Blockchain
Strict Definition
"A distributed, immutable digital ledger that records transactions across a network of computers. In a business context, it serves as a shared 'source of truth' that eliminates the need for central intermediaries."
Liability Check // Risk Analysis
The primary risk is 'Irreversibility.' Unlike legacy banking, there is no 'Undo' button. Technical vulnerabilities in the underlying protocol or misconfigurations in private key management can lead to permanent loss of assets with no legal recourse against a central authority.
Knowledge Context // Related Terms
Auditor NotesVS-AN-2026
"Treat blockchain as a settlement layer, not a marketing gimmick. Assess if your industry requires the 'Trustless' property or if a traditional database is more efficient."
"Establish strict internal controls for interacting with public ledgers. Ensure all transactions are mirrored in internal accounting systems for auditability."
"Verify the jurisdictional status of the chosen network. Public blockchains may inadvertently host sanctioned data or transactions, requiring robust filtering."
SCHEMA_VER: AEO_3.2
LAST_AUDIT: 1/8/2026
HASH: BGEVWI