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Revision as of 05:59, 27 December 2024 by BoyTheKingCanDance (talk | contribs) (Removed the space automatically created as an error by the page curation tool.)(diff) ← Previous revision | Latest revision (diff) | Newer revision → (diff) | This article may incorporate text from a large language model. It may include hallucinated information or fictitious references. Copyright violations or claims lacking verification should be removed. Additional guidance is available on the associated project page. (December 2024) |
| Company type | https://en.wikipedia.org/Aktiengesellschaft |
|---|---|
| Industry |
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| Founded | April 2017 (2017-04) |
| Founder | Jason Meyers |
| Headquarters | Zug, Switzerland |
| Key people |
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| Products |
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| Website | auditchain |
Auditchain is a decentralized protocol ecosystem for financial, sustainability and crypto asset disclosure and analysis. The platform integrates blockchain technology to provide external validation of financial and business information on a global scale. Its primary innovation, Pacioli.ai features a DePIN (decentralized physical infrastructure network) for the external validation of financial statement, sustainability and crypto asset disclosures using artificial intelligence.
Auditchain Labs AG were the main contributors to the SBRM specification. SBRM is a technical specification designed to improve business and regulatory reporting as a result of inconsistencies in "as filed" disclosures cited by the Securities and Exchange Commission. It enhances usability and interoperability by specifying "model based" structured data exchange, automation, and consistency using machine-readable formats like XBRL, JSON and RDF. SBRM was recommended for adoption as a technical standard in December 2024 and is currently implemented to create crypto asset white papers under the Markets in Crypto Asset Regulation, "MICAR" in the European Union.
Novel Innovations
Pacioli.ai
Pacioli.ai is a web3 crypto asset disclosure and artificial intelligence based external validation protocol. It enables crypto asset issuers and service providers to collaborate and create machine readable white papers as well as financial and sustainability disclosure documents pursuant to emerging crypto asset regulatory requirements and technical specifications.
The platform includes two main components:
- Luca Suite: A web3 enabled disclosure automation infrastructure for collaborative machine readable crypto asset white paper, financial, and sustainability disclosure creation.
- Pacioli Node: A logic and reasoning engine installed in physical locations and used by non affiliate licensees. It reads, understands and verifies that machine readable disclosures are complete, accurate and compliant.
History
Auditchain was conceived by Jason Meyers, a fintech entrepreneur with extensive experience in capital markets and financial technology. Prior to founding Auditchain, Meyers served as an investment banker. His experience with regulatory conflicts with FINRA highlighted limitations in traditional financial reporting and auditing systems, leading to the conceptualization of Auditchain.
The project began development in April 2017, with an initial focus on creating a virtual machine for decentralized continuous audit and real-time financial reporting. Key contributors to the project's development included Jason Meyers, Charles Hoffman, CPA, and Fuad Begic. Early contributors included Stuart Haber and Eric Cohen, CPA.
Technology
The platform operates on several key technological components:
RegFi Protocol
Named after Luca Pacioli, considered the "father of accounting," Pacioli.ai is a RegFi Protocol that serves as the central technological component of Auditchain. It performs real-time validation of financial statements and control sets, enabling continuous audit functionality. In 2024, Auditchain launched the first-ever RegFi (Regulatory Finance) protocol on mainnet through Pacioli AI, marking a significant milestone in the integration of regulatory compliance with blockchain technology.
Payment and Rewards System
The platform utilizes both the AUDT token for governance and USDC for payments and rewards. The integration of USDC enables users to receive compensation for providing disclosure reliability analysis, creating a financial incentive system for maintaining high-quality financial reporting standards.
Process Control
The platform implements unique tokens that represent specific analysis, financial reporting, and audit controls. These unique cryptographic hash values automate internal control logic and generate royalties for developers and validators when used.
Features
The platform offers several distinctive features:
- Continuous Auditing: Unlike traditional periodic audits, Auditchain provides real-time auditing and reporting capabilities, significantly reducing the delay between transaction recording and reporting.
