According to Commissioner Caroline A. Crenshaw remarks:
There are media reports that public companies are purchasing digital assets with corporate cash, or accepting digital assets as a form of payment. Such decisions raise a whole new set of internal controls questions, including whether and what internal accounting controls are in place to safeguard those assets from unauthorized use or other custodial risks. It would seem beneficial for companies transacting in digital assets to consider instituting robust processes that validate custody, verify transactions and protect assets from ransomware events. Otherwise, it could be difficult to authorize and account for the transactions. I think it is critical for companies to consider, among other things, whether the internal accounting controls frameworks safeguarding these assets are working, how they need to be modified from existing frameworks applied to transactions in fiat currencies, and what changes need to be implemented, if any.
Dapplication tech is committed to helping users to overcome those deficiencies. We are developing smart contracts that prioritise your crypto assets protection. There are many exciting things coming your way!
Smart contracts are computer programs that are hosted and executed on a blockchain network. Each smart contract consists of code specifying predetermined conditions that, when met, trigger outcomes. By running on a decentralized blockchain instead of a centralized server, smart contracts allow multiple parties to come to a shared result in an accurate, timely, and tamper-proof manner.
Smart contracts are a powerful infrastructure for automation because they are not controlled by a central administrator and are not vulnerable to single points of attack by malicious entities. When applied to multi-party digital agreements, smart contract applications can reduce counterparty risk, increase efficiency, lower costs, and provide new levels of transparency into processes.
Insurance
Parametric insurance is a type of insurance where a payout is tied directly to a specific predefined event. Smart contracts provide tamper-proof infrastructure for creating parametric insurance contracts that trigger based on data inputs. For example, crop insurance can be created using smart contracts, where a user purchases a policy based on specific weather information like seasonal rainfall in a geographic location. At the end of the policy, the smart contract will automatically issue a payout if the amount of rainfall in the specific location exceeds the original stated amount. Not only do end-users receive timely payouts with less overhead, but the supply side of insurance can become open to the public via smart contracts. The smart contract allows users to deposit funds into a pool and then distributes collected premiums to pool participants based on the percentage of their contribution to the pool.