and auditing services are a large part of the global accounting services market valued at $ 550 billion. Equipping a large global company with
Adequate controls can cost shareholders a large sum each year. Funding and owning these controls provides income and potential liquidity for what would otherwise be a loss write-off. From this perspective, the Auditchain model marks the beginning of the era of “Computational Professional Services” made possible by NFTs.
Speaking of his commitment to Auditchain, Charles Hoffmann, CPA, Product Manager, Lead Architect, and Reporting and Assurance Expert for Auditchain, said:
“NFTs represent a tremendous opportunity for professional accountants to monetize their accounting knowledge. The combined capabilities of NFTs and the capacity that XBRL offers to express machine-readable rules is very innovative. I am happy to be part of this project. ”
Uniting a $ 550 billion industry through collaboration Audit chain goes further in terms of bridging the gap between legacy accounting systems and decentralized technologies like NFTs. Auditchain is a founding member of DCARPE Alliance Association, a Switzerland-based consortium for blockchain accounting, auditing and financial reporting.
The DCARPE Alliance Association comprises an international group of forward-thinking auditors and other auditors, each operating specialized nodes that continuously perform financial audits and process financial data. Accordingly, this adds another layer to the trust in the financial controls and processes developed in the Auditain Protocol.
In addition, Auditchain leverages a wealth of knowledge and expertise in both the accounting and reporting industries as well as software and blockchain development.
The core team has decades of experience in law and finance, with CEO Guido Schmitz-Krummacher, who held board positions at Tezos, Cardano and currently Lisk. Urs Bigger, Vice President of Bitcoin Suisse, is also on the board. Additionally,
Auditchain’s board of directors has DeFi, Solidity and full-stack blockchain development experts who lead the technical development of the project.
With this in mind, Auditchain is not only pioneering a new future for accounting and reporting, it is literally moving accounting towards real transformation and also contributing to the development of the broader cryptocurrency and blockchain industry, filling the gaps in accounting standards and processes.
To learn more about how Auditchain is using NFTs to revolutionize the accounting and disclosure industry, visit Here.
Disclaimer: This is a paid post and should not be treated as news / advice.