Accenture Patents a Blockchain-Editing Tool (techweekeurope.co.uk)

A blockchain "produces a permanent ledger of transactions with which no one can tamper," reports TechWeekEurope. "Until now." Slashdot reader Mickeycaskill quotes their report: One of the core principles of Blockchain technology has potentially been undermined by the creation of an editing tool. The company responsible however, Accenture, says edits would only be carried out "under extraordinary circumstances to resolve human errors, accommodate legal and regulatory requirements, and address mischief and other issues, while preserving key cryptographic features..."

Accenture's move to create an editing system will no doubt be viewed by some technology observers as a betrayal of what blockchain technology is all about. But the company insisted it is needed, especially in the financial services industry... "The prototype represents a significant breakthrough for enterprise uses of blockchain technology particularly in banking, insurance and capital markets," said Accenture.
They're envisioning "permissioned" blockchain systems, "managed by designated administrators under agreed governance rules," while acknowledging that cyptocurrency remains a different environment where "immutable" record-keeping would still be essential.

Comments

E.g. We can't use it if we can't cheat

[ninthbit]

All I read here, is that finance can't use a system that is 100% accountable. They need a way to create scape goats and reverse bad decisions.

Re:E.g. We can't use it if we can't cheat

[ls671]

I read: we require a backdoor into everything...

Come on, ledgers are never edited, correction transactions are written when a mistake happens.

Re:E.g. We can't use it if we can't cheat

[MightyMartian]

It's interesting, but some of the earliest accounting software I used, which was COBOL-based, didn't allow you to change any ledger once a month was posted and closed. I suppose it was possible to go into the actual database and directly alter records, but the underlying concept was that once a fiscal period was complete, it was inviolate, and the only way you could alter any closed ledger was to post adjusting entries in this period. This could be rather ugly, so you tried really hard not to do any major mistakes. Even end of the year adjusting entries were posted in the next fiscal year.

Since then I've seen a number of accounting systems that allow all sorts of monkeying around, including posting adjusting entries for a fiscal year within that fiscal year, even though you may be a couple of months into the current fiscal year. It seems common practice now, but a quarter of a century ago that was viewed as completely inappropriate, as it opened the door for fraud.

Re:E.g. We can't use it if we can't cheat

[ShanghaiBill]

Come on, ledgers are never edited, correction transactions are written when a mistake happens.

Ledgers are "corrected" all the time. In theory, that should never happen, but there are plenty of ways to fudge. Some accounting systems, including Quickbooks, have an "owner" mode that allows anyone with a special password to modify and backdate transactions. This is one reason Quickbooks is so popular.

Another possibility is to restore from backup, and re-enter the transactions, leaving out or modifying the troublesome entry. If the software doesn't allow you to enter an arbitrary date, then just set the system date & time between transactions as you enter them. You can download scripts to automate this.

And, of course, there is the classic solution of keeping two sets of books: one ledger for internal accounting, and a separate ledger for the tax man.