Analytics in Accounting, Finance and Economics

Blockchain, Fintech and Regtech

Contents
The idea of block-chain.................................................................................................................3
Potential applications of blockchain technology:........................................................................3
Blockchain as secure digital transactions and smart contracts.....................................................4
Digital IDs...................................................................................................................................5
Investment in cryptocurrencies..................................................................................................5
Dramatic fluctuations.....................................................................................................................5
My views on cryptocurrencies....................................................................................................5
Pros............................................................................................................................................6
Cons...........................................................................................................................................6
The benefit Blockchain can offer auditors.....................................................................................7
Blockchain can offer compliance...............................................................................................7
Positive impact on the organization...........................................................................................8
Possible ethical and privacy implications......................................................................................8
References..................................................................................................................................10
 The idea of block-chain

The block-chain technology is a way of picking up digital information together in one repository
by creating the chain network(Namasudra,et al.,2021). Firstly, it is a distributed database that
remains on various computers at any moment of time and grows every time new sets of tapes or
blocks are uploaded to it. Secondly, blockchain technology offers many advantages especially in
relation to security as well as performance. It has many functional applications in various
industries, which is why it can be considered a technical innovation of the 21st century.

Potential applications of blockchain technology:

1. Governance: Good democratic accountability can also be attained through distributed ledger
technology(Bhadoria,et al.,2022).It ensures public access to transparency through the use of a
computerized form system and enables scrutiny on governmental documents. Second, it ensures
the maintenance of statement validity and nearly eliminates time spending.

2. Banking: Using the blockchain infrastructure built on a decentralized information database,

banks can be helped to mitigate such revenue disruptions. It reduces cross-border pension
contributions, company reimbursements and cash transfers interchange fees.

3. Food & Supply Chain: It creates a fake log to authenticate the quality of perishable products
and goods’ trips from household to market. The actual marketing material can help enhance the
supplier system’s reliability and efficiency.

4. Insurance: Blockchain technology has the capacity to change how insurance documents,
premium payments and scam investigation are done. It allows for the creation of an all-
encompassing risk assessment that is transparent, secure, non centralized and unalterable.
5. Healthcare: It helps to emphasize health results at any cost and keep the healthcare services
that are offered. Consequently, by providing a secure internet backbone chain blockchain assists
in the management of health information; authorization manifestations, expense reports and
general population surveillance systems.

6. Automobile: Vehicle production, transmission and payment processes could be streamlined

through blockchain. It may help to create a post-helpful ambiance by recording car aficionados’
service background.

7. Tourism: Incidentally, the blockchain technology is capable of reducing commuter documents

collection time to process them, create a decentralized online booking environment with lowest
payment method and safeguard travelers flight privacy.

Blockchain as secure digital transactions and smart

contracts

Most of the blockchains or blockchain technology involve organized information into blocks and
each contains a settlement or set. In a cryptography network, each new block is associated with
all the preceding blocks in a way that interfering becomes almost impossible.

Smart contracts aid enterprises to effectively cope with an abundance of activities such as those
involved in supplier relationships. Connectors can be used to link operations across multiple
organizations while securing critical or sensitive information. “Smart contracts make it easier for
enterprises to deploy functionality in the bitcoin blockchain through software that supports
automated operation schedule management among participants.”
Digital IDs

The veracity of personal information can be independently audited, transparent and supplied in a
fractional seconds due to the use of distributed ledger technology. Individuals are able to
construct their own identities and control the flow of information. As a result, financial
institutions may just interact with other humans and provide near real-time authentication.

Investment in cryptocurrencies

Cryptocurrency is a form of digital currency based on the technology known as distributed

ledger. Investments into cryptocurrencies may come in different forms, ranging from purchasing
of these currencies directly to dealing with them by institutions and businesses. Anyone can buy
cryptocurrencies in an entire way through crypto either via a selective wealth manager.

Dramatic fluctuations

Crypto-currency is currently trading at 16832.10, down from previous year level of 43647. This
represents a -0.14% change from the previous day and 61.85 decrease in percentage terms .

As one of the most famous cryptocurrencies, Bitcoin is becoming more popular as supply
becomes ever-scarce. A wealthier strategy to hold their Bitcoins for the longer period, hindered
people with lesser resources from getting exposed. According to the National Bureau of
Economic Research, about 30% of all Bitcoins were owned by the top 10,00 buyers at year end-
2O20.

My views on cryptocurrencies
From my perspective, the nation’s financial system is influenced by cryptocurrency. As
blockchain is decentralized and it is good to invest here. Bitcoin, Dogecoin, Litecoin and another
popular cryptocurrency are listed in this section. That is nothing certain, but if investors are
purchasing cryptocurrencies as a long term store of wealth value and greater the real life
applications that it has, product consumption will certainly increase.

Pros

● Reduced overall cost: Moment and expense is money transfer online via bank channel.
● Cryptocurrencies, on the other hand, have zero or little transaction fees since only a small
amount of fee is imposed.
● 24-hour availability to cash: Deposits of funding into the stock market and to trust funds
have a performance in accordance with this schedule. The individual gains 24 hours a
day, seven days per week access to the money without any time restriction on transacting
or using billions of vaults stored away.
● Unlimited exchanges: Cryptocurrency allows you to pay or transfer funds to a person,
anywhere and at any moment is irrelevant or specifies other location. They should
however, be in a position to buy into the targeted cryptocurrencies. You can have as
many deals you want since there is no one government that will control or stand against
them.

