{"id":22941,"date":"2019-08-13T17:17:08","date_gmt":"2019-08-13T11:47:08","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=22941"},"modified":"2019-11-05T17:08:58","modified_gmt":"2019-11-05T11:38:58","slug":"how-blockchain-technology-will-revolutionize-finance-and-auditing","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/how-blockchain-technology-will-revolutionize-finance-and-auditing\/","title":{"rendered":"How Blockchain Technology will Revolutionize Finance and Auditing?"},"content":{"rendered":"

Blockchain technology is the second generation of the internet and, every single company is going to need a blockchain strategy. Many firms in the finance and audit sectors have already invested money, time and energy in assessing how it will disrupt their established business models. Blockchain<\/a><\/strong> has the potential to transform industries of different sector i.e. from the financial sector to public to health care.<\/p>\n\n\n\n

Importance of Blockchain Technology<\/h2>\n\n\n\n

A blockchain is created to capture transactions which are conducted among various parties in a network. Being a near real-time a blockchain is the Internet-based distributed ledger which includes all transactions since its creation. All participants using the shared database are connected to the blockchain. In a blockchain, every entry is a transaction that represents an exchange of value between participants. Different types of blockchains are being developed and tested. However, most blockchains follow the general framework<\/strong>[1]<\/a><\/sup> and approach. A blockchain being of irreversible nature contains a verifiable record of every single transaction ever made on that blockchain. This prevents double spending of the item tracked by the blockchain.<\/p>\n\n\n\n

Evolution of Blockchain in the Finance\nand Auditing <\/h2>\n\n\n\n

The introduction of smart contracts was the key development in blockchain technology. On a blockchain, the Smart contracts are computer code stored that executes actions under specified circumstances. Smart contracts enable counterparties to automate tasks that are usually performed manually through a third-party intermediary. It also results in speeding up the business processes, less operational error and improves the cost-efficiency. It enables monitoring and enforcement of contractual promises and also reduces settlement timing. Further, it also improves contractual compliances by reducing fraudulent practices and ambiguity in the transactions.<\/p>\n\n\n\n

\"Blockchain<\/figure>\n\n\n\n

Benefits of Blockchain Technology<\/h2>\n\n\n\n

A blockchain is a process that allows parties to transact directly with each other through a single distributed ledger by eliminating the needs for centralized transaction processors.<\/p>\n\n\n\n

Following are\nthe benefits availed by the consumer and company in the finance and auditing\nsector:<\/em><\/p>\n\n\n\n