Bitcoin – a cryptocurrency based on blockchain has skyrocketed in value, and it drives the attention of many executives around the world. Since many have focused on currency, there is no secret that blockchain- a distributed ledger technology started developing an effective and widespread application in the corporate world, especially in the finance sector.
Blockchain will provide faster verification of crucial information by combining the openness and the speed of the internet with the security of cryptography. While most transactions today have verified by the central party (government agency), blockchain will offer decentralized verification through numerous users with time-stamped links of encoded data. Even a single alteration to the recorded transaction can trigger a mismatch in public records.
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The effect of blockchain on CFOs and finance could be significant. It offers instantaneous glimpses of corporate performance by reducing the risk and effort of settling transactions. By noticing this, myriads of finance leaders start implementing blockchain at a fast rate. CFOs and audit process have attaining huge benefits with this unalterable ledger nature of blockchain. Blockchain also grants them instant and no-cost verification of the transaction, which is stored on a distributed ledger. As blockchain provides a single version of the contract to all involved parties, it is sometimes termed as a “single source of truth.”
Since the data is now available digitally and can be verified quickly, most of the early discussions around blockchain have revolved around the possibility. This greatly helps the auditing process to improve extensively. Even though the capability has not reached, blockchain would allow auditors to change from random sampling to comprehensive transaction. And that way, the auditors can produce more-effective audits. The audit industry is rapidly searching for the use of blockchain in real-world to attain its complete benefits.
It is quite impossible to predict the acute level of blockchain development in the future. But, it is possible to adopt this nascent technology to gather momentum. Blockchain with transparent, trustworthy and immutable characteristics are here to redefine many aspects of financial lives.