Cons

● High Volatility: Cryptocurrencies are one of the most volatile types of investments in all
banking sectors. This is because unpredictability and associated price fluctuations allow
the company to gain profit; however, they force them into making huge losses if market
movements are not favorable.
● No Literature: Except equities in which mechanical and philosophical analysis can be
employed to recognize patterns, it is impossible to learn about bitcoin structures. Because
 of the absence of records, speculators are unable to accurately critically analyze
cryptocurrencies which end up high in factors that can influence.
● Today, there are no rules or standards nor agencies that regulate the functioning of
cryptocurrencies. This has led to millions of people getting into poverty by committing
crimes or cryptocurrencies created for illegal purposes. With the ambiguity at how funds
can be used on the other side as one does not know who he or she is dealing with for
purchase.

The benefit Blockchain can offer auditors

Alternatively, with the extensive use of blockchains as an innovative technology in centralized

places, CPA accountants may develop ways to acquire accounting information via direct
channels through blockchains(Vincent,and Davenport,2022).Despite these situations, the CPA
auditor should assess whether maybe it is inaccurate due to material misstatement because of
documentation. The blockchain technology can change the financial sector through reducing the
amount of costs that are needed for controlling and correlating accounting documents, as well as
presenting ideal knowledge about objects invested to and their history.

Blockchain can offer compliance

While blockchain content is secure, easy-to-access and easily provable they may be a good
independent audit encompassing records of transactions, tasks assignments and data
measures(Alzubaidi,et al.,2023).Therefore, effective utilization of Blockchain technology may
highly reduce the money and energy spent by microfinance companies in meeting their
compliance requirements while at the same time improving integrity, reliability and credibility.
Positive impact on the organization

1. Greater openness
Due to the use of blockchain tech, trends and conditions are getting easier with time. Despite the
fact that blockchain is a kind of shared database, all networks are different from private versions
and have identical documents(Zarrin,et al.,2021). Such outcomes in the aggregation are
changeable only by agreement, which seeks our unanimity. To edit a single ledger transaction,
all next transactions need to be changed and the whole community should comply.

2. Quality control
Blockchain is capable of enhancing product testing especially when something goes wrong. With
blockchain, organizations can interlink everything along the production process so that a recall or
inquiry into where it went wrong is needed.

Possible ethical and privacy implications

The blockchain technology’s growth factor lies in a kind of transmission linked to an energy-
efficient technology counterpart of ‘interpretative consensus’. Like the connotation denotation of
a term is stable in English by consent with multiple clients to that phrase, block chain technology
‘democratizes’ understanding at least one specific condition of things. Authentication process
was handled by just 1 (or several) institutions of authority – markets and similar organizations,
before the invention of cryptocurrency. They resembled the old centralized servers which once
ruled the computational domain before under siege from PCs powered by the internet and World
Wide Web.

The first moral threat that those in support of blockchain must circumvent is exaggerating the
potentials mankind possesses and overestimating what this technology can supply(van
Rooyen,2022). This can be illustrated in action in a related field – pharmacological industry. The
tendency among researchers, and especially engineers is to pronounce ‘breakthroughs’ which a
closer look would reveal were hardly deserving of the name. All these variables including the
cash, vanity , peer relations influence and so on collectively contribute to the tendency of ‘new’
people wanting more than what they are able to offer.

It can also result in severe injury. One can expect an unlimited time that the promise of
blockchain falls short from what is technologically possible. All depends on how ambitious are
blockchain’s goals - and the decentralized technology ability to sustain connectivity required for
handling and analyzing a flood of data from multiple blockchains.
The main one appears when there is a generation gap (buying capacity, brain power, muscle
force and so on) - criminals may use cryptocurrency to make “purchases” which will be legally
imposed or implemented by threat as well as trick.

Another benefit of intermediate organizations is that companies have access to a sufficient

degree of oversight to help them detect and control financial crimes. They possess the ability to
hinder victimization or using technologies in a criminal way. The ‘black web’ portrays the
outcome that can arise from lack of arbitration. Like its liberty, anarchists love it. On the
opposite hand, many are more rightfully concerned with promoting behavior contrary to such
principles that must support every successful society. It is interesting about virtual currency
based on blockchain that serves as a medium of exchange in the vilest area of black market.
 References

Alzubaidi, L., Al-Sabaawi, A., Bai, J., Dukhan, A., Alkenani, A.H., Al-Asadi, A., Alwzwazy,
H.A., Manoufali, M., Fadhel, M.A., Albahri, A.S. and Moreira, C., 2023. Towards risk-free
trustworthy artificial intelligence: Significance and requirements. International Journal of
Intelligent Systems, 2023.[HTML] hindawi.com

Bhadoria, R.S., Das, A.P., Bashar, A. and Zikria, M., 2022. Implementing Blockchain-Based
Traceable Certificates as Sustainable Technology in Democratic Elections. Electronics, 11(20),
p.3359.[PDF] mdpi.com

Namasudra, S., Deka, G.C., Johri, P., Hosseinpour, M. and Gandomi, A.H., 2021. The revolution
of blockchain: State-of-the-art and research challenges. Archives of Computational Methods in
Engineering, 28, pp.1497-1515.[PDF] researchgate.net

Vincent, N.E. and Davenport, S.A., 2022. Accounting Research Opportunities for
Cryptocurrencies. Journal of Emerging Technologies in Accounting, 19(1), pp.79-
93.https://publications.aaahq.org/jeta/article-abstract/19/1/79/152/Accounting-Research-
Opportunities-for

van Rooyen, R.S., 2022. Journalism, revolutionary technologies and preventing future harm:
Proposing the flaming torch media ethics theory and the ten tenets field guide for responsible
and ethical communication on science and technology’s cutting edge (Doctoral dissertation).
[PDF] sun.ac.za

Zarrin, J., Wen Phang, H., Babu Saheer, L. and Zarrin, B., 2021. Blockchain for decentralization
of internet: prospects, trends, and challenges. Cluster Computing, 24(4), pp.2841-
2866.https://scholar.google.com/scholar?
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