Index

The Definitive Guide to Blockchain for Accounting and Business: Understanding the Revolutionary Technology

ISBN: 978-1-78973-868-1, eISBN: 978-1-78973-865-0

Publication date: 30 September 2020

This content is currently only available as a PDF

Citation

Dutta, S.K. (2020), "Index", The Definitive Guide to Blockchain for Accounting and Business: Understanding the Revolutionary Technology, Emerald Publishing Limited, Bingley, pp. 291-297. https://doi.org/10.1108/978-1-78973-865-020201016

Publisher

:

Emerald Publishing Limited

Copyright © 2020 Emerald Publishing Limited


INDEX

Index

Note: Page numbers followed by “n” indicate notes.

Accounting. (see also Financial auditing)
, 28

profession
, 98

Agreement
, 46

Alternative trading systems (ATS)
, 187

Anti-money-laundering (AML)
, 109, 133

Application programing interfaces (APIs)
, 199, 250

Applications (APPS)
, 257

Artificial intelligence (AI)
, 267

Artisanal and Small-Scale Mining (ASM)
, 151

Artisanal Miners (ASM)
, 169

Asset-backed securities (ABS)
, 98, 184–185

Asset-backed security tokens (ABSTs)
, 183

Asset(s)
, 29

drawback
, 100–102

improper valuation of
, 94–95

securitization
, 98–102

works
, 99–100

Asymmetric cryptography
, 178

Atari: Fistful of Quarters (movie)
, 87

Auditability
, 3

Auditing blockchains/distributed networks
, 244

addressing BC/DLT ecosystem
, 250–251

distributed audit for distributed ledger
, 251–252

netting of transactions and control implications
, 248–249

risks and limitations
, 247

securing blockchain
, 246–247

Auditing fees
, 230

Australian Modern Slavery Act (2018)
, 156

Automobile industry, application in
, 218–220

Autonomous machines
, 114

Availability
, 269

Bartering
, 8–9

Basel Committee on Banking Supervision
, 96

Bit Gold
, 61

Bitcoin (BTC)
, 1, 7, 15, 35, 37, 53, 141

activity statistics
, 18

blockchain beyond
, 21–22

transaction
, 17–21

value compared to other economic metrics
, 19

Blackcoin
, 57

Block time
, 31

Blockchain
, 1–3, 7, 14–17, 23–24, 43

adoption
, 7

application in automobile industry
, 218–220

beyond bitcoin
, 21–22

bitcoin transaction
, 17–21

collateralized lending in cryptoworld
, 213–218

cryptocurrency
, 13–15

cryptotax business model
, 210–213

ecosystem
, 260–261

facilitating smart contracts
, 74–75

financial transformation sparked by
, 178–179

fungible tokens
, 161–163

greenwashing
, 167–168

insurance to protect against flight delays and cancellation
, 221–223

key characteristics
, 3

key event dates in
, 4

mass processing of minerals
, 166

microrental of parking spaces
, 220–221

for mineral supply chain
, 89

non-fungible tokens
, 163–164

operationalizing tokenization
, 164–165

option contracts traded through
, 85–86

projected worldwide investment in
, 2

provenance
, 224–227

recording history of supply chain
, 161

solution
, 160

supported business innovations
, 209

threats to development of
, 281–282

trade–barter system to cryptocurrency
, 8–10

trust
, 10–13

Blockchain and distributed ledger technology (BC/DLT)
, 229

Blockmatrix
, 284

Blocks
, 16, 30–33

Bonus Newsletter Subscription
, 136

Bottom-up approach. (see also “Top-down” approach)
, 117–118

Bribery attacks
, 278

Business(es)

ecosystem
, 200

functions or processes
, 3

Byzantine Generals Problem
, 44, 46–51

California Transparency in Supply Chains Act
, 155–156

Car Dossier
, 218

Cash flow method
, 84

Censorship attacks
, 279

Central counterparty clearing house (CCP)
, 143

Central securities depository (CSD)
, 144

Certificates of origin
, 271

Chain forks
, 54–55

Chinese Due Diligence Guidelines for Responsible Mineral Supply Chains (2015)
, 154

