Data Vaults for Blockchain-Empowered Accounting Information Systems

Abstract

When designed, technologies and frameworks are not created to be as dynamic and flexible as to cater to the requirements of other domains, and so is the case with Blockchain technology. Specifically designed for cryptocurrency, Blockchain was not intended to be used in other domains. However, during the past few years, critics argued that Blockchain has the potential to deal with some unique requirements like confidentiality and immutability and can therefore be deployed in several areas other than cryptocurrency. The use of Blockchain to support Accounting Information Systems (AIS) through enterprise resource planning (ERP) is another motivating domain to investigate in this research. ERP is another promising technology that has gained significant attention across the globe. In this research, a hybrid solution is proposed to ensure AIS data integrity against any deliberate attempt or mala-fide intention for alteration or deletion from the database that can be verified at any later stage. Since Blockchain can be used to prevent any mutability in the stored data, the proposed solution presents a concept of Data Vaults backed by the Blockchain. To this end, we apply cryptographic primitives like SHA256 on the data inside the block and then chain that block to secure data vaults. So far, Blockchain has not yet proven itself as an alternative to any traditional database system. However, it can be applied in conjunction with the Relational Database Management Systems (RDBMS) to provide cost-effective yet robust solutions. This research demonstrates the application of a simple and lean version of Blockchain to assist enterprises in storing their financial and accounting data into data vaults, ensuring their data integrity against any alterations. The suggested cost-effective framework can be easily integrated into AIS and ERP systems to identify data breaches.