When a document can no longer be transformed – does trust then become a question of technology?
Trust is no longer created only by signatures, seals or a personal handshake. Today, the code also decides. And the systems that secure it. Blockchain technology can do something that classic IT systems cannot: it documents every change in an unalterable way – chronologically, traceable and in a way that is secure from tampering. Some also refer to the blockchain as a ‘truth machine’.
This is particularly critical in the financial sector, in legal advice and in the real estate industry. In fact, wherever documents need to endure – independently of persons or institutions.
McKinsey describes blockchain as a tamper-proof ledger (a digital, unalterable transaction directory) that enables a seamless and permanently verifiable data history – and thus does not demand trust, but technically establishes it.
This article shows how companies can use blockchain to meet regulatory requirements and reap further benefits.
Rethinking trust: blockchain redefines compliance
Compliance thrives on trust – but trust needs proof. And this is precisely where the problem begins: the more complex the regulatory requirements, the more difficult it becomes to document evidence in a complete, consistent and immutable way. Especially when it comes to audits, transactions or identity comparisons, many companies still rely on isolated systems, central databases or manual processes. This is a gateway for errors – and in the worst case: for manipulation.
Blockchain turns this principle on its head. It creates trust that is independent of individuals, systems or locations. Due to its decentralised structure, it does not store information in one place, but distributes it across many nodes. Each entry is automatically encrypted, time-stamped and stored in the chronology without gaps. Deletion? Impossible. Subsequent transformation? Only with the consent of all parties involved. This is precisely what makes it so valuable for compliance.
As mentioned at the beginning, McKinsey speaks of a ‘completely transparent data history’ that is available to companies in an audit-proof and retrievable manner at any time. For internal control systems, audit trails or regulatory audit processes, this means less effort, less risk – and above all: more security.
Roland Berger also emphasises the importance of this new trust model. According to their report, blockchain makes it possible to ‘secure transactions even without personal acquaintance or central intermediaries’. This does not replace trust, but ensures it from a technical point of view. This is particularly relevant in industries where proof of ownership, legally secure documentation or audit-proof archiving are required by law.
The concept behind it is as simple as it is radical: the system confirms the accuracy of the data, not a human being. And it does so every time a data record is created, transformed or shared. Seamlessly and tamper-proof.
Applications in finance, legal advice and real estate – today's possibilities
What is convincing in theory must stand up to practical application. And this is precisely where blockchain shows its potential: not as a technical gimmick, but as a concrete problem solver in regulated industries.
In finance, the pressure is particularly high. Money laundering prevention, KYC procedures (‘know your customer’), audit documentation – everything must not only be correct, but also fully traceable. Classic compliance systems often reach their limits here: media disruptions, manual audit steps and redundant processes cost time and increase risk. Deloitte Germany is therefore relying on blockchain-based identity certificates to make the KYC process faster and more secure. The actual personal data remains protected – only cryptographically anchored evidence is stored on the blockchain. This is how digital identities are created that can be used multiple times but cannot be copied. This is a clear advantage, also with regard to European regulatory projects such as MiCA (Markets in Crypto Assets Regulation).
The requirements are similar in legal advice, but the scenarios are often more complex. Contracts, evidence, deadlines – all of these depend on integrity and transparency. KPMG points out that blockchain is no longer only used in the financial sector: ‘Companies in a wide range of industries are faced with the task of rethinking their compliance structures for digital assets.’ Particularly in areas that are sensitive from a regulatory perspective, such as tax transparency, corruption prevention or ESG reporting, blockchain can help to securely link data sources – and thus safeguard liability-related processes.
The real estate industry is thinking one step ahead. The market is still considered slow, paper-heavy and full of intermediaries. But here, too, there is movement. Roland Berger describes the first applications in which transaction data – such as change of ownership or financing confirmations – are documented via blockchain and automatically made verifiable. The goal is nothing less than a digital land registry. There are still legal hurdles, but the direction is clear: if ownership transfers no longer take place on paper, but via smart contracts (e.g. digital contract logic as a self-executing program on the blockchain), processes will not only be faster and more secure – for buyers, sellers and supervisory authorities alike.
From vision to reality: success factors for using blockchain in companies
The direction is clear – but implementation remains challenging. Although the potential of blockchain in compliance management is visible, many companies are still hesitant. Often because they are unsure how the technology can be meaningfully integrated into existing structures. Or because they lack suitable fields of application. Both issues can be resolved – with a clear strategy and the right approach.
The most important success factor? Realistic goals. Blockchain is not a panacea. But it can demonstrably improve certain compliance processes – especially where traceability, integrity and verifiability of information are of the utmost importance. The key, therefore, is to prioritise in a targeted manner: Where do particularly high risks or costs arise from media disruptions, manual verification processes or recurring identity checks?
McKinsey specifically recommends starting with pilot projects in areas such as KYC, audit trails or document-based approval processes – in other words, where blockchain can fully exploit its strengths in the ‘forgery-proof audit log’. The advantage is that the technology can often be introduced in parallel with the existing system – without a complete overhaul.
A second success factor is regulatory clarity. The EU has already created the first framework conditions with MiCA and the Electronic Securities Act (eWpG). Companies should involve their legal department or external advisors at an early stage to ensure that data protection, IT security and governance are properly mapped. This is precisely where it becomes clear that blockchain is not a purely technical issue, but a strategic question of collaboration – between legal, IT and compliance.
Thirdly: acceptance within the company. A technology is only as strong as its application scenario. Classic change management is required here. The best use cases usually arise where interdisciplinary teams work together. Roland Berger emphasises that new standards in digital trust are emerging, particularly in conjunction with other tools – e.g. digital identities, AI-supported forensics or smart contracts.
So, experiment with blockchain – not for every process, but for the right ones.
Conclusion
Blockchain is not a vision for the distant future. It is already solving problems that many companies have long since accepted – excessive documentation efforts, too many control instances, too little transparency. Whether for KYC processes in finance, for audit-proof evidence in legal advice or in the digital processing of real estate transactions: the technology works and is efficient – if used correctly.
What is needed now are not more arguments in favour of blockchain, but decision-makers who take the first step. After all, those who wait for the competition to move first will lose the leeway to actively shape processes.
Numeris Consulting brings together technological understanding and the right contacts – to ensure that companies not only find talent, but people who can truly drive digital change in the compliance area.
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