Chinese GSRM (2014)
, 154

Cognitive costs
, 67

Cold storage
, 216–217

Collateralized lending in cryptoworld
, 213–218

Colored coins
, 177

Coming to America (movie)
, 87

Committee of Sponsoring Organizations of the Treadway Commission (COSO)
, 236–237

COSO Cube
, 236–237

Conflict-Affected and High-Risk Areas (CAHRAs)
, 154

Consensus mechanism
, 36, 43–44, 250, 255

Byzantine general’s problem
, 46–51

economics of validity and verifiability
, 51–52

importance
, 44–46

proof of stake
, 57–58

proof of work
, 52–56

Contracts. (see also Smart contracts)
, 75–76

Contractual capability
, 76

Corda open-source blockchain provider
, 38

Cost per transaction
, 114

Credit(s)
, 10, 28–29

default swaps
, 71

Cross-border cooperation
, 97

Cross-border trades
, 273

Cross-border transactions, risks associated with
, 96–98

Crowd funding of movies
, 87–89

Cryptoassets
, 212

Cryptocurrency
, 1, 8

basic features and challenges
, 13–15

trade–barter system to
, 8–10

Cryptography
, 3, 178

hashing algorithms
, 178

technical primer on
, 112–113

Cryptokitties
, 121

Cryptotax business model
, 210–213

Curzio Equity Owners (CEO)
, 127

tokens
, 141–142, 144

Curzio Research
, 89, 127–128, 135

CurzioEquityOwners. com
, 138

Danish Maritime Authority
, 273–274

Data

data-ledger
, 28

provenance
, 269

self-sovereignty
, 170

transparency
, 197–201

Daywalker Movie Fund
, 87

Debits
, 28–29

Decentralized applications (dApp)
, 38

Decentralized management
, 269

Decentralized network
, 25

Delegate proof of stake
, 57

Department of Homeland Security (DHS)
, 110

Desynchronization attack
, 277

Deterministic property of hash function
, 32

Digital assets
, 97, 180

Digital securities (DS)
, 130–131, 181–183, 197

ecosystem
, 187–188

services
, 187

Digital tokens
, 80

Digitized assets
, 217

Direct participation program market (DPP)
, 143

Distributed audit for distributed ledger
, 251–252

Distributed control
, 125

Distributed ledger technology (DLT)
, 177–178

“Divide and conquer” strategy
, 33

Dodd-Frank Act (2012)
, 154

Double-spending
, 13, 276–277

Due diligence, reduction in
, 95–96

E-commerce
, 7

E-identity system
, 121–122

E-notary system
, 121–122

E-verification platforms
, 121–122

Eclipse Attacks
, 278

Economics

of microtransactions
, 66–67

of validity and verifiability
, 51–52

Encryption

technical primer on
, 112–113

Energy sector
, 270–272

Enterprise Risk Management process (ERM process)
, 232–234

Entity level controls
, 240

EOS software
, 38

Equity method
, 84

Ernst and Young (EY)
, 218

Ether (ETH)
, 141

Ethereum platform
, 37–38

Ethereum Request for Comments (ERC)
, 179

ERC20 tokens
, 179–180

EU Conflict Minerals Regulation (2017)
, 154–155

EU Directive on Non-Financial Disclosures (2014)
, 156

EU Non-binding Guidelines for identifying CAHRAs
, 155

“4-Eyes” based control environment
, 231

Fifty-one Percent Attacks
, 278

Filecoin
, 139

Financing corporate expansion through tokenization

Curzio Research
, 127–128

financing in mineral industry
, 145–146

private offering
, 128–130

security token offerings vs. traditional private placements
, 130–132

STO process
, 133–144

Finney attack
, 277–278

Fizzy business process
, 222–223

Flight delays and cancellation, insurance to protect against
, 221–223

Foreign investors
, 193

Fork
, 45

French Corporate Duty of Vigilance Law (2017)
, 156

Fungible tokens
, 161–163

Game theory
, 59n2

Gas
, 36, 53

cost
, 36

Genesis block
, 30

Genetic algorithms (GAs)
, 121

Global Financial Crisis (GFC)
, 98

Global Real Estate Transparency Index (GRETI)
