Auditchain announced that they will use NFTs for accounting and disclosure controls. What exactly does that mean? Well, here is financial accounting and reporting knowledge that I put into machine-readable form using the global standard XBRL. This Microsoft 10-K financial report plus the rules that I added is an example of using those machine-readable rule to verify that a financial report is properly functioning.
A problem with the information on the internet is that there is no real quality control. That is true even with information provided on government web sites such as the Securities and Exchange Commission (SEC) EDGAR system. Look at the errors that I found in the XBRL-based financial reports submitted to the SEC. I am not the only one that finds issues with those reports.
And it is not just the XBRL-based financial reports that are submitted to the SEC that have issues. XBRL-based financial reports submitted to the ESMA have similar issues.
There is a bit of a "chicken or the egg" type of problem. Those XBRL-based financial reports simply cannot be of high quality unless the proper rules are provided to verify and prover the information is of high quality. It is the rules that provide the control necessary to guarantee the quality level necessary. But creating the rules is time consuming. This is kind of like Wikipedia; excellent free resource, but who creates it?
In that article, it says:
"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."
Here is the Auditchain roadmap.
So here are some NFT basics. I am trying to figure out how staking works. I see this as an excellent business model that is not based on billing by the hour.
Before you write this of in your mind, I would recommend that you read New Rules for the New Economy.
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PWC, Integrated Digital Governance, Risk, Compliance (GRC)
Implementing GRC the Right Way, KPMG
GRC Technology Spotlight, KPMG