Place/Date: Switzerland - July 20th, 2021 at 9:00 am UTC · 4 min read
Contact: Jason Meyers, Source: AuditChain
Auditchain Labs AG, the developer of the world’s first decentralized accounting, financial reporting, audit and analysis virtual machine for assurance and disclosure, today announced a new NFT creation platform that will allocate royalties between curators and validators of global standard logic-based accounting and disclosure control components.
Accountants. reporting managers, CFOs, controllers, and financial analysts will now be able to use the Auditchain Protocol to write, validate and own logic-based accounting and disclosure control “assets” that substantially automate accounting, financial reporting, audit and analysis processes using a global standard syntax on the Auditchain Protocol.
Non-fungible tokens representing the controls are issued to the curators, and royalties are allocated between curators and validators who audit and provide assurance that the machine-readable logic works correctly. Royalties will be allocated in AUDT, the settlement and Auditchain Protocol governance token.
As more and more of the world’s accountants and professionals create and contribute more and more controls to the virtual machine, members of the institution of accountancy can move from performing manual tasks to writing controls that automate internal control logic and controls over financial reporting while building a portfolio that generates income and opportunities for liquidity.
The external validation of the controls will occur within ISAE independent engagement standards on the Auditchain Protocol and will solve major challenges for other auditors involved in financial statement audits by providing proof of assurance knowledge graphs. This represents a critical solution for reporting entities and the audit profession in Europe who are now obligated to include machine-readable data and logic within the scope of their financial statement audit engagements under new CEAOB guidance issued in late 2019.
The financialization of machine-readable accounting logic and controls using NFTs is a major breakthrough and represents the opportunity for the world’s accountants and professionals to accumulate a portfolio that annuitizes their income each time their controls are used and provides opportunities for liquidity events for the assets they create.
Auditchain project founder Jason Meyers said:
“While NFTs have fired the imagination of creators of art, music and collectibles, this represents a limited use case for the technology so far. On the Auditchain Protocol, NFTs will be a major financial incentive for professionals to create the controls the world needs, contribute to the virtual machine and for the institution of accountancy to innovate in a truly transformative way.”
Auditchain also reported that Charles Hoffman, CPA, who helped create the XBRL global standard syntax for financial reporting, was recently appointed as a Product Manager for Auditchain. Mr. Hoffman’s appointment included the contribution of all of the controls created by him over the years which are now the basis of the XBRL based US GAAP Reporting Scheme and are used by most companies who file financial reports with the SEC and ESMA. The first set of NFTs on the Auditchain Protocol will feature all of the controls created by Mr. Hoffman. He said:
“NFTs represent a tremendous opportunity for professional accountants to monetize their accounting knowledge. The combined capabilities of NFTs and the capacity XBRL offers in terms of expressing machine-readable rules is very innovative. I am excited to be a part of this project.”
Users of the Auditchain Protocol will consume the control components similar to how software itself uses plugins. The Auditchain financial report creation and rules validation engine ingests the logic represented by the NFTs and automates the constraints, structure, mathematics, compliance, computational output and external validation of the financial state of an economic entity. Auditchain is also the first protocol to use the ERC-721 standard in the commercialization of software.
A token generation event is underway for non-US users of the Auditchain Protocol. Enquiries can be sent here.
Auditchain is the world’s first decentralized accounting, audit, financial reporting and analysis virtual machine that automates and provides proof of assurance for the world’s business information. Auditchain Labs AG is a founding member of the DCARPE Alliance Association and is leading the development of the Auditchain Protocol with other members of the Alliance.
The DCARPE™ Alliance Association is a global organization consisting of members of the accounting, audit, financial reporting, legal, blockchain, investment and regulatory community, The purpose of the Alliance is to provide education, drive technology innovation and open source engineering, develop, launch and promote the adoption of continuous audit and real time digital financial reporting using the Auditchain Protocol.