, 199–200

Global trade
, 96

Globalization
, 186

GodoKaisha-TokumeiKumiai (GK-TK)
, 194

Gold supply chain
, 150–152

Governmental agencies
, 274–276

Greenwashing
, 167–168

Grinding attacks
, 280

Gross domestic product (GDP)
, 191

Gross Risks
, 232

Hash function
, 3, 30–33

Health services
, 268–270

Herd mentality
, 96

Hollywood accounting
, 87–88

Hyperledger
, 38

Hyperledger-Fabric
, 38

Idiosyncrasies of blockchain
, 111–112

“If-then-else” rules
, 283

“If-then” rules
, 62, 67, 71

Illiquid-Liquid Spectrum
, 189–190

Illiquidity discount
, 81–82

Immutability
, 3, 15

of data
, 171

immutable audit trails
, 269

Incentivized machines
, 114

Incentivizing participation in blockchain
, 168

data self-sovereignty
, 170

ensuring credible information
, 171–172

immutability of data
, 171

incentives for companies
, 168–170

incentivizing incident reporting
, 172–174

Information technology controls (IT controls)
, 243–244

Ingots
, 165

Initial Coin Offerings (ICO)
, 80, 180

Institutional real estate firms
, 201

Insurance
, 124–125

industry
, 71–72

Internal controls

auditing blockchains/distributed networks
, 244–252

for entire ecosystem
, 260–263

risk management and internal controls framework
, 231–240

system audit for blockchain
, 252–259

types and assessments of
, 240–244

Internal controls over financial reporting (ICFR)
, 234

Internal Revenue Service (IRS)
, 35, 210–211

Internet of Things (IoT)
, 38, 64, 72

IOTA (open-source distributed ledger)
, 38

IPFS (peer-to-peer hypermedia protocol)
, 38

IPOs
, 127

J-Curve effect
, 204–205

Japanese real estate investment trusts (J-REITs)
, 191

Japanese Real Estate Market
, 89–90, 177, 190

digital securities
, 181–183

digital securities ecosystem
, 187–188

financial transformation sparked by blockchain
, 178–179

harmonizing financial regulation across jurisdictions
, 180–181

inefficiencies in real estate market
, 188–190

market size and investment environment
, 191–194

pain points in
, 194–197

projected growth of security tokens
, 183–186

smart contract standards expediting digital asset functions
, 179

tokenization of
, 197–205

Jones Lang LaSalle (JLL)
, 191

Know-your-customer regulations (KYC regulations)
, 109, 133

Large-Scale Mining operations (LSM)
, 151, 169

Ledger
, 26–27

Legal jurisdictions
, 76

Licensed STEs
, 142

Liquidity
, 203–205

Loan to value ratio
, 215

Lock-up period
, 57, 148n1

Long-range attacks
, 279

Lukka’s approach
, 250

Management assertions
, 239–240

Maritime industry
, 272–274

Market optimization
, 272

Mass processing of minerals
, 166

Mass–balance traceability
, 166–167

Member
, 27

Merkle trees
, 3, 30–33

Metal streaming financing
, 145

Microrental of parking spaces
, 220–221

Microtransactions, economics of
, 66–67

Mineral industry, financing in
, 145–146

Mineral supply chain
, 149

blockchain solution
, 160–168

complexity of
, 150–152

evolving regulation on traceability of minerals
, 153–158

incentivizing participation in blockchain
, 168–174

lack of transparency in
, 153

money laundering through mineral sourcing
, 158–159

traceability requirements
, 159–160

Mining
, 145

royalty financing
, 145

Modern money
, 9

Money laundering through mineral sourcing
, 158–159

Mongo DB database
, 38

“Monopoly Classic”
, 40

Monopoly on blockchain
, 39–40

Mortgage securitization
, 98–99

Mortgage-backed securities (MBS)
, 99–100

Mosi-oa-Tunya Declaration
, 155

Multiparty settlement
, 272

Napster (music sharing application)
, 14

NEM (platform)
, 38

NEO (blockchain project)
, 38

Net Risks
, 232

