Professor of Southwest University of Finance and Economics believes that block chains can prevent commercial fraud and avoid billions of dollars in losses

nnIn recent days, two assistant professors at the Southwest University of Finance and a professor at the University of Rutgers have jointly published a paper called Block Chain Technology to help companies prevent fraud and cyber attacks, thereby avoiding billions of dollars loss. This paper introduces the key advantages of the block chain, and highlights its role in data protection.n
nnTranslated by: Inan
nChina’s Southwest University of Finance has two assistant professors published papers that block-chain technology can enable companies to avoid electronic document fraud and unauthorized changes in information suffered billions of dollars in losses.n
nSave money for the companyn
nOver the past few years, companies in health care, insurance, finance and other industries have suffered billions of dollars in losses due to unexpected cyber attacks and security vulnerabilities. In fact, according to the “Association of Certified Fraud Examiners” (ACFE) issued the “2016 national fraud investigation report”, fraud caused the company lost $ 6.3 billion.n
nThe two assistant professors at the Southwest University of Finance and Economics pointed out that because of the past encryption methods and security measures are not reliable, companies have been working to cope with complex network attacks and security vulnerabilities, but failed to protect against tampering databases and books in the sensitive information.n
nThe two assistant professors and Professor Miklos A. Vasarhelyi of the Rutgers University co-authored a paper entitled “Blockchain: An Emerging Solution for Fraud Prevention” Coin Support Technology – Block chains can be used as an infrastructure for accounting information systems to enable enterprises to protect data in a transparent, efficient and immutable ecosystem.n
nTo the center is the keyn
nThe paper explains that the key to avoiding a single point of failure is to go to the center. Cointelegraph has previously shared the view that it is almost impossible for hackers to change the data (such as transactions) stored in Bitcoin blocks, because to do so, hackers need to get all the network hash and double payment transactions.n
nEven if you can do this, it is impossible to rewrite or change the transactions that have been processed or passed to the public chain.n
nThe paper wrote:n
nn”To avoid a single point of failure, the transaction verification process is controlled by all computers, rather than centrally managed. All computers work together to monitor the system to prevent the billing information from being tampered with. This function of the block chain can effectively prevent one or Several people are collusion to break control or to illegally change or delete formal accounting records.n
nBlock Chain u0026 Smart Contractn
nThe research paper further emphasizes the importance of de-centricization to cybersecurity, pointing out that each party in the network has the need to validate and approve the settlement and processing of data, not just by banks and financial institutions to study private chain chains Potential – experts and developers have been criticizing the safety of these organizations. In this way, the network will not be changed and will provide a transparent record of transactions and data.n
nBitcoin block chains are specialized digital currency networks, and some companies, including RSK Labs, are developing platforms such as Rootstock that allow applications to deploy smart contracts over Bitcoin. However, it is now possible to make better use of intelligent contract automation data transmission and large-scale data set processing through the ethernet network.n
nThe paper points out that with the maturity of the chain chain, the role of intelligent contracts in preventing fraud and cyber attacks will be investigated more extensively.n
nn”Smart contracts encoded with accounting and business rules can also provide effective control for business processes to prevent fraud. Smart contracts can be embedded in advanced access control standards, allowing only authorized users to create transactions.”n

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