***Disclaimer***Investing in cryptocurrency is one the most dangerous things you can do financially. Please do not invest if you have either 1) a need for liquidity (cash on hand) or 2) cannot afford to lose your entire investment.
The Auditchain project is a complex and comprehensive project within the audit industry which is not easily understood by outsiders. Below follows a very simplified and “ELI5” (explain like I am 5) explanation. Many questions are answered in the
whitepaper and
FAQs so please read it carefully multiple times!
Current status of auditingAn audit is, simply speaking, an opinion based on inspection of the workings and financial state of a company. Audits are needed to assure shareholders and people with an interest in the company, that financially speaking, the company is telling the truth.
The following paragraph was copied from the auditor’s report issued by PwC contained on page
147 in the 2017 annual report of JP Morgan Chase & Co. which states;
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Firm as of December 31, 2017 and 2016, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2017 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Firm maintained, in all material respects, effective internal control over financial reporting as of December 31, 2017, based on criteria established in Internal Control – Integrated Framework (2013) issued by the COSO.
Auditors are tasked with building an opinion about whether or not the statements provided by the company are materially presented, based on the evidence they gather from the company. However, there are two critical flaws to this system:
1)
the Auditor is giving an opinion, which is subject to bias and may be influenced by the company
2)
the evidence that is provided to the Auditor comes from the company itself, and only on an annual basis. This gives the company enough time to alter the evidence in their favor.
Why is this important?An annual audit and quarterly periodic reviews are required to be conducted by an independent auditor by law for public reporting companies. The independent audit is supposed to provide assurance to the financial markets.
Despite the rigorous standards that a company and the auditor must comply with, fraud resulted in the theft of over $7 Billion according to the
2018 Report to the Nations conducted by the
ACFE in 2017 alone. According to the report, financial statement fraud is the costliest.
Would you trust a single intermediary to tell you that your Bitcoin transaction is validated? There is another important reason to change this process. As the world has become more connected and services are available 24/7, the financial state of companies should also be available 24/7 for investors and shareholders. Investors, hedge funds, VCs and fund managers should be able to check the status of their investment in a company or entity at any time, whether the company raised their funds through ICO or in traditional ways.
The same or external validation process that occurs with a cryptocurrency transaction should also occur with financial statements.The solution - AuditchainAuditchain is developing a digitally automated and decentralized audit in real time of companies, non-profits and governments. Auditchain is a blockchain where professional certified Auditors can run specialized audit nodes. The financial statement data of the company are recorded on the Auditchain network in near real time. The external Auditors then act in a similar manner like the external validators of the Bitcoin or Ethereum blockchains and externally validate the data for integrity and truthfulness. These assessments can then be accessed by third parties in real time through Auditchain’s DCARPE
TM Explorer.
The DCARPE Explorer is a block explorer as well as an enterprise audit and reporting interface. Streaming Financial Statements
TM and AUDT Analytics
TM are accessed through the DCARPE
TM Explorer.
This solves the two flaws in the current audit methodology:
1) the certified professional Auditors running the nodes are not directly connected to the company they are auditing,
providing an unbiased view.2) the company has to adapt their systems and provide real time data from their internal systems, which
removes the time lapse in which they can alter data.Please review our
whitepaper for a full overview of the ecosystem Auditchain is building.
Staking incentives and mining rewardsThere are two types of nodes, Federated and Non-Federated. Both nodes are required to purchase and stake AUDT.
Auditchain is secured through Proof of Stake (PoS), Proof of Assurance (PoA) consensus mechanisms. Staking rewards are as follows: 42.5% of the block reward goes to Non-Federated nodes (PoS) and 42.5% go to Federated nodes (PoA) and 15% goes to Auditchain and its affiliate; the DCARPE
TM Alliance for development and education of the network.
Please refer to the
whitepaper for more technical details regarding “Network and Consensus Governance”
DCARPE AllianceBesides providing a technical solution for the current auditing flaws, Auditchain has founded the
DCARPE™Alliance. This is a not-for-profit entity that will lobby lawmakers and companies to set international standards to adopt real time audit and reporting. The Alliance members will also operate nodes on the Auditchain network. As of today, we have 30 members already signed on.
Why would companies adopt Auditchain? First, it is financially attractive due to two things. As the auditors in the Auditchain network compete for validation of the data, auditing fees paid in AUDT become more attractive. Besides that, paying for the service continuously throughout the year is better than at once, which improves company cash flow.
Secondly, as time passes, more and more enterprises will implement blockchain technology which moves the entire technology into a native environment. Token issuers will be able to comply with current financial information requirements so that token purchasers can legally “resell” their tokens
Why Blockchain?Blockchain in its essence is an accounting system. It is a distributed ledger of records that are protected by cryptographic hashes, which cannot be changed once it is on the blockchain. This makes it perfectly suited for transparent, unforgeable financial records. This is one of the reasons why Dr. Stuart Haber, co-inventor of the blockchain technology, joined our core team. His work in cryptographic time stamping in 1991 with Scott Stornetta was performed to assure the integrity of business records. It was also cited as references 3, 4 and 5 of the
original Satoshi Whitepaper. CompetitorsAuditchain believes that no other project is developing a similar protocol for this use case. Furthermore our software is pending patents. Auditchain has the first mover advantage in this market. Other projects by Big Four accounting firms such as PwC may be incorporated into our ecosystems by running their own node for so long as it complies with technical requirements of the the DCARPE
TM Protocol.
