Blockchain and the future of audit
Some say it will be as big as the internet, so what exactly is blockchain? We’ve been told that blockchain is set to transform financial transactions and thus the world of corporate reporting. It’s predicted to be as big as the internet, but what exactly is it and how could it affect all of us?
Blockchain is a type of database known as a distributed ledger that operates on a consensus basis. Whenever a user submits a new data block to the blockchain, the majority of other users must confirm that it is valid. The database does not have a central administrator.
Every data block in the ledger is linked to the previous block by a cryptographic algorithm called a hash, with the linked blocks forming a chain – hence the name “blockchain.”
Each user holds a copy of the distributed ledger on their own computer and the data is replicated and synchronized across all copies of the ledger in real time. If one of the computers holding a copy of the distributed ledger fails or comes under attack, the other computers continue to maintain the database.
Our video explains what blockchain does, how it works and the ways in which it will affect us all. Find out more about blockchain in our video shared above and Building blocks of the future feature.