An attestation ledger is nothing but an accounting document purporting to give proof of already transpired legal transactions. Such financial dealings are clearly financial activities that have to be documented either by simply written account-keeping or by complex computerized ledgers. Even the general ledger of a business isn’t quite the modern attestation ledger yet, though, because it’s tied to only one account. Blockchain technology, however, has the potential to greatly simplify such tasks as cash registers, asset ledgers, and balance sheets, among others.
A typical attestation ledger has two parts: Master Ledger, which is the actual ledger used for recording all financial transaction information, and the Block Ledger, which is basically a digital record, or ledger, of such information. The transactions themselves go through a series of blocks or ledges, which must be carefully identified and kept in chronological order. In some cases, certain blocks may be shared between Master Ledger and the Block Ledger. This way, all financial transaction information recorded in the two can be processed and monitored simultaneously.
The term “attestation ledger” is currently a somewhat misnomer. Basically, it’s simply a ledger record that provides evidence of a particular transaction, often in the form of a tax declaration. It may also provide statements of account, as well as a standardized format for recording, maintaining, and comparing financial transactions, called “blockchain technology.” The term was first popularized by Max Kiehne in 2021 when he used the term in his book Taxation without Attestation. The book was later made available as an e-book and then as a paperback. As such, it remains a bestseller.
Basically, the attestation ledger provides a standardized method for recording financial transactions as they occur. With blockchain technology, the only thing that is required is that there is a ledger document containing the necessary information to prove the validity of a given transaction. Thus, this type of financial transaction proof is completely legal. The recording and evaluation of such proofs are done by licensed and regulated banks, including Bank of America, Chase Manhattan, and Wells Fargo.
There is a possibility that this technology will one day be adopted as the primary method of recording and tracking all types of financial activity. In the meantime, an attestation ledger providing banks with this specialized information is available in various forms. For instance, there is the Certified Transactional Record, or CTR, from the Society of Certified Public Accountants or SVPAs. Another form is the Unites States Uniform Administrative Procedure or UAP, from the Internal Revenue Service. The most common method of attestation, however, remains the traditional attestation ledger, from which a business entity is granted its certificate of identity or HIPAA. Attestation of the transaction is only granted upon signed individual forms that bear the seal of a regulatory body that accredits the financial activity involved.
The risks associated with attestation ledger technology are, however, unique and very significant. A major threat is that an individual who knows how to make use of the system may be able to commit fraudulent transactions and create false credits or debits in his own personal account books. Also, some businesses are trying hard to build their systems to avoid having this kind of issue, while others are working to build systems that allow for the attestation of individual transactions, but do not store the entire transaction history in a single file.