Accenture Debuts Prototype of 'Editable' Blockchain for Enterprise and Permissioned Systems
Invention addresses blockchain 'immutability' challenges for permissioned systems, including the legal 'right to be forgotten,' human error, illegal actions
Co-developers Accenture and Dr. Giuseppe Ateniese register U.S. and E.U. patents
NEW YORK, LONDON, HONG KONG; Sept. 20, 2016 - Accenture (NYSE: ACN) has created a prototype of a new capability that enables blockchain technology to be edited under extraordinary circumstances to resolve human errors, accommodate legal and regulatory requirements, and address mischief and other issues, while preserving key cryptographic features. The prototype represents a significant breakthrough for enterprise uses of blockchain technology particularly in banking, insurance and capital markets. The invention is designed for 'permissioned' blockchain systems, which are managed by designated administrators under agreed governance rules. The invention is not designed for 'permissionless' systems, like the cryptocurrency system supporting Bitcoin, which is open and decentralized and where the absence of a single governing authority makes absolutely permanent, or 'immutable,' recordkeeping vital. 'As we focus on new uses for blockchain technology beyond the realm of cryptocurrency, absolute immutability will become both a virtue and a vice,' said Richard Lumb, group chief executive - Financial Services at Accenture. 'For decentralized cryptocurrency systems, such permanent accounting has been crucial in building trust and faith among participants. But for financial services institutions faced with a myriad of risk and regulatory requirements, absolute immutability is a potential roadblock. Our invention strikes a balance for enterprise use that preserves the fundamental value of the technology while enabling enterprise adoption.'
How the Editable Blockchain Works The invention provides an alternative to existing blockchain technology. Blockchains are immutable to users of the system but, when necessary, designated administrators acting on agreed rules of governance can edit, rewrite or remove blocks of information without breaking the chain. It does this by using a new variation of what is known as the 'chameleon' hash function, which can recreate algorithms that link two separate blocks through the use of secure private keys. The invention also offers a capability where any edit made to a block leaves an immutable 'scar' to indicate that the block was altered. Accenture and co-developer Dr. Giuseppe Ateniese have filed patent applications for the invention in the United States (US 15/253,997) and the European Union (EP 164 250 86.2).
Accenture will present the invention next week at Sibos 2016 (Booth C69) in Geneva, Switzerland.
Editor's note With conventional blockchain technology, if someone attempts to make a change to a block, they 'break the math,' or chain of algorithms, that holds the blocks of information together. Unless a sufficient number of participants accept the change, the system essentially rejects it, leaving the blockchain intact and creating an evidence-trail of tampering. If a sufficient number of participants agree to the change, a fork can be added, with one prong ending on or diverging from the faulty block and another prong continuing onward from the corrected block. After a block has been corrected all subsequent blocks must be reconstructed, which can be disruptive and costly and, in some cases, practically impossible.
About Accenture Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions - underpinned by the world's largest delivery network - Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With more than 375,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at www.accenture.com.
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Contacts: Sean K. Conway Accenture + 1 917 452 7116
sean.k.conway@accenture.com Lara Wozniak Accenture + 1 852 6027 3966
lara.wozniak@accenture.com Erfan Hussain Accenture + 44 207 84 43172
erfan.hussain@accenture.com
Accenture plc published this content on 20 September 2016 and is solely responsible for the information contained herein.
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