Accenture 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” […]
