Aurigraph DLT with Realtime Reconciliation and Audit in Government and Enterprise
In government, disbursement of funds under various centrally sponsored schemes is carried out through the appropriate ministry, state departments and implementing agencies, before reaching the actual beneficiaries.
The Problem Statement
To ensure timely and appropriate delivery of funds and services, its essential to track the services delivery and funds disbursement. This requires financial reconciliation of accounts on a daily basis and periodic physical and financial audit. However, Reconciliation is a very tedious and laborious task to tally each transaction across each stakeholder. Further, the transaction updates are susceptible to human error or Fraud risk. The cost of such Administration and Accounting is estimated to be 15–23%.
To verify unreconciled transactions, especially time-spaced transactions, periodic audits are required to verify outstanding transactions. However, Audits cost at least 8% of the entire value-chain or eco-system. Thus, the overall cost of administration, accounting and audit ranges from 23–30% of the operational cost of an eco-system.
A simplified workflow is depicted below to represent the physical and financial tracking in a centrally sponsored scheme that is to deliver welfare or benefit to the designated beneficiary and the physical and financial tracking. Aurigraph platform support Real-time reconciliation and audit across multiple stakeholders and their ledgers which will ensure complete transparency and immutability of any transaction, right from the Central Treasury to the implementing agency, till the beneficiary receives and acknowledges the benefits at a fraction of the cost of the Administration, Accounts and Audits.
Aurigraph offers to develop, train and deploy Decentralized Apps (DApps) for each of the stakeholders. Aurigraph Distributed Ledger (Blockchain) offer Zero-latency with near zero cost of the transaction, while being able to support over 100000 Transactions/second, thus breaking all barriers and challenges in scaling, latency and atomicity. Further, such a solution can reduce the risk of human error and fraud to near-zero.
Figure 1 Overall workflow for Government of India
How does it work
Aurigraph will setup the Distributed Ledger and data channels for all bespoke DApps with embedded Node and Redhat Fuze. The bespoke DApp, developed on customer requirements and integrated with Node to communicate and achieve decentralized consensus on Aurigraph DLT platform after Reconciliation and Audit. Redhat Fuze will help integrate with existing Applications using REST APIs to complete rapid solution integration with existing Enterprise applications and data sources at customer location.
The DApps will conduct P2P transactions which will be then be reconciled by a leader within the channel and then put through the Aurigraph consensus protocol by both the parties, the ledger is updated and the two parties receive a digitally signed receipt by a digital, neutral notary is sent to both the parties as evidence of reconciliation and audit, thus closing the transaction.
Also, unlike conventional blockchain solutions, Aurigraph is not resource-intensive and can operate on mobile phones running Android/iOS and desktops running Windows, Linux or MacOs
Figure 2 How does Aurigraph work
· Real-time Fund flow tracking and prediction
· Real-time reconciliation of transactions by the Decentralized and Distributed Ledger platform — saving 15–20% operational cost
· Real-time Audit with the generation of digitally signed receipt to both the transacting parties — saving 8% operational cost
· Reduce risk of human error and fraud risk
· Extremely high scalability — Over 100000 transactions/s
· Mining-less DLT, hence no cost of energy for transaction validation
· Sub-second Latency in validation, consensus and Ledger Update after reconciliation and audit
· End-to-end Post-quantum security to ensure data protection.
· Real-time backup of Nodal data to a cloud account (optional)
· Low transaction-based pricing model, hence high RoI and low ToC
· Easy to build and maintain Dapps