The operational advantages of permissioned blockchains utilize collaborative, private, immutable, append-only distributed ledgers to strategically optimize business results. Accordingly, the importance of related IT governance frameworks is growing. Strategic IT governance, especially regarding permissioned blockchains, is crucial to accurate, valid, and complete accounting data. And while permissioned blockchains such as Hyperledger Fabric, Corda, and Quorum can enhance business collaborations, attention to IT governance is critical. Reviewing blockchain IT governance is necessary if the benefits of encryption, hashing, and distributed ledgers are to be realized. Understanding the potential weaknesses of flawed capacity planning (computational and storage), cybersecurity risks, litigation uncertainty, regulatory refutation, and smart contract vulnerabilities is key. Exacerbating the situation is that many ofthese weaknesses are likely to grow as permissioned blockchains propagate. If internal auditors do not preemptively address these IT governance issues, both management and internal auditdepartments could fail their stakeholders.
Research Article| May 22 2020
IT Governance Considerations for Permissioned Blockchains
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Jose, Victor Lineros; IT Governance Considerations for Permissioned Blockchains. Journal of Emerging Technologies in Accounting doi: https://doi.org/10.2308/JETA-19-12-01-49
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