Blockchain Applications Driving Accounting Sector Transformation

Blockchain Applications Driving Accounting Sector Transformation

1. Blockchain Applications
Driving Accounting
Sector Transformation
Dr. Arif Perdana, CA.
Associate Professor
Monash University, Indonesia
Presented at OJK Institute Webinar Series

2. What do you think of
Blockchain?

3. Why Blockchain is Promising Technology?
DO YOU TRUSTME?
UNDERSTANDING BLOCKCHAIN

4. Let us simplify what
Blockchain is
UNDERSTANDING BLOCKCHAIN
Andi Bima
CindyDiana
•Consensus Mechanism
•Cryptography Mechanism
•Incentive Management
•Blockchain types (Permissioned vs
Permissionless)

5. UNDERSTANDING BLOCKCHAIN
An append only ledger
A sequential database
Maintained by the decentralized network of users
Secured by cryptography mechanism

6. BLOCKCHAIN & CYBERSECURITY
Blockchain can solve problems, BUT, it can also create problems
CIA Triad
•Confidentiality
•Integrity
•Availability
Three Pillars
•People
•Process/Procedure
•Technology

7. BLOCKCHAIN APPLICATIONS RELEVANT TO ACCOUNTING
Cross Border Payment
1.Payment Initiation
2.Pre-transaction validation
3.Settlement
4.Confirmation
Ripple Payment Protocol
(RXTP)
Originating Bank; Correspondent Bank; Beneficiary Bank

8. DECENTRALIZED FINANCE –SMART CONTRACT
Identify Agreement
Multiple parties identify the
cooperative opportunity
and desired outcomes.
Set Conditions
Smart contracts are executed
automatically when certain
conditions are met.
Code Business Logic
A computer Program is
written.
Encryption and Blockchain
Encryption provides a
secure transfer of
messages between parties.
Execution and Processing
The code is executedand
outcomes are memoralized
Network Updates
All the nodes on the
network update their
ledger.
BLOCKCHAIN APPLICATIONS RELEVANT TO ACCOUNTING

9. BLOCKCHAIN APPLICATIONS RELEVANT TO ACCOUNTING
CRYPTOCURRENCIES
Cryptocurrencies Types Examples
Fiat-Backed (i.e., Stable
Cryptocurrencies)
Asset-Backed Tokens USDT, BUSD, BIDR, XSGD
Not Fiat-Backed (i.e., Volatile
Cryptocurrencies)
Bitcoin BTC
Alternative Coins LTC, XRP, BCH, XLM, ZIL, DOT, ETH
Exchange Tokens BNB, HT, CRO, TKO, UNI
Utility Tokens FIL, BAT, VET, BTT, LINK
Security Tokens Tzero, ISTOX, SIA, Property Coin, SPiCEVC

10. BLOCKCHAIN APPLICATIONS RELEVANT TO ACCOUNTING

11. BLOCKCHAIN APPLICATIONS RELEVANT TO ACCOUNTING

12. DECENTRALIZED FINANCE –NON FUNGIBLETOKEN
Blockchain
Consensus Node
NFT
NFT Minting
Perform Consensus
Tx Info:
Token ID
Date
-----
Content Metadata
Verify Proof On-Chain
NFT Registry
Off Chain Storage
On Chain Storage
Creators
Asset Owners
Buyers
Submit Ownership
Digitize/
Create
Ownership Transfer
Content Holder
BLOCKCHAIN APPLICATIONS RELEVANT TO ACCOUNTING

13. CDBC Around the World
1.Adopters (Petro, eCFA, SOV)
2.Experimenters (Digital Yuan, Emcash, E-Krona)
3.Researcher (Singapore, Indonesia, Thailand, Iran,
India, Canada, Uruguay)
4.Bank of Canada, the Bank of England, the Bank of
Japan, the European Central Bank, the Federal
Reserve, SverigesRiksbank, the Swiss National
Bank and the BIS are exploring the issuance of
CBDC.
BLOCKCHAIN AND CBDC
BLOCKCHAIN APPLICATIONS RELEVANT TO ACCOUNTING

14. METAVERSE BANKING
BLOCKCHAIN APPLICATIONS RELEVANT TO ACCOUNTING
How Metaverse can be applied in
Banking?
1.Virtual Banking
2.NFT Collateral
3.NFT Marketplace
4.NFT Custodian Service

15. HUMAN & PROCESS ELEMENTS
Vendors, Project, Systems Development
Life Cycle (SDLC), Data, Regulation
(GDPR)
TECHNICAL ELEMENTS
Consensus Mechanism,
Computer Layer, Application
Layer, User Interface,
Aspects to Consider
BLOCKCHAIN DEVELOPMENT AND DEPLOYMENT