As trusted advisors and leaders in the rapidly changing business world, it is important for Chartered Professional Accountants (CPAs) to have emerging technical knowledge and understand their potential implications.
Guide Technological disruptions in financial markets and data communications? Blockchain Snapshot aims to bring blockchain technology and its opportunities to CPAs, as there are indications that investment and innovation in the industry may be accelerating.
Blockchain technology was originally designed to support bitcoin cryptocurrency, but is now in the news due to its many other programs available, especially in the financial markets and markets. information communication. Indeed, if adopted on a scale, automated blockchain-based processes can drastically change the way they do business, exchange information and present information.
This guide aims to raise awareness of blockchain technology and provide examples of ongoing programs in this regard. It also looks at how financial markets can change and how information communications can change as these technologies evolve and spread widely.
What are blockchains and how do they work?
Simply put, blockchains digital record holders’ assets are constantly updated. Details of the transaction, such as the date, time and amount of the transaction and the participants in the transaction, are encrypted in a block that is linked to other blocks to form a chain.
There is no central authority controlling the blockchains; this is one of the reasons why bitcoin and other cryptocurrencies are so interesting. Everyone on the blockchain has access to the same information, ensuring transparency and continuous reconciliation.
Since these chains exist on most computers, there is not a single version of the information that the attacker can attack. Therefore, it is no longer necessary to seek the help of a trusted third party to verify your personal and career information.
What are some concrete examples of using blockchain technology?
The financial services industry is beginning to use blockchain technology to develop new services and achieve cost savings. For example, the Australian Stock Exchange recently announced that it will begin using blockchains to resolve transactions. This technology will be used to record shareholding and manage the removal and resolution of financial transactions.
Another example of the use of blockchains in financial services comes from the company Abra. It uses a money transfer platform that allows workers abroad to send money to their country in 54 different currencies. This allows workers to transfer money faster and cheaper using this platform than to provide traditional services, such as Western Union, which charges about 7% of remittances, according to the World Bank.
Another project using blockchain technology has been launched by the World Wide Fund for Nature and three companies working together to ensure the availability of tuna in terms of the efficient exploitation of a resource in the Pacific Ocean. ConsenSys (blockchain company), TraSeable (IT company) and SeaQuest Fiji (tuna tuna processing and processing company) use the blockchain to ensure tracking of commercially caught and sold tuna.
From fishermen to fish shops and local shops to fish vendors, everything is done in a blockchain. Consumers can be assured of the quality of the tuna they purchase and the proper and legal management of the service.
What does this mean for entrepreneurs?
Many large companies including Microsoft, IBM (with more than 400 blockchain projects underway worldwide), Unilever and Toyota are investing in blockchains. But the impact of this technology will not be limited to large companies. Your business may also be affected in the near future.
If your activities require you to verify transactions of any kind, you should consider how these technologies could affect your business. You will need to see the risks of deleting and residential actions to see how many post-marketing activities and other services may be affected.
If you are a part of the sales, partners may want you to first follow your processes digitally. And most importantly, if you are a supplier to big companies, you should first think about where you go in the supply chain of your customers and whether they can ask you to participate in the blockchain.
If you supply goods to customers or other businesses, would you benefit by following your products back to their original? Consider the prices that fishermen pay when they sell their tuna, to ensure that customers are responsible for using the service.
How can this technology help track inventory and payment?
In real estate, the combined use of blockchains, smart contracts and the Internet of Things will allow companies to track shipments and make payments when certain conditions are met. (e.g. when a product is delivered). Maersk, the world’s largest shipping company, began testing blockchain technology last year to track its assets in partnership with Dutch cultural authorities, the US Department of Homeland Security and shipping companies.
Small businesses can also benefit from this technology. Think of a grocery store with declining stock. You may have set up smart containers with products to let the wholesaler know they need to be restarted. The seller will then contact the trucking company to collect the goods and deliver them to the seller. Each step can be recorded and payments will be resolved via the blockchain, as all transactions will be verified.
