ABC Financial Reports

1. Summary

Financial statements are several documents of which purposes are different each other: Balance Sheets, Income Statements, Cash Flow Statements and so on. So does ABC reports.

ABC is not just financial statements, but a social system from banking to legislature and justice system of a nation. The basis of ABC is financial reports which are log files of economic entities in special formats, quite similar to current financial statements, but also quite different in many aspects.

For example, Alice, a citizen, is an economic entity, which may earn and spend money. An autonomous taxi is also an economic entity as it earns money from passengers and spends money at charging stations. Those economic entities record their daily activities in their log files or SQLite database.

The autonomous taxi above may record where it had picked up a passenger, drive to where by way of which route, its speeds, used electricity, fee revenue, where and how much it charged electricity and so on. All those activities are recorded in its log files, and some data among those records are financial. ABC financial reports are those financial data in special formats.

Openhash

Yes, one of the key differences between current financial statements and ABC financial reports is that the latter is openhashed.

2. ABC Accounting Principles

The accounting principles of ABC are quite different from current prevailing ones, GAAP.

1. Entirety

Different from current financial statements, ABC records all financial transactions regardless of their amounts. This is for Openhash algorithm, which protects data by data. Transaction data are protected by other kinds of log data, and data of a few large payments are protected by those of a number of small payments.

2. Interconnectivity

There are 8 billion people in the world. ABC can automatically generate financial reports for all of them only if they use ABC digital currency. Not only humans, but machines and facilities also have their financial reports such as the example of an autonomous taxi.

The most unique feature of ABC financial reports is that all those reports or documents are interconnected. Imagine a beautiful patterned fabric woven with countless threads. Wouldn't it be noticeable right away if one of those threads broke?

Like the fabric, billions of financial reports are woven to one giant report. If one report is forged or corrupt, it will be noticed in a millisecond.

3. Verification before payment

If Alice buy something from Bob, and she want to pay the price, ABC verifies the soundness of the transaction. If Bob want to sell a pencil of which fair market price is $1, the money Alice pays to Bob should be in reasonable range of the price. If Bob asks $100 for the pencil, ABC may reject the payment and the money is not transferred from Alice's account to Bob's.

ABC records and continuous updates the fair market prices of numerous products in the world. This process is done automatically because all transactions record what kinds of products are traded at what prices.

3. Procedures

As said, all the activities of an economic entity are recorded in its log files and SQLite database installed in its linux machine. Among those log data, only financial data or transactions are recorded in its financial reports.

1. Transaction Reports

ABC is the money used in all the transactions. The first document to record a transaction in the format including;

• Seller and Buyer ID

• Product Name, Quantity, Price per Unit in ABC

• Where and when contacted

• How to deliver to where and when

Of course, all the data are openhashed.

2. Income Statement(IS) & Balance Sheet(BS)

When price is paid, the transaction reports are added to the IS and the BS of both seller and buyer.

4. Digital Signature & ABC

All payments are in ABC,, and all transactions are verified by the digital signature of both buyer and seller.

5. Openhash

Let's see how a transaction data is openhashed.

1. When Alice buys a product of Bob, the transaction details are automatically generated such as price, quantity, seller ID etc.

2. The data is sent to an ABC bank such as ABC Bank Korea if she is a Korean with her digital signature and the hash of the transaction data, and the bank verifies her signature before transfer the amount from Alice's account to that of Bob.

3. After verification, the bank generates a hash from the two hashes from Alice and Bob and the last hash of the bank.

4. The bank, ABC Bank Korea, sends its last hast to ABC Bank which interweave its last hash with that and returns the new last hast to ABC Bank Korea.

5. The bank, ABC Bank Korea, interweave its last hash with the hash from ABC Bank, and send the resulted hash to Alice and Bob to confirm the payment and to update their last hashes respectively with the bank's last hash.

Let's see what happens here.

• First, both Alice and Bob update their hash chain with the new hash from the transaction.

• Second, the bank also updates its hash history with the hashes sent from Alice and Bob.

• Both Alice and Bob can't change its hash history because their last hashes are sent to bank with the serial numbers.

• The bank also can't change its hash history because its last hash is incorporated into those of Alice, Bob and ABC Bank.

Whose financial reports should be changed to forge that of Alice?