ICONOMI, the first global digital asset management platform, based on Ethereum technology, has become the world's first crypto company to have carried out a Proof of Solvency – a form of blockchain audit – performed by Deloitte, the largest Big Four professional services firm in the world.
ICONOMI is pleased to announce that it has become the first blockchain company to successfully perform a Proof of Solvency—a form of blockchain audit—on their platform. The Proof of Solvency (PoS) covered all the liabilities and reserves held by ICONOMI at the date of the platform snapshot (April 5, 2018). The blockchain audit combined the know-how of the Deloitte advisors from the financial industry, coupled with their technical blockchain expertise, to develop a best of both worlds approach tailored to the specifics of blockchain companies.
Gorazd Ocvirk, PhD, Director CE Blockchain Innovation Lab of Deloitte, stated: “We are pleased that ICONOMI decided to work with us to accomplish the first proof of solvency of a blockchain platform. We are especially proud of the fact that we are the first Big Four company delivering this service. We believe that this service can also become a blueprint for other blockchain companies looking to validate their assets to provide transparency to their investors.”
The first part of the process focused on liabilities. ICONOMI wanted to assure its users that their account balances on the platform were accurate. A merkle tree of all user accounts and balances was constructed in order to assure user anonymity while also giving each user the possibility to check his balance on the platform. The second part of the PoS covered the proof of reserves. Hereby all ICONOMI’s wallets (cold, hot and exchange) as well as fiat bank accounts were summarised and tested for ownership using a signature and transaction method. The final result of the blockchain audit proved that the ICONOMI platform is solvent, user balances are as reported and the reserves cover the liabilities.
ICONOMI believes that this independent review will without a doubt build not only investor confidence and transparency, but also trust in the crypto-economy as a whole.
Tim M. Zagar, Chief Executive Officer and co-founder of ICONOMI, stressed: “In an emergent and unregulated environment, we believe that this is a critical step in demonstrating the importance we place in trust, transparency and user security. With little formal regulation in place, it is crucial that those operating within the crypto landscape take it upon themselves to put in place the governance and controls required to ensure a sustainable future for the market. We will continue to build a global company that respects its clients’ and employees’ needs, meets the commitments that were made during our ICO and innovates to deliver an industry-leading service for users. With the audit by Deloitte, ICONOMI has set another milestone, which I believe will become a standard for all other companies in our industry and help us move towards better regulation of the whole market.”
Gorazd Ocvirk, PhD, Director CE Blockchain Innovation Lab of Deloitte, stated: “We are pleased that ICONOMI decided to work with us to deliver the first proof of solvency of a blockchain platform. We are especially proud of the fact that we are the first Big Four company delivering this service. We believe that this service can also become a blueprint for other blockchain companies looking to validate their assets to provide transparency to their investors.”
He also added:
“ICONOMI is the first and leading global digital asset management platform. Being a trailblazer in the field of digital asset management also means that ICONOMI’s responsibility towards its users is under more scrutiny compared to their classical and regulated asset management counterparts. As is often the case with the introduction of novel technologies, existing ways of doing things are not applicable, so new approaches are required that are tailored to the technology running the product. We have developed an approach to proof of solvency that takes into account the specifics of blockchain technology, through which we were able to prove that ICONOMI’s reserves are greater than their liabilities, meaning the user and DAA assets displayed on the blockchain platform are as reported and that ICONOMI has in its possession enough reserves to cover these liabilities. The balances of digital assets as shown on the ICONOMI platform for each user reflect the actual balances held by ICONOMI on behalf of its users. The so called ‘blockchain audit’ that Deloitte has performed is not only an important step towards building investor trust, but can also potentially be a first step towards a regulatory framework for crypto-based fund management platforms.”
ICONOMI has already delivered on the objectives it set out during its 2016 ICO. It is already profitable and delivering significant growth. In the past year, ICONOMI has continued to expand its team, invest further in its technology and establish new Digital Asset Arrays.