Kriptoks

Auditchain is revolutionizing the world of accounting and financial reporting by developing the first-ever decentralized infrastructure that automates and provides proof of assurance on the world's business and financial information. The project is designed to achieve three main objectives: providing an alternative means of external assurance to stakeholders of centralized crypto market infrastructure providers and exchanges, incentivizing the institution of accountancy to contribute to the infrastructure, and moving global regulatory disclosure frameworks from periodic information embargoes to real-time reporting and disclosure under continuous assurance.

The infrastructure is based on the allocation of royalties between creators of accounting, reporting, audit, and analysis controls and validators who audit and prove that the controls work correctly. As the network populates with more controls, accounting, audit, financial reporting, and analysis become more automated. This creates a completely automated virtual machine for accounting, audit, financial reporting, and analysis that aims to become the standard for proof of financial state external validation.

Auditchain understands that the institution of accountancy needs a virtual machine to make it safe for users of crypto market infrastructure and allow accountants to annuitize their income stream instead of charging by the hour. The creation of accounting, financial reporting, audit, and analysis Process Control NFTs ensures that accountants get paid AUDT every time they are used, and validators who audit the control also receive AUDT each time they are used. Anyone can create a Process Control NFT, but they must understand accounting, reporting, audit, or analysis logic.

The virtual machine is necessary to define the rules for computing a new valid state. Auditchain is a layer 2 protocol that uses computers running its client, Pacioli, to define and validate machine-readable proof of financial state. Each economic entity is unique, and the data and logic sets are diverse and complex, requiring constraints to compute and validate its financial state. Internal controls and the presentation of the financial state of an economic entity are cryptographically reinforced logical systems, and the logical system is machine-readable. Machine readability is key to bi-directional declarative logic and data interchange.

Auditchain ensures that machine-readable data and logic are within the scope of an audit engagement. Auditors of financial statements rely on an economic entity's controls over financial reporting to help them gain confidence in the data. It is critical that those controls be audited under a special engagement: ISAE 3402. On the Auditchain Protocol, NFTs are issued to curators following the validation of each control by a plurality of auditors under the standards of ISAE 3402.

As accountants and professionals earn more AUDT by contributing more Process Control NFTs to the library, processes become more refined, and financial state articulation becomes more precise. The more precise the logical system is, the more reliable financial state models become. The more reliable they become, the more they can be used to predict and estimate future outcomes on a micro and macroeconomic level.

In addition, instead of working for years accumulating capital in the capital accounts of professional services firms, accountants, professionals, and enterprises can now build a portfolio of Process Control NFTs that they can sell one day. This makes accounting, audit, and financial reporting an attractive and lucrative profession.

Auditchain aims to make accounting and financial reporting less complicated and more approachable to everyone. The team speaks plain English when discussing these matters and refers to their GitHub when describing technical functionality of the protocol. They also add a sense of humor and humanity to their approach, encouraging everyone to join their Discord server for live discussions on the project and crypto banter.

The AUDT Token powers the Auditchain Protocol, the world's first financial state disclosure, and decentralized "Proof of State" external validation expert network. Integration with the Auditchain Protocol represents a significant step towards the creation of a fully automated virtual machine for accounting, audit, financial reporting, and analysis. With this protocol, Auditchain aims to provide a reliable, decentralized infrastructure that automates and provides proof of assurance on the world's business and financial information. As more and more professionals and enterprises contribute to the library of Process Control NFTs, the logical system becomes more refined, leading to more reliable financial state models that can be used to predict and estimate future outcomes on a micro and macroeconomic level. The AUDT Token is a key component of this infrastructure, and with its community-driven governance model, it provides a promising vision of a decentralized financial future.