- Decentralized Validation Network: A global network of accountants and auditors validates financial statements, creating a more distributed and potentially less biased audit process.
- XBRL Integration: The platform supports eXtensible Business Reporting Language (XBRL) for structured data, facilitating regulatory compliance and data analysis.
- Incentivized Development: Through its NFT royalty system, developers and auditors can earn AUDT tokens for creating and validating control logic, encouraging the development of high-quality, reusable control sets.
Corporate Development
In April 2022, Auditchain acquired Areport, a move that enhanced its capabilities in XBRL-based financial modeling and reporting, particularly strengthening its presence in the European market.
Recent Developments
In 2024, Auditchain achieved a significant milestone with the launch of Pacioli.ai, the first RegFi protocol on mainnet. This development represents the first implementation of regulatory finance protocols in blockchain technology, allowing for automated compliance and real-time validation of financial, sustainability and crypto asset white paper reporting. The mainnet deployment aims to bring approximately 25 million annual XBRL disclosures on-chain.
In another significant development, the platform integrated USDC payments and rewards for disclosure reliability analysis, establishing a financial incentive structure for participants who contribute to maintaining high standards of financial reporting. This integration represents a step toward creating a sustainable ecosystem for decentralized financial assurance.
Recognition
Auditchain has received recognition from professional organizations and technical standard setters. The platform has been acknowledged by the Minnesota Society of CPAs featuring coverage of Auditchain and the DCARPE Alliance in their professional publication "Footnote". This recognition from traditional accounting bodies highlights the platform's potential impact on the profession's future.
Reception and Media Coverage
Auditchain has received significant media attention, with Forbes describing it in 2018 as "the biggest thing to happen in blockchain since Bitcoin". This coverage highlighted the potential impact of the platform on the financial industry and its innovative approach to auditing and financial reporting.
Governance
Auditchain implements a token-based governance system using the AUDT token. Token holders can participate in decision-making processes regarding protocol upgrades and resource allocation. The platform maintains an active community of developers, accountants, and investors across various platforms including LinkedIn, Reddit, and Discord.
Future Development
Auditchain's development roadmap includes plans to incorporate artificial intelligence and machine learning technologies to enhance its financial reporting and audit framework with more sophisticated analysis and prediction capabilities.
See also
References
- "Object Management Group Welcomes Auditchain Labs AG as a New Member | Object Management Group". www.omg.org. Retrieved 2024-12-27.
- "SEC.gov | Sample Letter to Companies Regarding Their XBRL Disclosures". www.sec.gov. Retrieved 2024-12-27.
- https://themeforest.net/user/dan_fisher. "How SBRM Enables Digital Asset White Paper Compliance Under the EU's MiCA Regulations | Object Management Group". www.omg.org. Retrieved 2024-12-27.
{{cite web}}:|last=has generic name (help); External link in|last= - Commission Implementing Regulation (EU) 2024/2984 of 29 November 2024 laying down implementing technical standards for the application of Regulation (EU) 2023/1114 of the European Parliament and of the Council with regard to forms, formats and templates for the crypto-asset white papers, 2024-11-29, retrieved 2024-12-27
- "Jason Meyers - Founder and CEO of Auditchain Labs AG". IdeaMensch. 8 July 2020. Retrieved December 26, 2024.
- "Pacioli AI: First Ever RegFi Protocol Goes Live on Mainnet". Bitcoin.com News. 4 December 2024. Retrieved December 26, 2024.
- ^ "Pacioli AI Integrates USDC Payments and Rewards for Disclosure Reliability Analysis". Bitcoin.com News. 10 December 2024. Retrieved December 26, 2024.
- "Pacioli AI: First Ever RegFi Protocol Deploys to Mainnet". Brave New Coin. 9 December 2024. Retrieved December 26, 2024.
- "What Auditchain and DCARPE Alliance means for the profession". Minnesota Society of CPAs Footnote. December 2019. Archived from the original on 2020-03-15.
- Clarke, Gina (July 31, 2018). "The Biggest Thing To Happen In Blockchain Since Bitcoin". Forbes. Retrieved December 26, 2024.
External links
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