The Potential of Blockchain

Topics discussed

Characteristics of Bitcoin blockchain
Zero-knowledge proof
Blockchain provenance and the affect to the supply chain
Issues with digital identity and know-your-customer regulations
Industry specific applications of blockchain
Risks with human factors vs. risks outside control of a person
Regulatory risks, standards and legality related to blockchain and cryptocurrency
Management role in securing cryptocurrency
Relation among risk of governance, consensus and fork and chain splits
Future risk related to blockchain
Limitation and solutions of blockchain
Internet of things and increase of auditor’s scope
Accounting challenges of stable and privacy coins
Security issues with smart contacts
Benefits and challenges of initial coin offerings

Learning objectives

Identify the four characteristics of the Bitcoin blockchain.
Recall the three parts of a zero-knowledge proof, what the concept solves, the security breakthrough, and the non-financial benefits.
Recognize how blockchain provenance affects supply chain and the paradigm shift from the push supply chain to the pull demand chain as well as the benefits of decentralized file storage and prediction markets.
Recall the most significant problems with digital identity and know-your-customer (KYC) regulations, how blockchain shifts control of identities back to the individual and solves the identity fraud problem while saving billions of dollars.
Distinguish the industry specific applications of blockchain especially for accounting, tax and legal including the single entry accounting limitation of existing blockchains.
Distinguish between risks associated with human factors and risks outside the control of the person or organization.
Identify regulatory risks, standards, and legality associated with blockchain and cryptocurrency adoption.
Recall how key management is critical for securing cryptocurrency and how it relates to legacy risk and long-term security.
Recognize how governance, consensus, and fork and chain splits risks are related to one another and the challenges of managing chain split coins.
Identify risks that are future focused.
Identify limitations of blockchains and their solutions.
Recall how the internet of things (IoT) will increase an auditor’s scope.
Recall the value propositions and accounting challenges of stable coins and privacy coins.
Recognize how mechanized proofs solve security issues with smart contracts and reduce risk for end users.
Recall the benefits and challenges of initial coin offerings.

Who will it benefit?

Non-IT finance professionals, CFOs, controllers, management accountants, public accountants, partners, staff, managers and internal auditors