Deloitte announces successful introduction of professional audit standards into permissioned blockchain protocol, and real-world application is only a matter of time

Deloitte, one of the “Big Four” global audit firms, has announced the completion of its latest blockchain research project, which closely examined permissioned blockchain protocols and applications through professional audit standards.

Deloitte said the project aims to “increase the utility and trust of permissioned blockchain systems” by subjecting blockchains to professional audit and assurance standards.

If 2017 is to be the year that blockchain prototypes and proofs of concepts turn into real-world applications, auditors will have to keep pace with technology changes and carefully monitor the protocols and data coming from new innovations such as blockchain technology.

Will Bible, partner at Deloitte, said:

“We need to take the lead in quantifying and defining how auditors can provide assurance on permissioned blockchain applications.”

Furthermore, he revealed that it is only a “matter of time” before Deloitte’s clients begin to shift a portion of their business to blockchain-based infrastructure. The coming wave of blockchain adoption will further strengthen the need for Deloitte’s audit and assurance programs.

Also involved in this latest blockchain project is Deloitte’s Rubix team, a team of professionals from Deloitte’s Toronto office that specializes in blockchain application development. Bitcoin enthusiasts may remember that the Rubix team previously purchased and installed a Bitcoin ATM for Deloitte’s Toronto office.

Iliana Oris Valiente, head of strategy and co-founder of Rubix, said at the time:

“We think it’s important to show people how to get Bitcoin because Bitcoin is an entry point to a broader understanding of the impact of blockchain.”

To understand and explore the project, the Rubix team applied existing certification mark guidance to permissioned blockchain applications. The development team also designed some programs specifically for loyalty points blockchain applications based on Ethereum technology.

Valiente said:

For the purposes of this project, we chose a loyalty points blockchain application developed in-house by the Rubix team and based on a permissioned Ethereum network.

Expanding blockchain

Although the “Big Four Auditing Firms” are now involved in the development of blockchain applications for protocols, Deloitte can be said to be in a leading position and has achieved many development results in the field of blockchain financial technology.

Deloitte’s “Global Blockchain Team” now includes 800 professionals from more than 20 countries and has developed more than 30 blockchain prototypes in areas including digital banking, payments and rewards programs.

In January 2017, Deloitte opened a new blockchain lab in New York, calling 2017 a “make or break” year for blockchain applications. To cater to European and Middle Eastern clients, Deloitte has already established a second blockchain lab in Dublin, Ireland.

Deloitte has also partnered with some government agencies to leverage its lending expertise for financial technology development. For example, it partnered with the Dutch city of Rotterdam to launch a blockchain pilot to record real estate lease agreements.

More notably, Deloitte has received inquiries from the People’s Bank of China to discuss the framework needed to issue a national digital currency.