MVP and RoadmapAuditchain will be publishing its own Streaming Financial Statements
TM through the DCARPE
TM Explorer during and after the TGE on the Ethereum network. Stakeholders will be able to purchase subscription levels to financial data such as real-time rollups to financial statement line items. In short, we will showcase our MVP during our TGE event, so all contributors can see in real time how Auditchain works.
TeamJason Meyers:
https://www.linkedin.com/in/jason-meyers-91a9693/Chris Danusiar:
https://www.http//linkedin.com/in/chrisdanusiar/Stuart Haber:
https://www.linkedin.com/in/stuart-haber/ Eric Cohen:
https://www.linkedin.com/in/eric-cohen-53180b13/ Touradj Ebrahimi:
https://www.linkedin.com/in/touradjebrahimi/Bogdan Fiedur:
https://www.linkedin.com/in/bogdanfiedur/Srinjoy Chakravarty:
https://www.linkedin.com/in/srinjoyc/ (our newly added blockchain security engineer)
Token Generation Event and Token MetricsAuditchain will be conducting a token generation event, (“TGE”) of a total of 250,000,000 AUDT which will initially be launched on the Ethereum network through the deployment of an ERC20 smart contract. The TGE date has not yet be set but will be announced soon. A private sale is currently in progress, and starts at 25 ETH. Sign up for the private sale can be done here:
https://auditchain.com/privatesale/ 160,000,000 AUDT** will be sold to early adopters,
25,833,333 will be allocated to the team [lockup period]
up to 25,833,333 will be allocated to advisors [lockup period]
up to 25,833,333 will be allocated in connection with partnerships
up to 12,500,000 will be allocated in connection with our bounty campaign
**Includes a total of 60,850,000 AUDT to be distributed in connection with the Airdrop and to early adopters in connection with private sales.
In addition to the initial AUDT token supply and subject to block times, consensus proposals and improvements, approximately 12,500,000 additional AUDT tokens will be rewarded to all Federated and Non-Federated nodes per year which amounts to approximately 237 AUDT tokens per block depending on block times.
Token saleThe public presale will commence on November 15, 2018 at 9AM CET, (UTC+1).
AirdropAuditchain intends to make four Airdrops to contributors of up to a total of 42,685,499.996 AUDT following the TGE. An initial impression of all AUDT balances in all Ethereum wallets will be taken from the last block validated 60 days following the TGE, with the first Airdrop happening 60 days after the initial impression. Subsequent impressions and Airdrops will take place 90 days after the previous cycle. Final calculations and block height impressions will be announced before each event.
AIRDROP ELIGIBILITY CONDITIONS
Wallet addresses must contain a balance of AUDT at the time of the impression.
The balance of AUDT contained in each wallet address must be equal to or higher in quantity and identical in state to the impression for each consecutive block after each impression to qualify for each Airdrop. All contributors are eligible for the Airdrops. This excludes the team and advisors.
AIRDROP ALLOCATION CALCULATION
Each Airdrop will be distributed to eligible wallets which will receive an allocation of AUDT in proportion to their stake in the total amount of AUDT held by eligible wallets. This will be calculated using the following formula:
Community LinksWebsite:
https://auditchain.com/ Facebook:
https://www.facebook.com/Auditchain Twitter:
https://twitter.com/AuditChain Telegram community:
https://t.me/joinchat/FhX6ikmW8NavlabJoMHhIA Telegram announcement:
https://t.me/AuditChain Linkedin:
https://www.linkedin.com/company/auditchain/ Mainstream MediaForbes - The biggest thing to happen in Blockchain since bitcoinFintech.finance - AuditchainTM Plans Launch of Blockchain-Based Assurance and Financial Reporting PlatformAccountancy Daily - Blockchain startup aims to revolutionise auditingCoindesk - XBRL Reporting Standard Co-Founder Joins Blockchain StartupPRnewswire - Auditchain Appoints Big Four Assurance Deputy Technology Officer, Chris Danusiar as New CEO.Youtube/podcast interviews with team Jon Najarian interviews Jason Meyers, Eric Cohen and Stuart HaberCrypto Jack with Jason Meyers and Stuart Haber Mike Michaels with Jason Meyers and Stuart HaberCrypto Rich with Stuart Haber and Scott Stornetta Coin Amor with Jason Meyers Barry E. James from ICORadio with Jason Meyers BountiesThe Youtube bounty can be found here:
https://bitcointalk.org/index.php?topic=5061342There are no bounties for Facebook, Twitter, or signatures.