Network
, 27

Non-fungible tokens
, 163–164

Nothing at stake attacks
, 280

Nxt
, 57

OECD Due Diligence Guidance for Responsible Supply Chains
, 154

Off-chain

transactions
, 248, 250

volume
, 248

On-chain

transactions
, 248

volume
, 248

On–Off Ratio
, 248–249

Open Chain distributed ledger system
, 38

OpenFinance Network (OFN)
, 142, 144, 187

Operationalization
, 83–85

Option contracts traded through blockchain
, 85–86

Over the counter desks (OTC desks)
, 250

Paper money
, 9–10

Participants
, 25–27

Past majority attacks
, 281

PayPal
, 8

Peer-to-peer

blockchain
, 114

model
, 14

network
, 23, 25

Perception of monitoring
, 231

Physical risks
, 272

Portfolio lenders
, 99

Pre-offering
, 133–140

Primer on blockchain terminology

blockchain platforms
, 37–38

blocks, hashes and Merkle trees
, 30–33

essential features of blockchain
, 36–37

formation
, 33

misconceptions
, 28–30

monopoly on blockchain
, 39–40

participants and transactions
, 25–27

types of blockchain
, 34–35

Privacy
, 269

Private and non-permissioned networks
, 34

Private and permissioned network
, 35

Private keys
, 20, 178

Private offering
, 128–130

Private placement
, 128

Private placement memorandum (PPM)
, 135

Process mining
, 242

Profits, improper valuation of
, 94–95

Programing languages
, 119–120

Proof of elapsed time
, 57

Proof of stake
, 44, 57–58

Proof-of-work (PoW)
, 3, 15–16, 44, 52–56

Proprietary trading systems
, 187

Protocol

accreditation
, 250

code
, 254

protocol-based financial engineering
, 188

Provenance
, 224–227

Pseudocode analytic
, 257

Public and non-permissioned network
, 34

Public and permissioned networks
, 34–35

Public key
, 20

systems
, 112–113

Public key cryptography (PKC)
, 178

Public knowledge
, 11

Public ledger
, 114

“Pump-and-dump” schemes
, 96

Quorum open-source blockchain platform
, 38

Race conditions
, 259

Real estate investment trust (REIT)
, 190

Red flags
, 155

Reentrancy
, 259

“RegTech”
, 275

Regulatory arbitrage
, 97

Regulatory Sandbox Model
, 132

Reinsurance
, 125

“Research Blast”
, 248

Responsible sourcing
, 149

Restricted securities
, 143

Return of the Jedi (film)
, 87

Risk(s)

management
, 231–240

in smart contracts
, 257–259

Robustness
, 269

Secure Hashing Algorithm (SHA)
, 33

SHA-256 algorithm
, 33

Securities transaction lifecycle (STL)
, 143–144

Securitization
, 99, 102–103

Security. (see also Digital securities (DS))
, 269

Security Token Exchanges (STE)
, 130, 187

Security Token Offerings (STOs)
, 80, 91–93, 127, 130–133, 183

issuance phase
, 140–141

lifecycle management
, 141–144

pre-offering
, 133–140

Security tokens
, 139–140

projected growth of
, 183–186

“Segregation of duties” principles of auditing
, 231

Selfish mining
, 279–280

Settling trades
, 123

Shor’s algorithm
, 114

Simple Agreement for Future Equity (SAFE)
, 135

Smart contracts
, 3, 36, 61–66, 110–111, 114, 118–120, 283

advantages
, 73–74

applications
, 71–73

blockchain facilitating
, 74–75

economics of microtransactions
, 66–67

features
, 67–69

functioning
, 70

legal complexities
, 75–77

standards expediting digital asset functions
, 179

supply chain transaction in traditional setting
, 64

supply chain transaction with
, 65

tokenization with
, 120–121

works
, 69–71

Smelters
, 152

Spider-Man (film)
, 87

Stale blocks
, 54

Start-up financing
, 93, 184

STOC tokens
, 85

Stocchain
, 85

Stock trading back office
, 123–124

Sudoku puzzles
, 55–56

Sumitomo Mitsui Trust Research Institute (SMTRI)
, 191

Supply chain responsibility. (see Responsible sourcing)

