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OnBlockchainAuditability
WhitePaper
Facilitating auditability and accountability are major benefits of using blockchain technology. In this
whitepaper,weexaminethenotionsofauditability,accountabilityandnon-repudiationinblockchains
andfocusontheaspectsofblockchaintechnologythatallowfortheseproperties. Wefocusonblock-
chain receipts, blockchain anchoring, and proof of work as the means to provide non-repudiation and
accountability in permissioned blockchains that utilize Byzantine consensus. A technical description
to implement Bitcoin Blockchain anchoring for permissioned blockchains without reducing security
propertiesisprovided.
Version 1.0(Nov14,2016)
©2016BitfuryGroupLimited
Withoutpermission,anyonemayuse,reproduceordistributeanymaterialinthispaperfornoncommercialand
educationaluse(i.e., otherthanforafeeorforcommercialpurposes)providedthattheoriginalsourceandthe
applicablecopyrightnoticearecited.
Blockchain technology has been posited as a solution for various applications in the financial
sphere, such as payment systems [1], securities trading [2], post-trade settlement [3], regulation [4],
consulting and auditing [5, 6], etc. Furthermore, blockchains have been proposed for non-financial
use cases including public registries [7], copyright [8] and provenance [9, 10]. Pragmatically, the
reason of blockchain popularity may be simple: financial services and other applications are in
a need of modernization, and blockchain technology seems to provide a solution [11]. Thus, the
crucialquestionimpactingtheadoptionofblockchaintechnologyiswhetherthetechnologyprovides
substantialbenefitscomparedtoalternatedigitalsolutions.
Blockchains,asenvisionedbySatoshiNakamoto[12],combinethecharacteristicsofthreedistinct
technologies:
• Byzantinefault-tolerantsystems
• Digitaltimestampingservices
• Currencyledgersusingcryptographicprimitives
On its own, each of these technologies were studied well before Nakamoto’s publication.
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