Synchronized Accounting and real-time auditing
Today, data is incomplete, inaccurate and ambiguous
Whenever we conduct a transaction or share information we leave behind a digital footprint, or digital twin. These digital twins are fragmented, incomplete, and ambiguous versions of our digital self. The same is true for companies.
This fragmentation of digital data creates friction, risk, and creates the potential for errors and fraud.
Not only is information fragmented and incomplete, but it is also difficult to compare our digital twins with reality or each other. How do we know that the data we share, and the information we are given, is an accurate reflection of reality? How do you know that the information in your value chain is in fact complete, accurate and reliable — especially when that information comes from different parties with varying interests and systems?
The Sweetbridge platform consolidates today’s fragmented digital twins. Simply by using the Sweetbridge platform a more complete digital twin is constructed. This twin is controlled by you, audited in real-time, decentralized and secure. No one else has access to your digital twin unless you give them that access.
In the past, it would have been painful, time consuming, and unrewarding to manage and audit digital twins for an entire network. Today, with the help of new technologies (for example AI and IoT) it is possible to create a new form of accounting that makes managing and auditing digital financial twins not only possible, but easy and secure.
Double entry accounting enabled the verification of the balance sheet by an income statement and a cash flow. Synchronized Accounting adds in the real-time verification of the activities that are typically done during an audit such as identity proof, authorizations, legal agreements, rights, obligations and risks. It ensures that all of these are properly accounted for, or footnoted on any financial statement or report, and verifies them in real-time. It compares these with all counterparties in an atomic transaction that can never be out of sync. This means that all accounting matches the fact pattern and all counterparties agree on the same fact patterns.
Synchronized accounting goes beyond legal and financial records by including the workflows, states and transitions for processes as well. This enables the auditing and validation of information models via IoT, AI and physical verifications which ensures the model matches reality. When properly implemented in a series of workflows within a value chain, errors are easily detected and corrected. Fraud becomes so expensive as to be uneconomical in most cases.
The Sweetbridge Synchronized Accounting protocol provides the foundation for the open source, peer-to-peer, decentralized management and auditing of digital twins.
But, we are not just talking about managing digital twins within a company or enterprise, we are talking about managing them throughout an entire network or value chain. Synchronized Accounting provides a protocol for decentralized Inter-enterprise resource planning, continuous assurance, and control monitoring between entities throughout an entire value chain.
Synchronized Accounting gathers audit work papers and proofs in real-time, shares them between counterparties and regulators for approval and signature validation, and stores a record of these transactions as part of an entity's digital twin.