Symmetric encryption

algorithms
, 178

systems
, 112

Syndicated underwriting
, 125

System and Organization Controls (SOC)
, 243–244

System audit for blockchain
, 252

new risks
, 253–257

risks in smart contracts
, 257–259

traditional system audit controls applied to blockchain
, 252–253

“System of record” approach
, 251, 261–262

Termination
, 46

Test of design (TOD)
, 241–242

Test of effectiveness (TOE)
, 241–242

Third edition OECD Due Diligence Guidance (2016)
, 154

Token. (see also Security tokens)

discounts
, 135–136

format
, 137

holder obligations
, 137

holder rights
, 136

proceeds
, 137

transfer restrictions
, 137

Tokenization
, 36–37, 79–80, 111, 114

of art
, 86–87

asset securitization
, 98–102

data transparency
, 197–201

enhanced liquidity
, 203–205

growth in tokenization market
, 91–93

illustration of appeal of
, 82–83

of Japanese Real Estate Market
, 197

Open Access
, 201–203

operationalization
, 83–85, 164–165

prevailing risks
, 93–98

process
, 89–91

and securitization
, 102–103

with smart contracts
, 120–121

untapped potential
, 80–82

use-cases
, 85–89

TokuteiMokutekiKaisha (TMK)
, 194

“Top-down” approach
, 116–117

financial controls identification
, 237–238

Traceability
, 224

conflict minerals regulations
, 154–155

evolving regulation on
, 153

of minerals
, 153

modern slavery and human rights regulations
, 155–157

ramifications of changing political dynamics
, 157–158

requirements
, 159–160

Trade–barter system to cryptocurrency
, 8–10

Traditional private placements
, 130–132

Traditional security tokens
, 183

Traditional sourcing methods
, 159

Traditional system audit controls applied to blockchain
, 252–253

Tranches,–100

Transaction(s)
, 25–27, 219–220

fee
, 51

or business process level controls
, 240

and smart contracts
, 250

Triple-entry bookkeeping system
, 29–30

Trust
, 10–13, 103

Trust Service
, 143

Trusted broker
, 80

Trusted third parties
, 7, 11, 13–14, 83

Tylenol tablets
, 268–269

U. S. Securities and Exchange Commission (SEC)
, 76, 91

Ujo (online music sharing/purchase company)
, 72

UK Modern Slavery Act (2015)
, 156

United Nations Conference on Trade and Development (UNCTAD)
, 272

United Nations Guiding Principles on Business and Human Rights (UNGPs)
, 156

United Parcel Services
, 273

Unregistered offering
, 128, 133

US dollars (USD)
, 136

Use-cases of blockchain
, 107–108

applying framework
, 116–118

caveats and risks
, 125–126

framework to evaluating
, 113–115

idiosyncrasies of blockchain
, 111–112

key attributes of blockchain
, 110–111, 114

sample use-cases
, 120–125

score card
, 115

smart contracts
, 118–120

technical primer on cryptography and encryption
, 112–113

Utility

billing
, 271

token
, 139

Validity
, 46

economics of
, 51–52

Verifiability
, 3

economics of
, 51–52

Vulnerabilities
, 276

bribery attacks
, 278

censorship attacks
, 279

desynchronization attack
, 277

double spending
, 276–277

eclipse attacks
, 278

fifty-one percent attacks
, 278

Finney attack
, 277–278

grinding attacks
, 280

long-range attacks
, 279

nothing at stake attacks
, 280

past majority attacks
, 281

selfish mining
, 279–280

Web 3.0
, 181–183, 201

Witnesses
, 58

Yap
, 11–12