Third-party evaluation service for blockchain implementation

Background: increased movement in blockchain utilization

Bitcoin was launched in 2009 with the aim of making it a globally circulating digital currency. Blockchain was born as the technology supporting Bitcoin, but has the potential to be of use in a wide variety of contexts. The impact of innovation in ledger technology is thought to be widespread, and various initiatives are being undertaken by many organizations, from companies to national and local governments.

If the characteristics of blockchain, such as the ability to safely exchange digital assets, the ability to publically verify the existence of a fact or thing, and the ability to automatically execute a contract, can be effectively incorporated into a company’s existing business and services, blockchain has the potential to grow into a core element of many digital strategies. Implementation is thus being examined across industries around the world.

Concrete examination of implementation, including proof of concept (PoC), is already taking place, and a number of prototypes are being generated through ongoing initiatives.

Challenge: the difficulty of objective evaluation

Various points of contention arise when moving from an existing system to a blockchain-based system. In this context, it is important to comprehensively identify technological matters to be evaluated and examine these matters. In practice, it is necessary to confirm whether the characteristics of the system meet a certain level of requirements by referring to generally recognized evaluation frameworks and standards.

However, as there are currently no officially recognized evaluation standards for blockchain, and standardization of its specifications is still a work in progress, it is possible that evaluation methods and results will differ depending on who is doing the evaluating.

Furthermore, particularly when blockchain is implemented in the form of a platform to be jointly used and operated by multiple companies, it is important to have an external evaluator, independent from the developers and other individuals directly involved with the project, conduct an objective evaluation.

In addition to evaluation of the system itself, points of contention will arise for a wide range of perspectives, such as the adequacy of the business model, the establishment of a system for compliance with laws and regulations, establishment of internal controls to account for workflow changes, assessment of legal risks accompanying the revision of contracts, changes to and dissemination of internal rules, and employee training. This complexity and diversity of matters to be taken into account requires the identification of potential risks and examination of the sufficiency of measures to counter such risks. Under such circumstances, having third-party experts conduct an appropriate evaluation is one option.

Proposal: the advantage of Deloitte Tohmatsu, which has a history of offering both assurance and advisory services

Insight into objective evaluation methods and knowledge of blockchain itself are preconditions for conducting evaluation of blockchain implementation from a third-party perspective. The Deloitte Tohmatsu Group is not only proficient in audit and the evaluation of systems, internal controls, and related frameworks through its other assurance operations, but also has an extensive record of assisting in blockchain implementation in both Japan and other countries. The Deloitte Tohmatsu Group offers blockchain-specialized evaluation services as an independent third party.