The finance revolution is here. Imagine a world with no out-of-sync ledgers. No need for reconciliations. No fragmented or hidden data that creates multiple versions of the truth. This world is coming, and its name is blockchain.
Emerging as a leading solution for recordkeeping issues, blockchain can help deliver increased security, enhanced data recording, and faster processing to transform the future of finance. Its distributed database is designed to eliminate the traditional centralized system and to provide greater transparency with participants in the network able to view the entire ledger. With blocks of data connected and stored, and each block requiring all parties in the network to approve the transaction, data is secured by cryptography in a permanent, chronological record.
Blockchain’s potential to impact accounting, asset registers, payments, trading, collateral management, and more, lies in its success rate. Blockchain celebrates such benefits as:
Underpinned by a single source of truth, enhanced data integrity to help reduce loss, and potentially lower business costs, blockchain can serve as a viable solution to current recordkeeping concerns.
Blockchain’s adoption into the operating model impacts not only the finance function but also the entire financial sector. KPMG professionals anticipate blockchain will connect with existing financial systems and lead to a gradual integration where ultimately data can be viewed in real time. Organizations will retain both private and public ledgers, including permissioned blockchains and public ones for the open market. As governments seek to understand blockchain, an evolving regulatory landscape will emerge and shift as organizations embrace blockchain and its rising economy.
* Source: Estimates based on KPMG client blockchain projects, 2016-2017. Indicative benefits are not guaranteed and will depend on a number of factors including the change between the current state and the envisaged theoretical future state.