One of the major reasons why cryptocurrencies were created is because fiat currencies were not, are not, and almost certainly will not be able to support a general ledger of all completed transactions in their history that are available to the public. Although, in practice, nobody will browse through the complete history of Bitcoin transactions, for example, except to prove whether or not one or a specific, finite, limited number of suggested transactions that were asserted to have occurred actually took place or not.
A major vulnerability that fiat currencies face is the potential for decision-makers, bureaucrats, and other people who have influence to print off currency that is not injected directly into the national money supply and is, instead, diverted directly into their pockets. This is inherently unfair, not to mention illegal. Although we trust people in high-ranking positions, including our elected officials, not to engage in such activities, one idea behind Bitcoin and other cryptocurrencies was, is, and always will be to prevent such abuses of power from taking place in secret. With cryptocurrencies, such abuses of power can’t even occur in the first place – the only way for units to be published is through the methods established in code at the time at which they were actually published.
Let’s look into Bitcoin, for example. There is no possible way to perform an audit of all transactions that have ever occurred. Due to the widespread use of Bitcoin, there is also no way to carry out an audit of all transactions – as far as companies that are of the caliber of major public corporations, for example – stemming from one or more wallet addresses, pragmatically speaking, that is.
Fortunately, for the world of current and future cryptocurrency users – especially major businesses – a business-use service provider known as Armanino, based in San Ramon, California, announced the launch of a proprietary software that would be capable of carrying out full-on financial audits of businesses, even the largest businesses in the world, earlier this week.
Armanino’s proprietary technology is named TrustExplorer 2.0 and operates on a blockchain basis. Currently, financial audits aren’t able to be performed with full certainty on behalf of auditors that clients have not covered up unwanted transactions or added false, imaginary transactions of worth. With blockchain technology, however, verifying entire transaction histories with certainty will become much more possible.
