Blockchain’s transparent nature enables all participants to have visibility into the data recorded on chain. Every transaction and data update is traceable, providing a complete audit trail. Authenticity and provenance of data creates confidence in its accuracy and reliability. This transparency fosters trust among stakeholders, as they can independently validate the data and its history.

Immutability plus transparency do not equate to validity. Data must be organized and validated prior to storing on blockchain. Additionally, the validity of the data must be maintained over time. Adding a validation layer to certify the accuracy of the data will lead to reduced friction, delays, incremental costs and potential disputes in the secondary markets, increasing the portability of the asset.

The ability for a blockchain ledger to remain a permanent, indelible, and unalterable history of transactions has the potential to transform auditing/due diligence processes into quick, efficient, and cost-effective procedures, and bring more trust and integrity to the core data.