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ACCA Strategic Professional · Advanced Performance Management · Technology and information systems

Halden Logistics is considering using a permissioned blockchain shared with its suppliers, customers and customs agents to record shipment events. The finance director says the main benefit for performance reporting is that the participants will all work from the same ledger. Which feature of blockchain most directly supports reliable, data-driven performance reports based on shipment records?

The immutability of validated records is the key feature. A shared, tamper-resistant ledger gives all parties the same trusted audit trail of shipment events, improving reliability of performance reports. Blockchain is not necessarily faster, and encryption does not guarantee that data entered at source is accurate.

  1. ARecords are immutable once validated, giving a tamper-resistant shared audit trailCorrect
  2. BTransactions are processed faster than any conventional database regardless of the network size
  3. CBlockchain removes the need for any data validation before entries are recorded
  4. DData stored on the chain is automatically correct because it is encrypted

Explanation

Blockchain's distinguishing benefit is a distributed ledger with validated, effectively immutable entries, which gives a shared, tamper-resistant trail and so reliable data. Speed is not guaranteed and is often slower. Encryption does not make input data accurate, and bad data entered at source stays wrong, so validation is still needed.

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