Thomson Reuters executives talk about block chains

nnnNowadays, as people have made many ideas about the multi-domain application of the block chain, the term is no stranger to the well-known leaders of different industries. This article is the article written by Brian Peccarelli, director of financial and accounting business at Thomson Reuters. He shared his views on the chain and its applications and investments, emphasizing that the role of the block chain can not be overlooked, but the enterprise should explore the technology Down to earth, from how to improve the business, should not only see its financing power.n
nnTranslated by: Inan
nLast year, the company invested a total of about $ 1.4 billion to the block chain project, making the distributed book technology since the emergence of a backstage equipment has become a popular technology.n
nThe technology has also been touted as the innovator’s “gold mine”, which has the potential to subvert each industry. These innovators are developing the right business applications for the technology. Everywhere is the block chain plan, which makes many financial executives heart doubt: I now need to pay attention to this?n
nThe answer is yes, but the reason may be different from what you think. Of course, the block chain investment is very popular, product team and marketing staff are competing to become the next innovator in the field, but the financial sector view more sober. It needs to know how this new technology will fundamentally change its organization, and more importantly, what real-world use cases are most likely to be achieved in order to put the right resources in the right direction at the right time and not fall into the area Block chain chaos.n
nThere is some basic knowledge of the block chain to form this view. While some overly optimistic experts say block chains can be applied in all ways – from replacing traditional stock exchanges to creating new distribution mechanisms for digital music, most of the viable use of the technology is more practical.n
nIn the simplest terms, the block chain is a digital platform for recording and verifying transactions. Because it is centrally, theoretically always exists digitally, the block chain records provide standardized billing for all touch points in any transaction. This means that the typical structure of our economy – contracts, financial transactions, bills of lading, property rights and tax returns – can be digitally digitized and permanently recorded in an open distributed book.n
nThus, the most compelling use case for the technology currently being developed involves land ownership registration.n
nUnder the current system, there are local governments, banks and individuals responsible for recording land ownership around the world. This is why in the United States to buy a house takes 60 to 90 days, to conduct a property investigation, a large number of paperwork and pay administrative costs. In some developing countries, this challenge is even more pronounced because the records of land ownership are altered or even corrupt by government officials who are destroyed or corrupted by internal unrest.n
nBy creating unchangeable consistent records, the value of the block chain in this case is undeniable, and some companies and industry alliances are developing very practical block-based solutions. We have seen similar activities in the area of ​​tax compliance, and government and accounting firms have been using the chain chain to audit and tax. In fact, Luxembourg has begun to develop a platform based on the identity of the chain platform, will be used for tax returns from regulatory activities to all activities.n
nThese are the actions that the Chief Financial Officer needs to pay close attention to because they will fundamentally influence the main business functions and their associated operating costs.n
nThe fact that the authorities are so active in the block-chain experiment means that we will soon realize that the business will interact with these authorities using distributed accounting techniques. Whether through the basic block chain registration process or more complex data transfer protocol, companies need to consider whether their existing technology and ERP systems can support this dialogue.n
nFrom a financial point of view, top leaders also need to consider competitive factors. Ultimately, the block chain’s goal is to reduce management costs. Has begun to explore the practical use of block chain to improve operational efficiency of the company in terms of annual operating costs will occupy a competitive advantage.n
nThere is no doubt that in the past few years, the block chain has become a hot speculation, but some speculation is justified. It is very simple to ignore it as an IT problem or a marketing message that does not matter to the bottom line of the chain, but it’s far more than that.n
nNow, business leaders are time to seriously consider their business may be sub-block chain situation, and should be strategic investment in the integration of its business model and the technology after the strategy.n

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