Blockchain technology : addressing the risk of digital assets exchange

Thomas, Mari (2018-03)

Thesis (MAcc)--Stellenbosch University, 2018.

Thesis

ENGLISH SUMMARY : Blockchain technology is a complicated and emerging technology affecting the way business is performed. Blockchain is a decentralised transaction and data management technology which was first introduced through the Bitcoin cryptocurrency. Ever since the introduction of Bitcoin in 2008, interest in the blockchain technology has grown significantly. This is mainly due to the fact that this technology has the ability to eliminate the role of trusted third parties with regards to security, anonymity and data integrity aspects. The purpose of this study was to provide a matrix which can be used as a quick reference to indicate the various blockchain characteristics and how they address identified risks with the exchange of digital assets and subsequently assist in achieving the control objectives of a business. Furthermore, additional risks were identified which potential users need to take into consideration before implementing the blockchain technology. The matrix was developed by first identifying the significant inherent risks of digital asset exchange, namely trust, repudiation, double-spending and theft, including fraud. An understanding of how the blockchain technology works was obtained through performing a detailed literature review, from which the key characteristics of the blockchain technology was identified. This was utilised to provide a matrix for potential users on how a specific blockchain characteristic has the ability to address the identified significant risks of digital asset exchange and to achieve the control objectives of a business. Additional risks were derived from the matrix and further literature work carried out to identify the additional risks which needs to be considered before the implementation of the blockchain technology. By utilising the matrix provided, various industries will be able to evaluate whether the blockchain technology will assist them in addressing their specific risks and achieving their control objectives.

AFRIKAANSE OPSOMMING : Blockchain-tegnologie is 'n gekompliseerde en opkomende tegnologie wat die manier hoe besigheid uitgevoer word affekteer. Blockchain is 'n gedesentraliseerde transaksie- en databasis-bestuurstegnologie wat die eerste keer deur die Bitcoin-kripto-geldeenheid bekendgestel is. Sedert die bekendstelling van Bitcoin in 2008 het belangstelling in die blockchain-tegnologie aansienlik gegroei, hoofsaaklik vanweë die feit dat die tegnologie die vermoë het om die rol van vertroude derde partye uit te skakel met betrekking tot sekuriteit, anonimiteit en data-integriteit. Die doel van hierdie studie was om 'n matriks te verskaf wat as 'n vinnige verwysing gebruik kan word om die verskillende blockchain-eienskappe aan te dui en te toon hoe dit die geïdentifiseerde risiko's met die oordrag van digitale bates aanspreek en gevolglik beheerdoelwitte van die besigheid bereik. Verder is die oorblywende risiko's geïdentifiseer wat potensiële gebruikers in ag moet neem voordat die blockchain-tegnologie geïmplementeer word. Die matriks is ontwikkel deur eerstens die beduidende inherente risiko's van digitale bate-uitruiling te identifiseer, naamlik vertroue, repudiasie, dubbelbesteding en diefstal, insluitend bedrog. 'n Begrip van hoe die blockchain-tegnologie werk is verkry deur 'n uitgebreide literatuuroorsig te doen, waaruit die sleutelkenmerke van die blockchain-tegnologie geïdentifiseer is. Dit is aangewend om 'n matriks vir potensiële gebruikers te verskaf, wat verduidelik hoe 'n spesifieke blockchain-kenmerk die geïdentifiseerde beduidende risiko's van digitale bate-oordrag kan aanspreek en kan help om die besigheid se beheerdoelwitte te bereik. Oorblywende risiko's is afgelei van die matriks en deur die uitvoer van ʼn verdere literatuuroorsig is die oorblywende risiko’s geidentifiseer wat oorweeg moet word voor die implementering van die blockchain tegnologie. Deur van die matriks gebruik te maak, sal dit verskeie industrieë in staat stel om te evalueer of die blockchain-tegnologie hul spesifieke risiko's sal aanspreek en hul beheerdoelwitte sal bereik.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/103531
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