At a time when blockchain is in the implementation phase, this new technology raises questions and arouses the curiosity of many businesses that are considering adopting it.
On May 28, 2019, the webinar on blockchain implementation and auditability (in french only) took place. Organized by Les Affaires in connection with a program to raise awareness about this technology, this webinar, in which Catallaxy participated in collaboration with Novipro, aimed to demystify blockchain by presenting tangible examples on how to use it and its contribution to various industries.
Reliable, efficient technology with competitive power
Patrick Caron, Director of Solutions at Novipro, a company specialized in technological solutions, explains the various problems that can be solved by blockchain.
“Today, numerous organizations in various fields are faced with product traceability, counterfeiting or manufacturing defect challenges. It’s the same issue for financial and banking institutions with regard to fraud and international transfers. Blockchain might be the solution.”
He uses Walmart as an example: the world leader in the agri-food and mass distribution sector is already using this technology to improve fluidity and security and ensure better transparency within its production network. Where today’s information can be found on “loose” sheets, the main challenge is to prove accuracy and authenticity which takes several days to do, blockchain provides visibility and precise, reliable and immovable data in only a few seconds.
It’s easy to imagine how blockchain might have stopped the scandal of romaine lettuce contaminated with E. coli bacteria last year. The problem could have been dealt with very quickly by locating the infected strains, thereby avoiding a general outcry in the public arena for the producers and chains concerned.
However, limiting the use of blockchain to the agri-food industry might be too simplistic. There are many sectors that could benefit. The world’s leading luxury brands use this technology to trace the origin of their raw materials. Thanks to blockchain, it’s very easy to identify where the fabric came from, its path, and who is responsible for it in just a few minutes. This process also makes it possible to prevent counterfeiting and detect manufacturing defects.
In Canada, the country’s leading financial institutions have taken steps to adopt the implementation of this technology to prevent fraud. In fact, with blockchain, some information with respect to their clients will be shared between them, which considerably mitigates the risk of having the same individual provide erroneous or fraudulent information to these institutions.
Auditability of digital assets
One element that is often linked to blockchains is digital assets such as cryptocurrencies. In Canada, digital assets are considered to be property; businesses that own such assets and are in an audit process must provide all relevant information about them to their auditor, who will then decide to include them in the audit. However, auditing digital assets requires a different approach than a traditional audit. Basically, the audit of any asset consists in verifying whether it exists, who owns it and what its value is.
For digital assets, such as cryptocurrencies or tokens that are on a blockchain, there is the same verification need. Since digital assets circulate on technological platforms, auditing digital assets requires techniques similar to those of an IT audit.
This is where Catallaxy’s expertise comes into play, helping auditors in their work thanks to tools and a methodology that are unique on the market and providing them with the necessary evidence.
With its many advantages, the blockchain goes beyond the currently used processes and methods. Furthermore, it is expected to play a key role in the success of businesses. At the service of both the organization and the consumer, blockchain offers more security guarantees, transparency and speed. It is a technology that, from a competitive point of view, could change the situation for companies adopting it in the coming years.
Learn more about our cryptocurrency audit services.