Accenture Debuts Prototype of ‘Editable’ Blockchain for Enterprise and Permissioned Systems
September 20 2016 - 3:57AM
Business Wire
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
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.
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Accenture has created a prototype of an
editable blockchain capability for permissioned systems based on a
modified chameleon hash function developed with Dr. Giuseppe
Ateniese (Graphic: Business Wire)
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.
Real-World Demand
The need for redaction capabilities in permissioned blockchain
systems recently surfaced when tens of millions of dollars were
reported stolen from another digital currency system due to coding
problems in a ‘smart contract’ – a software program that resides on
blockchains and automatically executes transactions when pre-agreed
events take place.
“As blockchain solutions gain momentum in financial services and
other industries, more and more real-world situations will emerge
where information on blockchains simply needs to be modified or
removed,” said David Treat, managing director of Accenture’s
capital markets blockchain practice. “Our solution makes it
possible to deal with situations in a predictable fashion when
things go wrong and to meet new and changing regulatory and legal
requirements, like the ‘right to be forgotten’ and other
data-privacy and retention rules. An editable form of
blockchain will make the technology more practical and useful for
enterprise systems and accelerate its adoption. It combines the
confidence that comes from immutability with the pragmatism
required in an imperfect world.”
“The clever work of the bitcoin creators and leaps of progress
in applied cryptographic research are opening the door to bold new
uses of blockchain,” said Dr. Giuseppe Ateniese, a leading
cryptographer and professor of computer science at The Stevens
Institute of Technology. “By modifying the traditional ‘chameleon
hash’ function we can preserve the strength of the original
blockchain while making it even more useful. Unlike a traditional
database, our solution is compatible with current blockchain
frameworks and works in a decentralized and accountable
environment.”
Further detail on the need for an editable blockchain is
available in Accenture’s newly published report “Editing the
Uneditable Blockchain: Why distributed ledger technology must adapt
to an imperfect world.”
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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AccentureSean K. Conway, +
1-917-452-7116sean.k.conway@accenture.comorLara Wozniak, +
1-852-6027-3966lara.wozniak@accenture.comorErfan Hussain, +
44-207-84-43172erfan.hussain@accenture.com
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